Descriptions:
Setting up a business in Dubai can be done efficiently and at a lower cost if you follow the right steps and take advantage of the options available. Here’s a simplified guide:
1. Choose a Free Zone or Mainland
- Free Zones offer 100% ownership, tax exemptions, and easy setup for foreigners. Popular free zones include DMCC, Dubai Silicon Oasis, and Dubai Media City.
- Mainland setup allows you to do business directly in the UAE market but may require a local partner for certain activities.
2. Select the Right Business Activity
- Identify the specific business activities from the approved list, as this affects licensing fees and the required setup.
3. Apply for a Trade License
- Depending on your activity, apply for a Commercial, Professional, or Industrial license. Free zones often offer bundled packages for low-cost licenses.
4. Leverage Co-working Spaces
- To minimize costs, opt for shared or virtual office spaces instead of renting full office premises. Free zones often provide flexible office solutions.
5. Get an E-commerce License
- If you plan to operate online, an e-commerce license is a cost-effective option, available through free zones like Dubai CommerCity.
6. Explore Freelance Options
- Some free zones offer freelance permits that allow individuals to set up as independent professionals without the need for a full company structure.
7. Residence Visa
- Apply for a residency visa, which can be included in your business package depending on the free zone, offering multiple visas for owners and employees.
8. Open a Corporate Bank Account
- Once your company is registered, open a business bank account in Dubai. Some free zones provide assistance with this process to ensure a smooth setup.
Estimated Costs (Low-End Setup):
- Free Zone License: Starting from AED 5,000 – AED 10,000 annually
- Visa and Medical: Around AED 3,000 – AED 5,000 per visa
- Co-working Space/Virtual Office: AED 500 – AED 2,000 per month
By choosing the right free zone, leveraging shared office spaces, and using bundled licensing offers, you can set up your business in Dubai at a lower cost while still taking advantage of the city’s booming business environment.
