How to Setup a Management Consultancy Firm in Dubai?
Entrepreneurs or individuals, who are aiming at forming a management consultancy company in Dubai, need to get a management consulting license, which falls under the broader license type of professional license.
In the ever-changing corporate landscape, the management consultancy firms have become an unavoidable force as they help business leaders in Dubai tackle the competition by developing digital solutions, employee experiences, and financial strategies. Management Consultancy firms play a pivotal role in solving issues faced by entrepreneurs with their expertise in market trends and technological disruptions thereby transforming the business entities.
Role of Management Consultants in a Company’s Growth
Entrepreneurs typically seek the help of management consultancy companies when they hit a roadblock while dealing with issues that might hamper business growth. The core responsibilities of management consultants in Dubai are:
- Evaluation of a company’s current state
- solving organizational problems
- project planning,
- maximizing business growth,
- improving operational performance
- strategy consulting
- consulting in business structure
- advises on registration and filing of paper
- Helps companies tackle issues of Residency
- Guides business owners on tax, and audits
The management consultancy firms in Dubai are equipped with robust management skills and sound knowledge of the local business environment. With these skills, they advise the companies on growth prospects and give recommendations on improving the organizations by implementing the solutions. Management Consulting firms often act as the bridge between the business owners and the local authorities in Dubai and in this way they could be considered as the face of the companies before the authorities.
Business Activities Under Management Consultancy License in Dubai
The Department of Economic Development (DED) under the Dubai Economy issues a variety of licenses to set up businesses in Dubai. For setting up a management consultancy business in Dubai, the professional license requirements while applying for the company incorporation.
The license name is listed as Management Consultancy under the license code 741405. The license activity group has been listed as Consultancy management, information, and marketing. The management consultancy license in Dubai permits the following business activities:
- providing administrative consultancies and studies to companies
- analyzing existing problems within the organizations
- developing plans for improvement of business setups
- procedural engineering
- laying out flow-charts and related documents circulation
- internal policy formulation for companies
- organizational restructuring of firms
- strategic plans development for the organization
- innovating work procedures of companies
- designing balanced scorecards for businesses
However, it is also important to note that the DED doesn’t allow management consultancy firms to conduct field surveys and questionnaires before getting approval from the competent authority.
AUD Exam to Qualify as a Director in Management Consultancy Firms in Dubai
The minimum degree required as per the DED for a business owner for setting up a management consultancy firm in Dubai is Bsc in Business or Economics, along with three years of hands-on experience.
It is also mandatory for the business owner or a director of a proposed management consultancy company to clear the Management Skills Placement Test conducted by the American University of Dubai (AUD). The exam takes place at the AUD location and is conducted by the Centre for Executive Programs and Professional Services department.
Designed as a 2-hour test, the AUD exam requires companies to present their trade name during the registration process. The result of the AUD exam is declared on the same day from AUD. In case the candidate fails then he/she needs to take admission for a course which is conducted by AUD, before the next attempt, and then re-apply for the exam.
A business owner or director must join the AUD program for qualifying directors in the consultancy domain. For the foreign companies interested in the consultations activity, the director must join the AUD program for qualifying directors in the consultancy domain.
Legal Structure of a Management Consulting Firm in Dubai
Unlike LLC in Dubai, UAE, in which UAE National is 51% holds shares and foreign partner holds only 49% shares, DED allows 100% ownership to foreign nationals for professional licenses including management consultancy activity. However UAE national is still mandatory but instead of his stake in the capital, he will be appointed as a legal service agent (popularly known in Arabic Wakil-e-Khidmaat). And the Legal service agreement (LSA) with UAE national will be notarized at the Notary office in Dubai. In the case of more than one foreign partner, the company will be called Civil Company and Memorandum of Association (MoA) between foreign partners will be prepared.
Procedure to Obtain a Management Consultancy License in Dubai
- Select Business Activity
- Select Legal Form
- Select the final trade name of the business
- Apply for the Initial Approval
- Prepare MOA & LSA Agreement
- Establish a Business Location
- Get Final Approval
- Collect Business license
Management Consultancy License falls into the category of Professional License by DED. For step by step process of obtaining a Professional license in Dubai. Read this (this will be a link for another blog article and we will write the content for step by step process and add the link here)
Why Choose Jitendra Business Consultants?
The consultancy industry is one of the most growing industries across the world including in the UAE. Globally the consulting industry is estimated to be worth around $250 billion. Setting up a management consultancy in Dubai is a crucial choice for professionals with entrepreneurial aspirations as the highly competitive environment here provides scope for growth for consultancy services.
Jitendra Business Consultants (JBC) is a pioneer in helping business owners establishing businesses in Dubai and UAE. JBC’s team of business consultants in Dubai can help entrepreneurs in establishing their management consultancy company in Dubai Mainland (LLC). JBC provides the guidance on every step of obtaining a professional license in Dubai, from initial approval to registration, licensing, finding a local sponsor and the visa procedures.