How to Setup a Low-Cost Business in Dubai

Do you want to start a business in Dubai but don’t know how to get started? Or maybe you’re looking for a low-cost way to get your business off the ground? If so, this blog post is for you! In this post, we will discuss the different ways of business setup in Dubai. We will also provide some tips on how to keep your business costs low. So if you’re ready to take the next step and start your own business in Dubai, keep reading!

Business in Dubai

Benefits of starting a business in Dubai

Dubai has become one of the most popular destinations for businesses in recent years, and it’s easy to see why. The city offers a unique blend of East and West, making it a perfect place to do business. In addition, Dubai is known for its tax-free status and liberal laws, which make it an attractive option for entrepreneurs. And with a growing economy and infrastructure, there are plenty of opportunities for businesses to thrive in Dubai.

Of course, starting a business in any new city can be challenging. But with the right planning and support, it can be a very rewarding experience.

If you’re thinking of starting a business in Dubai, here are a few things to keep in mind:

  • 1. Make sure you understand the local market. It’s important to do your research and make sure you have a good understanding of the local market before you start your business. This will help you determine what products or services are in demand and how to best reach your target audience.
  • 2. Get the necessary permits and licenses. Before you can start operating your business, you’ll need to obtain the necessary permits and licenses from the Dubai government. This can be a complex process, so it’s important to seek professional help to ensure everything is in order.
  • 3. Build a strong team. When starting a business, it’s essential to have a strong team that you can rely on. In addition to hiring experienced employees, consider partnering with other businesses in Dubai that can provide valuable resources and support.
  • 4. Have a solid marketing strategy. In today’s competitive business environment, it’s essential to have a well-thought-out marketing strategy. This should include traditional marketing channels as well as online and social media platforms.
  • 5. Plan for success. As with any new venture, there are always risks involved in starting a business in Dubai. But by taking the time to properly plan and prepare for success, you can minimize these risks and give your new business the best chance for success.

Related Post: What Research Should You Do To Start An Online Delivery Business?

How much does a business license cost in Dubai?

To obtain a business license in Dubai, there is a non-refundable application fee of AED 2,000. The total cost of the license will depend on the type of business and its location. For example, a retail shop in a free zone will cost AED 10,000, while a trading company in a non-free zone will cost AED 30,000.

There are also many other factors to consider, such as the number of employees and the amount of space required. Business licenses must be renewed every year, and the cost of renewal will depend on the size and type of business. It is important to note that all businesses in Dubai are required to have a local sponsor, who will typically be responsible for around 51% of the business.

The sponsor’s nationality, residency status, and whether they are an individual or a corporate entity will also affect the cost of the business license. As such, it is advisable to seek professional advice before applying for a business license in Dubai.

Steps to start a business in Dubai

Step 1 – Business activities

The first step is to identify the business activity that you want to carry out. This will determine the type of business license that you need to apply for. There are over 50 different types of business activities in Dubai, so it’s important to choose one that is in line with your skills and experience.

Step 2 – Company name

Once you have chosen your business activity, you will need to come up with a company name. The company name must be unique and should not be similar to any other business in Dubai. It is also important to note that certain business activities may have restrictions on the type of company name that can be used. For example, businesses that are involved in banking and finance cannot use “bank” or “finance” in their company name.

Step 3 – License application 

The next step is to submit a business license application to the Dubai Department of Economic Development (DED). The application must be accompanied by certain documents, such as the company’s Memorandum and Articles of Association, as well as the personal details of the business owner. Once the application has been submitted, it will take around two weeks for the DED to process it.

Step 4 – Visas

Once the business license has been approved, you will need to apply for visas for yourself and any employees that you plan to hire. The number of visas that you need will depend on the business activity and the number of employees.

Step 5 – Corporate bank account

The next step is to open a corporate bank account in Dubai. This can be done at any of the major banks in Dubai, such as Emirates NBD, HSBC, or Mashreq Bank.

Documents required to start a business in Dubai

  • A completed application form
  • Articles of incorporation (if necessary)
  • Passport copies for all shareholders
  • Brief description of intended business activities

Ending Words

Now that you know how to set up a low-cost business in Dubai, it’s time to get started! Remember to take the time to properly plan and prepare for success, and you’ll be on your way to business ownership in no time.

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