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What is the Cost of Small Business Startup in Dubai UAE?
Everyone has a wish to grow in life with no limits!!! And to get these dreams true we always approach the suitable geographic locations and places. How lucky we are!! A land of opportunities - Dubai where thousands of opportunities are waiting to be grabbed and settled.
The Middle East top trading economy, where Laws, systems, Rules regulations and unmatched infrastructure are remarkable to have the business plat form here.
Dubai is going to host the world’s largest trading event “EXPO 2020” which is expecting 25 million visitors from OCT 2020 to April 2021, where there is no need to describe how opportunities will pop in.
Following are the details of some fruitful businesses to start with small investment and grow fast as per the efforts. Dubai is growing very fast as population is increasing day by day, due to this rise, definitely opportunities will appear automatically and demand will be increase so the outcome will be positive. Following are the areas where we can invest our time and wealth for a better growth
Trading: Multinational environment and culture provides you the more opportunity to introduce your business (Food stuff, Garments, Electronics, Leather, Gift Items, Building material Etc) to various geographical entities. So there is more productivity on one platform. It is a cake walk to get the effective legal process to get the work and residence permit.
Ecommerce (Online Business): various swift and cost effective options to setup on line businesses. This trend is fast growing and government has introduced n number of easy options to start with.
For example - SOUQ.com whose valuation reported $ 1 billion
Service Sector: Restaurants, Coffee shops, cafeterias, Typing shops, management, marketing, advertising, HR and many other services based businesses are flourishing rapidly with small investment.
Travel & Tourism Business: As Tourism is the core business in Dubai, and one of the most popular destine to host the people around the world. So there are huge opportunities to establish the travel and tourism business.
To conclude the result for this practice, one more important point to be noted, that is marketing research for your concern business. The plays a pivotal role for any business be it small medium or large scale. Here I assure you that, you will find a positive response in the market and you will be motivated to initiate your plan.
My Personal Experience about opportunities in UAE:
I entered in UAE 2006, joined a Local bank in retail banking. The very first day of work, I was scared about the market and how would it work out to me. There were numerous question of will is be successful or not? But I was supported and motivated by my management as they taught me how to get success from this approach of work culture.
All the success is possible with a right planning!! I approached the right market started meeting the right people. End of the month i had a database of 300 clients which was sufficient for me to make good platform in UAE market. Since 2006 to till date, I am earning my life with those clients. I hope this would enlighten your idea of starting the work in this potential multi cultured market.
Note: Reason I quote my personal experience is a smallest example, of normal person to start planning his job in UAE, So if you are planning for your own business then SKY IS THE LIMIT FOR YOUR SUCCESS!!
How Much Does a Small Business License Cost in Dubai?
If you want to establish your small business in Dubai, have a cost estimate of around AED 9000* and AED 32000* for your first year license. This depends on your business activity and legal structure along with chosen jurisdiction and office requirement. Free zone packages are lot cheaper than mainland licenses as a physical office is required.
What Impacts Your Business License Cost in Dubai?
License fees in Dubai are rarely a single number. The below given factors usually move your total cost up or down:
- Business Activity: Trading and professional along with industrial and tourism activities are licensed differently. Each of them has its own free structure and approval needs.
- Legal Structure & Number of Shareholders: A sole establishment license is generally cheaper to establish and maintain than a multi partner LLC that includes additional documentation and in few cases local agent fees.
- Jurisdiction: Mainland, Free Zone, or Offshore: Mainland licenses are issued by the Department of Economy and Tourism and lets you to trade anywhere in the UAE. It often carries increased setup costs and office costs. Free zone licenses are generally more cost effective and faster to issue but limits you to keep operating within the zone or internationally instead of directly in the Local UAE market. Offshore companies are the lowest cost choice but cannot trade within the UAE or hold a physical office.
- Office or Flexi Desk Requirement: A virtual office or flexi desk can budget you a small portion of a full physical office. Mainland authorities calculate part of your license fee as a percentage of your yearly rent so your choice of workspace directly impacts your license cost.
- Number of Visas Required: Every visa quota you apply adds to your setup cost and may also the increase size of your required office since visa allocation in some jurisdictions depend on the type of office and area of the office.
- Additional Government Approvals: Certain activities such as healthcare and others need approval from an external authority along with your core trade license which includes both time and cost.
Small Business License Cost by Type (Dubai Mainland)
- Trading / Commercial License: AED 12000*–AED 22000*. This includes initial approval and trade name reservation along with issuing the license. It increases with office rent and number of partners.
- Professional / Service License: AED 9000*–AED 16000. It is usually the most cost effective mainland option as full ownership is allowed for most professional activities.
