Dubai is a wonderful country to start any business endeavour. It provides the right business environment for businesses starting with an attractive tax system, strategic international location, and a growing economy. Ambitious entrepreneurs come to Dubai from different corners of the world to establish a foothold.
However, a big city also has bigger challenges. As a result, most budding entrepreneurs believe that they can only succeed in Dubai if they have enough start-up capital. Absolutely not!
A low-cost business setup in Dubai is now a reality. In fact, it could cost you much lower than many other global cities. How?
Well, that is because of personal and corporate tax exemption and cooperative business regulations.
Moreover, if you setup the business in one of the free zones, the cost reduces further. So, regardless of the setup you choose, setting up a business a registering your company in this city is simple.
Setting Up A Business in Dubai with Low Capital
The most important factor that affects the cost of setting up a business in Dubai is the area you choose – mainland or free zone.
While it is possible to achieve both on a stringent budget, free zones have an all-in-one nature, which makes them more cost-efficient.
If budget is a constraint, you may want to consider cheaper free zones to meet your needs. Besides price, free zones have other advantages too.
While Dubai levies a 0% tax rate, which is a major benefit, businesses can also leverage on full customs duty exemptions, 100% capital repatriation and profit, and zero currency restrictions.
However, if you want to trade directly or consider some government contracts with Dubai’s local market, you have to establish your mainland business. Your business size and nature shall determine the cost-effectiveness of your start-up.
Here, an expert in the field of company formation in Dubai can assist you in planning your requirements and budget.
Business Setup in Dubai
Irrespective of your budget, there are some simple steps to set up a low-cost company in this country:
- Firstly, you have to establish business activity. The Dubai Department of Economic Development, or DED, permits over 2000 activities in different sectors.
- Secondly, you are allowed to carry out other activities but it should be correctly mentioned on the license application. If you carry out any unlicensed activities in Dubai, you may have to face a penalty. The best way is to work with a company setup expert who can give you good suggestions for the organization.
- Next, give a name to your business. While this is the most obvious thing to do, but it is worth mentioning because UAE has naming conventions. There are a strict set of rules that may not be easier for outsiders to understand. For example, when you are naming a company, be mindful as it should include any blasphemous or offensive language. You may include any family name or your name in the company, but use the full name instead of initials. Check that the chosen name is not registered before.
The next step is to get your license. It is a straightforward process. Experts can help you with all the details and obtain your license. Voila! You are ready to start sailing.