If you are looking to start a business in one of the world’s most popular economic powerhouses, Dubai may be your top choice. There are many advantages to starting a business in Dubai, including its tax-friendly policies and advantageous geographical location. Regardless of this, navigating all the administrative, legal, and cultural aspects of starting a new business can be daunting.
For this reason, more entrepreneurs are turning to business advisory services in Dubai to help them navigate the ins and outs of company formation, compliance, market entry, and sustainable growth in this highly competitive environment.
Allow us to share more information about the services offered by a business advisory company, the benefits of hiring one, and show you, step by step, how to start your own business advisory service.
What are business advisory services?
A business advisory service is a highly-specialized service with the purpose of guiding organizations to make sound operational, financial, and strategic decisions. While there are some similarities, a business advisory service must not be confused with a business consultancy service. Whereas consultancy services are mostly project-based with a definite start and end date, advisory services are ongoing, creating a long-term relationship with the company.
Business advisory services can provide the following support:
Strategic planning: Companies often need help in setting long-term goals and expanding into new markets. Business advisors can assist with this as well as making sure the company’s resources are used to realize company objectives.
Financial advisory: This includes forecasting, budgeting, investment planning, cash flow management, and providing direction on acquiring capital.
Operational improvement: Helping a business optimize its human resources, streamlining supply chain management and operational processes, and boosting tech adoption.
Growth and scaling strategies: Giving advice on mergers and acquisitions, how to expand into new markets, and broadening the existing product and service offerings.
How to start a business advisory service in Dubai
Here are the steps you need to follow to start a business advisory service in Dubai.
Step 1: Decide on your scope of services
It is no secret that the Dubai market is very competitive. That is why the first thing you need to do when starting your advisory service, is decide exactly what type of business services you will offer. You can choose to focus on a specific service like growth planning or compliance guidance or opt to offer a range of services.
Step 2: Choose your business location
Next you will decide where you are going to establish your business on the Dubai mainland or in a free zone. The mainland will give you access to the whole UAE market as well as the opportunity to supply services to government organizations. If you choose to establish your business in a free zone you can enjoy benefits such as tax reductions, 100% foreign ownership, and a straightforward set up process.
Step 3: Choose a trade name
Put effort into your trade name to ensure it is unique, free of offensive and religious words/terms, and complies with all the relevant naming regulations. If you are setting up on the mainland, reserve the name through the DED. If you have chosen one of the free zones, book the name through the applicable authority.
Step 4: Apply for initial approval
Compile the necessary documents and complete the application for initial approval from either the DED or relevant free zone authority. Checks will be done to see if your business advisory service idea complies with regulations afet which you will receive your initial approval.
Step 5: Secure a lease agreement
If you are establishing your business advisory service on the mainland you will generally need to secure a physical office space and sign an Ejari lease agreement. Free zones may offer office space, shared work spaces, or virtual offices in their packages.
Step 6: Submit your documents to the relevant authorities
More documents need to be submitted for final approval once you have your initial approval and lease agreement secured. This may include everything from passport copies and your newly-acquired lease agreement to your educational qualifications and completed application forms.
Step 7: Get your business advisory license
When the documents you submitted have been verified and all the fees have been paid, you will receive your business advisory license. This will allow you to legally offer your services in Dubai. On the mainland, the license will be issued by the DED while the applicable authority will issue it in a free zone.
Step 8: Fulfil post-licensing obligations
After getting your license, you need to complete a few more steps before you can start operating:
• Register with professional bodies or regulators, if necessary. For example, financial advisory services might need extra approvals from the appropriate UAE authorities.
• Open a corporate bank account to handle client payments and company finances.
• Set up tax and compliance systems
• Finish operational details like branding, insurance, and employee onboarding.
Benefits of hiring a business advisor in the UAE
Here are four benefits of hiring a business advisor in the UAE
Strategic decision-making
Business advisors can share completely unbiased opinions on important business decisions. They can also help create a business growth strategy, evaluate available opportunities, and identify threats before they can cause damage to the business. This can be especially beneficial to businesses that target both local and global markets.