- Industrial / Manufacturing License: AED 20000*–AED 35000+*. It gets affected by factory space needs and additional inspections along with environmental or civil defense approvals.
- Tourism License: AED 15000*–AED 25000*. The cost depends on your need of a Department of Tourism and Commerce Marketing (DTCM) permit for travel agency activities.
Apart from the license fee you should strategize the budget accordingly for the Ejari registered tenancy contract and Chamber of Commerce membership. It is also applicable for foreign investors on few activities and local service agent may apply.
Small Business License Cost by Free Zone
Free zones remain the fastest and most cost predictable way to start a small business in Dubai and the wider UAE. Indicative starting packages:
- 0-Visa Package (flexi-desk and no visa allocation): starts from AED 6000*–AED 13000* depending on the free zone.
- 1-Visa Package: typically AED 12000*–AED 16000* that includes your own investor/employment visa allocation.
- 2 to 3-Visa Packages: typically AED 17000*–AED 26000* suited to small teams needing multiple work visas from day one.
Free zones such as those in Dubai, Ras Al Khaimah and others each price their packages differently. So it's worth comparing at least two or three jurisdictions against your specific activity and visa needs before committing. Our team can run this comparison for you free of charge.
Offshore Company Cost
An offshore company remains the lowest-cost structure usually AED 9000*–AED 15000* per year. There is no office rent or physical presence requirement. Offshore companies are typically used for holding assets or holding company structures rather than for operating a walk in small business inside the UAE.
Step-by-Step: How to Register a Small Business in Dubai
- Choose Your Business Activity: Every license belongs to a specific activity code. Getting this correct from the beginning avoid expensive changes later.
- Select Your Jurisdiction: Decide between the three jurisdictions according to where you plan to trade and your budget along with your visa needs.
- Reserve a Trade Name: Submit the company name you prefer to make sure it follows the UAE naming conventions.
- Apply for Initial Approval: This makes sure the related authority has no issue with you carrying out your selected activity.
- Draft Your MOA/LSA Agreement: Depending on your legal structure you may need a Memorandum of Association or a Local service Agent agreement.
- Secure Your Business Address: Sign a tenancy contract for mainland or select either a flexi desk or office package for free zone.
- Submit Documents & Pay License Fees: Once all approvals are in place you need to pay the license fee to receive your trade license.
- Apply for Visas (If Required): Begin the establishment card and visa process for yourself and any employees.
Documents Required to Start a Small Business in Dubai
- Passport copies of all shareholders and managers
- Passport size photographs with white background
- Proof of current residential address
- Business plan (needed for certain activities and free zones)
- No Objection Certificate (NOC) if you are at present on another UAE residence visa
- Tenancy contract or Ejari (for mainland office based licenses)
- Memorandum of Association (MOA) where applicable to the legal structure
Approximate initial investment:
| Jurisdiction | Fees | Residence Visa |
|---|---|---|
| Free Zone License (Trading / Services) | $ 570 per month (yearly) | $ 1500.00 for 3 years. |
| Mainland License (Trading / Services) | $ 13300.00 approx. | $ 1089 for 3 years. |
| Offshore | $ 2700.00 Yearly | Yearly. |
Frequently Asked Questions
How much does it cost to start a small business in Dubai?
Majority of the small business licenses in Dubai cost between AED 9000*-AED 32000 in the first year. This depends on your business activity and jurisdiction along with office requirement and number of visas required.
What is the cheapest way to get a business license in Dubai?
A free zone license with a zero visa flexi desk package is usually the most cost effective route. This usually starts from around AED 6000*-AED 9000* depending on the free zone and activity.
Is a free zone or mainland license better for a small business?
It depends on where you want to trade. A mainland license allows you to trade directly across the UAE and bid on government projects. A free zone license is generally cheaper and quick to establish but is better suitable for international trade or clients outside the local UAE retail market.
Do I need an office to get a business license in Dubai?
Not always. A lot of free zones allow a virtual office or flexi desk to fulfil the office need. Mainland licenses usually need a registered tenancy contract.
How long does it take to get a small business license in Dubai?
A straightforward free zone license can be issued within 2- to 5 business days. Mainland licenses usually takes 5 to 10 business days. The timelines can increase if your activity needs additional external approvals.
Can a foreigner own 100% of a small business in Dubai?
Yes. Majority of business activities on the mainland now allow full foreign ownership according to the changes in the UAE commercial Companies Law. All free zone companies have always allowed full ownership.
Therefore, to learn more about Small Business Startup Idea & Cost In Dubai UAE Book a free consultation with one of the Flyingcolour Business Setup team advisors.
It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant.
