When you think of doing business in Dubai, the words like economic, cheap, or affordable probably aren’t the first ones that pop up in your mind. It is true for the right reasons. The living standards of the Emirates are very high. A vast city with streets lined with skyscrapers touching the heights of the sky and luxury vehicles from the world’s premium brands.
Although this reputation is somewhat deserved, Dubai is much more than just a luxurious lifestyle. The UAE is known for being one of the best destinations to establish businesses.
Dubai’s small and medium-sized businesses are the main engines that run the city. In addition, there are several SMEs functioning in Dubai that are very much successful and making impressive profits. Many of these businesses started with nothing to little capital.
So, it is not an overstatement to suggest that setting up a business on a budget is not only feasible but also rather typical in this Emirate. Starting your business can be done quickly and affordably if followed the right procedure. This extensive guide on low-cost business setup in Dubai, UAE will help you in establishing your firm or business at affordable rates.
How to start a business in Dubai UAE with little to no investment
The decision between selecting a mainland and free zone structure has the biggest impact on how much it costs to start a business in the UAE. Nevertheless, you can still start a business in any economic zone at a low cost.
When compared to both, business setup in a free zone is more affordable in Dubai due to their all-in-one nature and many other business-friendly conditions.
If keeping setup costs low is your top priority, start by looking for the cheapest free zone that meets your business requirements. Setting up in a free zone has several other benefits such as complete ownership of a company.
You can profit from the UAE’s tax-free status, the option to repatriate 100% of your profit and capital, the lack of exchange-rate limits, and full customs tax exemption.
You should start a business on the mainland if you want to do business with the local UAE market directly or accept government contracts. This can still be done affordably depending on the size and type of your company.
You can choose the setup that best fits your needs and your budget with the assistance of business formation professionals.
How much is the business license cost in Dubai?
Setting up an economic business in Dubai is certainly possible. Keep overhead down if you’re aiming for a low-cost business setup in Dubai, UAE. Any businessman or entrepreneur is able to do so by ditching the signing of a lease for an office facility and launching your company in a free zone & working from a local coworking space.
The cost of a business license in Dubai depends on the type of company you want to run. We recommend you should get in touch with experienced business setup consultants in Dubai, UAE such as Riz and Mona to get all the details of the cost of setting up business here.
Benefits of Running a business in Dubai
Starting a business in Dubai offers a plethora of amazing benefits for businesspeople. Newbies and fresh entrepreneurs can enter one of the world’s most energetic and supportive environments right away by choosing Dubai as their destination for operating a business.
The UAE’s main aim is to support businesses, so you’ll have no trouble finding support to help your new company take off in no time.
Naturally, the tax rate in Dubai is also important to note when establishing a company here. It stays at 0% for both individual and corporate incomes for all companies.
Dubai’s free zones provide a variety of advantages like capital and profit repatriation as well as 100% customs tax exemption. There are tons of advantages to starting a company on Dubai mainland as well.
Required Documents to Establish a business in Dubai
Following are some of the required documents to submit your application for setting up a low-cost business in Dubai:
- A filled application form
- A detailed explanation of the planned business operations
- Incorporation documents (if required)
- Copy of the passports of each shareholder
The process to Set up a business in Dubai, UAE
To set up your business in Dubai, the following are the steps to follow:
1. Choosing Business Activities
Selecting your company activities is the first step of the process. The Dubai Department of Economic Development (DED) has approved above 2,000 related to a wide range of industries and subindustries.
Although you may have a wide range of options for the business activities you are allowed to engage in, it is crucial that you accurately mention them on your license application form. Working with a company formation professional who can recommend the finest solutions for your corporation is the best course of action. It is so because engaging in unlicensed commercial business operations can result in troublesome penalties.
2. Selecting a Business Name
The next step is to select a company name. Although it might seem obvious, the UAE has very specific rules for naming a business that may not be well known to businessmen that don’t reside in the UAE.
The guidelines for corporate names are as follows:
- The name of your Dubai company cannot contain any derogatory, offensive, or blasphemous words, nor may it make any allusions to Islam and Allah.
- You must use your name rather than just your surname or initials if you want your company name to contain your name.
- Finally, make sure your desired name is available for registration by the officials. At this step, a business setup specialist like Riz and Mona can assist you by offering options and ensuring that the name you’ve picked is available.
3. Choosing Business License
The best recommendation is to look for an economical free zone license if you are willing to keep company formation costs to a minimum. You can submit your application form once you’ve chosen the least expensive free zone that satisfies your business requirements.
Decide what kind of company license you need for your business. This is a really simple matter as you know your business more than anyone. You will need an industrial license in order to undertake industrial activities, a professional services license in order to perform professional services, etc.
4. Making Formal Application
You can submit a formal application after choosing the type of business license. In order to register a company in the free zone of Dubai, all you need to do is submit a completed application with some required documents containing information about you and your business.
If a Dubai mainland setup is necessary for your business, the procedure is almost the same. However, in this situation, you would submit your application to the Department of Economic Development (DED).
Working with a business setup specialist at this point is recommended because the application process is highly specific and requires special attention. They can take care of all aspects of your application, correspond with all authorities, and offer advice regarding the arrangement on your behalf that would be most appropriate for your business requirements.
5. Applying for Visa
Next up, you can also submit visa applications for yourself, your dependents such as family members, or your employees.
The number of visas you are eligible to apply for will often depend on the location you choose for operating the business and its size. As far as filing applications for dependent visas are concerned, the procedure is relatively simple as long as you match the set requirements.
6. Open a Corporate Bank Account
The last step of setting up an affordable business setup is to open a corporate bank account. In the UAE, opening a bank account as a foreign national is not as simple as it may look. Although there are numerous local and foreign banks to select from in Dubai, negotiating their various application and acceptance requirements may be difficult for people who are new to it. At this stage, you can again seek out business setup professionals like Riz and Mona to help you in opening a bank account in any of the well-reputed banks of the UAE.
FAQs – Frequently Asked Questions
How much does it cost to open a small company in Dubai?
The cost to open a small company in Dubai depends on your business license, activities, location, and some other factors.
Which business is best in Dubai?
Real estate, oil and petroleum, food delivery, software houses, and goods trading businesses are the best in Dubai.
Which is the cheapest Freezone in Dubai?
The cheapest Freezone in Dubai are as follows:
- Ajman Media City (AMC)
- Sharjah Media City free zone (SHAMS)
- Raz Al Khaimah free zone(RAKEZ)
- International Free zone Authority, Dubai (IFZA)
What is the cheapest trade license in Dubai?
The cheapest trade license in Dubai is offered by the Meydan Free Zone license. Sharjah Media City offers the cheapest trade license in the United Arab Emirates. The professional media license permits the 13 mentioned commercial activities.
How can I start a business in Dubai for free?
Following are the businesses that you can start in Dubai for free:
- Build a blog
- Cleaning services
Start Your Low-Cost Business Setup in UAE with Riz and Mona
We have discussed how easy it is to set up a low-cost business in the UAE. The cost of setting up a business varies according to the size, activities, and nature of your business. If you want to set up and run your business in Dubai at affordable rates, you should get in touch with Riz and Mona. Our experienced professionals will offer you the best-suited economical package, to set up your business in Dubai, that will fall under your defined budget. Book your free slot now and start your very own company to make big bucks out of it.