08 Dec
2023
If you’re looking for ways to make a substantial income in Dubai, a profitable business is one of the top ways in which you can achieve this end. With its business-friendly policies and fast paced growth, the city is a great destination for aspiring entrepreneurs. However, setting up a business can also be a fairly expensive proposition. As the old saying goes, ‘You have to spend money to make money.’ However there are ways to optimize your budget, and launch a business in a more economical fashion.
This article is a guide on low cost business setup in Dubai that will discuss the many ways to start a business in Dubai with little or no money.
Setting up a business in Dubai can involve expenses such as taking a license, adding human resources, infrastructure, and more. But, it is also true that Dubai is fast becoming a hub of small and medium-sized businesses. You can set up a business in Dubai and reap benefits.
If you are on a tight budget but determined to start a business, you can opt for business setup in UAE free zones so that you can save money on setting up a brick and mortar office. These are tax-free free zones in the UAE that allow you to repatriate complete profit and capital. They are free from exchange rate limits and offer complete exemptions on custom tax. For more details, speak to professional business setup consultants in the UAE like Bizvisor. These consultants are skilled in setting up a business with little to no investment in Dubai mainland.
Looking for the cheapest business license in Dubai or the UAE? Currently, you can get a free zone license for prices starting from AED 5,500.
What is the lowest business setup cost in the UAE? It depends on a number of factors. The cost of a business license depends on the type of business. However, most businesses can manage the cost of launching a business by eliminating the need to sign lease agreements and applying to a free zone for opening a facility. The answer to the question, ‘How much does it cost to get a business license?’, can be answered by a professional helping in business setup in Dubai Mainland.
One of the most cost effective moves you can take as an entrepreneur is to start a small business, as this typically involves a lower outlay. Here are some factors to consider:
In addition to opting for an affordable license and a virtual office, you can do the following:
Instead of hiring complete departments at the start, outsource tasks that do not form the core of your offering. Accounting, PRO services, HR, and admin tasks can be handed over to firms like Bizvisor to avoid investing in personnel and equipment costs for these functions.
Consider hiring part-time, temporary, or contract workers for specific projects or roles to optimize labor costs. If your industry has a robust freelance workforce, save costs by opting for them. The fewer employees you have initially, the less you will need to pay for visas, salaries and equipment. Consider hiring employees who already have residence visas to save those costs.
In addition to choosing a virtual office to save on rents, you can look into coworking spaces and meeting rooms for your in-person interactions. These cost less than traditional rents and you will be spared costly utility bills as well.
Choose suppliers who can offer the best discounts and bulk pricing. Look for loyalty rewards and other forms of cost savings. This includes all the products and services you require in your business.
Stay compliant with government regulations and laws so that your hard earned profits are not squandered on fines. Avoid paying unnecessary legal fees by following rules and regulations.
As mentioned earlier, the type of business you choose will impact your business setup cost. The following are some business ventures that require less investment.
When you run an ecommerce business, you can manage it almost single handedly and scale as you grow. Dropshipping allows you to reach products to customers directly from the manufacturer, eliminating the need for a warehouse or stocking inventory. UAE and Dubai free zones offer cost effective ecommerce licenses and red-tape free processes so you don’t waste any time and money.
As a business that requires very little physical space or costly equipment, this is one of the best cost-saving businesses you could start, as long as you have the required industry experience and talent. With more and more clients across the globe being open to hiring remotely, you can use Dubai as your base to attract a worldwide, high-paying clientele. Hiring additional talent is also simple as this is traditionally a field that attracts remote and freelance workers.
Like a digital marketing agency, in a consultancy the product being sold is human expertise to guide other firms. If you have experience in legal, management, IT, or financial fields, and want to branch out on your own, a consultancy is the way to go. Dubai’s diverse business landscape has a strong demand for expert advice, and this is a niche you can easily fill. You can start off with virtually no overheads beyond the most basic license and business setup costs, operating out of virtual offices, home or coworking spaces.
This is a growing field, with a robust clientele especially among small and medium businesses, who may not have fully fledged HR Departments. As a HR outsourcing expert, your company can offer specialized HR services as well as advice to a roster of clients, expanding as client needs also grow.
If you have the knowhow and the industry connections, this is a good field to make a low cost entry into. Dubai has a thriving tourism sector where demand for tour packages, travel insurance, or visa support outweighs supply.
Now that you have a little more insight into setting up a business on a budget, let us look into the actual processes of setting one up.
It is relatively easy to start a business in the UAE. Here are some of the things you need to consider when starting a business in Dubai.
Choose your business activities before starting your UAE business. You must include all activities on the license application because there are thousands. Not specifying all your planned activities could cause problems later. To make this selection, consult a company formation specialist. These professionals know which permitted activities fit your business best.
After defining your firm, choose a name. Naming a UAE business requires consideration. The naming conventions here are simple but stringent. Again, a business setup specialist can help.
Selecting a free zone or mainland location for your business is the last step before applying for a license. Both have many benefits. Free zones offer fast incorporation, business help, tax exemptions, and no currency limitations. On the contrary, Mainland permits businesses to trade in the market in the United Arab Emirates and embark on very profitable government contracts. Your business determines your arrangement. Additionally, a company formation specialist can advise on the optimal way. If the cost of operating a startup in Dubai features substantially in your decisions, fret not, since charges are equivalent whether you go for Mainland or free zone structure.
Firm licenses are essential to starting a firm in the Dubai Mainland. Small businesses in the free zone and the Mainland can easily obtain licenses directly from the Department of Economic Development or the Municipality in the Emirate. You can expect to get the license in three weeks. When applying for the license, apply to the appropriate governing authority to do business in a free zone. You will need the following documents at the time of applying for a license: Application completed Owners’ passports Two passport-sized color pictures. Free zones can establish a business in Dubai with little capital. Free zones offer low licensing packages without a paid-up share capital, zero annual audits, and fast incorporation. You can also start a corporation in the UAE without being there.
One more of the major prerequisites to establishing a startup company is a Dubai residence. Residence applications for yourself and your staff are specific but must be more flexible. Again, a UAE business creation specialist can assist. You can sponsor another residence as a Dubai business license holder. Possibly a spouse, parent, child, or housekeeper. Your company’s size, setup, and personal profits determine the number of residences you are eligible for.
Overseas entrepreneurs find corporate banking difficult in the UAE due to money laundering laws. Dealing with a specialist in the subject allows for a significantly smoother experience.
Company formation consultants in Dubai can connect you with local and international banks, even setting up in-person meetings. Our experts at Bizvisor can assist with company licenses in the United Arab Emirates, free zone, and Mainland. Contact us today.
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