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Frequently Asked Questions

What is a Management Services licence in Dubai and what does it allow you to do

A Management Services licence in Dubai operates under Activity Code 7010.96, classified within ISIC Division 70 — Activities of Head Offices and Management Consultancy. It authorises a licensed entity to provide strategic, operational, and administrative management services to other businesses, corporate groups, and entities.

Permitted activities include advisory on organisational structure, business process management, cost optimisation, corporate governance, and outsourced management functions. It is a broad licence that supports both independent consultants and multi-entity corporate structures operating across the GCC region.

What activities are NOT covered by the Management Services licence

The Management Services licence (Activity Code 7010.96) does not cover regulated financial advisory, investment management, legal services, or HR recruitment and staffing. Each of these requires a separate, dedicated licence.

In some cases, additional regulatory approval is required from bodies such as the Securities and Commodities Authority (SCA) or the Dubai Financial Services Authority (DFSA). If your service offering touches any of these areas, you must structure your activity scope correctly from the outset to remain compliant.

Who is the Management Services licence best suited for

The licence is well-suited to a range of business structures and professionals. These include holding company structures, outsourced C-suite service providers, regional headquarters operations, and independent management consultants serving corporate clients across the GCC.

It is also a practical choice for family offices and multinationals that require external management expertise without establishing a full operational entity. The broad activity scope makes it commercially flexible for both advisory-led and operationally focused businesses.

What is the difference between a mainland and a free zone Management Services licence in Dubai

A mainland licence, issued by the Dubai Department of Economy and Tourism (DET/DED), allows you to contract directly with UAE government entities and local corporates without restriction. It is the more practical route if your clients are primarily UAE-based, particularly in the public or semi-government sector.

A free zone licence — such as one issued by Meydan Free Zone — offers 100% foreign ownership, faster incorporation, lower overhead, and no requirement for a local service agent. It is better suited to internationally focused operations, firms advising clients outside the UAE, or founders seeking operational simplicity. The trade-off is that free zone entities face restrictions when contracting directly with mainland UAE clients.

How long does it take to set up a Management Services licence in Dubai

Setup timelines vary by jurisdiction. A free zone licence can typically be established in as little as 3–7 business days, making it one of the faster routes to incorporation in the UAE.

A mainland licence through the DED generally takes longer, with a typical timeline of 2–4 weeks, reflecting additional procedural steps and approvals. Both timelines assume documentation is in order and no unusual regulatory queries arise during the application process.

What are the costs associated with obtaining a Management Services licence in Dubai

Licence fees for a Management Services licence start from approximately AED 12,000 per year for free zone packages. This figure can vary depending on the free zone chosen, the office arrangement selected, and any bundled visa allocations included in the package.

Additional costs to factor in include government registration fees, visa application fees, and any office or flexi-desk costs. Mainland licences typically carry higher overhead due to office requirements and local service agent arrangements where applicable.

What are the tax obligations for a Management Services company in Dubai

Since June 2023, the UAE applies a corporate tax of 9% on taxable income exceeding AED 375,000. Income below this threshold is taxed at 0%, providing a meaningful relief for smaller or early-stage operations.

VAT at 5% applies to management fees once the business's taxable turnover exceeds AED 375,000, at which point VAT registration becomes mandatory. Businesses should account for both obligations when modelling their financial structure and pricing their services.

How many visas can a Management Services licence holder obtain in Dubai

Visa allocation depends on the office arrangement associated with the licence. A flexi-desk setup typically supports between 1 and 3 investor or employee visas, which is sufficient for lean operations or sole founders with a small team.

Businesses requiring a larger workforce can obtain additional visa allocations by upgrading to a dedicated office space, which increases the permitted headcount proportionally. Both investor visas and standard employee visas are applicable under a Management Services licence.

Management Services License in Dubai

Dubai's management consulting and corporate advisory sector is one of the fastest-growing professional service categories in the UAE, underpinned by a steady influx of multinationals, family offices, and regional holding structures that all require external management expertise.

This guide covers what a Management Services licence (Activity Code 7010.96) permits, who it suits, how to set one up in Dubai, and what it realistically costs — so you can make a commercially sound decision without wading through regulatory noise.

Key Stats at a Glance

Activity Name Management Services
Activity Code 7010.96
ISIC Classification ISIC Division 70 — Activities of Head Offices; Management Consultancy Activities
Licence Types Mainland (DED) / Free Zone (e.g. Meydan Free Zone)
Minimum Share Capital No mandatory minimum for most free zone structures
Visa Eligibility Yes — investor and employee visas applicable
Corporate Tax 9% on taxable income above AED 375,000 (effective June 2023)
Typical Setup Timeline 3–7 business days (free zone); 2–4 weeks (mainland)
Authority Reference UAE Ministry of Economy / DED Dubai / Meydan Free Zone
Infographic — Management Services Licence: Fast Facts
  • Activity Code: 7010.96 | ISIC Division 70
  • 100% foreign ownership available via free zone
  • Setup in as little as 3–7 business days (free zone)
  • Licence fees from AED 12,000/year (free zone packages)
  • VAT at 5% applies to management fees above AED 375,000 turnover
  • Corporate tax: 9% on profits above AED 375,000
  • Visa allocation: 1–3 visas on flexi-desk; more with dedicated office

What a Management Services Licence Covers

Infographic: Management Services License in Dubai

Activity Code 7010.96 sits within ISIC Division 70, which encompasses activities of head offices and management consultancy. Under this classification, a licensed entity is authorised to provide strategic, operational, and administrative management services to other businesses, corporate groups, and entities.

