Dubai’s technology sector is booming, supported by national strategies such as the UAE Digital Economy Strategy, which aims to double the digital economy’s contribution to the UAE’s GDP from 9.7% in 2022 to 19.4% in 2031. To operate legally in this growing market and build trust with clients, IT firms must obtain the right licence. This guide explains how to get an IT consulting license in Dubai, compares free‑zone and mainland options, breaks down costs, and offers insider tips so your consulting firm can launch smoothly.
Why you need IT consulting license
Dubai hosts thousands of technology companies and continues to attract strong foreign direct investment into IT and digital-economy activities, according to official national investment strategies. This environment offers opportunities for IT specialists, but it also requires regulatory compliance.
An IT consulting license (often called a professional licence) allows you to legally provide technology advisory, systems integration, network security and other consultancy services. Without a valid licence, you risk regulatory penalties and may find it difficult to open bank accounts, hire employees or work with larger corporate and government clients.
Free zone vs mainland: choosing the right jurisdiction
Your first major decision is where to register. Dubai offers two main routes:
| Factor | Mainland licence | Free‑zone licence |
|---|---|---|
| Market access | Unrestricted access across all seven emirates; you can serve government entities and local corporates | Primarily within the chosen free zone, to conduct business in the UAE mainland, you generally need to work through a mainland-licensed entity (such as a local distributor/agent) or establish a separate mainland company. |
| Ownership | 100 % foreign ownership since 2021 reforms | 100 % foreign ownership (always guaranteed) |
| Setup cost | Determined by the relevant Department of Economy or free-zone authority based on activity, legal form and office type. You should refer to the current official fee schedule or request an official quotation for accurate figures | |
| Visa quota | Determined by the authority and typically linked to your office size or package. For example, some free zones limit a flexi-desk to around three visas, while larger dedicated offices can support higher quotas | |
| Office requirement | Must lease registered office or flexi‑desk and register through Ejari | Flexi‑desk, virtual or dedicated offices available |
| Processing time | Depends on the authority, activity and completeness of your documents. Many free zones and mainland departments aim to issue licences within a small number of working days, but no fixed timeframe is guaranteed. | |
Which is best?
If you need to trade with clients across the UAE or work with government agencies, a mainland license is essential. For many startups and solopreneurs, free‑zone licences offer lower costs, 100 % ownership and remote setup. Popular free zones for IT consultancy include Dubai Multi Commodities Centre(DMCC), Dubai Silicon Oasis, Dubai Internet City and the International Free Zone Authority(IFZA). Some free zones allow you to combine different activity types (for example, professional IT consultancy and certain commercial trading activities) under one licence, but others require separate licences. You need to check the rules of your chosen free-zone authority.
Activities covered by an IT consulting licence
An IT consulting license permits a wide range of services, including:
- IT consultancy: advising businesses on networks, email systems and data exchange, and facilitating subscriptions for communication services.
- Network services: designing, analyzing and securing computer networks; implementing network infrastructure and system setups.
- Minimum qualifications: Bachelor’s degree in computer science or IT and three years’ experience.
- Internet consultancy: creating digital strategies such as search‑engine optimisation (SEO) for clients’ online presence.
- IT infrastructure consulting: building or upgrading infrastructure, including servers, databases and cloud solutions.
Costs and financial requirements
Licensing costs vary by jurisdiction, company size and visa needs. Based on recent information:
Registration and licence fees
- Company name and trade licence: AED 5,500–15,000 depending on the free zone or emirate. Mainland professional licences average AED 15,000–17,000.
- Licence issuance: Free‑zone licences (e.g., DMCC) cost around AED 7,500.
Check out our business setup cost calculator to get an estimate of the cost of license.
Office space
Leasing a physical office or flexi‑desk is mandatory for both mainland and many free‑zone setups. Costs range from AED 8,000–15,000 annually for a flexi‑desk up to AED 50,000 for a serviced office. Some free zones include co‑working space within the licence package.
Visa expenses
Each employee or partner visa typically costs AED 3,000–7,000, covering medical tests, Emirates ID, and stamping. Free‑zone packages often bundle a certain number of visas; additional visas require upgrading your office space or package.
