Management Consultancy.
Management 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 | 7020.01 — Management Consultancy Services |
| 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 (consultancy is a Qualifying Activity) |
| UAE VAT (5%) | 5% on UAE-resident client invoices; zero-rated for export of services |
| 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 Management Consultancy activity authorises the provision of advisory services on the management, organisation, strategy, structure and operation of a client business. It is one of the broadest professional-services licences IFZA issues, accommodating ex-Big-Four consultants, ex-strategy-firm alumni (McKinsey, BCG, Bain), transaction-services boutiques, M&A advisors, change-management specialists and corporate-development advisors. Multiple sub-activities can be bundled within the standard 3-activity package — typically combined with Marketing Management or IT Consultancy for full coverage of a small advisory practice.
It does NOT authorise: licensed regulated activities (investment advice, audit, regulated tax-agent work, legal services). Where the consultant's work touches a regulated activity, the regulated portion must be delivered through a separately-licensed entity or through ArxSetup's affiliated FTA-registered tax-agent and audit partners.
QFZP and Corporate Tax
Management Consultancy is a Qualifying Activity under Cabinet Decision 100 of 2023 (Headquarters services to related parties, Management services more broadly via the "ancillary activities" carve-out). UAE Free Zone consultancies serving primarily non-UAE-mainland clients can claim QFZP 0% on qualifying income, subject to: maintaining adequate UAE substance (employees, premises, opex); audited financial statements; non-qualifying income (typically UAE mainland clients) under the de minimis threshold (5% of total revenue OR AED 5 million).
For a solo consultant working from an IFZA flexi-desk with international clients, QFZP is achievable. For a consultancy with material UAE-mainland revenue, the de minimis test should be monitored monthly to avoid full-year disqualification.
Banking and operational notes
Management Consultancy entities are well-received across UAE Tier 1 banking. Standard path: Wio Business or Mashreq Neo Biz within 5–10 days for digital onboarding; Emirates NBD / ADCB within 3–6 weeks for full Tier 1. International digital banking (Wise Business, Revolut Business, Airwallex) is straightforward for multi-currency invoicing.
Common client profile: solo founder + 1 investor visa, occasional remote contractors. Annual operating cost (including IFZA renewal, accounting, banking, basic compliance) typically USD 8,000-12,000 from year two.
When this licence is not the right answer
- Building product (SaaS, software). Use Software Design activity instead — better QFZP positioning for IP-heavy revenue.
- Pure marketing-agency work. Marketing Management or Marketing Services via Social Media activities are better-matched.
- Selling a productised consulting package. May tip into Trading or Ecommerce activity depending on packaging.
- Investment advisory or financial services. Requires DIFC DFSA or ADGM FSRA licence — IFZA Consultancy cannot cover this.
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 a Management Consultancy licence cover M&A advisory?
Generic strategic / commercial advice in M&A is within the licence. Acting as a regulated corporate finance intermediary, broker-dealer or arranging-deals function requires DIFC DFSA or ADGM FSRA authorisation. The line: as long as the consultancy is advisory only (no transaction execution, no funds-handling), IFZA Management Consultancy suffices.
Can I do tax advisory under this licence?
General tax-strategy consulting on structures is permitted. Acting as a UAE FTA-registered tax agent (representing clients in FTA proceedings, signing CT returns as agent) requires separate FTA Tax Agent registration. ArxSetup's affiliated FTA-registered tax-agent partners handle the regulated tax-agent work for our consulting clients.
Does the QFZP 0% rate really apply to a one-person consultancy?
Yes, provided the conditions are met: UAE substance (the consultant working from a UAE base with UAE-paid opex satisfies this for a solo practice), audited financials, qualifying activity (consultancy is qualifying), and the de minimis test (UAE-mainland revenue under 5% of total or AED 5m). For most international-client-focused solo consultants, QFZP applies.
What is the difference between Management Consultancy and Business Consultancy at IFZA?
Subtle — both are within IFZA's professional services activity catalogue. Management Consultancy emphasises advice on organisational structure, strategy, operations and management. Business Consultancy is a slightly broader, catch-all activity covering general business advice. In practice, applicants often bundle both within the 3-activity package for full coverage.
Can I employ junior consultants on my IFZA licence?
Yes. The standard 9-visa quota under the flexi-desk package accommodates a small consulting team. Each employment visa is approximately USD 1,300 issuance + ~USD 400 annual renewal. Employment contracts should be drafted to clarify the consultant-client deliverable model and IP assignment of work-product.