What is the cost of setting up a Business in Dubai, in 2023?
Many people have a misconception about the cost of business setups in Dubai. The majority think that starting businesses in Dubai and UAE is complex not only because of its procedures but also of the cost. What do you think?
The cost of starting a business in Dubai depends on many factors. Knowing these factors and having a clearer picture of the rules can save you enough money while setting up a company. Investing in the right business and following regulations is the key to the success of a business.
In this blog, we will discuss the cost of setting up a business in Dubai along with the factors influencing it.
The cost of setting up a company in Dubai is determined by several factors such as business activities, types of licenses, location, etc.
The businesses you choose to start determines the expenses. For example, If you wish to start a gym you need a physical space. In the case of a car rental business, you need vehicles to start the business. Different businesses demand different treatments, and that is what decides the expenditure.
Speaking of licenses, a service license can cost about AED 20,000. The estimated cost of acquiring a trade license may cost between AED 20,000 and AED 30,000. It is important to keep in mind that the cost of forming a company in Dubai increases if you need specific privileges.
The location of starting a business is a key factor in deciding the cost. Starting a company in any of the Freezones in Dubai can save you a big amount. Free zones provide various tax exemptions also.
Now let us look at the various costs involved in a company set up and how it influences the total expenditure.
What are the different costs involved in starting a business in Dubai?
The number of shareholders, visa applications, and commercial activities can influence the cost of starting a company in Dubai.
Payment of a business license
A business license or trade license is inevitable to have a risk-free business in Dubai. All legal entities in the UAE must have a valid trade license.
The licenses one can acquire based on the type of business they do in Dubai are;
The cost of a business license in Dubai depends on the business activities and the location of the business.
Cost of Securing Office Space
Physical office space to conduct business activities is vital in Dubai. It is to your office address, that all legal paperwork and correspondence will be sent.
Initial Approval and Payment for Trade Name Reservation
The initial approval certificate costs about AED 150. It is a one-time government fee, the same as the AED 620 charged for a trade name reservation.
The Annual Fee of an LSA
Business activities that match the qualifying conditions, can enjoy 100% ownership of the business, even on the mainland.
The LSA charge is a small annual fee for the business setup administrator. So, you don’t need to worry about the cost of setting up a business in Dubai.
Now you have seen the factors influencing the cost of business setup in Dubai and how you can save money by following certain regulations. Business set-up procedures and expenses are not that complex to stop you from starting your dream business in Dubai.
You need to get armed with the right information and guidance to get started. You can take assistance from a reputed business consultancy like Bizvise to get started. We are a team of experts who are committed to assisting you with proper guidelines. We provide the best services in a cost-efficient way to our customers. All you need to do is to contact us and we will take care of every aspect of setting up your business.