Other costs
Factor in government approvals, attestation of qualifications, Chamber of Commerce registration (AED 1,000–2,000), and business setup consultancy fees if you hire professionals to handle documentation. Total first‑year costs can reach AED 29,000–47,000 for free‑zone and AED 32,000–47,000 for mainland setups.
Step‑by‑step process to obtain an IT consulting licence
The application process differs slightly between free‑zone authorities and the DED, but the core steps are similar:
1. Initial consultation and planning
- Define your activities and jurisdiction. Decide whether you will operate in a free zone or mainland, and choose a zone aligned with your sector (e.g., DMCC for commodities tech, Dubai Internet City for digital services). Clarify whether you require a visa package and office space.
- Engage an advisor (optional). While not mandatory, professional consultants or firms like Bestax can save time by recommending the best structure, assisting with paperwork and ensuring compliance.
2. Trade name reservation and initial approval
- Reserve a business name that complies with UAE rules no offensive terms or religious references. Have several options ready; names similar to existing companies may be rejected.
- Submit an application for initial approval (AED 220 for mainland). Free zones often integrate this into their packages.
3. Assemble documentation
Collect and notarize the following documents:
- Passport copies (valid for at least six months).
- UAE entry stamps or visa copies if you are a resident.
- Educational certificates relevant to IT (bachelor’s degree minimum); certificates must be attested by your home country, the UAE Embassy and the UAE Ministry of Foreign Affairs.
- Professional experience letters (minimum three years’ experience).
- No‑Objection Certificate (NOC) from your current employer (if applicable).
- Business plan describing services, target market and financial projections—mandatory for some free zones and DED.
4. File the licence application
- Submit the completed application, passport‑size photographs and all required documents to the chosen authority. If applying through a free zone, you will register shareholders on the portal; DED applications may require physical visits.
- Pay the licence and registration fees; some authorities require a bank or cashier’s cheque.
5. Sign legal documents
Upon approval, you will receive digital Memorandum of Association/Articles of Association for e‑signing. Mainland companies must also sign service agent agreements if they appoint a local representative.
6. Lease office space and register Ejari
- Secure a physical office or flexi‑desk. Mainland setups require you to register your lease with Ejari (Dubai) or equivalent systems.
- Free‑zone applicants can often choose virtual offices or co‑working packages.
7. Obtain a visa and an establishment card
- Once the licence is issued, apply for an establishment card and visas for partners and employees. This step includes medical tests, Emirates ID registration and visa stamping.
8. Open a corporate bank account and register for tax
- Select a bank familiar with your free zone or business centre; prepare your licence, MOA and business plan. Expect the process to take 2–6 weeks.
- Register for VAT if you expect your turnover to exceed AED 375,000 per year.
Qualifications and eligibility
Dubai requires IT consultants to demonstrate qualifications and experience:
- Education: A bachelor’s degree in IT, computer science or a related field is typically required; free‑zone authorities may accept equivalent professional certifications.
- Experience: A minimum of three years’ industry experience is necessary; some free zones demand 5 years or more.
- Certifications: Credentials like PMP (Project Management Professional), CISSP (Certified Information Systems Security Professional) or AWS Certified Solutions Architect strengthen applications and can compensate for limited formal education.
In rare cases where the DED rejects an application due to insufficient qualifications, applicants can bolster their profile by obtaining industry certifications and providing detailed reference letters.
Timeline and processing duration
- Free‑zone licence: Typically issued within 2–5 business days after document submission. Visas take another 5–7 days.
- Mainland licence: Processing is 7–14 business days, with visas issued afterwards. If additional approvals (e.g., for cybersecurity services) are needed, expect extra time.
- Name reservation and initial approval: Usually completed in 2–3 days.
- Bank account opening: 2–6 weeks due to enhanced due diligence requirements.
Common challenges and how to overcome them
1. Bank‑account opening delays
Opening a corporate bank account has become more stringent due to anti‑money laundering rules. To expedite the process:
- Provide a comprehensive business plan, projected cash flows and letters of intent from potential clients.
- Start with banks familiar with your chosen free zone; some zones have relationships with specific banks.
