A management consultancy licence lets a foreign owned company sell advisory services from a UAE free zone. This guide covers what the licence covers, the office and approval position, and the corporate tax points consultants often miss.
A management consultancy licence lets a company sell advisory services such as strategy, operations, HR, marketing and IT advice. UAE free zones issue it to foreign owned companies, which makes it a common choice for a solo consultant or a small advisory firm that wants a UAE company without a local partner.
Each free zone publishes its own activity list, so the wording differs. Meydan Free Zone says its consultancy licence covers advisory services in strategy, operations, HR, marketing, IT and more, and that you may group up to three business activity categories under one licence. IFZA lists activities under its consultancy licence that include offering administrative consultancy and studies for performance improvement. Match the activity names to what you actually sell before you apply, and ask the free zone whether a second activity can be added later.
The Federal Tax Authority guide says a free zone person, including a qualifying free zone person, should register for corporate tax, and that failing to apply on time results in administrative penalties. Registration is required even where the rate may be 0%.
The 0% rate applies only to a qualifying free zone person on qualifying income. Ministerial Decision No. 229 of 2025 sets out the qualifying activities, and the list covers items such as manufacturing, processing, holding of shares, fund management and logistics services. Management consultancy is not named on that list. The same decision treats transactions with natural persons as an excluded activity in most cases.
A free zone person that does not qualify is taxed at the standard rates: 0% on taxable income up to AED 375,000 and 9% on taxable income above that. A qualifying free zone person does not get the AED 375,000 band. Which treatment applies to your consultancy depends on your clients, your contracts and how the company is set up. A tax adviser in the UAE should confirm how your own income is treated. If you are tax resident in another country, you also need advice there, because the UAE company does not change your home country position.
The UAE government portal says free zone companies are allowed to operate within the free zone and internationally, and that selling directly on the mainland may need a local distributor or additional approvals or arrangements. In Dubai, Executive Council Resolution No. 11 of 2025 lets a free zone company operate outside its zone if it obtains the necessary licences or permits from the Department of Economy and Tourism. The Dubai Government Media Office says the first phase of the Free Zone Mainland Operating Permit covers non regulated activities including consultancy, costs AED 5,000 for six months, and brings 9% corporate tax on the related revenue with separate financial records.
Meydan Free Zone says you need a valid passport, a visa or entry stamp, a passport photo and the business activities you have chosen. Its process runs: submit your activity and name options, receive your licence and legal documents, open a bank account, activate immigration, apply for visas and get your Emirates ID. Other zones follow a similar order but differ on timing, approvals and visa quotas, so ask each one for a written step list.
DBC packages start from USD 1,948 (AED 7,150) in AFZ and from USD 5,313 (AED 19,500) in Meydan Free Zone. The right zone depends on your activity, your visa needs and whether you want a Dubai address. You can see every zone and add visas on /pricing or work out an estimate on /pricing/calculator.
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A UAE free zone company pays 0% Corporate Tax only on qualifying income, and only if it meets every condition of a Qualifying Free Zone Person. Income outside that, or a failed test, brings 9% or the standard rules.
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