Consulting Company Formation.
For issuing contracts and invoices to foreign clients in the company's name, the suitable country is decided by collection, residence and tax. A comparison of the three countries follows below.
Consulting Formation Decided by Four Criteria.
The company's address is decided by where the client is, the channel through which payment arrives and the country where you are resident.
Contracting and invoicing partyThe client signs the contract with the company; the invoice is issued in the company's name and payment is made to the company account.
For the revenue to arise in the company, the contracting party, the party issuing the invoice and the account receiving payment must belong to the same company. If the contract is in a person's name and payment goes to the company account, the chain breaks and who the revenue belongs to may become disputed. The contracting party is determined at the formation stage according to this chain.
Payment channelBank transfer, a payment institution or card; the channel narrows the country options.
Corporate clients mostly pay by bank transfer, and payment can be received into a company account in all three countries. Payoneer works with a Dubai or UK company and does not work with a Northern Cyprus company. If payment will be taken by card, Stripe and PayPal can be opened only in Dubai and the UK; in Northern Cyprus a local virtual POS is available.
Your country of residenceIf the company is managed from your country of residence, the place of management can be decisive for tax.
In consulting, the person providing the service is in most cases the owner of the company. If you are resident in another country and in practice manage the company from there, tax liability may arise in that country, and dividends may also have to be declared there. This assessment is personal and is not made through the site; it is discussed in a meeting before the structure is set up.
Fields subject to permissionFields such as law, tax representation and investment advice require an additional permit or registration.
Management, strategy, software and marketing consulting are defined as a general commercial activity. Some fields, however, require a separate permit from the relevant country's authority: in the UAE, representation before the tax authority requires registration on the FTA's register of tax agents, and in the UK, a regulated financial activity such as investment advice requires FCA permission. The activity description is made at the formation stage according to this distinction.
The Same Criteria, Three Countries, Three Different Outcomes.
A summary first: the country matching your situation is indicated below. A comparison of the three countries follows.
Your clients are in Europe and you work under contract
The market where contract, invoicing and collection practice is most established; formation is carried out remotely from start to finish.
You also want a residence visa
The only country where a residence visa application can be made through the company; the quota depends on the licence package.
You advise companies in the Gulf
Services to customers inside the UAE require a mainland licence; a local company provides trust with customers.
The client pays by bank transfer, and you also need a Turkish lira account
For services to clients outside Northern Cyprus, a Free Port company does not pay corporation tax or income tax; if payment is received by bank transfer, there is no collection restriction.
| Criterion | Dubai | United Kingdom | Northern Cyprus |
|---|---|---|---|
| CollectionCollection by card and through platforms |
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|
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| Structure and formation | Free zone or mainlandThe activity code determines the licence class; fields such as tax representation additionally require FTA registration. | Limited · Companies HouseThe activity is converted into a SIC code; a regulated financial activity such as investment advice requires FCA permission. | Free Port · limitedAt least two partners; one visit to Northern Cyprus is required for signatures and the bank account, and the foreign partner's share capital is blocked at the bank. |
| Residence / visa for the team | Residence visa through the company | Company formation does not provide residence | Company formation does not provide residence |
| Tax framework | 0% up to AED 375,000, 9% aboveOn net profit; free zone companies included. | 19-25%, depending on profit19% up to £50,000, 25% above £250,000; a gradual transition in between. | 0% on business outside Northern CyprusFor a Free Port company; sales to companies within the Free Port are also exempt. Normal tax rules apply to sales to a local company within Northern Cyprus. |
| Setting up a consulting company in Dubai | Setting up a consulting company in the UK | Setting up a consulting company in Northern Cyprus |
The collection row is based on the payment infrastructure table; the provider itself is the body that opens the channel, and approval is not guaranteed. The tax cells are a general framework, not a personal opinion.
Formation cost, typical timeline and bank channels are not included in this table: as they do not depend on the industry, they are presented in the full comparison of the three countries. Compare the Three Countries by Criteria
If your situation does not fully match any of these, you can send us your service, where your clients are located and your country of residence; the suitable country is assessed together.
