Dubai is an affordable location to establish a business. Because of its very friendly business regulations and absence of both personal and corporate income tax, Dubai is a very affordable place to establish a company as compared to many other major countries around the world. The cost of starting a business will vary depending on whether you want to establish it in a free zone or on the mainland.
During Dubai company registration, substantial cost savings can be obtained by using the right tactics and consulting with Dubai business specialists.
HOW TO ACHIEVE A LOW-COST BUSINESS SETUP IN DUBAI
- Analyze Business Requirements: Match your needs to what Dubai’s mainland or free zones have to offer. When these factors are properly aligned, extra resource costs can be reduced, leading to significant long-term savings.
- Expert Consultation: Take advantage of the reasonably priced packages offered by business experts like Relin Consultants to launch your enterprise. Select all-inclusive packages that include assistance with paperwork, processing visas, and licensing. Taking a comprehensive approach turns out to be less costly than taking care of every element separately.
- Thorough Paperwork: Make sure that every contract and agreement is properly documented. With the help of local authorities, notarise the important documents such as the Articles of Association (AoA) and Memorandum of Association (MoA). This reduces expenses and makes it easier to settle disputes in case of deviations.
- Flexible Workspace Solutions: Consider virtual addresses or on-demand desk/office spaces if physical office space is not required. With this strategy, you can cut costs and use the money saved for other essential business growth initiatives.
- Choose the right Service Provider/Local Sponsor: Verify the background of your local sponsor or service agent thoroughly. Choosing an affordable, reputable company formation service can help you manage the legalities. Making the incorrect decision in this regard could have unexpected consequences.
Refer to our guide on how to choose the right business setup consultant in Dubai.
DECIDE ON MAINLAND OR FREEZONE
Choose a mainland corporation if your company requires unrestricted access to markets outside of the United Arab Emirates and your local market. The DED establishes the rules for companies that are established on the mainland. Additionally, 2000 businesses are allowed to operate out of this location.
It will be more cost-effective financially to apply for multiple visas in this region. This will be the perfect business area for all investors thanks to the incredible infrastructure and a huge number of online business ideas.
Establishing a business in a free zone without following shareholding laws allows you to have complete control over your enterprise. There are many general free zones that are open to all types of business. In order to establish a cost-effective business in Dubai, you can also select a Flexi or smart work environment.
DIFFERENCE BETWEEN THE MAINLAND AND THE FREE ZONE
|Over 2,000 business activities are allowed
|All commercial activity is permitted in general-purpose-free zones. Free zones designated for businesses serve particular groups.
|Freedom to apply for multiple visas at a low cost.
|varies according to free zone laws; some provide flexible visa alternatives.
|Access to local and international markets outside of the United Arab Emirates without limitations.
|Focused on corporate governance without shareholding laws. There are free zones designated for businesses and general purposes.
|Controlled by the Economic Development Department (DED).
|Governed by respective free zone authorities.
|Reduced visa fees and a wide range of business opportunities.
|Although setup costs may be higher, there is more control and flexibility.
HOW TO REGISTER A BUSINESS IN DUBAI?
- Choose business activities – To avoid future licensing issues, clearly outline all of your daily business operations. Ignoring any activity could have major consequences and risk the company’s licenses.
- Select a trade name – To speed up registration, choose a name that complies with official naming regulations. Make sure the name chosen is appropriate. Avoid choosing a name that is controversial, hurtful, or insensitive to religious beliefs.
- Get a business license – Submit the business application and all the necessary paperwork for approval. While free zones are governed by their own regulatory organizations, mainland business licenses are supervised by the Department of Economic Development (DED). The required documents include copies of the applicant’s passport, certificates of initial approval, and the applicant’s photos, etc.
- Managing the visa – After completing all of the above steps, you can submit a visa application. Depending on your needs, you can also apply for visas for your family members, shareholders, and domestic workers. Establish a company on the mainland where regulations are more favorable if you require multiple visas.
Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for further assistance with your low-cost business setup in Dubai.
How Much Does It Cost To Start A Business In Dubai?
The exact price of registering a business in Dubai is not easily known. The expenses differ according to the company’s size, nature, location, etc. Furthermore, a significant part of the estimated costs is determined by the required legal permission. However, the price can be somewhere between 20,000 and 30,000 AED to establish a business.
Can I run my company from outside of Dubai?
As a non-resident, you can launch and run your own business in Dubai from any location in the world.
How long does it take to set up a business in Dubai?
It takes approximately 4 to 5 working days to establish a business in Dubai if all of your paperwork is in order.
Does my company need an office in Dubai?
It is possible to launch a business in Dubai without a physical location. Dubai provides a variety of business startup options, and a variety of licenses are available that allow business operations without a physical office.
Which business license in Dubai is the least expensive?
The business trade license from IFZA Free Zone, which costs AED 11,900, is the least expensive visa-free business trade license in Dubai.