Starting an accounting, bookkeeping, or auditing firm in the UAE especially in hubs like Dubai, Abu Dhabi, or Sharjah requires a strategic approach to licensing, regulatory approvals, and entity structuring. Whether you’re planning to launch an accounting consultancy, open a bookkeeping business, or set up a full-fledged auditing and compliance firm, securing the right professional license, choosing between mainland or free zone jurisdiction, and fulfilling Ministry of Economy registration and DED requirements are key. We help entrepreneurs, financial consultants, and CPA professionals navigate every step of the accounting company formation process in the UAE, including MOA drafting, office tenancy contracts, VAT registration, and corporate bank account setup. With the right guidance, you can launch a fully compliant, DED-approved accounting services firm in Dubai or other Emirates with minimal delays and complete transparency.
With our expert guidance, you can launch a fully compliant, DED-approved accounting services firm in Dubai or any other Emirate with minimal delays and complete transparency.
Before you can choose a jurisdiction, you must clearly define your services. In the UAE, these activities are distinct and come with different licensing requirements and regulatory authorities.
Bookkeeping is the foundational financial service. It involves the daily recording of all business transactions — including sales, purchases, expenses, and payments. The primary deliverable is an accurate and up-to-date general ledger that reflects the financial activity of the company.
Accounting is a higher-level service that builds upon bookkeeping. Accountants analyze, summarize, and interpret financial data to prepare key reports such as:
They also provide strategic insights on tax planning, budgeting, forecasting, and financial analysis, as well as advisory on accounting systems like Zoho Books or QuickBooks.
The auditing license represents the highest tier of financial licensing in the UAE. It permits firms to perform statutory audits, offer assurance services, and issue official audit reports. This license has stringent eligibility requirements, including:
As per the UAE Ministry of Economy guidelines via the MoE Auditors Registration Portal, applicants must meet qualification criteria, obtain an equivalency certificate (if applicable), and submit a structured Memorandum of Association (MoA). In some cases, passing exams on IFRS, ISAs, and UAE tax regulations is also required.
Dubai’s economy is one of the most dynamic in the Middle East, offering tremendous opportunities for finance professionals and entrepreneurs. The increasing complexity of compliance requirements, coupled with a rapidly growing business ecosystem, makes Dubai an ideal destination to establish an accounting, bookkeeping, or auditing firm.
With the introduction of VAT and the 9% Corporate Tax, businesses across the UAE from startups to multinationals — require expert financial services. Accountants, auditors, and tax advisors are in high demand to ensure regulatory compliance and accurate financial reporting.
Dubai’s pro-business environment and investor-friendly tax regime make it one of the most attractive global destinations for setting up a financial services firm. There are no personal income taxes, and certain companies may qualify for corporate tax exemptions or 0% rates depending on their business structure and jurisdiction.
Foreign investors can enjoy 100% ownership of their accounting or bookkeeping firm in Dubai’s free zones. Even on the mainland, professional service firms can be fully expatriate-owned — requiring only a Local Service Agent (LSA) instead of a UAE national shareholder.
As a leading global financial hub, Dubai connects professionals to clients across the Middle East, Africa, and Asia. Firms can serve local SMEs, multinational corporations, and global clients looking to expand their presence in the UAE or manage regional operations.
The UAE’s national agenda focuses on economic diversification beyond oil. Rapid expansion in sectors such as finance, tourism, trade, and technology has created a surge in new business formations — each requiring ongoing accounting and compliance support.
The accounting industry in Dubai is evolving through digital transformation. Firms adopting cloud accounting software like Zoho Books, Xero, or QuickBooks can automate operations, enhance efficiency, and deliver data-driven financial insights giving them a competitive edge in a modern market.
Defining your firm’s service menu is essential to determine the specific activities you’ll need to include in your professional license. A well-structured accounting firm in Dubai or across the UAE can provide a full range of financial, compliance, and advisory services to meet diverse client needs.
