It is something very much debatable questions How to start a business in Dubai free zone. But without any doubt it is a cost effective project for people who are in search for the group of experts; In response to answer the question of How to start a business in Dubai free zone. But before giving to answer How to start a business in Dubai free zone; there are plenty of other things which need to be focus. You must have a proper vision to start a business in UAE free zone. Every business needs vision. To convert into reality the vision is a fantasy of every person. Before launching a business, you need to have an idea of business; to initiate a business in UAE free zone.
In line to form a plan of operational business on each single step an expert view is requires. Because business set up expert knows how to start business in Dubai free zone. Qualified & Expert business person know what accurately their goal is and how can they reach to it. They know the best possible way how to invite their target audience. They know exactly how to start a business in Dubai free zone; and also know what is best in order to make their products; and services grow well to survive the competition. But those need expert direction and help, who have just start writing their business plans; whether in forecasting sales, research, cost calculations; generating financial documentation and much more?
How to start a business in Dubai free zone
Dubai free trade is one of the most attractive economic zones for Setup Company in Dubai. To setup a business in Dubai free zone offers services of a wide range which includes; Easy formation of company, VISA of Dubai Free Zone, a verity of Free Zone License. Dubai is the only city of UAE which consist a large number of Free Zones for doing the business; and it has also the Free Industrial Zones for potential investors; who are interesting to make the most profit out of their investments. Dubai is very much rich with a diversity of new and different sector of business firm. It is possible because there are huge numbers of firms who are looking to setup their base in Dubai.
We are having team of expert’s people for establishing the foreign businesses over here; and we are known specialist in this field to setup company in Dubai, UAE. So, if you are interested to know how to start business in Dubai free zone; then keep in touch with us. We will guide you step to step process of how to start business in Dubai free zone. Dubai is one among the few zones in the world; where starting a business is not an easy task. According to the Survey of World Bank’s, Dubai is placed 33rd position of the easiest places to do trade. Keeping in view its low rankings, we can say that starting a company in the state is very tough, in particular if it is your first time.
How to start a business in UAE free zone
Whatever way you want to choose, there are few points you need to know before you took start.
Start a business in UAE free zone in Dubai free zone
Establishing a business in UAE free zone is really clear-cut and generally it takes only a matter of days. You can pick from any of the UAE’s 40+ free zones; however some may be suited better than the others. For example, if you are determined to import and export primarily through sea; then Jebel Ali Free Zone (JAFZA) is probably a good home; as it is directly connect you to the busy port of Jebel Ali. On the other hand, if you are mostly interested in cargo moving by air; then Dubai Airport Free Zone (DAFZA) is ideally suited. You may also want to setup in a free zone which is already known home to other large organizations; both Aramex and IKEA have their warehouses in Dubai south free zone; while traders like Franke and Mahindra from Ras Al Khaimah Economic Zone (RAKEZ).
Partnering requirements in Dubai free zone
When starting business in UAE free zone, you’ll be in need to work with a local partner to trade throughout the mainland. Most of the entrepreneurs choose to collaborate with local distributors such as Aramex to grip these logistics of mainland. Others combine these with their own platform of e-commerce to bypass the middle man; directly selling to customers online and delivering goods via Aramex.
Affordable startup in Dubai free zone
fast as well as easy process of starting business in UAE free zone is also very much affordable. The cost of starting business in popular free zones such as JAFZA (AED 15,000) or Sharjah Media City (SHAMS) (AED 11,500) can be very reasonable. If you are determined to store goods, you’ll also require leasing warehouse space. JAFZA offer warehousing starting from AED 350-600 per square meter annually. If you are looking really to keep start up cost very low; then there are so many free zones that require no paid up share capital.
Set up with multiple shareholders in Dubai free zone
it is surely possible to go alone with while starting business in Dubai free zone; you can also set up with multiple share holders your business. These entities can be individuals, corporate or a combination of both.
While it is certainly possible to go alone with your enterprise of import and export; you can also set up your business with multiple shareholders.
