How Much Will It Cost You to Set Up a Business in the UAE?
Dubai is a melting point of bustling culture, enterprises and modern ecosystems. Owing to its historical growth as a business hub, Dubai attracts thousands of budding entrepreneurs.
As a business person, you must be aware of all the benefits and costs of running a business in the UAE. Talking of benefits, the cosmopolitan population of the Middle East is a big boon for expatriate entrepreneurs. Compared to the US and EU, expatriates have numerous opportunities to flourish and succeed.
When it comes to cost accounting, even the most strategic business managers tend to overlook major costs. So, you should seek some expert guidance to analyse the overall cost and business setup process in detail. Thus, we are collating all crucial details on business setup costs here for you!
Low-Cost Business Set Up in the UAE
Unlike popular belief, setting up a business in the UAE could cost you less than that in any other part of the world! If you wish to know how to keep your business cost-effective and monetized, keep reading!
Dubai has policies such as zero corporate tax and 100% ownership rights which make business affordable. Further, based on the location of your organisation, you need to pay fees. Charges are relatively minimal in free zones compared to the mainland.
Moreover, prices could vary from one free zone to another. The location would ideally depend on the type of your business, latest government regulations and other such criteria. So, consider all prospects and choose based on your budget.
Five Major Costs That You Cannot Escape
Most entrepreneurs prefer to set up an LLC in the UAE due to simple laws and hassle-free procedures. So, here is a brief overview of all the preliminary costs you will have to pay for setting up your business.
Based on the type of service or products you are selling, you need to acquire a suitable trade license from the DED. This requires approvals from various bodies and an annual renewal fee.
Thus, with notarisation and other approvals, you would be spending roughly AED 2500 in total on one-time payments. This is subject to vary on a case by case basis. Further, you would have to pay a yearly fee for the same. In fact, professionals might have to pay almost half as much on renewals!
Zone-Wise Registration Fee
Registration fees differ from zone to zone. Free zones have their own set of laws which may vary for offshore or mainland companies. You have to make a one-time payment towards registration. Post-registration, you shall continue to pay a yearly renewal fee.
To register any kind of organisation, you need to have an official address of correspondence. Likewise, setting a business in the UAE would require you to either own or rent a workspace. Accordingly, you should pay the monthly or annual leases. These costs can be cut down by opting for affordable workspaces and setting up virtual offices etc.
Accounts and Other Service Fees
Starting a new venture in the UAE requires certain legal documentation in Arabic. This calls for a translator. Similarly, you might require to partner with a local agent for other reasons. All of it comes with a fee.
Additionally, your current account requires maintenance. So, you will have to consider the costs of opening and keeping a bank account operational periodically.
Cost of Visa and Insurance
Expatriates must get the necessary visa approvals to work in the UAE. There are set limits for the number of visas per company. Visa processing can be an expensive affair. Moreover, you would also need to get suitable insurance for yourself and your business and pay timely renewals.
Plan Your Budget & Kickstart Your Business in the UAE
The business setup costs and set of rules vary according to country. However, the UAE is considered one of the best places for startups. The relatively lower costs of business set up attract entrepreneurs to the UAE
So, if you are still weighing costs, then you must be assured that the benefits far exceed the costs. Besides, once the business starts rolling, the prospects for growth are enormous. Thus, making Dubai the best hub for startups.
If you are still unsure, you could partner with PROs to get assistance in processing and optimising operational costs. Moreover, with relaxed regulations for multiple sectors, it is a great time to begin a new venture to kickstart your international business journey!
So, look no more! Keep your basic processing fees ready and manage your funds wisely. Results are sure to come! Besides, there’s a team of experts at Marque Way specially to help you. Thus, take this leap of faith. We are ready to help you fulfil your dream.