Manage the backbone of every business’s financial system. This includes recording transactions, managing ledgers, performing bank reconciliations, and preparing IFRS-compliant financial statements that accurately reflect business performance.
Assist clients with VAT and Corporate Tax obligations — including registration, planning, implementation, and periodic filings. Help businesses remain compliant while optimizing tax efficiency through proper structuring and documentation.
Conduct both internal and external audits to ensure financial integrity and process efficiency. Internal audits focus on identifying operational risks, while statutory/external audits verify financial statements for legal compliance. Note: This service requires a special audit license approved by the UAE Ministry of Economy (MoE).
Provide complete payroll outsourcing solutions — including salary disbursement, WPS compliance, deductions, and end-of-service benefits — ensuring adherence to UAE labour laws and timely staff payments.
Offer strategic financial leadership through virtual CFO (vCFO) services. Help clients with budgeting, forecasting, cash flow management, and long-term financial planning to drive profitability and growth.
Advise clients on compliance with IFRS, Economic Substance Regulations (ESR), Anti-Money Laundering (AML), and Ultimate Beneficial Ownership (UBO) regulations. Ensure their operations align with evolving UAE and international standards.
Support businesses in setting up and managing cloud-based accounting systems such as Zoho Books, Xero, or QuickBooks. Provide system integration, migration, and ongoing support to improve efficiency and reporting accuracy.
Accounting is a professional service, and authorities require proof of expertise. This guide details the licensing, educational, and professional requirements for establishing an accounting, bookkeeping, or audit firm in the United Arab Emirates.
You must obtain a “Professional License” for “Accounting and Bookkeeping” or related activities. This is different from a “Commercial” or “Industrial” license. The jurisdiction where you get this license is a critical first step.
At least one owner, partner, or manager must have a relevant qualification. This usually means an attested university degree in accounting, finance, or a related field.
While not always mandatory for a basic bookkeeping license, holding a recognized certification (like CPA, ACCA, CA, or CMA) is highly recommended. It adds credibility and may be required for specific high-level activities, especially auditing.
If your firm plans to perform statutory audits and sign off on financial statements, a standard license is not enough. You (or a partner) must be registered as a licensed auditor with the UAE Ministry of Economy.
To formally represent clients as a “Tax Agent,” registration with the FTA is required. However, you may still offer “tax consultancy” and “VAT filing services” under a standard accounting license without being a registered Tax Agent.
This confirms your research: you can offer “tax consultancy” and “VAT filing services” under a standard accounting license, but you cannot use the official “Tax Agent” title or formally represent clients at the FTA without separate registration.
Starting an accounting or bookkeeping company in the UAE involves several key steps. Below is a breakdown of the accounting firm business setup process in Dubai (which similarly applies across the UAE):
First, decide whether to set up in Dubai mainland or a free zone. This choice will affect your license authority, scope of operations, and ownership structure.
A mainland company is licensed by Dubai’s Department of Economic Development (DED). You can operate anywhere in the UAE and serve both local and international clients freely, including government contracts. Mainland setup may require a UAE national as a service agent for professional licenses, but you retain 100% ownership (no local share partner required under professional license). Mainland licenses generally have higher setup costs and office requirements, but offer maximum flexibility in doing business across the UAE market.
Setting up in a Dubai free zone (such as IFZA, DMCC, or Meydan Free Zone) allows 100% foreign ownership, easy incorporation, and tax benefits. Free zones often have affordable packages and faster setup. However, a free zone accounting firm is limited to operating within that zone or internationally; to serve mainland clients, you might need a local agent or distributor or obtain an additional permit. Each free zone has its own regulations and fee structures. (There are many options – see Free Zone Options section below for the best free zones for accounting businesses.)
