Starting an affordable business in Dubai is the dream of every entrepreneur due to its stable market and remarkable infrastructure. With a little capital, you can start the business of your dreams and start generating income.
Low-cost business setup in UAE provides the investor with independence and flexibility. Through proper planning and the help of a skilled business consultant, investors can initiate their business without investing a large amount of money.
They will also guide you about the relevant jurisdictions and system of laws. In the upcoming article, we will discuss all of these in detail.
Steps to Start a Cost-effective Business Setup Dubai
A cost-effective company formation in Dubai can take up to four weeks to complete, depending on the type of company and business activities. This is a simple procedure, which is explained below.
Choose a Jurisdiction
In order to minimize your business setup in Dubai cost, choosing the right jurisdiction is vital. There are different options available: mainland company setup or Free Zone company setup. With a mainland company set up, you can access global and local marketplace, whereas a free zone setup allows you to retain full ownership of the company.
Secure a Trade Name
Securing a distinctive trade name for your company is crucial. The name of your company must be modest, simple and according to the laws set by the authorities.
Decide Business Activities
Decide what business activities you want to undertake according to the business setup of your company. These activities are mentioned on the issued license, and you will only be allowed to perform them.
Obtain Initial Approval
After deciding on your business activities, the next thing is to get initial approval from the relevant authorities. Avail the services of business consultants in Dubai in order to maintain your cost on applications and documents and obtain primary approvals for your company.
Get a Trading License
Get a trading license by submitting your business application and necessary documents. The license for a Mainland company is issued by the Department of Economic Development (DED), whilst the free zone setup is managed by the freezone regulatory authorities.
Apply for your Visa
After getting a trading license for your business setup Dubai, apply for a visa for shareholders and employees. A UAE business license holder is also eligible to sponsor their spouse and other family members.
Open a Bank Account
After all of the above-mentioned processes are completed, open a bank account for your business’s financial transactions in the Emirates. A business consultant will also help you with a smooth Bank Account Opening procedure.
In order to set up a low-cost business setup Dubai, you must carefully plan and get the services of an experienced business consultant.
Required Documents for Business Setup Dubai
There are certain documents required to provide in order to start a company in the UAE mainland or in a Free zone. These documents are:
- Passport copies of shareholders and directors
- Articles of Association
- Trade license
- Memorandum of Association
- Trade name reservation certificate
- No Objection Certificate (NOC)
- Completed application form
- Lease contract
It is necessary to check that all documents are attested before submission. A professional consultant will guide you throughout this procedure of paperwork and their submission to the relevant authorities.
Cost of Starting a Small Business in the UAE
The setup of a small and budget-friendly business in Dubai can be initiated through the proper guidance of a business consultant. The cost of business setup Dubai is between AED 8,000 and AED 12,000, but be mindful that several factors can increase these costs.
The option of free zones is best when it comes to small company setups, as they provide full ownership, flexible visa options, and flexi desks, which are low-cost and included in the license package.
Tips to Minimize Costs on Business Setup Dubai
We have carefully explained the business setup in Dubai cost. Still, you can reduce expenses by following these tips.
Adaptable Workplaces
If you do not need a physical office, you can opt for flexi desks and virtual addresses. This way, you can minimize costs and use this money for other important tasks.
Professional Consultation
Get help from professional consultants for your business setup by utilizing their budget-friendly packages. Select an inclusive package that provides assistance with document submission, initial approvals, and the visa process.
Estimate Business Requirements
It is necessary to estimate your business requirements according to the services provided by your selected jurisdiction, i.e., either free zone or mainland. You can save lots of money in the future by getting these things in order.
Detailed Documentation
Make sure all of your documents and licenses are in accordance with laws and regulation and are attested by local jurisdiction. This will protect you from any fines and save your money.
Types of Low-Priced Business Setups in Dubai
Dubai is one of the best places for investors to start their business ventures. There are different types of businesses that need little upfront capital but result in huge profits. Some of these types of businesses are discussed below.
E-Commerce and Dropshipping
E-commerce and dropshipping are promising sectors in terms of earning revenue. In contrast to other business setups, dropshipping and e-commerce does not need a storage facility or any legal responsibility. Due to this, the entrepreneur can save lots of investment and utilize it for other aspects of business growth.
Digital Marketing
Digital marketing is also an adaptable and profitable business. You can provide your marketing services like social media marketing, content creation, SEO, etc., without any physical office. These skills are in high demand and require minimum capital with a high potential for development.
Business Consultancy
A business consultant is one of the popular and high-in-demand business setups. There are various consultancy services to choose from, such as business, legal, management, and IT consultancies. Establishing a consulting agency can be cost-effective and profitable.
General Trading Business
With a general trading business setup, you can participate in many business activities, including import/export, distribution companies, and trading of various goods and products. General trading is also one of the low-cost business setups in Dubai that generates lots of income.
Human Resources Outsourcing (HRO)
Human resources outsourcing is a feasible and dynamic procedure in which another organization is hired to tackle a company’s HR tasks in place of the CEO or director. This is also one of the excellent low-cost business ventures.
Tourism Business
The United Arab Emirates is a haven for foreign travelers due to its iconic attractions, world-class infrastructure and beaches, due to which the tourism industry is thriving. It is also one of the affordable options for your business setup in Dubai to maximize income.
Final Words!
To start a low-cost business setup in UAE, it is necessary to properly plan and get the help of an experienced business consultant. Select a trading name, business activity, suitable jurisdiction, and trading license by submitting necessary documents and fees and start your small business today.
If you want to start a small business in Dubai, but don’t know where to start, we are here to help! You can contact our expert team at Al Riyady for all your business related problems. Our services include business licensing, business setup in Dubai mainland and Free zones, golden visa and many more.