It is easy to sponsor dependents in Dubai free zone
if you are looking as an owner for how to start business in Dubai free zone; you can sponsor dependents as well for their visas. Whether you require visa for a spouse, child, or domestic staff the process is simple; entry permit, status change, a medical fitness test, then Emirates ID registration and visa stamping. As this is very important process; it is a good idea to check with a businesses setup expert in UAE free zone; so that to ensure before starting an application; both you and also those you are hoping to sponsor must meet the entry criteria.
Plenty of visa options in Dubai free zone
When you start business in Dubai free zone; you will be in position to apply for multiple visas; and such opportunity is for you as well as for your employees too. The exact number you will share and they can apply for it; and it will depend on location where you want to set up your business; as each free zone has its own maximum cap. Some, like SHAMS, will get a total of six visas; while they will allow you to apply for more visas; but it depend on the size of your office or warehouse. The general rule of thumb is 100 sq ft of office or warehouse space per visa.
Easy to arrange your corporate bank account in Dubai free zone
Once you get your trade license in the UAE; you will have everything you requires to open a business bank account. The process is very quick and simple. Our consultant will advise the best bank that suit to your needs; and can even arrange meetings with banker for you, if you want. A specialist of company formation can also provide the same service; or as alternate, you are welcome to move toward to any local or international bank on your own wish.
As one of the fastest growing economies in the world; Dubai is the perfect place for expats looking to advance in their careers. The matchless opportunity to grow one’s prospects together with the likely to earn well; is what draws most of the expats to Dubai in search of new company opening in Dubai.
New company opening in Dubai is the key to Dubai future growth; but licensing and registration is complex and also requires a substantial amount of setup capital. So you need to take an expert advice to start smoothly. Dubai offers an operating environment to expat people; that are amongst the most liberal and attractive in the Middle East region.
So how does one go about turning a good business idea into a productive, viable business?
Before jumping in to new company opening in Dubai, we recommend looking at three major components that will affect the profitability of your startup.
Know your business for new company opening in Dubai
Yes you have a great idea about your business; but is there a proper demand for what you are offering? What does your competition look like; and what puts your product and services a mark above the others?
The success of a new company opening in Dubai depends on sound information of the local market; detail research of the capability and demand for your product or service; and a credible business plan that is likely to attract investment partners.
Initial research of the market is very important for every successful business; our team of consultant will help you in understanding of the market. Initial research also include spending some money on advertising; to find out the demand for your product is likely to save you thousands of dollars in the future. Find the market for your product by using Google; Twitter and other social media to ask people their opinions. You will be amaze at the response you get from this channel. A little money spent upfront can save you big bucks down the line.
Find a good local partner for new company opening in Dubai
New company opening in Dubai require a local sponsor; simply call a local partner who will hold the majority 51% of share in your company; so he can therefore, potentially control it. Local sponsor can be an individual or it can be a company; and they will not contribute financially to setup or run the company. There are a number of ways in which a local sponsor can be paid; it is important to set the thing before new company opening in Dubai
Financial viability for new business setup in Dubai
Once your business setup in Dubai is done, the Ministry of Commerce will want the owners to show proof of financial investment. If you are new to Dubai market and have no track record, you must be ready to find your own financial assets through your bank; or by other means rather than depend on on local support.
Once you have setup the validity of your idea, from a market point of view as well as financial viability; then you can look at the steps for spinning your idea into a successful business.
UAE Commercial Companies Law and Federal Law define seven basic categories for new business setup in Dubai. The requirements for minimum capital levels, also shareholders; as well as procedures for business setup will vary with the type of business structure.
New company formation in Dubai as a Professional Firms
If you want to set up a professional company that involves in professional or skillful activity; then gov’t of Dubai allow 100% ownership to expat person; but the number of staff that can be hire is limited. A local service agent (LSA) who is a UAE national is requires to get the license; and to assist in obtaining employee visas, labor and immigration cards. LSA has no direct connection in the business.