Decide on the specific business activities you will conduct (e.g. accounting and bookkeeping services, tax consulting, auditing, VAT advisory). The UAE authorities have predefined activity codes for these services. It’s important to list all relevant activities in your license to avoid limitations later. Also determine the legal structure: you can register as a sole proprietorship, civil company (for professional services), or a limited liability company (LLC). Many small firms choose a sole establishment or civil company for a professional license, while larger practices or partnerships may form an LLC. Each structure has different implications for liability and costs.
Pick a unique name for your firm and reserve it with the authorities. The name should comply with UAE naming guidelines (no offensive terms, no references to “Dubai” or religious words, etc.). Typically, the trade name should reflect your business (for example, including words like “Accounting”, “Bookkeeping”, or “Consultancy” is advisable) and not resemble existing company names. The DED or free zone registrar will approve the name if it meets the rules. A small fee (around AED 600–800) is usually paid for name reservation.
Apply for initial approval from the relevant authority. For Dubai mainland, you’ll submit an application to DED for initial approval (often called the Name Reservation and Initial Approval step). In a free zone, you apply to the free zone authority. This preliminary approval confirms that the regulators have no objection to your proposed business. You will typically provide basic documents (passport copies, a brief description of the business) at this stage. If you plan to offer auditing services on the mainland, you might also need initial approval from the Ministry of Economy for the audit activity (more on this in the compliance section). After initial NOC, you may need to draft and notarize the Memorandum of Association (MOA) or local service agent agreement (for mainland professional companies) as part of the registration.
Rent a suitable office space for your firm, as this is a requirement to obtain the license. On the mainland, a physical office (minimum ~200 sq. ft.) is typically required for a professional license, and you must obtain a tenancy contract and Ejari (Dubai’s lease registration). Free zones offer more flexibility – many allow flexi-desk or virtual office packages for small firms, which can significantly reduce costs. Choose an office location that is accessible to clients and meets the jurisdiction’s criteria. Note: The size of your office may determine your visa quota (usually ~80 to 100 sq. ft. per visa on the mainland). For example, a flexi-desk might come with a fixed number of visas (often 1-2) while a larger office allows more.
Now, submit your final license application with all required documents to the authority (DED for mainland, or the specific free zone authority). This includes the completed application form, shareholder passports, passport-sized photos, initial approval letters, trade name certificate, MOA, and any required qualification certificates. Pay the necessary license fees at this stage. The license fee can vary widely (see Costs section below) – for instance, a standard accounting professional license might cost roughly AED 15k–30k on the mainland and AED 5k–20k in a free zone, depending on the package. Once the documents and fees are submitted, the authority will review your application.
Upon approval, you will receive your Accounting/Bookkeeping professional license. You can now legally operate your accounting, auditing, or tax consultancy firm in Dubai! Register the company with relevant government portals (like Ministry of Labor and Immigration for establishment card if on mainland, etc.) and proceed with post-licensing steps like visa applications, corporate bank account opening, and any additional compliance registrations.
Apply for residence visas for you and any employees (if you are a foreign entrepreneur) so you can live and work in the UAE. Typically, after license issuance, you’d apply for an investor visa and then visas for staff as needed. Visa costs range roughly from AED 3,500–7,000 per person (including medical, Emirates ID, etc.). Free zones often offer visa quota bundles with the license package (e.g. 2, 5, or more visas included). On the mainland, visa quotas depend on your office size and are processed through the Ministry of Labor.
Also, open a corporate bank account for your new firm. UAE banks will require your trade license, MOA, passport copies, and sometimes a business plan or reference letter to open a company account. This step is crucial to handle client payments and expenses.
If your activities include tax consulting (VAT or corporate tax), register with the Federal Tax Authority (FTA) as a tax agent or at least ensure you obtain a Tax Registration Number (TRN) for your own company. If you will provide auditing services, you will need to fulfill the Ministry of Economy (MoE) requirements to be a registered auditing firm (explained below in Compliance).
Throughout the setup process, it’s advisable to work with a business setup consultant or PRO service (especially for mainland license) to navigate the paperwork and Arabic documentation. Once set up, remember that your license must be renewed every year with the respective authority (annual renewal fees will apply).
