The United Arab Emirates (UAE) offers a dynamic business environment, making it an attractive destination for accounting, auditing and tax consulting firms. With favourable tax regulations, strong financial infrastructure and business-friendly policies, the country provides ample opportunities for firms catering to businesses needing financial compliance, auditing and taxation services. Obtaining an accounting, auditing and tax consulting licence in the UAE requires careful planning, adherence to regulatory requirements and selecting the right jurisdiction for business operations. This guide outlines the key steps to establishing a licensed financial consultancy firm in the UAE.
The UAE is home to thousands of businesses, ranging from small startups to multinational corporations, all requiring professional financial services. The introduction of corporate tax, value-added tax (VAT) and stringent compliance regulations has increased the demand for qualified accountants, auditors and tax consultants. Regulatory bodies such as the Ministry of Economy (MoE) and the Federal Tax Authority (FTA) oversee financial services, ensuring businesses comply with international accounting standards and local tax laws.
Businesses in the UAE can operate in either the mainland or free zones. • Mainland: A licence issued by the Department of Economic Development (DED) allows firms to operate anywhere in the UAE and work with both local and international clients. Mainland firms can also participate in government contracts. • Free zones: Many free zones, such as Ras Al Khaimah Economic Zone (RAKEZ), offer licences for financial consultancy firms. Free zones provide 100% foreign ownership, tax benefits and simplified business set-up processes. However, firms may have restrictions on working with mainland clients.
The business licence must specify the services offered. The DED or free zone authorities provide predefined activity codes for: • Accounting and bookkeeping services • External and internal auditing • Tax consultancy and VAT advisory • Financial risk analysis and reporting It is essential to choose the correct activities to ensure regulatory compliance and avoid future restrictions.
To obtain an auditing or tax consulting licence, firms must meet professional qualification criteria. Key requirements include: • A bachelor's degree in accounting or any other specialisation recognised in the state, provided that he has the equivalent of at least fifteen credit hours in accounting courses approved by the Ministry. • Approval from the Ministry of Economy (MoE) if offering statutory auditing services. • Registration with the Federal Tax Authority (FTA) if providing tax consultancy or VAT-related services.
Once the business jurisdiction and activities are selected, the next step involves: • Trade name registration: The name must align with the company's services and comply with UAE business naming regulations. • Initial approvals: Approval from the DED (for mainland businesses) or the relevant free zone authority is required before proceeding with full registration. • Office space: Some free zones offer virtual office options, but mainland firms typically require a physical office.
The final application must be submitted to the appropriate authority, along with: • Passport copies of shareholders and managers • Professional qualification certificates • Business plan outlining services and financial projections • Tenancy contract for office space (if applicable) Upon approval, a professional licence is issued, allowing the firm to legally offer accounting, auditing and tax consultancy services.
For firms offering auditing or tax consultancy services, additional registrations may be required: • Ministry of Economy (MoE): Mandatory for audit firms conducting statutory financial audits. • Federal Tax Authority (FTA): Required for tax consulting firms to offer VAT and corporate tax advisory services.
A UAE business licence allows firms to open a corporate bank account in local or international banks operating in the country. Banks may require: • Trade licence copy • Shareholder details and passport copies • Proof of office address • Business plan and expected financial transactions
Business licences require annual renewal, involving: • Submission of audited financial statements (if prescribed by authorities) • Payment of renewal fees • Compliance with AML (Anti-Money Laundering) and CFT (Combating Financing of Terrorism) laws for firms handling financial transactions
Situated in the heart of RAK, the Ras Al Khaimah Economic Zone (RAKEZ), is a powerhouse business and industrial hub in the UAE that uniquely offers customisable solutions to set up your office in a free zone and non-free zone. Get in touch with consultants at RAKEZ to learn more about us. Reach us on: Phone: +971 7 2041111 Email: info@rakez.com
Don't forget to share this article!