The Dubai gov’t has set up free trade zones to boost new company formation in Dubai; new company formation in Dubai free zones have a separate legal structure and are treated as offshore companies for legal purposes. These firms are best fit to business want to use Dubai as a local base for manufacturing as well as distribution; but with the majority of their business conduct outside the UAE.
New company formation in Dubai Free zone has several separate incentives including 100% foreign ownership; the ability to send back all of their income as well as profits to home country; exemption from import duties, no corporate tax; also an easy and speedy recruitment process; and also an efficient executive care from the free zone authorities.
New LLC Company opening in Dubai
LLC Company is the most commonly use structure for New LLC Company opening in Dubai region. LLC Company can have a minimum of 2 or as many as 50 shareholders; whose liability in the company is limited to their share in the company. A local sponsor with a 51% of share is requires to form a new company; so expat partner will hold only up to 49%. In Dubai, the important thing is that a minimum capital investment is not requires; to be shown for the New LLC Company opening in Dubai. These are some steps which need to keep an eye on for the set-up process:
Procedure for opening a new company in Dubai
Procedure for opening a new company in Dubai start with choose a name for your Company; that link to the type of business and have it approved by the Licensing Department of the DED.
Prepare a MOA which is a document that runs the external activities of the company. The MoA needs to be notarized by a Notary Public in a Dubai court. Once MOA is sign and notarize; then apply for entry into the Commercial register at the Economic Development Department.
Once DED approve your documents they will issue a license; and the company name will be entering into the Commercial Register. The MOA will be publishing in the Ministry of Economy and Commerce’s Bulletin.
The final step in the Procedure for opening a new company in Dubai is to register the company with the Dubai Chamber of Commerce and Industry.
First of all, let’s consider how Free Zones describe Event Management. Event Management Licenses in Dubai is define as companies promoting and managing their own business events, or who are contracted by third parties to design and manage business events. If you are looking for How to start an event management company in Dubai; then here is a small guide on the elementary process of whatever you need to do.
Firstly you need to understand for an Event Management License in Dubai; that is the type of events you can organize in this business; whether you are planning for conducting a large scale event, a gala dinner, a launch or promotion or even a conference.
Once you’ve determine that what type of event you’re planning; write down your vision for the event and with each idea you have written; begin to formulate a plan to bring those ideas to life.
You could consider making a storyboard with photos and visual stigma to assist you with determining everything you will need.
Event Management License in Dubai
Prepare a budget: You need to determine the perspective cost of the entire event; and all the elements which make up the event, this will include all aspects such as the food and beverage, venue, decoration, branding and signage, invitations, decoration, stage light and sound and much more. Make sure not to underestimate the costs of these two factors and be sure to contact the specialists in each area of the services you require. As a leading corporate Event Management License in Dubai; we provide these entire services turnkey and many more.
Create a timeline that allows you to work with the items that require the most amount of time first. You then need to create a critical path checklist that works alongside your timelines, list every detail down set deadlines and assign owners of the tasks and tick them off as they are completed.
How to start an event management company in Dubai
There is no doubt to apply for a license to organize any number of event; a lot of entrepreneurs are looking to apply for an Event Management License in Dubai; that covers these activities as well as many more. Once you have decided to start your business activity; you will need to pick where you want to start your business; on the UAE mainland or in one of its several free zones. Both have their benefits. For instance, expat initiating business in a UAE free zone do not have need of a local sponsor; and will hold 100% of their company share. On the other hand, free zone businesses are limited in where they can grip events and exhibitions.
Any business setup in Dubai free zone need to apply for a permit from every single venue; they work with and cannot embrace events in open spaces for example beaches or parks. Mainland business in the meantime only needs to apply one time to the Department of Tourism and Commerce Marketing (DTCM); and can at that time usually embrace events all over the UAE.
Easy setup process of Event Management License in Dubai
Whether you choose to start Event Management License in Dubai mainland; or in a free zone the setup procedure is very direct. If you hope to set up in a free zone; then the first step is to find one that matches your business. There are several free zones all over the Emirates such as Dubai World Center; as well as Fujairah Creative City that are by this time home to event management companies; and for that reason could make the ideal center. Once you have decided to open in a free zone. Several free zones will route your application in as less time as one week. When starting up on the mainland, the process is alike. On the other hand, applying to a free zone authority; you can apply for Event Management License straight to DED; who frequently process applications inside 90 days.