One of the most common questions is: “How much does it cost to open an accounting business in Dubai?” The cost to start an accounting firm in Dubai can vary greatly depending on the setup choices. Below we break down the typical costs involved:
This is the main cost for the professional license. Mainland license fees for an accounting or bookkeeping consultancy typically range from around AED 15,000 up to AED 30,000 (depending on the emirate and scope of activities). Some reports put the mainland license cost even higher (AED 20k–35k) when including government fees and agent fees. Free zone license packages are often cheaper – you can find accounting/consultancy license packages for approximately AED 10,000–20,000 in popular free zones. In fact, certain budget-friendly free zones like Sharjah’s SPC Free Zone offer a single-owner bookkeeping license for as low as AED ~6,000–7,000. These license fees usually include the trade name reservation, initial approval, and the license issuance for one year.
Unless you opt for a free zone flexi-desk, you will need to account for office rent. Flexi-desk (shared) facilities in free zones can cost around AED 5,000–8,000 per year. A small serviced office might be in the range of AED 8,000–20,000/year, whereas a dedicated private office on the mainland or in a premium location can range from AED 25,000 up to AED 50,000+ per year. The office cost depends on size and location (Downtown Dubai vs. a suburban area, for example). Many new firms keep costs low in year one by starting with a flexi-desk or a small co-working space, then upgrading as the business grows. (Note: mainland DED will require an Ejari-registered office address even if small; free zones may allow virtual offices.)
Investor and employee visas come with application fees, medical tests, Emirates IDs, etc. Budget roughly AED 3,500–7,000 per visa. For a single-person business, you might only need your own visa initially. Free zones often include a certain number of visa slots “free” in the package (e.g. some include 1 visa, others might charge separately). If you plan to hire staff (accountants, admin), consider the visa costs per person and the visa quota (tied to office space as mentioned).
There are various smaller fees during registration: e.g. Trade name reservation (~AED 600–750), Initial approval (~AED 300+), Memorandum of Association (MOA) notarization (AED 1,000–3,000), and Immigration card/E-channel registration (AED 1,000–2,000). These can total around AED 2,000–5,000 on the mainland or slightly less in some free zones (where such fees are bundled).
If you engage a business setup consultant or PRO, their service fees will add to the startup cost – sometimes they charge a package that includes many of the above items. Additionally, you might incur costs for document translation, attestation (if you have foreign documents to attest), and local service agent fee (for mainland) which can range widely (some agents charge ~AED 5k–10k per year for a simple professional license). Also consider opening a bank account – while the bank itself usually doesn’t charge for opening, some consultants charge a fee to assist (e.g. AED 1,000–3,000). Insurance is another cost once operational – e.g. professional indemnity insurance might be ~AED 1,500–5,000/year for a small firm, but this is often optional for very small consultancies at startup.
| Setup Type | Included | Approx. Total |
|---|---|---|
| Lean free zone setup (one-person firm) | License ~AED 7k, flexi-desk ~AED 2k, no visas (or one included) | ~AED 10,000 first year |
| Moderate free zone setup (with a couple of visas) | License + visas ~AED 20k, small shared office ~AED 8k, misc. ~AED 2k | ~AED 30,000 first year |
| Mainland setup with office (larger firm) | License ~AED 20k, office rent ~AED 30k, ~3 visas = ~AED 15–18k, agent & PRO ~AED 5–7k | ~AED 60,000+ first year |
Of course, you can scale these costs up or down. It’s possible to start small and later expand. Running costs in subsequent years will include annual license renewal (roughly renewals are a bit cheaper, e.g. AED 5k–15k depending on zone), office rent, staff salaries, accounting software subscriptions, etc. Always plan for some buffer in your budget for unexpected expenses or extra requirements (e.g. additional attestations or deposit payments). The good news is that an accounting firm’s overhead can be kept relatively low (it’s a services business – your main assets are your expertise and time).