- Maintain the minimum deposit (AED 5,000–25,000) and expect processing to take several weeks.
2. Limited visa quotas
Small offices and basic free‑zone packages offer limited visa quotas. You can:
- Begin with essential hires and use freelancers or remote contractors.
- Upgrade to larger office space or a higher‑tier package when your firm grows.
- For family visas, ensure your salary meets the minimum thresholds (AED 4,000–10,000).
3. Activity restrictions
Operating outside your approved activities can lead to fines. Prevent problems by listing all planned services when you apply. If your business model evolves, apply for licence amendments (AED 1,500–3,000) and expect a 3–5‑day processing period.
Best times to apply and geographic considerations
While there is no seasonal “tourist rush” for licences, early Q1 (January–March) is often ideal. Government offices are less busy, and authorities process licences quickly before Ramadan. Avoid the summer months when many officials are on holiday and processing times can slow.
Geographically, plan your location strategically:
- Proximity to clients: If you serve corporate clients in Dubai’s financial centre or along Sheikh Zayed Road, an office in Business Bay or the DIFC area may offer credibility and easy access.
- Free‑zone advantages: Zones like Dubai Silicon Oasis and Dubai Internet City lie along major roads (E44 and E11) and provide purpose‑built IT ecosystems.
- Transport links: Being near Metro stations (e.g., DMCC at Jumeirah Lakes Towers) helps attract staff who rely on public transport.
Benefits of setting up an IT consulting firm in Dubai
Obtaining your licence unlocks several strategic advantages:
- Strategic location: Dubai connects the Middle East, Africa, and Asia, giving you access to a broad client base.
- Business‑friendly environment: Minimal bureaucracy, streamlined registration, and low taxes. Many free zones offer zero corporate and personal income tax.
- Economic stability: Dubai’s diversified economy provides resilience.
- World‑class infrastructure: Advanced telecom networks, modern offices, and a supportive technology ecosystem.
- Government support: Initiatives, grants and innovation programmes encourage tech startups.
- Access to talent: Skilled visas and free‑zone packages make it easy to recruit international talent.
- Networking opportunities: Frequent conferences and industry events help you meet clients, partners and investors.
Conclusion
Dubai’s IT sector is expanding rapidly, and obtaining an IT consulting licence positions you to capitalize on this growth. Whether you choose the agility of a free‑zone or the expansive reach of a mainland setup, understanding the costs, requirements and procedural steps will save you time and money. By planning your activities, preparing thorough documentation and budgeting for hidden costs, your consultancy can launch smoothly and operate legally.
Need a smoother setup? Talk to Bestax Business setup consultants today. Our experts can guide you through each step, from trade‑name selection to bank account opening, and advise on the best enterprise resource planning solutions for your consulting firm.
Quick (FAQs)
What is an IT consulting license?
It is a professional licence issued by Dubai’s Department of Economic Development or a free‑zone authority that allows you to offer information‑technology consultancy, network services, software implementation and related activities. Without it, you cannot legally operate or sign contracts in Dubai.
Do I need a local partner or sponsor?
No. Both mainland and free‑zone IT consulting licences allow 100 % foreign ownership, so you retain full control of your business.
How much does an IT consulting licence cost?
Expect AED 29,000–47,000 in total first‑year costs for a free‑zone licence and AED 32,000–47,000 for a mainland licence. Basic free‑zone packages may be cheaper but include fewer visas.
Is a physical office mandatory?
Yes. Mainland companies must lease office space and register the lease with Ejari. Many free zones offer flexi‑desk or co‑working options that satisfy this requirement.
How long does it take to get the licence
Free‑zone licences are issued within 2–5 business days, while mainland licences take 7–14 days. Visa processing adds about one week.
Do I need to be in the UAE to apply?
Many free‑zone authorities allow remote incorporation. For example, IFZA processes applications and documentation entirely online and does not require the owners’ physical presence, although you must visit the UAE for medical tests and Emirates ID biometrics.
What qualifications are required?
A bachelor’s degree in IT or computer science and three years’ experience is typical; some authorities may accept certifications instead of a degree.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