How to start an event management company in Dubai
When maximum numbers of entrepreneurs are exploring their opportunities of setting up a company; they look for the best economical way out for a setup. In most cases, this ends up being a Free Zone License. If you are looking to open an Event Management License in Dubai; and are looking at setting it up in a Free Zone; here are some course of action and restrictions to holding a Free Zone Event Management License.
Allowable activities shall only and severely comprise of the following:
- Through an Event Management License in Dubai you can organize manage; as well as encourage gala events, award ceremonies; conventions, product launches, conferences, meetings, seminars and other business related events.
- Might only start up hotel reservations for the attendees of the Event; as hotel bookings are in stern and from side to side relation with the Event.
- Encourage and sell tickets for Event.
Non-permissible activities shall comprise but shall not be restricted to the following:
- Carrying out any civil / construction workings for example building stages, scaffolding, exhibition stands or any extra construction work.
- Trading activities that also include import and export of products.
- Training Activities.
- Talent Agency’s Activities.
- Venue Management.
- Organize and sponsor events lacking the approval of the appropriate authorities.
Key points for Event Management License in Dubai
- Sale and promotion of tickets for events detain outside the Free Zone; are subject to guiding principle of proper authorities (i.e. DED, DTCM, or the DM).
- Sale and promotion of tickets in the other state or Countries are subject to the laws, rules, regulations; as well as guidelines of the related authorities in the respective Emirates or Countries.
- You will be completely in charge for complete ticket money back, in the case of event withdrawal. In addition, you will go into and secure accurate Insurance police to shelter; any and all charges and refunds in case of event withdrawal. The Authority has the right to examine the activities, files, and affairs of the Licensee at any instance of time.
- Licensee need to let know all personnel, employees, artists, technicians and any other person or body working with Licensee; about all the regulations, guidelines, laws or texts link to the activity of Licensee. In addition, Licensee shall at all times be totally blamable for all harms arising from the activities of Licensee’s Dependents.
- The use of the word “Festival” is theme to the earlier written approval of the related authorities.
- A licensee shall secure all approvals and go in into agreements next to the use of any Knowledgeable Property; information or documents possessed by third parties.
- Tickets, websites, posters, banners, leaflets and every marketing material link to the event management; should at all times clearly state any related general public information.
Due to the growth in the use of smartphones and internet; freelancing has not only come to be popular but as well as a number one choice of career. Due to, lack of restrictions and the money that comes with it; freelancing has made its own mark in the world. In addition, who would desire to turn out to be his own boss? If you are fed up of the regular 9 to 6 job; or feed up of doing the same practice over and over again; or have a stable job but want to start a well-paid sideline in your free time; freelance license Dubai is the way to go. Any option that suits you, there are some of the things to think through before you make a decision. Freelancing in Dubai is at the best at this time in the market.
There are a large number of foreigners living in UAE from all over the world. Most of them want to make more earnings in addition with their normal duties to earn extra income; due to the needs of high style of living to keep up with a decent standard in the Society. In general people are mixed up about the part time work and freelance license Dubai. A Freelance license in Dubai is mainly working or running your business lawfully by means of a legal trade license.
A part time job in UAE is consider as ban activity; unless until a person acquires a separate authorization from the ministry of labor in Dubai. There are a lot of paybacks from getting a Dubai freelance license; for example, one or more persons can have the benefits of the ownership of a company; and can also keep an isolated company bank account; separate business address etc.
After gaining Dubai freelance license you are at right and are rightfully permitted to run the business or work here. In UAE a handful of the free zone authorities are delivering the Dubai freelance license; so you can catch the license from whichever of the free zone authority; by electing the activity as per your certified professional experience. Occupants of UAE having a valid visa can open a Dubai freelance license without terminating the current visa. The person who is on husband sponsorship or employment visa can be the shareholder of the company; but on this occasion they will make available NOC letter from the sponsor.