Tip: To minimize costs, new entrepreneurs often leverage free zone bundles (license + visa + flexi-desk), start with minimal staff, and handle some PRO tasks themselves. As revenue grows, you can then invest more into a larger office or additional hiring.
If you decide to go the free zone route for accounting firm setup in the UAE, you have many options. The “best” free zone depends on your priorities (cost, location, prestige, included amenities). Here are some popular free zones for accounting and consulting companies:
| Free Zone | Notes |
|---|---|
| Meydan Free Zone (Dubai) | Affordable packages and fully online setup; professional service licenses with 100% foreign ownership; Dubai address; often < AED 15k. |
| IFZA – International Free Zone Authority (Dubai) | Cost-effective licenses, flexible bundles for consultancy, promotions common (sometimes ~AED 12k–15k incl. a visa). |
| DMCC – Dubai Multi Commodities Centre | Prestigious JLT location, strong ecosystem; higher costs (> AED 30k+). Suitable for high-end client targeting. |
| SPC Free Zone (Sharjah Publishing City) | Ultra-low-cost options; single-owner professional license from ~AED 6,500; quick online process; company legally based in Sharjah. |
| SHAMS – Sharjah Media City | Affordable service-business licenses; packages ~AED 5k–15k; virtual office options. |
| RAKEZ – Ras Al Khaimah Economic Zone | Consultancy-friendly, flexi-desk packages; accounting, audit, consulting allowed; lower operating costs if Dubai presence not required. |
| ADGM – Abu Dhabi Global Market | Financial free zone with international standards; higher cost and more involved process; best for audit/financial services focus in Abu Dhabi. |
In summary, free zones like Meydan and IFZA are great for being in Dubai with moderate cost, SPC and SHAMS excel in cost savings, and DMCC or ADGM offer prestige and specialized environments. All these free zones permit accounting and consultancy activities – an accounting firm license is allowed in free zones such as Meydan, IFZA, DMCC, RAKEZ, SHAMS, SPC, etc. with no issue. When choosing, consider where your clients are, whether you need to be physically in Dubai, and your budget. Many entrepreneurs actually consult a business setup expert to determine “which is the best free zone for an accounting company in the UAE?” – the answer will depend on your specific needs (cost vs. location vs. future expansion plans).
By maintaining strict compliance – whether it’s following IFRS in bookkeeping or adhering to audit and tax laws – your firm will build a reputation of trust. The UAE regulators actively promote high standards (for example, the push for auditor exams is to ensure quality). As an accounting firm, credibility and compliance are your lifeblood, so always stay updated on regulatory changes. Consider joining professional networks or associations (like AAA – Accountants & Auditors Association in the UAE) to keep abreast of industry developments and continuous education opportunities.
Many businesses in Dubai are looking not just for basic bookkeeping, but for comprehensive financial solutions. You can differentiate by offering outsourced CFO services, financial advisory, tax planning, payroll management, and CFO-for-hire packages. By positioning your firm as a one-stop solution for financial management, you tap into the trend where companies prefer to outsource these functions to specialists rather than maintain in-house teams. Highlighting specialties like corporate tax expertise or VAT return filing will attract clients needing those skills.
Establish a professional online presence. A well-optimized website (with informative content and SEO targeting terms like “accounting services in Dubai”, “VAT filing UAE”, etc.) will draw leads organically. Share success stories or case studies (while keeping client data confidential) to build credibility. Additionally, leverage platforms like LinkedIn to connect with entrepreneurs, and attend local business networking events or chambers of commerce meetups. In the UAE, personal relationships are important – referrals can be a major source of clients in the accounting industry. Consider partnering with business setup consultants or law firms for mutual referrals (many new businesses ask their setup agent to recommend an accounting service).
