IT Consultancy.
IT Consultancy is one of the ten most-licensed activities at IFZA. This page covers what the licence permits, the QFZP / Corporate Tax position, VAT treatment, indicative cost in USD, and the home countries from which the most applications for this activity originate.
At a glance
| Feature | Position |
|---|---|
| IFZA activity classification | 6202.01 — IT Consultancy |
| Year-1 all-in cost (USD) | USD 10,120 |
| Time to licence issuance | 5–7 business days |
| Visa quota (standard) | Up to 9 investor/employee visas under flexi-desk package |
| QFZP 0% qualifying status | Qualifying for QFZP 0% on income from non-UAE-mainland clients (IT consultancy services qualify as a professional service) |
| UAE VAT (5%) | 5% on UAE-resident client invoices; zero-rated for export of services to non-UAE clients |
| UAE Corporate Tax | 9% above AED 375,000 profit; 0% under QFZP if conditions met |
| Audit requirement | Not required for non-regulated activity; recommended for QFZP claims |
What this licence covers
The IFZA IT Consultancy activity authorises the provision of advisory and implementation services on information-technology systems — architecture, platform selection, integration, DevOps consulting, cloud-migration projects, cybersecurity advisory, data-engineering consulting, fractional CTO services. It is one of the highest-volume professional-services licences IFZA issues, particularly for solo technology consultants and small dev-shop operators serving international clients.
Distinguished from: Computer System (Software Design) — which authorises building and selling proprietary software products; Management Consultancy — which covers general business advice; Project Management Services — which covers transactional project-execution work.
QFZP and Corporate Tax
IT Consultancy qualifies for QFZP 0% on revenue from non-UAE-mainland clients, subject to the standard substance, audit, qualifying-activity and de minimis tests. For most international-client-focused IT consultants, QFZP applies cleanly. UAE-mainland client revenue is non-qualifying; the de minimis test (5% / AED 5m) controls.
Solo founder pattern: incorporate IFZA IT Consultancy, take 1 investor visa, work from flexi-desk in IFZA Business Park or remotely, invoice international clients in USD. Annual all-in operating cost (year 2 onwards) ~USD 6,000-8,000 covering licence renewal, accounting, banking, and basic CT/VAT compliance.
Banking and payment
IT consultants are extremely well-received across UAE banking. Wio Business / Mashreq Neo Biz onboard within 5-10 days. Emirates NBD / ADCB within 3-6 weeks. Stripe accepts IFZA-VAT-registered IT consultancies for invoice-payment processing. Wise Business / Revolut Business / Airwallex serve as multi-currency rails for global client invoicing.
Common client profile
- Solo developer / DevOps consultant — invoices 1-5 international clients monthly at USD 100-300/hour. IFZA flexi-desk; 1 investor visa.
- Boutique dev-shop founder — 3-8 contractor engineers (often non-UAE-based working remotely); IFZA licence with 3-5 visa slots; UAE bank for client invoicing.
- Fractional CTO / advisory practice — small number of high-value retainer clients (USD 5-20k/month each); pure consultancy delivery, no implementation.
- Ex-corporate technology lead — leaving in-house tech role for consulting career; IFZA as the operating entity, UAE residency for personal-tax optimisation.
When this licence is not the right answer
- Building and selling proprietary software product. Use Computer System (Software Design) activity — better classification for IP-heavy product revenue.
- Operating a software-as-a-service business. Same as above plus careful VAT classification for digital-services supplies.
- Reselling hardware or third-party software licences. Trading activity required — IT Consultancy does not cover product resale.
- Regulated cybersecurity activities (e.g. UAE-licensed penetration testing for government). Separate TRA / DESC authorisation may apply.
Indicative year-1 cost in USD
| Component | Year 1 | Year 2+ |
|---|---|---|
| IFZA government licence fee (this activity bundle, up to 3 activities) | USD 4,200 | USD 4,200 |
| Establishment card & immigration file | USD 800 | USD 400 |
| Investor visa (1 visa) | USD 1,300 | USD 400 (renewal) |
| Emirates ID + medical + biometrics | USD 320 | USD 120 |
| ArxSetup professional fee + KYC + bank introduction | USD 3,500 | USD 2,000 |
| All-in total | USD 10,120 | USD 7,120 |
Add-ons: VAT registration (USD 950), Corporate Tax registration (USD 550), additional visas (USD 1,300 each), bespoke shareholders' agreement (from USD 3,500), trademark registration (from USD 5,500).
Top countries applying for this activity
Applications for this activity most commonly originate from the following countries (drawn from IFZA application data and our own client mix):
Common questions
Can I deliver IT consulting services to clients via remote contractors hired through IFZA?
Yes. The IFZA visa quota (up to 9 standard) accommodates employed engineers. For contractor engineers based outside UAE, you can contract them via international contractor agreements — they don't need IFZA visas. The IFZA entity remains the contracting counterparty for the end-client. Common pattern: founder + 1-2 UAE-based engineers + remote international contractors.
What VAT applies to my international SaaS client?
Place of supply rules: B2B services to a foreign business with no UAE presence are zero-rated (still requires VAT registration and reporting). B2B services to a UAE-business client are taxed at 5%. B2C services follow more complex tests; for most IT consulting, the client is B2B.
How does this differ from Computer System (Software Design)?
IT Consultancy is advisory and implementation services — you advise on, configure, or integrate technology systems. Computer System (Software Design) is product-building — you create proprietary software, often SaaS, sold as a product. The distinction matters because product-revenue can benefit from IP-holding structuring (Cayman Foundation, BVI Issuer) that pure-consultancy revenue cannot.
Will Stripe accept my IFZA IT Consultancy entity?
Yes, subject to UAE VAT registration. Stripe's UAE platform onboards IFZA entities self-serve via stripe.com/ae. Most IT consultants register voluntarily for VAT (above USD 51k turnover) to recover input VAT on UAE operating costs.
Can I employ engineers from India / Pakistan / Philippines under this licence?
Yes. The IFZA visa quota (9 standard, scalable to office size) supports employment visas for engineers of any nationality. Visa issuance is USD 1,300 per visa, with annual renewal at ~USD 400. Salaries are not subject to UAE income tax. End-of-service gratuity calculation and UAE Labour Law compliance apply.