In freelance license Dubai, Physical office space is not required. But then again many free zones also provides the flexi desk facility for small business; that comforts the owner, right to use the office and use the services like postal; receptionist, and meeting rooms etc. The trade license can be allotted within 7 to 10 week days. These opportunities are further suitable for folks who are in residency visa through their other half or employment visa.
Freelance license Dubai
A freelance license Dubai is simply means that, be your own boss. Dubai can be one of the top places to open a freelance license Dubai; Freelancing in Dubai is quite liberating. Yet, it is difficult, and it surely is not a cakewalk. Then again a good start can make the journey smooth. And if you have the ability that it needs then the following thing you must do is to be familiar with all about the freelancing in Dubai.
Dubai in this time is a hot bed for freelancers, as a lot of businesses are making the use of their services from corner to corner in different industries. Your judgment to start on your own is totally braced by the government of UAE; and as a result the procedure to acquire a valid license for freelancing has been made very easy. In the UAE, a lot of the free zone authorities are providing freelance license Dubai; and receiving your license from a free zone can be helpful. Upon selecting an activity as per your qualified experience; you will need to get a trade license from a chosen licensing authority. Here the question get to your feet, how to get a freelance license in Dubai? You have to keep an eye on a procedure by offering a certain set of documents to the authorities as given further down:
Documents Required Getting a Dubai Freelance License
- Complete application form of Dubai freelance license.
- Print copy of your business plan.
- A print copy of your passport.
- Reference letter sign from current or previous employers.
- Your resume as well as original educational certificates.
- NOC signed the by the sponsor to relocation of residence visa to freelance visa and to get hold of a freelance permit.
- Good standing certificate by the bank making sure that you have reasonable banking history.
- Range of your work or any testers of work that verify you could freelance in the stated business activity.
Procedure to Get a Freelance License Dubai
- Apply to free zone authority where you propose to take a freelance license and a freelance visa.
- Submit an application for initial approval along with the business plan; passport copy, as well as the reference letter.
- After initial approval, you will receive a verification letter from the relevant free zone authority.
- Sign this verification letter and give it along with the other documents; point out above, for the final approval.
- Make all the payments, for example the freelance permit fee, employee visa sponsorship fee; and first episode for rent or office space (could be optional), as well as deposit (if applicable).
- Sign the free zone sponsorship agreement and gather the freelance permit in addition with the freelance visa.
- On obtaining all the certifications and approval to initiate a freelance license in Dubai; you will be delivered with a ‘flexi desk’ and business services inside the free zone.
- The license is allotted inside 7-10 week days
Freelance license cost in Free zone
|Free Zone – Cost (AED)|
|Twofour54 free zone||2,500|
|D-Tech free zone||7,500|
|Ajman free zone||11,000|
|UAQ free zone||13,000|
|Fujairah free zone||14,000|
|RAK free zone||15,000|
Things You need to know for Dubai freelance license
- While applying for a freelance license, you need to familiar with; that is you cannot acquire a freelance license from the main land and offshore authorities.
- You can apply from one of the free trade zone; which allow freelance license.
- Also if you are on your spouse visa; then to get a freelance license you have to get an NOC from your sponsor. The same applies if you are employee you need an NOC from your company.
- Having a physical office is not compulsory under freelancing, but free zones do arrange for flexi-desk offices for small businesses.
- Freelancers in Dubai must not call for submitting official financial statement or being subject to an audit.
- You can apply for the license on your own; but it is best to get assistance from Shams Consultant to make the process at ease.
Being your own boss definitely sounds great; but you need to work hard to reach on the top. One of the most important things to know while doing freelancing in Dubai is networking. networking will connect you to the right people. If you think you can do it, then you should not wait for it.
Dubai Mainland license is well known for its business friendly arrangements and facilities. Mainland Dubai company formation is still the first choice for a lot expat investor; when they are starting their business in Dubai. Company Formation in Dubai Mainland is very puzzling and time taking job; Shams Consultant is one of the top business setup consultancies; offers the finest services for Mainland Dubai company formation.
