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Low Cost Business Setup in Dubai UAE 2022
As one of the most famous and well-known business destinations worldwide, Dubai has attracted so much attention in the last decade for various reasons. Some of the major reasons Dubai has become an ideal destination for ambitious entrepreneurs worldwide are the growing economy, strategic global location, and incredibly attractive tax regime. One of the most appealing aspects of starting a business in Dubai is that the city has been long known for being home to low cost business setups such as small businesses and startups. As a matter of fact, the cost of business setup in Dubai is lower than in many other major global cities, thanks to the lack of corporate and personal income tax and highly accommodating business regulations. Free Zones are even more economical for starting a small business. All in all, whichever setup you choose, registering a Dubai company is so easy that it can be completed in just a few simple steps. Let’s dig deeper into business setup in Dubai UAE.
Explained: Business Setup in Dubai UAE
The main costs of starting a business in Dubai are determined after selecting whether the company will be operative in Dubai Mainland or the Free Zone. Between the two options, the all-in-one nature of free zone setups makes it one of the most cost-efficient ways to register a company in Dubai. Thus, searching for the cheapest free zone that fits your needs will pay off very well. Plus, there are many advantages to setting up in a free zone, such as:
- benefiting from the UAE’s zero percent tax rate,
- full customs tax exemption,
- no currency restrictions,
- the ability to repatriate 100% of your capital and profit.
It is noteworthy that taking on government contracts or trading directly with the local UAE market requires establishing a mainland business. This can still be done cost-effectively based on your business’ nature and size.
Jurisdiction Options for Business Setup in Dubai UAE
As a key element in Business Setup in Dubai UAE, it is essential to inform yourself of the license options readily available for your choosing. Not only will this help in your decision-making process, but you can also assess where your chosen business activity will thrive among these areas.
International Free Zone Authority (IFZA)
- IFZA is based in Dubai Silicon Oasis and has become one of the most promising and fastest-growing free zones in the UAE. If you’re opting for a cost-effective company set-up, IFZA is also known to be the cheapest and may be the right choice for you. Choose UAE can provide you hassle-free license processing as well as free consultations to know more about the license packages available for you.
- Trade license for Commercial and Professional Services costs from AED 13,900 for a time period of one year.
- IFZA offers 100% foreign company ownership, free investor visa for life, over 1500 business activities to choose from, multiple shareholders in 1 license, no minimum capital requirement for the formation, and more.
Meydan Free Zone
- Meydan Free Zone is situated in Nad Al Sheba, near Mohammed Al Maktoum City, and is a premier location for entrepreneurs wanting to start a business in Dubai. With affordable prices and vast networking opportunities, Meydan can provide your business with a competitive edge. Choose UAE will help provide the ease of setting up a business in Meydan Freezone according to your needs.
- Trade Licenses start from AED 12,500.
- Meydan Free Zone offers flexibility on the number of visas, with over 1500 business activities to choose from, office facilities open 24/7 to suit your business style, and exclusive community benefits.
- Dubai Mainland is the main Licensing Authority for Dubai businesses. It is the geographical area wherein private businesses are allowed to operate under the Dubai Economic Department (DED). Choose UAE can help with the speedy process of company formation anywhere in Dubai Mainland, more than that, there are also free business services that you can choose from which will suit your needs.
- Trade Licenses start from AED 14,500.
- Dubai Mainland offers flexibility in conducting business directly in the local market as well as internationally, over 2,500 business activities, and the ability to take on government projects, office and shop premises can also be anywhere in Dubai Mainland.
Steps to take for Starting a Business In Dubai UAE
The process of Business Setup in Dubai UAE, regardless of the budget, is always the same. The following steps should be taken for establishing a business:
- Establishing your business activities: More than 2,000 business activities are permitted by the Dubai Department of Economic Development (DED), covering all manner of sectors and sub-sectors. It is essential to list these activities correctly on your license application, considering there are many choices available. This is vital since undertaking unlicensed business activities can lead to penalties.
- Choosing a business name: the UAE’s strict set of naming conventions is usually not familiar to anyone outside of the region; thus, the government’s regulations for this step should be studied carefully and checked to be available for registration. It would help if you keep in mind that it cannot include any offensive or profane language or Allah or Islam references. If you wish to have your name in your company name, you must use it in full rather than just your surname or initials.
Submitting the License Application
After determining where your business is going to be operative, you can submit your license application through the following steps:
- Establish the type of business license you require: this is very obvious as the type of license you will apply for is called after the specific business you will conduct. For example, you will require a professional services license to conduct professional services. If you intend to conduct industrial activities, you will require an industrial license, and so on.
- Submit the requested documents: submitting the application after determining the business type is relatively straightforward and only needs to be applied. The primary documents required should be submitted along. If you wish to conduct your business in Mainland, you would make your application to the DED.
- Opening a corporate bank account: this step is essential for running a business in Dubai. While many local and international banks choose from Dubai, all will have different application and acceptance criteria; thus, international applicants should carefully select their bank.
At this stage, you can apply for your visa and employee visas for your staff and those of your dependents. In most cases, the number of visas you can apply for will depend on your business’ size and where you choose to set up. Applying for visas for dependents, on the other hand, is a very straightforward process, provided you meet the eligibility criteria.
Dive into the most recent updates on business establishment in Dubai for 2023. Our in-depth guide covers the latest in regulatory changes, licensing protocols, and prevailing market patterns. With this knowledge, you’ll be poised to approach the business setup journey with assurance. Whether an established businessperson or a budding entrepreneur, keeping abreast of Dubai’s current business nuances is key to ensuring a triumphant enterprise.
How Can Choose UAE Help
At Choose UAE, our company formation specialists can guide you from choosing the right business activities to the low-cost and right license type for your business. We can also help you in finding the right local service agent and corporate bank opening in Dubai.
Our straightforward pricing with no license processing and no hidden fees is the lowest in the market and will pave the way for your entrepreneurship journey in Dubai. Contact Us for more details.