UAE is globally recognized as one of the ideal locations to start a business. Whether you are an entrepreneur with business ideas or an existing business setup with plans of moving to the emirates, the city offers unlimited growth opportunities, a welcoming government, and a rich lifestyle.
However, when it comes to starting a business in Dubai, the overall investments and the costs associated with the business setup process can become essential criteria. Although the costs differ with each sector, business activity, and the jurisdiction, it is important to comprehend ways to make the process cost-efficient as possible.
Here are some ideas on how you can start a cost-effective business in Dubai:
Choose your jurisdiction
Foreign investors have three jurisdiction options for their business setup: mainland, free zone, an offshore entity.
Free zones are special economic zones in Dubai that offer100% ownership as well as complete retention of the profits and capital to the investors. However, free zone business owners are allowed to conduct their operations in specific zones of the UAE only.
For those who want to operate locally can opt for a mainland entity. However, to operate as a mainland company, the business owner will require a local sponsor who will have 51% of the company’s ownership.
Lastly, an offshore business is the one that operates outside the UAE, with no physical appearance in the city.
The fees of the business license required for each of these jurisdiction varies and is determined after an assessment of the business activity, the size of the business operations, the number of visas required, etc.
Legal structure of the business
The licenses associated with your business also depend on the legal structure of your operations. These include sole proprietorship, one-person company, Partnership Company, civil company, Limited liability company, a branch of a foreign-operated company, and many others.
The Department of Economic Development has a set of rules for each legal structure along with varying fees and formalities.
Renting office space
In Dubai, a mainland business mandates a physical office location while there are no such requirements for operating in a free zone jurisdiction. In fact, if you choose a free zone industry in Dubai, you can mitigate the cost of office rent, equipment, and other overhead costs by going for virtual office spaces, shared working offices and serviced business setup.
Business setup service in UAE
The Executive Lounge is a full-service business setup consultancy in UAE. With years of experience, our team of professionals has worked closely with entrepreneurs from both – international and local regions. We assist in all types of business setup including mainland and free zone entity. Besides business setup, our services also include taxation, auditing, visa guidance, co-working office setup, virtual offices, and shared office spaces.
Contact us at www.theexecutivelounge.aefor more information on how we can help you with your next commercial venture.