Dubai has developed as fast growing city over the past few years; and business setup in Dubai mainland is at ease than ever. Dubai gov’t has an aim to make the method of setting up businesses smooth and time effective. There are two kinds of jurisdictions in Dubai; that is Dubai Main land and the other is Dubai free trade zone. Both jurisdictions have their own normal merits and detriments.
Although it is true that from outside free trade zone give the impression; that they are more eye catching with the cost effective offers which they make; and all the attraction they put forward. But if one does detailed study of the market; they would come to know that free zones are not the only option; which overseas investors consider when they are starting a business in the UAE. In reality they may not even be the utmost favorable business structure to start with. For example if one aims to trade directly in the mainland customer; or want to get government contract; then in this case business setup in Dubai mainland is more suitable in the long run.
Mainland Dubai company formation
DED is the main authority of the government of Dubai for Dubai mainland license; DED was established in March 1992 with the principal objective of regulating the trade & industry in the Emirate of Dubai; and at the same time increasing the economic progress as well as growth of Dubai. DED is liable for business setup in Dubai mainland, business registration & mainland license; as well as commercial obedience & end user protection in the Emirate of Dubai.
Mainland Dubai company formation Process
In Mainland Dubai company formation procedure you need to hire a UAE citizen as a local sponsor for your business. On the other hand, the local sponsor or sleeping partner will make a contract; that he will not have any active part in the profit distribution of the Dubai Mainland license.
For a Dubai Mainland license under a professional classification, the investor can have 100% possession; but a local service agent is still essential. Therefore for a professional company; the local service agent has no active share in the company business process or revenue sharing. In its place, they will only act as agent; while enlisting authorize agreement and forming other business certification required in Dubai.
Benefits of Mainland Company set up in Dubai
- You can run your company from every part of UAE
- Dubai Mainland license is 100% tax free from corporate tax
- No funds necessary for a local Dubai Mainland license
- No currency limitations in Dubai Mainland company
- Capability to bring out business in Dubai mainland using Dubai Mainland license
- You are allow to pick out office locations wherever in Dubai
- Stress-free processing of employment visas in Dubai Mainland Company formation
- Mainland Dubai company formation will deliver 100% return of investment and profits
- Stress free authorize procedures to acquire the Dubai Mainland license and registration in Dubai
- No audit necessity in Dubai Mainland
- Simple merger procedure to setup Mainland Company in Dubai.
Requirements for Dubai Mainland Business Setup
A verified office address from Dubai Municipality is compulsory when starting business in Dubai. The condition of office space for mainland business format in Dubai can be different depending on the kind of license the investor is eyeing for and it is investor’s duty to make sure an effective rental contract for an office is vacant at the time of applying for the license of Dubai Mainland Company.
There are 6 core phases involved in Dubai Mainland Company setup. Still, there are some undertakings which Mainland setup need special approval from some particular Government departments. The chief 6 phases involved for company formation in mainland are:
- Business Activity Selection and Name Approval.
- Choosing of Local Partner or Service Mediator.
- Apply for Early Approval for Mainland company setup.
- Planning of Court Notarization and MOA.
- Acquire Office Space and Rental Contact
- Final Submission for Mainland company formation in UAE
Concluding decision on the kind of business set up influenced by a number of factors, that involves the nature of business deeds and aiming customer. Keeping all that in notice let’s examine below when it is helpful to have a mainland company set up.
Target to trade with other mainland companies
One of the utmost important motives to set up a Dubai mainland company; is to be allow to trade with other mainland companies. However with free zone companies there is a strict limitation of trading only inside the same jurisdiction; and in situation they want to trade with some mainland company; they would have to go through a local registered distributer and pay customs duty. Mainland Dubai company formation on the other hand have right of entry within UAE and elsewhere without any limitations.
Wider Scope of Business for Dubai Mainland license:
UAE free zones have a constraint when it comes to possibility of businesses they provide to. For instance, companies in Dubai Knowledge Village must only work in education or related businesses. They do not permit any substitution activities. The same applies for Dubai Healthcare City where healthcare associated businesses are only allowable. Likewise for Maritime businesses RAK maritime city is the finest bet. Also note that expansion of a free zone company activity outside of the free zone is not allowed.
