Low-Cost Business Setup in Dubai [2021 Guide]
Cheap is not the first word that comes to mind when you think of Dubai. Far from it, in fact. The emirate has a reputation for being larger than life. A sprawling metropolis with streets lined by supercars and skyscrapers stretching upwards as far as the eye can see.
And while that reputation is warranted to some degree, there is much more to Dubai than this.
The UAE is powered by its small and medium-sized businesses. And for every conglomerate operating out here there are many more SMEs, with plenty starting from humble beginnings.
It’s no exaggeration to say that low-cost business setup in Dubai is not only possible, but also incredibly commonplace. And when you work with the experts at Business Incorporation Zone (BIZ), starting your company can be as fast as it is affordable.
Benefits of starting a business in Dubai
There are many incredible opportunities that come with starting a business in Dubai. For starters, you can immediately take your place among one of the most vibrant and encouraging environments in the world.
The UAE is built for business, and you’ll find plenty of support here to help your fledgling enterprise spread its wings.
Of course, Dubai’s tax rate also warrants a mention. In 2021, it remains at 0% for both corporate and personal income.
Then there are Dubai’s free zones, offering a host of benefits, from 100% customs tax exemption to capital and profit repatriation.
How much does a business license cost in Dubai?
When striving to achieve a low-cost business setup in Dubai, you’ll want to keep overheads down. You can do this by starting your business in a free zone and working from an in-house coworking facility, rather than taking on an office lease.
Fujairah Creative City offers a low-cost free zone license inclusive of one visa application and use of the free zone’s coworking facility from just AED 24,775.
Steps to start a business in Dubai
The first step when starting a business in Dubai is to talk to the team at BIZ. After a short, no-obligation consultation, we can manage the following five step processes.
Step 1 – Business activities
First up, you’ll need to clearly outline your business activities. There are thousands of potential activities to choose from, and it’s vital that you list any you intend to carry out on your license application.
Step 2 – Company name
Next, you’ll need to name your business. There are a few things to keep in mind at this stage.
In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting.
BIZ can register your company name on your behalf.
Step 3 – License application
Here is perhaps the most important step of all – applying for your business license. If you are setting up in a free zone, this process can be complete in a couple of days.
BIZ can handle this process for you, liaising with the managing authority of your chosen free zone on your behalf. We’ll ensure that your application is in order before submitting to avoid delays or the possibility of rejection.
Step 4 – Visas
You’ll also need a visa to live and work in the UAE. The visa application process – for you and your employees – is particular, yet straightforward. Again, BIZ can help you with this step.
As the holder of a UAE business license, you can also sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper.
Step 5 – Corporate bank account
The last thing needed to trade in the UAE is a corporate bank account. Unfortunately, the UAE’s strict money laundering regulations can make it difficult for overseas entrepreneurs to access corporate banking facilities. Working with BIZ makes for a much smoother process.
We have excellent links to both local and international banks and can easily put you in touch with the one best suited to your needs.
Documents required to start a business in Dubai
When making your trade license application, you will usually need to provide:
- A completed application form
- Articles of incorporation (if necessary)
- Passport copies for all shareholders
- Brief description of intended business activities
Looking for low-cost business setup in Dubai? You’ll find it with BIZ
That’s all there is to it. As you can see, if you’re armed with the right knowledge, keeping the costs low when starting a business in Dubai doesn’t have to be overly complex.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone (BIZ) when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visa applications that are required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.