Embrace cloud accounting software popular in the UAE, such as Tally, Zoho Books, QuickBooks, or Xero. Being proficient in these and perhaps getting your firm certified as a partner for one of these software can be a selling point. Many SMEs in Dubai are switching to cloud accounting to save time. Use this to your advantage by offering migration services, training, or bundled software with your bookkeeping packages. Technology also improves your efficiency – allowing you to serve more clients with less manual work. Additionally, ensure your team stays updated on fintech trends (like e-invoicing, digital payment integrations, etc.) which are increasingly relevant in the UAE.
Given the strict compliance environment, showcase your firm’s commitment to accuracy and compliance. For example, if you have partners who are ACCA or UAECA certified, or if your firm is registered with MoE or FTA, mention these credentials. Clients, especially those subject to audits and tax, want to know they are in capable, certified hands. Also, implement strong data confidentiality measures – UAE companies value privacy, so having secure IT and clear confidentiality policies will give you an edge (you can mention that you comply with data protection standards).
To attract startups and SMEs (a huge market in Dubai), consider offering tailored packages – for instance, a monthly bookkeeping + quarterly VAT filing package at a fixed fee, or an annual financial statement + tax return bundle. Transparent pricing builds trust. In the beginning, you might price slightly competitively to build a client base, but avoid underpricing your professional services – focus on value and ROI for the client (e.g., how proper accounting saves them tax penalties, etc.). Many companies are willing to pay well for reliable service, given the risks of non-compliance.
As you grow, reinvest in the business – perhaps hire additional accountants or support staff to serve more clients, or open a branch in another emirate if demand exists (e.g., an office in Abu Dhabi to serve that market). The UAE allows you to expand relatively easily: a Dubai mainland license can open branches in other emirates with some additional paperwork, and free zone companies can sometimes open a branch on the mainland for specific activities. Increasing your geographic reach can be a growth avenue once the core operations are stable.
The financial landscape in the UAE is evolving (for example, corporate tax is new and there are frequent updates). Position yourself as an expert resource by staying updated and even educating your clients – through newsletters, free webinars, or guides. When clients see that you keep them ahead of compliance changes (like new ESR – Economic Substance Regulations, transfer pricing documentation rules, etc.), they are more likely to remain loyal and refer others.
Growing an accounting firm takes time, but Dubai’s robust business growth means new potential clients are launching every day. By delivering quality service, maintaining compliance, and marketing smartly, your firm can thrive. Remember, word-of-mouth is powerful in the UAE’s business community, so focus on building a reputation for excellence. Each satisfied client (whether you helped them save on taxes or simply sleep better knowing their books are in order) will become a brand ambassador for you.
When applying for a professional license for an accounting, bookkeeping, or auditing firm in the UAE, you will generally be required to submit a comprehensive set of documents. These can be grouped into personal, company, and qualification-specific categories.
This set of documents is required to identify the individuals involved in the business.
These documents are related to the business entity itself.
These legal documents formalize your company’s structure.
This is the most important category for an accounting or auditing license. The authorities must verify your professional competence.
If you want to add “Auditing of Accounts” as an activity, you must meet the requirements of the UAE Ministry of Economy (MoE). This is a significant step up.
You will need all the documents listed above, PLUS:
In summary: You cannot simply add “Auditing” to your license. You must first prove your qualifications to the Ministry of Economy to be registered as a licensed auditor, which then allows you to get the auditing activity on your trade license. Many firms start with “Accounting & Bookkeeping” and add “Auditing” later once they meet these stringent MoE requirements.
To start an accounting firm in Dubai, you need to obtain a professional license for accounting or bookkeeping from the Dubai DED or a free zone authority. The process involves choosing a jurisdiction (mainland vs free zone), selecting your business activities (e.g. accounting, tax consulting, auditing), securing initial approvals, leasing an office, and then submitting the license application with all required documents (passport copies, qualifications, etc.) to get the trade license. Once the license is issued, you can set up bank accounts, hire staff under your visa quota, and start offering services. It’s recommended to meet any qualification requirements (having an accounting degree or certification) to ensure you get necessary approvals. Using a local business setup service can simplify the paperwork.