Work along with government bodies with Dubai business license:
Government assignments in UAE are massive business opportunities. These projects are extraordinary on investment as well as profit. These projects require specialize companies to be their service provider. It is clear that if you are capable to take these projects; then it can be exceptionally profitable for you; and the best way to get this kind of opportunity is having a mainland business license. As it views, free zone companies are not permit to be in contention for such opportunities; they can only work with private firm. Any business that aims to get contracts with UAE governmental bodies; for that reason must go forward with Mainland Dubai company formation.
Market Presence with Dubai business license:
The prime and most important benefit of setting up a Dubai Mainland license; is to permit one to open an office wherever in UAE. This being the best approach to trade in local market; also lets you to open offices wherever in UAE; and therefore have a good presence all over the country.
Whereas companies set up in free zones; are usually not allow to work other than the free zone they are register in. As discuss earlier; these companies need a distributor to perform their services in the mainland. So, for company which are looking for a solid presence and strong future in the market; a Dubai business license is a more appropriate option.
Dubai business license is financially feasible:
Free zones continuously make the headlines when it comes to low duty tax; but that is not really mean Dubai business license do not match this with some notable incentives as well.
Also note that no paid up capital is required for Dubai business license; which making them a reasonable way of doing business.
Shams Consultant is offer advisory services to the clients reasonably; for quite some time on various business structures. But most of the clients are insisting for recommendation of low cost business setup options; or cheap business license Dubai. However, it is not a shocking situation; because most of the intending persons are looking to determine most prompt and practical solution of their desired businesses; for the reason that opening and operating a new business in a foreign state can be highly expensive.
The selection of a cheap business license Dubai may be easy for people who are the residence of Dubai; but even then the picking of a cheap business license Dubai need the guidance and advice from a consultant. Because living in Dubai and be familiar with the business are two different thing. And for those, who are planning to come to the Dubai and start a new business here; it might be very stimulating to study about setup options which Dubai free zone is offering; and to select one right for your business. Today we sharing below information as how to select and find the cheap business license Dubai.
Cheapest way to start a company in Dubai
First of all, let us level the main fact; that can help you to select the best free trade zone for company formation in Dubai free zone. These facts are as follows:
- Location of the free trade zone;
- Registration cost that free zone offer;
- The structure of your business
- Renting a flexi desk instead of a permanent office.
- Also consider License cost as well
- Choosing a company package, which allows you for a fewer number of resident visas.
- Choosing the free zone with lowest resident visa charges.
These are some main facts for those who are keen and looking for the cheapest way to start a company in Dubai. It is to be noted that the above facts are not applicable for every activity or in all cases; because each and every request must be look on their independent situation; which is on a case to case basis. Since we are not watching to a exact case, our guidance would be of more general nature.
Cheap business license Dubai
How a company setup outside of Dubai can help you to reduce in the setup costs? Firstly; the license fee as well as the registration cost in free zones outside of Dubai; is lower as compare to Dubai free zone. By starting a business there, you would pay a small fee on obtaining a license; and also a small registration fee, so you can save some money for operational needs.
Secondly, free zone outside of Dubai does not have necessary health insurance; however, a facility is provided with health cards vital for your employees.
Thirdly, most of free zone outside of Dubai does not need to have an annual audit statement. As a result, company will have only internal accounting and no extra costs of auditing services would bear.
And last but not the least, many free zones outside of Dubai; does not requires share capital into company bank account. At the start of a business it might be hard for an entrepreneur; that is to deposit an amount between AED 150 000; and also to transfer it from abroad. By selecting cheap business license Dubai which does not require share capital deposit; entrepreneurs may also reduce their financial load.
As you can observe from said arguments; sometimes considering another emirate could be a more financially feasible option than trying to find the cheap business license Dubai.
