Starting a business of your own is definitely not as simple as it sounds, and there are several initial risks involved that entrepreneurs and business owners need to manage. However, with the right idea and a need in the market, starting a business can be rewarding and a great opportunity to generate steady revenue. If you have a business idea in the UAE or want to start a low-cost business setup in Dubai, there are some simple steps to get you started.
There are plenty of startups, freelancers, micro business and other small-scale businesses that are welcome in Dubai. You can easily set your own business with proper guidance and get it all done without any hassles. So without further ado, here is all you need to know about setting up a low-cost business in Dubai.
Low-cost Business Setup In Dubai
Dubai is one of the hottest destinations in the world to set up a business. It offers a wide range of customers, global connectivity and affordable license packages for small and low-cost business setup in Dubai. Of these, the most cost-effective method to register and start a business in Dubai is the Emirate’s free zone.
Free zones offer affordable license packages, inclusive visa costs and a facility at the premise to start the business setup. Once registered, the business can easily start operations right away and get access to several facilities. The best part is that businesses can get exemptions and other benefits, which are ideal for starting a low-cost business setup in Dubai.
What also makes Dubai a hub of investments and low-cost businesses is that it offers several benefits not found in many other countries. Some of the reasons include –
- No minimum investment requirements, you can start your low-cost business with minimum potential investment and expect great returns.
- Dubai and the UAE offer several free zones that offer exemptions on Value Added Tax (VAT), income tax, corporate tax, customs and other financial requirements.
- The process to acquire a Dubai business visa is easy and relatively low-cost
- Government policies are supportive of small and medium businesses and provide an environment to grow faster.
- Low rate of transportation and other facilities, with the option to rent space or showrooms at a low cost. It also provides access to co-working spaces that have conference rooms, meeting rooms and other facilities to help businesses
How To Start A Low-Cost Business In Dubai?
Now that you understand the regulations for businesses in Dubai, ready to unleash your business idea in Dubai? For a low-cost business setup in Dubai, you need to ensure you
know the steps involved in the actual process. Here is what you need to consider to get started.
1. Choose A Business Activity
First off, businesses need to decide on the intended activity that they wish to carry out. The decision will impact the type of license that businesses must apply for and will need proper planning. There are over 2000+ business activities permitted in Dubai Free Zones and the mainland, and business owners need to select the right option for proceeding with the application process.
2. Decide on a Free Zone or Dubai Mainland
Next, you need to decide whether you will be applying for a free zone or Dubai Mainland. There are over 30+ free zones operating in Dubai, and each free zone provides benefits and access to highways, airports, ports, etc.
3. Register For A Company Name
For most businesses, this may not seem like an important consideration, but the name has a lot to do with whether you actually get the business license. The business name needs to be checked to ensure –
- It is unique and not already a registered name with the authorities
- Does not include any offensive or blasphemous language
- It cannot have surnames or initials of the founders. It will need to be a full name in case the business owners want to use their name.
4. Apply For A Business License
Once you are ready with the above details, you will have to apply for a business license formally. This is tricky as the type of license you require depends a lot on the chosen business activity and your requirements. The documents required for these will depend on the type of license you are applying for and which free zone you have opted for. However, the common documents that will be required include –
- License application form duly filled and signed by the business owners
- Passport and visa copy of all the shareholders
- Copy of business plan
- Memorandum of Association (MOA) and Articles of Association (AOA)
5. Get Your Visas Done
For your license application, all the business owners and employees will need to have credible work visas in the UAE. The number of business and work visa applications is huge, so it is suggested to get started with this process in parallel with the license and registration process.
6. Open A Corporate Bank Account
Finally, you will need an official bank account to run your business in Dubai. To open a corporate bank account, you will need a few documents like –
- Company trade license, Company incorporation documents, etc.
- Company ownership documents with information like share certificates and other details
- Source of funds, business information and other details
- Revenue projects and business inflow with planned activities
- Passport copies of shareholders and authorized signatories
7. Appoint A Business Consultant To Start Your Business In Dubai
As we have seen, the rules and regulations in Dubai are pretty straightforward and detailed. Having a business setup consultant by your side can add great value to the process. Business setup consultants can help you understand all the regulations and compliance requirements to avoid unwanted fines or revisions in the process.
The entire process can be hassle-free, and you save on the time and effort required for a low-cost business setup in Dubai.