You will need a Professional Trade License categorized under accounting and bookkeeping services. In Dubai mainland this is issued by the Department of Economic Development (DED), and in a free zone it’s issued by that zone’s authority. The license will typically have an activity name like “Accounting and Bookkeeping” or “Accounting and Auditing” depending on what services you provide. This license legally allows you to provide bookkeeping, accounting, tax consulting, etc. Operating without this license is illegal in the UAE. So, the first step is to apply for the professional license with the relevant authority. If you plan to also offer auditing, ensure the license includes the audit activity and that you meet the additional requirements (like Ministry of Economy auditor registration).
The cost can range widely. On the low end, if you set up in a cost-effective free zone, you might spend around AED 10,000 or even less for the first year (this might include a basic license and a flexi-desk with minimal visas). On the higher end, a Dubai mainland setup with an office and multiple visas can cost AED 50,000–70,000 or more in the first year. Generally, mainland licenses are around AED 20k (give or take) for the license alone, plus office rent and other fees, whereas free zone packages can be found in the AED 15k–30k range all-inclusive. These figures cover the trade license, registration fees, and maybe a small office space. You’ll also need to account for visa fees (approximately AED 3.5k–7k per person) and any professional services you use. Always check for the latest fees in the jurisdiction you choose, and beware of deals that seem too cheap – ensure they include everything needed to actually operate legally.
Yes, absolutely – the UAE encourages foreign investment in professional services. Foreigners can own 100% of an accounting/bookkeeping firm. In free zones, no local partner or sponsor is required at all (you are the full owner). In the Dubai mainland, you also don’t need a local equity partner for a professional license (unlike commercial businesses); however, you must appoint a local service agent (an Emirati) for government liaison purposes. This agent has no ownership in the company. Many expat professionals have successfully opened accounting and audit practices in Dubai. Just keep in mind, as a foreign owner, you should have the relevant qualifications or hire qualified staff, as UAE authorities scrutinize who is behind auditing and accounting firms (to maintain quality and compliance). Also, as a foreigner, you will need to secure a residence visa through your new company in order to live and run the business in the UAE – which is part of the setup process.
The main requirements include: a valid professional license, an office address in Dubai, and at least one qualified accountant or auditor as part of the firm. To get the license, you’ll need to provide documents like passport copies, a business plan or brief, and proof of qualifications (especially if you’re including activities like auditing or tax consulting). Dubai’s DED may require the owner/manager to hold an accounting degree or professional certification for certain activities. You will also need to prepare a Memorandum of Association (MOA) (or Local Service Agent agreement for mainland) during the application. If on mainland, a local service agent (Emirati) must be appointed. After licensing, additional requirements are registering with the Ministry of Economy if you will perform audits, and registering with the Federal Tax Authority if you will be a tax agent. Also, opening a corporate bank account is needed to properly conduct business. In short, the requirements are: correct license, office space, paperwork (MOA, etc.), and compliance with any professional criteria set by authorities.
For free zone companies, no local sponsor is needed at all – you can own the company fully as an expat. For mainland Dubai, you do not need a 51% local “sponsor” (since accounting services fall under professional licenses, not commercial LLC). Instead, you will use a Local Service Agent (LSA). The LSA is not a shareholder; they just fulfill Emirati representation for governmental processes. They usually charge a fixed annual fee for this role. So, you do need to engage a local service agent if you go mainland, but this is a much simpler arrangement than a partnership – the local agent doesn’t interfere in management or profits. Many business owners prefer professional licenses because you avoid giving equity to a sponsor. In summary: no equity-sharing local sponsor is required for an accounting firm, only an agent on mainland (and in free zones, not even that).
