The economic stability, growth opportunities, dynamic work environment, and incredible space make Dubai a highly sought-after destination for businessmen. We all know this fact. Are you someone looking forward to opening a tax consulting firm in the city? You’re welcome here too! The opportunities for tax consultants are both lucrative and rewarding! The nation offers numerous opportunities for companies that provide financial compliance, auditing, and taxation services to businesses in need, thanks to its favorable tax laws.
Despite the perks, starting a tax consulting firm can be a bit challenging for entrepreneurs. Here’s a step-by-step guide on how to start a tax consulting firm in Dubai, UAE.
Read on:
Why Should You Establish a Consultancy Firm in Dubai?
With thousands of small and large businesses in need of assistance with Value Added Tax (VAT), corporate taxes, and compliance with changing UAE rules, Dubai serves as a tax hub for the Middle East and North Africa. The need for professional tax guidance and compliance solutions has only increased since the implementation of corporate tax and VAT. The following are reasons why you should establish a tax consulting firm in Dubai:
- Rules that are business-friendly and competitive.
- Strong, unambiguous legal foundation for consultants.
- Ideally situated as a gateway to Asia, Africa, and the GCC.
- Tax-free surroundings and growth prospects.
- Dubai offers a thriving business environment. It is often considered a business hub for startups.
- Expanding community of foreign businesspeople and widened scope of foreign investments.
Key Takeaways Of The Tax Consulting Business in Dubai
If you’re planning to start a tax consulting firm in Dubai, here are some key facts you must know:
- The UAE’s rising international prominence and the digital revolution are causing a major upheaval in the tax consulting sector.
- The UAE’s tax policy is being influenced by OECD principles, specifically with regard to base erosion and profit shifting (BEPS).
- A tax consultancy firm is actively contributing to the UAE’s efforts to draw in international investment by abiding by these rules.
- Tax consultants can help clients incorporate environmental, social, and governance (ESG) sustainability into compliance reporting and business planning.
- Businesses must customize their services in light of the intricate tax legislation in the United Arab Emirates.
- Through seminars, workshops, and educational materials, professional tax agents in Dubai instruct corporate customers.
- With new businesses joining the market, Dubai’s tax consulting services sector is growing more competitive.
- In order to set themselves apart, UAE tax consultants focus on specialized fields such as industries, compliance/reporting tactics, or digital taxation.
- By offering strategic tax planning, risk mitigation, and audit support, Dubai’s tax consultancy services assist businesses in navigating the constantly changing corporate landscape.
Step-by-Step Guide To Start A Tax Consulting Business in Dubai
Here is a thorough guide on how to start a tax consulting firm in Dubai, UAE. Let’s begin:
Step 1: Choosing the Right Jurisdiction
The first step is to choose between free zones and the Dubai mainland for your business. Each jurisdiction has its unique features and benefits. Therefore, based on your business goals, you must find the right base.
Mainland Company: Apply to the DED for a professional business license. Go anywhere in the United Arab Emirates. A local service agent might be needed.
Free Zone: Select from specialized zones such as Dubai Outsource Free Zone, Dubai Internet City, or Dubai Multi Commodities Centre (DMCC) for establishing a tax firm. Benefits include reduced procedures, 100% ownership, and no corporate or income taxes. Unless you work with a mainland distributor, you can only be able to operate in the free zone.
Step 2: Upgrade and Validate Qualifications
For setting up a tax consultancy, you need to have recognized credentials in accounting, tax, or law, but there isn’t an exam required by the UAE. The majority of authorities demand a professional tax certification from an internationally recognized organization (such as ACCA, CPA, or ACA) or at least a bachelor’s degree in accounting, taxation, or law. A certification or a wealth of expertise builds credibility with clients and facilitates obtaining necessary government approvals.
Step 3: Picking the Right Structure for Business Setup
Next, you must find the right business structure as per your needs. Some options include:
- Sole Proprietorship: It is for independent tax consultants
- Limited Liability Company (LLC): This is an ideal choice for partners or a large firm business plan.
