Start an Urban Planning and Masterplanning Consultancy - License Cost & Approvals

Urban planning is at the heart of Dubai’s transformation into one of the world’s most modern and livable cities. Every new township, industrial zone, community, or mixed-use project begins with a masterplan. This is where urban planning and masterplanning consultants play a critical role. If you are an entrepreneur or professional considering this sector, Dubai offers strong opportunities. Developers, government authorities, and investors all rely on consultancy firms that can design sustainable, efficient, and compliant masterplans.

In this guide, I will explain the market demand, license options, license cost, step-by-step setup process, external approvals, post-business formation requirements, office space needs, and how COFTT can help you establish your consultancy.

Market Opportunity

Dubai’s reputation as a global city is built on structured planning. Unlike many cities that grew without control, Dubai’s rise has been guided by carefully designed masterplans for entire communities and industrial zones. This creates continuous demand for professional consultancy firms.

Real Estate Developers

Large developers like Emaar, Nakheel, Meraas, and private investors require consultants to prepare layouts for communities, mixed-use projects, and waterfront developments. Consultants help design a balance of residential, retail, hospitality, and public infrastructure.

Government and Municipalities

Authorities such as Dubai Municipality and RTA rely on planning consultants to align projects with Dubai’s 2040 Urban Master Plan. Services range from land zoning and density studies to transport impact assessments and public facility planning.

Free Zones and Industrial Developments

Free zone authorities in Dubai, Abu Dhabi, and Northern Emirates hire consultants to plan industrial hubs, logistics clusters, and tech parks. Masterplanning here involves infrastructure design, accessibility, and utilities integration.

Hospitality and Tourism Projects

Eco-tourism destinations, luxury resorts, and heritage redevelopment projects all need planning input. Consultants ensure designs comply with zoning laws, sustainability standards, and environmental approvals.

Smart City and Sustainability Initiatives

With Dubai’s push towards becoming a smart and green city, planning firms with expertise in renewable energy integration, walkable community layouts, and digital infrastructure planning are in strong demand.

In simple terms, any land development project in Dubai, from new free zones to smart residential townships, cannot start without professional planning. That makes this consultancy business both stable and profitable.

Types of Licenses Available in Dubai

The Department of Economic Development (DED) offers several activities for planning consultancies. The most relevant are:

Urban Planning Engineering Services (Activity Code 7110501)

A professional license under the engineering consultancy group that allows firms to provide urban and territorial planning services. This includes preparing studies, designs, and layouts for land use, traffic systems, city growth, and environmental integration. The activity is regulated by Dubai Municipality, which has the authority to issue and monitor approvals.
Masterplanning Consultancy

Engineering Consultancy - Planning and Design

A broader license that includes planning services as part of general engineering and design consultancy.

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At COFTT, we review your business model and suggest the best option so your activities align with regulations.

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License Cost

Setting up an urban planning consultancy in Dubai can cost between $6,800 and $10,900 for a mainland license and between $5,400 and $9,500 for a free zone license. Mainland costs cover the license fee, trade name, Dubai Chamber membership, and external approvals, while free zone costs include the license package, office lease, and immigration file.

Beyond licensing, you should also budget for professional indemnity insurance ($1,360 - 2,720 per year), software tools such as CAD or GIS ($2,700 - 5,400), and staff visas ($1,080 -1,630 per person). The exact amount depends on whether you set up as a small consultancy or a larger firm with multiple planners.

Step by Step Business Setup

Step 1: Define your activity

Choose whether you want to register as an urban planning consultancy, masterplanning consultancy, or a broader engineering consultancy.

Step 2: Select jurisdiction

Choose between mainland (for full Dubai market access) or a free zone (for easier setup and flexibility).

Step 3: Reserve trade name and apply for initial approval

Submit your proposed company name and secure initial clearance from DED.

Step 4: Secure office space

Lease an office in Dubai. For consultancies, even a small professional office qualifies.

Step 5: Prepare documentation

Collect passport copies, tenancy contract, and a Memorandum of Association (if required).

Step 6: Apply for license issuance

Submit all paperwork to DED or the chosen free zone authority.

External Approvals

Urban planning consultancies usually require external approvals before operations can begin. Common ones include:

1. Dubai Municipality: Approval for planning-related consultancy activities.
2. RTA: For projects that involve traffic and transportation planning.
3. Civil Defence: If the consultancy covers safety and fire-related planning input.
4. Environmental Authorities: For sustainability and environmental impact assessments.

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COFTT will assist you in all the approval process so you can focus on your clients.

Post-Business Formation Formalities

Once your license is issued, a few more steps are required:

Bank Account Opening

A UAE corporate bank account is mandatory to receive payments and manage expenses.

Corporate Tax Registration

All companies must register for corporate tax, even if they qualify for zero percent rates in free zones.

VAT Registration

Compulsory if annual revenue exceeds AED 375,000.

MoHRE Registration

Registration with the Ministry of Human Resources is needed to hire employees legally.

Visa Processing

Apply for investor and staff visas under your company. The number of visas depends on office space size.

Office Space Requirements

Every consultancy must have a registered office. For small firms, a modest office in a business center is acceptable. Larger consultancies may need a bigger workspace with meeting rooms for clients.

Virtual Office Option

In some cases, a virtual office can be used to obtain the license. This is a cost-effective way to maintain a legal presence without renting a physical space. Not all activities qualify, so speak to COFTT to confirm whether your consultancy can use this option.

Operational Requirements

Running a consultancy goes beyond licensing. To operate successfully, you will need:

1. Qualified urban planners, architects, and engineers
2. Professional indemnity insurance for project security
3. Specialized software such as CAD, GIS, and 3D visualization tools
4. Strong networks with developers and municipal authorities

Cost Factors Beyond License

1. Plan your budget beyond the initial license. Key cost areas include:
2. Staff salaries and visa costs
3. Office rent and utilities
4. Software and technology expenses
5. Insurance premiums
6. Marketing and client acquisition costs

Final Thoughts

Urban planning and masterplanning consultancy is a high-value business in Dubai. The demand comes from government, developers, and investors, making it a stable and profitable field for those with the right expertise.

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At COFTT, we have helped many consultancy firms set up in Dubai with full compliance. From choosing the right license and securing external approvals to handling post-formation formalities and advising on office space, we guide you every step of the way. If you are ready to establish your consultancy in Dubai, COFTT will make the process smooth, transparent, and successful.