Yes, accounting, bookkeeping, auditing, and tax consultancy activities are generally permitted in most UAE free zones – including Meydan Free Zone, IFZA, DMCC, SHAMS, RAKEZ, and others. Each free zone has a list of business activities; “Accounting and Bookkeeping” or “Accounting and Auditing” is commonly available. For example, IFZA and Meydan (both popular in Dubai) actively encourage professional service companies to set up, and they provide attractive packages for them. There is no restriction that says you must be on the mainland – a free zone company can offer services to clients worldwide and within its zone. The only limitation is that if you want to extensively serve Dubai mainland clients, you might need to use distributor agreements or open a branch later on. But purely in terms of licensing: free zones do allow accounting firms. In fact, many small and mid-sized accounting practices in the UAE are free zone-based because of the lower cost and simpler process.
The primary approval needed is from the economic licensing authority (DED or the free zone) to issue your trade license. Beyond that, if you will perform audits, you need approval from the Ministry of Economy (MoE) to be listed in the auditors’ registry (this typically comes after you meet their exam and experience conditions). If you will act as a Tax Agent, you should be approved by the Federal Tax Authority (FTA) (which involves meeting criteria like being a UAE resident, holding certain qualifications, and passing a tax compliance test). These are post-licensing approvals specific to the services. Additionally, your firm should comply with Ministry of Economy’s AML registration for financial professionals. During the licensing itself, if setting up in certain free zones, you might get asked for a third-party NOC or certification – e.g., some free zones might require an undertaking that you’ll hire a qualified auditor for audit work. Generally, though, the process is: DED/free zone license approval is the main step, and MoE/FTA registrations follow as needed based on your activity. If you’re unsure, Dubai’s DED or the free zone will advise what additional approvals apply to the activities on your license. Business setup consultants also help in securing these approvals.
Yes. You can start a pure bookkeeping and accounting services firm without offering auditing. In that case, you just obtain a professional license for “accounting and bookkeeping” (and perhaps “tax consultancy”), and do not list “auditing of accounts” as an activity. There is no requirement to have an audit license if you’re not going to perform statutory audits. Many firms operate as accounting consultants – they maintain books, prepare financial statements, handle VAT returns, etc., but they outsource the year-end audit to a separate audit firm that has the audit license. This is completely fine and common. Audit licensing has stricter conditions (as discussed, MoE registration, UAE national requirements in some cases, etc.), so if auditing is not in your business plan initially, you can avoid that complexity. You can run a successful bookkeeping and tax filing practice under a normal professional license. If in the future you decide to add audit services, you can amend your license to include it (once you meet the audit licensing requirements). Also note, internal audits or finance consulting can be done without an audit license – it’s only the official external audit (the one for legal compliance) that requires the auditor to be MoE-approved.
There isn’t a single “best” free zone for everyone, but a few stand out depending on needs. Meydan Free Zone and IFZA are excellent for Dubai-based operations at a moderate cost – they’re popular choices for small accounting firms due to ease of setup and good Dubai addresses. If lowest cost is the priority, SPC Free Zone (Sharjah) and SHAMS are often the cheapest while still reputable (licenses from those zones are well-recognized). DMCC is top-tier if you value a prestigious location and don’t mind higher costs; it could impress certain clients that you’re in a renowned free zone. RAKEZ in Ras Al Khaimah is also very business-friendly and might offer cost savings on renewals and facilities. So, the “best” free zone depends on your budget, location preference, and client base. For most new accounting firms who want a balance, IFZA or Meydan in Dubai tend to be very attractive options. They give you the Dubai tag and are relatively hassle-free. If you are targeting clients in Abu Dhabi, you might even consider Abu Dhabi free zones (like ADGM or Abu Dhabi’s Department of Economic Development has a freelance professional license too). Evaluate factors like package costs, visa quotas, office requirements, and choose the zone that fits your business plan best. It can help to speak with a business setup advisor who can lay out the latest promotions and details of each zone before deciding.
Embassies Attestation