In practical terms, this includes advisory on organisational structure, business process management, cost optimisation, corporate governance, and the provision of outsourced management functions. It is a broad and commercially useful activity — one that supports both independent consultants and multi-entity corporate structures operating across the region.

There are clear boundaries. This licence does not cover regulated financial advisory, investment management, legal services, or HR recruitment and staffing. Each of those requires a separate, dedicated licence and, in some cases, regulatory approval from bodies such as the Securities and Commodities Authority or the Dubai Financial Services Authority. If your service offering touches those areas, you will need to structure your activity scope accordingly from day one.

The licence is well-suited to holding company structures, outsourced C-suite service providers, regional headquarters operations, and independent management consultants serving corporate clients across the GCC.

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Mainland vs Free Zone: Choosing the Right Jurisdiction

The jurisdiction decision is primarily a commercial one, not an administrative formality. Both options are legitimate — the right choice depends on who your clients are and how you intend to operate.

A mainland licence issued by the Dubai Department of Economy and Tourism (DET/DED) allows you to contract directly with UAE government entities and local corporates without restriction. If your management services are directed at UAE-based clients — particularly public sector or semi-government organisations — mainland is the more practical route.

A free zone licence, such as one issued by Meydan Free Zone, offers 100% foreign ownership, faster incorporation, lower overhead, and no requirement for a local service agent. It is well-suited to internationally focused operations — firms advising clients outside the UAE, regional holding structures, or founders who want operational simplicity without a local partner arrangement.

The trade-off with a free zone entity is that serving UAE mainland clients directly requires either working through a mainland distributor or establishing a mainland branch. For management services firms whose clients are primarily international or free zone-based, this is rarely a constraint in practice.

Meydan Free Zone is centrally located in Dubai, offers flexible desk and virtual office options, and has an established track record for professional service licences. It is a practical choice for lean management consultancy operations.

Key Regulatory Authorities

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Step-by-Step Licence Setup Guide

The process is straightforward when documentation is clean and the activity scope is defined before you begin. Delays almost always stem from unclear business activity descriptions or incomplete compliance paperwork at the banking stage.

  • Step 1 — Define your activity scope. Confirm that Activity Code 7010.96 aligns with your service offering. Identify any ancillary activities you may need — for example, if you intend to provide training or HR consultancy alongside management services, those require additional activity codes.
  • Step 2 — Choose your jurisdiction. Mainland or free zone, based on your target client base, ownership preference, and cost tolerance. This decision shapes everything that follows.
  • Step 3 — Reserve your trade name. Names must comply with UAE naming conventions. Avoid titles that imply government affiliation, regulated financial services, or legal practice.
  • Step 4 — Submit incorporation documents. Typically: passport copies of all shareholders and directors, a business plan summary (required by some authorities), and completed application forms.
  • Step 5 — Obtain initial approval and constitutional documents. This includes the Memorandum of Association (MOA) or Articles of Association, depending on the structure and jurisdiction.
  • Step 6 — Secure office space. Physical office or flexi-desk, depending on jurisdiction requirements and your visa allocation needs.
  • Step 7 — Pay licence fees and receive your trade licence. Free zone timelines are typically 3–7 business days from this point.
  • Step 8 — Open a corporate bank account. Allow 2–6 weeks. Compliance documentation — source of funds, business model clarity, shareholder background — is critical at this stage. Banks are thorough.
  • Step 9 — Register for corporate tax. Mandatory for entities meeting the threshold. Register with the Federal Tax Authority at www.tax.gov.ae.
  • Step 10 — Apply for visas. Investor and employee visas as required, based on your office package and headcount.

Costs, Visas, and Ongoing Compliance

Free zone licence fees for a Management Services activity typically range from AED 12,000 to AED 25,000 annually, depending on the package, office type, and number of visas included. Meydan Free Zone offers competitive entry-level packages suitable for lean operations.

Mainland DED licence costs vary and are generally higher when factoring in office lease requirements, notarisation, and — where applicable — local service agent fees. Budget accordingly if you are considering a mainland structure.

Visa allocation is tied to your office arrangement. A flexi-desk package typically supports one to three visas. Larger dedicated office spaces allow for proportionally higher allocations. If headcount growth is part of your plan, factor this into your office selection from the outset.

Annual licence renewal is mandatory. Non-renewal triggers fines and can escalate to licence cancellation, which creates complications for visa holders and banking relationships. Set renewal dates in your calendar well in advance.

On the tax side: corporate tax registration is mandatory for entities meeting the AED 375,000 threshold, and accounting records must be maintained in accordance with UAE standards. Management fees are generally subject to VAT at 5% once your taxable supplies exceed AED 375,000 annually. VAT registration is handled through the Federal Tax Authority.

Conclusion

A Management Services licence under Activity Code 7010.96 is a commercially flexible instrument. It suits independent consultants, regional holding structures, and outsourced management firms operating across the GCC and beyond. The choice between mainland and free zone comes down to your client base and operational model — not prestige or perception. Setup is straightforward when your documentation is clean and your activity scope is clearly defined from the outset.

If you want to confirm the right jurisdiction, check name availability, or get a cost breakdown before committing, use the tools below or speak directly with a setup adviser.

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