Nearly many ex-pats and foreign investors dream of starting a small business in Dubai. It is simple to understand why more than 90% of Dubai’s population is made up of foreign nationals: business-friendly government rules, a tax-free environment, a high standard of living, and world-class infrastructure.
No business, whether a sole proprietorship, a limited liability corporation, or a large enterprise, can function in the United Arab Emirates without a trade license. As foreign nationals and investors turn their company concepts into operational ventures, the number of new small firms is rising in Dubai by double digits.
What is the price to launch a business in Dubai? This article will assist you in learning the costs associated with starting a small business in Dubai, the procedures to follow, the paperwork needed to obtain a small business trade license, and the advantages of doing so.
How much does it cost to start a small business in Dubai?
The cost of a small business license type in Dubai begins at AED 8,000, which is an immediate response to the issue of how much it costs to start a small business in Dubai. The price to register a corporation in Dubai varies depending on a number of factors. For a customized estimate of your company formation costs, get in touch with Trade License Zone.
The kind of business permit:
- The chosen business structure: Offshore Business, Free Zone Business, or Mainland Company, involves local government expenses, including a fee for administrative services
- Your small business’s chosen commercial operations
- Registration cost for a trade license
- Location of the business (along with office space and rent)
- The number of business partners indicates there will be higher expenses.
Even though the United Arab Emirates recently updated its business legislation to simplify this process, it might initially seem daunting and complex to you. When you contact company formation experts like Trade License Zone, we will assist you in choosing the structure for your firm.
As we’ve already indicated, your business operations might be better suited to an Offshore Business, a Mainland Company, or even a Free Zone Company structure. The type of business setup bundle you choose will depend on this. In our experience, applying for a Free Zone license with the Free Zone authorities is the most common business setup package for small enterprises in Dubai.
Steps to start a small business in Dubai
Step 1: Partner with Trade License Zone
The first stage in starting any kind of business in Dubai is collaborating with a neighborhood company set up agency. Trade License Zone’s business consulting professionals will handle all parts of your company’s setup, and all business operations, complete all necessary paperwork and obtain trade licenses so you may start trading as soon as possible.
Step 2: Select a legal framework
Innovative Free Zones have been established by the UAE to promote and encourage industries under certain rules. You can apply for a trade license in a relevant Dubai Free Zone establishment for maximum benefits and support from the local government by selecting the appropriate legal structure.
Step 3: Select and file a company name
You can choose and register your company name with the UAE Registry Office with the aid of the Trade License Zone. The company name must abide by the stringent naming requirements of the UAE. No abusive or blasphemous language, nor any allusions to Allah or Islam, are permitted in company names. You must use your name in its entirety rather than just your surname or initials if you want your company name to contain your name. Additionally, we’ll make sure that the name you’ve picked may be registered.
Step 4: Getting your visas
You can obtain residency visas to dwell and work in the UAE with the aid of a Trade License Zone. You can sponsor your dependents for visas using your valid work visa.
Step 5: Office lease and long-term workspace
We can assist you in locating the ideal rental property and completing a lease agreement in the city’s Free Zone area that best meets your business activity and the requirements of your clients if you have your trade license in hand.
Documents required to start a small business in Dubai
You must apply for notarization of the business’s Memorandum of Association (MOA) and Articles of Association (AOA) with the Department of Economic Development (DED) in Dubai after the Registry Office has authorized your company name.
You must deliver the following paperwork to the DED in addition to your completed application form and business plan:
- Director and shareholder identification and address documentation
- copies of shareholders’ and directors’ passports
- a confirmation of the company name copy
- Articles of Association (MOA)
- Association Bylaws (AOA)
Benefits of starting a small business in Dubai
One of the most well-liked business locations in the globe is Dubai. The UAE offers tax-free incomes for both individual and corporate accounts, the option to repatriate 100% of your firm’s profits and capital gains, access to a global market through the Middle East, Africa, and Europe, and a foreign company can pick from more than 2,000 commercial activities.
Working with Trade License Zone
One of the most sought-after locations for entrepreneurs worldwide is Dubai. This emirate offers tax-free earnings for both private and business accounts, the option to repatriate 100% of your company’s profits and capital gains, access to a global market through the Middle East, Africa, and Europe, and a foreign company can pick from more than 2,000 business activities in the UAE.