Establishing a company in Dubai is probably one of the best moves that an aspiring business person can make. Thanks to its fast-growing economy and a culture that promotes investments, Dubai has been able to attract business ventures from different parts of the world. Although, at times, it can be a complicated map for one to follow in most cases, it is up to business setup in Dubai particularly for a first-time visitor. In this blog, we’ll look at some of the most effective ways of setting up a business for Dubai entrepreneurs including possible essential services, their costs and consultancy alternatives, so that you will be able to set up your business with ease.
Why Dubai for Business Setup?
Dubai’s geopolitical and economic advantages, as well as liberalism towards commerce, have transformed the city into a business center in the world. Enterprise formation and business registration in Dubai has all the possible solutions for any endeavor, be it a retail or wholesale business and for any financial capacity.
The following are some of the reasons why Dubai is a popular city among business investors:
– No taxes on income
– 100 % foreign investors in free zones
– Infrastructure that bachelor degree is needless to say Level
– Nearness to burgeoning economies
The metropolis boasts a fast-expanding economy and incessant improvements hence a favorite location for investors. But how do you begin? Let us explore the stages and factors of the new business formation in Dubai.
Understanding the Business Setup Process in Dubai
1. Choosing a Business Structure
The first step is to decide on the most suitable business structure. Among the choices are incorporation in free zones, mainland or offshore incorporation. The decision varies based on the nature of the business activities that are intended to be conducted.
Free Zone Setup: This is convenient if you want complete foreign ownership, freedom from paying taxes, and limited liability. Free zones such as DMCC, JAFZA and DAFZA have presented attractive options for multiple industries.
Mainland Setup: For business owners confined within the boundary of Dubai or taking operations elsewhere within the UAE, a business setup in Dubai mainland lets you carry out all business activities including trading. However, hiring the services of a local sponsor is a must.
Offshore Setup: Offering a unique solution for those who want to conduct business in the region but do not wish to operate from within the U.A.E, an offshore company provides international taxation benefits at an affordable price.
2. Acquiring the Necessary Licenses
When embarking on a specific business activity, the appropriate licenses must be applied for. Such licenses may be in the form of commercial licenses, professional licenses, or industrial licenses among others. This is where the expertise of business setup consultants in Dubai is helpful since they take care of all the documentation, permits, and legal matters.
3. Opening of a Bank Account
This is because opening a corporate bank account is one of the basic requirements you have to fulfil in the course of your business set up in the UAE. Generally, most banks in Dubai offer package solutions to support the establishment of new businesses. However, they tend to come with many stipulations for example a business license and proof of residence have to be submitted.
4. Visa Processing
Although establishing a business in Dubai has many advantages, applying for residency visas for yourself and your employees is among the notable advantages. This process however is quite easy to perform especially if you are engaging a business setup company which can handle all your visa applications.
Business Setup Costs in Dubai
Setting up a business in Dubai comes at different prices depending on the business structure type, the licenses, and additional services needed. For instance, the business setup cost in Dubai in a free zone ranges between AED 10,000 and AED 50,000, however, mainland companies will pay more because of local sponsorship and other requirements.
Although establishing a business in Dubai has many advantages, applying for residency visas for yourself and your employees is among the notable advantages. This process however is quite easy to perform especially if you are engaging a business setup company which can handle all your visa applications.
Business Setup Costs in Dubai
Setting up a business in Dubai comes at different prices depending on the business structure type, the licenses, and additional services needed. For instance, the business setup cost in Dubai in a free zone ranges between AED 10,000 and AED 50,000, however, mainland companies will pay more because of local sponsorship and other requirements.
There are several benefits associated with business setup services which include:
Saving time: Setup consultants take care of most of the relevant paperwork and bureaucratic steps allowing you to concentrate on other core operational aspects of the business.
Knowledge and Expertise: They have knowledge of the trends within the industry and the legal regime and can help you determine the best options for your business model.
Reduced expenses: A few business setup consultants have contracts with free zones or other relevant ministries which helps them prepare new business setup in Dubai cost effective packages.
A lot of these companies too have customized regional offers depending on the needs of our clients, whether it is opening a free zone corporate entity or obtaining a mainland license.
Selecting Appropriate Business Setup Advisory Services
It goes without saying that with the numerous choices available, identifying the right business setup consultants in Dubai is important to streamlining the entire process. Find consultants who have extensive knowledge in both mainland and free zone setups, possess a clear and fair pricing structure and are qualified to deliver. An experienced consultant will not only assist you in your business setup in Dubai but also after care services such as renewals, processing of visas, opening of a bank account will be done.
Cost Comparison: Free Zone Vs Mainland
In the UAE, when taking into account the business setup costs, the free zone and mainland setups which are the two most preferred options have a broad difference in costs.
Setting up a company in the free zones: In most cases it is cheaper to set up a company in the free zone as there is no local sponsor required. The start up costs can be as low as AED 10,000 for the cheapest business setup in UAE options.
Setting up a company in the mainland: There is usually a high price because of the local sponsor costs where setup costs begin from AED 25,000 and above. However you enjoy the privilege of being able to trade freely within the borders of Dubai and the UAE.
Final Thoughts
There are amazing opportunities when it comes to doing business in Dubai, however, it is pertinent that one does so in a well informed and supported manner. It does not matter if you are choosing a free zone, a mainland or an offshore setup, knowing the procedure, the costs, and the legal framework is very important for the right course of action to be taken. This means that business setup services in UAE will enable them to concentrate on expansion, rather than pay attention to the nitty-gritty details of business setup in Dubai. Be it a fresh business setup in Dubai or an extension of an already existing business, Dubai has it all.