Request an AssessmentVisas available, close to the Gulf
Setting up a consulting company in Dubai
A free zone if your clients are outside the UAE, a mainland licence if you advise companies inside the UAE. The only country where a residence visa can be obtained through the company.
- What matters is where your client is: a free zone for outside the UAE, mainland for inside the UAE.
- The partner visa and Emirates ID are obtained during the process.
- Payoneer, Stripe and PayPal can be set up with a Dubai company.
Restrictions to note for Dubai2 items
- Presence in the UAE is required for the visa and biometrics; this step cannot be carried out by proxy.
- In addition to formation, a licence renewal cost arises every year. The second-year renewal should be planned from the start.
Established contract and invoicing practice
Setting up a consulting company in the UK
If you advise clients in Europe, the Ltd structure is widely accepted in contract and invoicing processes; formation is carried out remotely from start to finish.
- The Ltd structure is widely accepted by customers and platforms in Europe.
- The market where contract and invoicing practice in consulting is most established.
- Formation is completed without travel.
Restrictions to note for United Kingdom3 items
- Company formation does not provide a right of residence. Immigration is a separate process.
- If the company is in practice managed from your country of residence, tax liability may arise there, and dividends may also have to be declared there.
- The approval rate at traditional banks is low for non-resident partners; in practice, we start with a payment institution account.
No tax on services paid by bank transfer
Setting up a consulting company in Northern Cyprus
If you serve clients abroad and receive payment by bank transfer, a Free Port company does not pay corporation tax or income tax on activity outside Northern Cyprus. Card collection is possible through a local virtual POS.
- Corporation tax, income tax and VAT do not apply to activity outside Northern Cyprus.
- An Eastern Mediterranean location.
- The company can operate without renting an office, through an address and representative agreement.
Restrictions to note for Northern Cyprus3 items
- Stripe and PayPal do not work with a Northern Cyprus company. If payment is not received by bank transfer, Dubai or the UK should be considered.
- If the company is in practice managed from your country of residence, tax liability may arise there, and dividends may also have to be declared there.
- It is not an EU member and is not the same country as Southern Cyprus.
Our Services for Consulting Companies
The criteria above decide the matter; the services below cover putting that decision into effect. All of them are services we currently provide.
- Company formationThe activity description and the contracting party are entered correctly in the formation file; if you operate in a field subject to permission, the scope of the permit required is assessed in advance.
- Accounting and reportingThe invoices you issue and the payments received are matched in the monthly accounting records; filings are made in the same cycle.
- Banking and payment systemsCorporate account and payment institution applications are handled together with the file; the channel for payments from the client is assessed before the country is chosen.
- Visa and residenceIn Dubai, the residence visa through the company, the medical test and the Emirates ID steps are included in the formation plan.
The scope, timeline and fee of the service vary by country; details are on the relevant country page.
Frequently Asked Questions.
What decides is where your client is and the payment channel. If you work under contract with clients in Europe, the UK; if you also want a residence visa, Dubai; if payment is received by bank transfer and you need a Turkish lira account, Northern Cyprus may be suitable.
As a company. For the revenue to arise in the company, the contracting party, the party issuing the invoice and the account receiving payment must belong to the same company.
The company is taxed under the rules of the country where it is formed; if profit is passed to you as a dividend, it may have to be declared in your country of residence. If the company is in practice managed from your country of residence, tax liability may arise there. Personal tax opinions are not given through the site; the subject is discussed in a meeting, and we recommend consulting your home-country tax adviser.
These are regulated professions and require a separate permit or registration from the relevant country's authority; for example, in the UAE, tax representation requires registration on the FTA's register. The activity description is made at the formation stage according to this distinction, and the scope of the permit required is assessed in advance.
Yes with a Dubai or UK company. Neither works with a Northern Cyprus company.
Only in Dubai: a partner visa and Emirates ID can be obtained through the company. In the UK, company formation does not provide a right of residence. In Northern Cyprus, owning a company does not in itself provide a permit; a work permit is obtained separately.