Compliance and regulatory guidance
The laws and regulations in the UAE are intricate and regularly updated. Business advisors provide an invaluable service by helping businesses remain compliant as far as licensing, taxes, and labor laws are concerned. This reduces the chance of penalties and operational problems.
Scaling for Sustainable Growth
Business advisors help design scalable systems, optimize resources, and manage funding, ensuring growth is sustainable and avoids overextension.
Market Entry Support
Entering Dubai can be challenging for foreign businesses. Advisors provide local insights on mainland versus free zone structures and streamline the launch process, saving time and costs.
Types of business advisory services offered in Dubai
Dubai advisory firms provide a variety of services to help businesses succeed:
Startup and company formation: Assist in important decision making such as selecting locations, applying for licenses, developing business agreements, and opening bank accounts.
Financial planning and budgeting: This includes cash flow forecasting, budgeting, raising capital, and optimizing costs to maintain financial stability.
Market research and feasibility studies: Shares expertise on various important topics such as competitors, customers, pricing, and the changing market to help business owners make informed decisions.
Business restructuring and turnaround: Focus is placed on assisting underperforming companies. Provide guidance on making operational improvements, minimizing debt, and making impactful strategic changes.
Risk management and legal guidance: Services include ensuring regulatory compliance, corporate structuring and restructuring, governance, contract review, and providing insurance advice to reduce risks.
These services help startups, SMEs, and established companies navigate Dubai’s market efficiently and with confidence.
How business advisory helps startups and SMEs
Startups and SMEs often have limited resources and experience, which makes advisory services very important. Advisors offer vital support in areas where internal teams may lack knowledge. For example, they help startups steer clear of common mistakes, such as picking the wrong legal structure or underestimating capital needs.
For SMEs, advisors suggest strategies for sustainable growth. This might involve financial planning to secure funding, improving operations to lower costs, or giving advice on expanding into new markets. By providing both expertise and mentorship, advisors help smaller businesses compete with larger, more established companies.
Choosing the right advisory firm in Dubai
Picking the right advisory firm is very important for reaching your business goals. Here are some factors to keep in mind:
Industry expertise
A business advisory service that has experience in your industry will be able to assist you better than one who doesn’t.
Local knowledge
Business regulations and practices in the UAE differ from elsewhere in the world. Advisors with good local knowledge are able to provide sound guidance to business owners.
Licensing expertise
If a business advisor has a clear understanding of licensing regulations and procedures they can help streamline the approval process.
Proven track record
Don’t enlist the services of any business advisor unless they have a proven track record. Be on the look out for recent case studies and testimonials from past and present clients.
Service flexibility
Choose a firm that offers a variety of services and can adjust as your business grows.
Transparent pricing
Clear, upfront pricing builds trust and prevents surprises later on.
Frequently asked questions
Do I need a license to offer advisory services?
Yes. Running an advisory business in Dubai requires a professional or consultancy license, depending on where you set it up. Mainland businesses get licenses from the Department of Economic Development (DED). Free zone companies get theirs from the relevant free zone authorities. This keeps your operations legal and in line with local laws.
How much do advisory services cost?
The cost of advisory services vary based on many things. This includes their service offerings and experience. Monthly fees generally range between AED 1,500 and AED 10,000 per month. Experienced business advisors that offer highly specialized services sometimes charge as much as AED 1,500 per hour.
Can a foreign company hire a local advisor?
Yes, a foreign company can hire a local advisor. By doing so you can avoid many common pitfalls while also saving time and money, and boosting your chance of a successful entry into the UAE market.
About Set Hub
Starting your own business advisory service in Dubai can be both life-changing and somewhat intimidating. Thankfully, you do not have to tackle this journey alone. The Set Hub team has more than a decade of experience assisting entrepreneurs navigate the challenges of setting up business in the UAE. We will be with you every step of the way, helping pave the way for long-term success.