If there’s one thing currently on the list of most entrepreneurs, it is setting up a business in Dubai. Touted as the ‘City of Gold,’ Dubai has successfully established itself as a significant global business hub. As a result, it enjoys hefty investments from around the world and applications for business setup.
However, there is one question that troubles everyone – What is the cost of setting up a business in Dubai?
If you, too, want to know the costs and how to determine them, keep reading. This blog is your guide to finding out the cost of setting up a company in Dubai, what factors to keep in mind, and more.
What Factors Should You Consider While Calculating the Cost of a Business Setup?
The cost of setting up a business in Dubai is inclusive of several essential factors. And a wrong decision in analyzing these factors may burn a hole in your pockets.
So if you want to avoid an expensive business setup, consider the following factors in great detail –
1. Business Activity
Dubai allows you to choose from 2000+ business activities. Since every business activity has different demands, considering your activity while calculating the business setup costs is essential. For instance, selecting an activity in the oil and gas industry may be costlier than choosing trading or services like digital marketing.
Another crucial factor to consider is your operating location. The cost of setting up a business on the Mainland differs from the free zones.
Mainland businesses may be a bit on the higher end, but they offer businesses exposure to local and international markets. Furthermore, you can pitch for public projects.
In contrast, free zones are dedicated, each focusing on a specific industry or activity. They offer industry-specific conducive business environments with top-notch infrastructure. They also allow for 100% ownership.
It will be wise to compare the two based on your business’s needs and growth plans and consider the costs.
3. License Type
The Dubai government offers various types of licenses. Some of the most popular ones are:
- Industrial License
- Commercial license
- Professional license
Your business activity will determine the kind of license you will need. Furthermore, each of these licenses is priced differently. And hence license type is a crucial factor in determining business setup costs.
4. Office Space
The cost of your office space will depend on two factors – your choice of location and your need for infrastructure. Different places in Dubai have different rates for renting or leasing offices. Furthermore, the costs will increase if the office spaces offer all the amenities like a meeting room, conference room, cafeteria, internet, and more.
5. Other Expenses
Some other factors that may directly or indirectly impact business setup costs in Dubai include the following –
- Visa applications
- Corporate bank account
- Additional approvals
- Document processing
- Initial approvals and more.
What Are Some Best Locations For Cost-Effective Business Setup?
Several locations offer cost-effective Dubai company setup packages. Some of them are –
What Is the Process of Setting Up a Business in Dubai?
Starting a company in Dubai is simple. For a quick summary of the same, consider the following:
- Your first step should be to determine what you want to do. The kind of license, the legal structure of your firm, and the requirement for any extra permissions are all determined by this.
- Then, decide on your company’s legal structure. Think carefully about the benefits and drawbacks of each option and choose the one that best meets your needs. The desired structure will impact your powers as a stakeholder, liabilities, profits, and more.
- Choose a name for your business next. Make sure it’s easy to remember, stands out from the crowd, and follows all naming conventions. Then register it with the authorities so that no other business may operate under the same name as yours.
- Start looking for a place now. Discover which location is ideal for what you want to do. Once located, rent or lease the space and register it with Ejari.
- The next step is to get official clearance through initial approvals. Check whether any more licenses are needed once you have them. If so, go ahead and get it.
- After obtaining the necessary permissions, you should compile your supporting paperwork, complete the application form, and send it to the appropriate authorities for processing. Make sure you pay fees and licenses in the stipulated time frame.
- With any luck, you’ll be handed your company license once all the necessary paperwork has been submitted and reviewed. You may launch your business, hire your staff (if required), open a bank account for transacting, and apply for a visa.
What Are the Required Documents to Start a Business in Dubai?
Although it’s easy to establish a company in Dubai, you’ll have to deal with a mountain of paperwork. Here is a rundown of the most crucial paperwork you’ll need to get things rolling.
- A copy of your passport.
- A copy of your visa or an entry permit.
- 2 copies of colored, passport-size photographs.
Depending on your firm’s size, kind, and operations, you may also need to arrange for a few other documents. As a result, you may contact the business experts at UAE Expansion India Branch to get a comprehensive list of the necessary paperwork.
What Is the Cost of Setting Up a Business in Dubai?
As mentioned, the cost of setting up a business in Dubai is determined by multiple factors. Some other factors may also come into play depending on your chosen activity. As a result, giving the exact cost of business setup in Dubai may not be possible.
However, to give you an estimate, the cost of setting up a business on the Mainland is nearly 25,000 to AED 50,000. Similarly, free zone business setup costs start approximately from 10,000 AED. The final price, however, will depend on all the factors.
Business Setup With UAE Expansion
Although the process and cost of setting up a business in Dubai are pretty simple, taking assistance from experts will not harm you. Besides, getting support from well-versed professionals is only best, especially when the cost involves many factors.
UAE Expansion India branch experts are well-informed about the business setup costs in Dubai. We understand the factors that impact company formation and business setups and work proactively to help you establish your dream business without burning a hole in your pocket. Furthermore, we curate special business service packages for your unique needs to deliver tailor-made services.
Our experts will ensure that you only pay what is required. All you need to do is give us a call.