The 2025 Guide to Setting up a Legal Consultancy Business in the UAE: Navigating the New Regulatory Landscape

The licence turns on the principal consultant’s qualifications and the judicial department’s approval

What Cabinet Resolution No. (10) of 2025 requires of a legal consultancy licence applicant, and how mainland and free zone setups differ. It then follows the application from trade name and judicial department approval through the principal consultant’s qualifications, the office lease, the MOA and the mainland local service agent, and ends with AML duties, drafting work and hiring.

By Nour Attorneys / 22 August 2026

Reviewed by Mohamed Noureldin, Founder, Managing Partner & Senior Legal Consultant

Setting up a legal consultancy business in the UAE is a multi-layered process involving the Department of Economic Development (DED), the Ministry of Justice and local judicial departments. The most critical step is neither the trade name nor the office lease. It is approval to practise from the relevant judicial department, and that application rests on the professional qualifications and experience of the principal legal consultant. Before any of it, you choose between a mainland and a free zone setup. Demand for legal consultation makes the UAE a significant opportunity for legal professionals and international law firms, but the process is governed by stringent regulations, and those regulations saw important updates in 2025.

What Cabinet Resolution No. (10) of 2025 changed

A cornerstone of the new framework is Cabinet Resolution No. (10) of 2025 Regarding the Regulations of Law Firms and Legal Consultancy Firms. It is designed to raise the standards of legal practice and to simplify the licensing process. Its key points include the following.

A professional company structure. The resolution explicitly allows for the establishment of a Professional Company for legal consultations. It can be formed independently or in partnership with other qualified legal consultants, which formalises the corporate structure for legal practices.
The licence applicant. The regulations support the requirement that the licence applicant be a UAE lawyer listed on the Roll of Practising Lawyers or a UAE legal consultant listed on the register of practising legal consultants. This ensures that the leadership of the consultancy has the requisite local knowledge and professional standing.
Enhanced oversight. The framework introduces enhanced oversight mechanisms by the Ministry of Justice and the relevant local judicial departments, such as the Dubai Legal Affairs Department (LAD), ensuring that all licensed firms adhere to the highest ethical and professional standards.

Understanding and complying with these updated requirements is the single most critical factor for a successful setup. Doing so requires specialised knowledge, which is why many firms choose to engage experts in business formation.

Mainland or free zone decides where the firm can operate

The first strategic decision is the jurisdiction and legal structure. The specific steps may vary slightly between emirates, such as Dubai and Abu Dhabi, and between mainland and free zone. The core procedure remains consistent.

Feature	Mainland (for example, a DED licence)	Free zone (for example, DMCC, DIFC, ADGM)
Scope of business	Can operate anywhere in the UAE and internationally	Restricted to operating within the free zone and internationally
Ownership	Requires a local service agent (LSA) for a sole establishment or a professional company structure	Allows 100% foreign ownership
Licensing authority	Department of Economic Development (DED) and the relevant judicial department (for example, LAD in Dubai)	The specific free zone authority (for example, the DMCC Authority)
Regulatory complexity	Higher regulatory requirements, especially concerning local legal qualifications	Generally simpler, but specific free zones (like DIFC and ADGM) have their own common law-based legal frameworks

For a legal consultancy aiming to serve the broader UAE market, a mainland licence is often preferred, despite the more rigorous qualification process overseen by the Ministry of Justice or the local judicial department.

For the free zone route, see our free zone company formation service for foreign investors. For matters in the DIFC, one of the free zones with its own common law-based framework, see our DIFC lawyers.

The judicial department approves the practice before the licence

With the jurisdiction chosen, the application moves through initial approvals and the trade name.

Trade name reservation. Submit an application to the DED or the relevant free zone authority to reserve a unique trade name that complies with UAE naming conventions.
Initial approval. Obtain initial approval from the DED or the free zone authority. This confirms that the government has no objection to the proposed business activity and structure.
Judicial department approval. This is the most critical step for a legal consultancy. You must apply to the relevant judicial department, such as the Dubai Legal Affairs Department, for approval to practise. This application requires submitting the professional qualifications and experience of the principal legal consultant or consultants.

Experience, attested degrees and registration

Under the 2025 regulations, the professional qualifications of the principal consultant or consultants are heavily scrutinised.

Experience. The principal consultant must typically demonstrate a minimum number of years of relevant legal experience, often 5 to 10 years depending on the emirate and jurisdiction.
Academic credentials. Submission of certified and attested law degrees and professional certifications is mandatory.
Registration. For mainland operations, the consultant must be registered with the relevant judicial body.

Non-UAE nationals often require a specific licence to practise as a legal consultant. That licence is distinct from the licence to practise advocacy in UAE courts.

Office, memorandum and local service agent

Once the judicial approval is secured, the process moves to finalising the corporate documentation.

Lease agreement. Secure physical office space and obtain a valid tenancy contract (Ejari in Dubai) or a Flexi-desk arrangement in a free zone. Our legal contract review service covers tenancy contracts.
Memorandum of Association (MOA). Draft and notarise the MOA, detailing the company's structure, ownership and operational scope.
Local service agent (LSA) agreement (mainland). If setting up a sole establishment or a professional company with 100% foreign ownership, a UAE national LSA must be appointed. The LSA has no direct involvement in the management or capital but helps with the licensing process.
Final licence issuance. Submit all finalised documents to the DED or the free zone authority to receive the official legal consultancy licence.

For professional legal guidance, see our corporate governance and business compliance advisory service.

AML duties once the firm is running

A successful setup is only the beginning. Long-term success in the competitive UAE legal market requires strategic operational planning and adherence to the highest standards of legal practice.

The UAE has significantly strengthened its anti-money laundering (AML) framework, with new executive regulations coming into effect in 2025. Legal consultancy firms, as Designated Non-Financial Businesses and Professions (DNFBPs), are subject to rigorous AML compliance requirements. These include:

implementing Know Your Customer (KYC) procedures;
appointing a dedicated Compliance Officer;
regularly training staff on AML and Counter-Terrorism Financing (CTF) protocols;
filing Suspicious Transaction Reports (STRs) with the Financial Intelligence Unit (FIU).

Failure to comply with these regulations can result in severe penalties. That makes expert legal advice on compliance a non-negotiable part of the operational plan. Our corporate governance advisory team advises on business compliance.

Contract quality and client risk

Legal consultancy firms thrive on their ability to draft, review and negotiate complex legal documents. In the UAE, business is conducted across multiple jurisdictions and legal systems (civil law, and common law in free zones). The precision of legal documentation is of the highest importance.

From shareholder agreements and employment contracts to complex commercial transactions, the quality of the drafting directly affects a client's risk exposure and business continuity. This specialised area of practice requires not only legal expertise but also a deep understanding of local commercial practices.

For new firms, outsourcing work in highly specialised areas, or seeking outside expertise in them, can be a smart move. Nour Attorneys offers dedicated services for drafting and reviewing contracts and agreements.

Hiring for UAE law and for language

The success of a legal consultancy hinges on its team. International experience is valuable, but the UAE market places a high premium on local expertise.

Local law experts. Hiring lawyers and consultants with deep knowledge of UAE federal laws, local emirate regulations and Sharia law principles is crucial.
Multilingual capability. Given the UAE's diverse population, fluency in Arabic and English is often a requirement. Other languages (for example, Hindi, Mandarin and Russian) are a significant asset.

Related services

Nour Attorneys guides international and local investors through the business formation process, from initial approvals to final licensing and ongoing compliance.

Disclaimer: the information in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on it.