If you need to create a business plan that is viable and practical, then you will need to gauge the cost of acquiring the trade license and other processes involved in the setup of a business. The tax-free nature of Dubai’s business environment is quite attractive, but it does not mean that it is not going to take capital investment at all. It also must be taken into account that with each choice you make, you can either increase the cost or decrease and that several factors go into calculating the final amount.
For example, you should take into account that each Free Zone dictates its pricing policy uniquely and independent of others, and thus the cost and prices will differ. This is because of each free zone, although sharing the same legal requirements will have its own procedures with regard to the start-up and fees. So, some of these free zones will require the entrepreneurs to have a set amount of capitals before they can begin to set up their company in the Free Zone area.
Similarly, if you are planning to bring in employees from foreign companies, then you will need to get them VISA’s and other documents that will legitimise their stay here in the Emirates. There are several types of such pre-requisites that need to be fulfilled before you can actually get them to stay in the Emirates. You will need to get proper documents from their country of origin and then you need approval from their embassies in Dubai.
Another thing to consider when trying gauging the cost of getting a business set up in Dubai is to consider the prices that will be levied on goods that are being imported into Dubai. Dubai Customs have already a list of things that are banned from being imported and all the things which are allowed to be imported, and it they also specify the cost of importing every single of these items. But if you were to trade and import from nations that are already inside the Gulf Cooperation Council then you will be availing several benefits due to the treaties between the nations that are there in the Council
There are several cases that demonstrate how much the cost will be and where all it will be applied when you want to setup a business in Dubai and these are the cases that you need to look at:
When you are International Business who wants to just create a branch of the company in Dubai and open a bank account as well, then you will not need the pre-requisite of a physical office location, nor will you require a residency VISA either. In such a situation the best legal form that you can take is in the form of an offshore company. Usually, such company forms will cost around 2,000 dollars for the first year and then somewhat around that range from the every subsequent year onwards.
When you are an International business and you want to operate inside as well as outside of UAE. In this case, you will need not a physical office location but instead, will need a legal entity which can operate your business here in the Emirates and outside in addition to having a residency VISA in the UAE. For these kinds of businesses, the best legal form to take for reduced costs is the Free Zone Company that has a virtual office package. Several Free Trade Zones of Dubai offer you such packages and various complementary features and usually, the price is set around 11,000 dollars.
Another case would’ve the same requirements as you but it will require you to have a physical location in the form of an office here in Dubai. This would incur the costs of setting up an office in Dubai or for renting a furnished office space in Dubai. An office size of 50-60 sq. metres would incur the costs of 15,000 to 19,000 dollars.
When you want to setup a business in Dubai, then you will need to gauge the price and cost of everything that will go into creating the business including the rent of the offices, the investment into the infrastructure and resources. Moreover, the costs of investing in the projects that your company undertakes would outweigh the costs of the business setup.