- Free Zone Company: Here, you get 100% foreign ownership and tax-free benefits
Step 4: Define Your Niche
- Choose your services: Will you concentrate on compliance and files, international tax planning, corporate structuring, or VAT advice? What will your services include as a tax consultant?
- Select the appropriate code for business activity: Certain codes are provided by the Department of Economic Development (DED) and municipal free zones for bookkeeping, accounting, VAT and corporate tax, and tax advisory.
- Defining Goals: Define your activities precisely to prevent future license or compliance problems.
Step 5: Choose a Business Name
Next, for setting up a tax consulting firm, you have to choose a business name for your tax consultancy in Dubai and reserve it. Make sure it complies with UAE corporate naming rules.
Step 6: Obtaining License and Permits
Required documents:
- Copies of managers’ and shareholders’ passports.
- Professional certifications or a degree.
- Business strategy (may be required in some zones).
- Certificate of no objection (if you are sponsored by an employer in the United Arab Emirates).
- Office space or flex desk lease agreement (varies for mainland or free zone).
Declare “tax consultancy” as your primary business when you apply for your professional license from the DED (or the appropriate free zone authorities). Once you submit the documents, you will get a tax identification number.
Step 7: Registration With Government Bodies
This is an important step. Here, you have to register your company with the government authorities for setting up your tax firm. It mainly includes:
- Federal Tax Authority (FTA): Register your company and important consultants as tax agents or advisors offering advisory services with the FTA if you want to provide corporate tax advising or VAT services.
- Ministry of Economy: Depending on the extent of your services, you could need further approval for the mainland and select Dubai outsource city free zones.
Step 8: Seeking a Space and Opening an Account
Next, choose an office space and open a corporate bank account. If choosing a mainland structure, you will need an office space. In free zones, virtual office spaces can suffice.
When opening your bank account in Dubai, use a trade name license. Most ask for your trade license, Memorandum of Association, and residential proof.
Step 9: Employ Qualified Professionals and Market Your Services
Finally, begin to hire professionals who can work for you and bring credibility to your job. Create a polished website, engage in active networking, and take advantage of local business gatherings and LinkedIn.
What Is The Cost of Opening a Tax Consulting Firm?
Here’s a breakdown of the cost if you want to start a tax consulting firm in Dubai:
- Registration and License Acquisition: AED 15,000 to AED 30,000* for company registration and licensing, depending on the company’s structure, location (free zone or mainland), and required number of visas.
- Office Rent: Many free zones provide flexible “flexi-desk” options. Small office leases are usually necessary for mainland businesses.
- Professional Insurance: Although it is not required, professional insurance is strongly advised for risk management.
- Extra: Marketing, staff pay, IT setup, and branding.
Note: This is an estimated cost of opening a consulting firm. The prices might vary.
Start Your Career as a Tax Consultant!
Whether you’re embarking on a solo venture or building a team, this is your guide to starting your tax advisory firm. Starting a tax consultancy business in Dubai combines status, flexibility, and opportunity. You may build a scalable, transparent, and resilient consulting business by adhering to these systematic steps.
Sign Up With Professionals!
A business consultant like Xpert Advisory can be your guide if you have trouble starting your business. We’re professionals assisting with company formation of all kinds and helping you successfully establish a tax consultancy firm in Dubai, UAE. Contact us today for a quick discussion!
Frequently Asked Questions
How Much Time Does the Process to Start a Tax Firm Take?
If all the paperwork is ready and your qualifications are accepted, the process may take a few days to a few weeks to successfully establish the company.
Is It Possible For Foreigners To Own The Entire Company?
Indeed, particularly in open zones. Although mainland ownership regulations have also been loosened, certain business operations still call for a local service agent.
Does One Require Tax Certificates Unique To The UAE?
Internationally recognized tax or accounting credentials are the main ones recognized by the UAE Federal Tax Authority. All you need to register as a “tax agent” is a recognized professional certificate or a related bachelor’s degree.