Cheapest way to start a company in Dubai
Cheapest way to start a company in Dubai Free zone is the most favorite locations for international business; which attract foreign investors due to its policies by generating employment while supporting economic changes; which are highly lucrative investment options for organizations. Stakeholders have a choice of expert jurisdiction; and each free zone has its own limitations on the business activity. There are more than 20 Free zones and each has its own framework, rules as well as regulations.
Some of the benefits for cheapest way to start a company in Dubai free zone
- 100% Ownership of your business
- 0% Tax on the setup of a free trade zone company
- Can be formed by only one individual
- 100% secrecy maintain in the formation of a free zone company.
- Less renewal charges of the company license
- Can be liquidated anytime
- Can do multiple activities
- You can do international business
- Can hold Properties
Types of cheap business license Dubai
General Trading License: – Allows you to deal with almost all types of goods; with the obvious exclusion of banned goods and products that need special approvals.
Commercial License: – Business activities such as repairing, workshops etc. comes under Free Zone Commercial License
Trading License: – Allows you to carry out trading activities (buying, import & export, selling) of limited number of goods and commodities.
Consultancy / Service License: – Service businesses such as consultancy, accountancy, legal firms charges etc. comes under consultancy license.
Industrial License: – Activities such as manufacturing, packaging, processing and assembling comes under the Industrial License.
Dubai freezone license cost
DMCC Dubai freezone license cost is 50000 AED; in DWC Dubai free zone license cost or Dubai south free zone license cost is 31000 AED. D3 Dubai freezone license cost is 18000; Meydan free zone company formation cost is AED 21,020.
Problem for cheap business license Dubai free zone
Having a cheap business license Dubai free zone, you will be consider as a foreign company; thus you cannot bid for gov’t tenders; nor do business directly with mainland area; even with private sector you can’t do business directly; you can import as well as re export; and if a company is hire your services, it mean that they hire a foreign company.
But in practice, many operate at free zones and no problems at all; or what so ever as it depends on the client or the company you are doing business with.
The UAE is full of competition and there are many areas in UAE that offer likely benefits to the people. Due to the huge renovation as well as growth; the demands of the consumers have been rising and the suppliers are always trying to cover that gap. It has open to offer so many opportunities for starting new business; and also to seek hide fate by testing their skills; as well as other similar qualities to get their expected share of profit from the market. But for this purpose an investor has to be very careful while making the deal or planning to start business in UAE; they should have full knowledge of what they want to achieve; and also how are they going to achieve the target; also it is advisable to do all the math in advance; in order to protect themselves from any foreseeable loss.
There are some places of the UAE where there has been a large growth in terms of commerce; as well as trade and the new investors are getting attract to the land of success due to many reasons. Many groups have proven themselves by conducting business; and also the world has seen those achieving high goals; as well as earns wide range of profit in a very short period of time. But when it comes to starting business in Dubai, there are many merits of having a new business; or also an old one which was brought to Dubai; because of the merits that it offers to the investor. There are many merits and not all of them can be cover here; therefore only few will be discuss in this section.
The major advantage of starting business in Dubai is that Dubai has proven to have a very strong as well as stable economy; which has earned the trust of many firms as well as venture capitalist which bound them to make investments in Dubai. Also the Dubai has a wide sense of people from across the world in the form of tourists; and this traffic brings in new opportunities for the sellers to display and sell their products; that is in the international market, and spread their users worldwide. UAE has some of the most successful states like Dubai; that has seen economic growth and increase in population over last decade; and the numbers are still increasing due to smart peace actions. These were some of the benefits of starting business in Dubai.
Start business in UAE with business consultant
To start business in UAE many companies appoint the services of a consultant; which is beneficial and fruitful in opening an enterprise. The benefits can be manifolds. The amount of knowledge that consultants can share is massive. Furthermore how to incorporate information for meaningful results is also significant. Experts can offer the desired control and the understanding that the new venture requires. This is a strategic decision and the choice of the specialist must be wise. Analyze all the aspects before finalizing on the choice of the expert.
Starting business in Dubai is an expert and professional domain; having the knowledge and the skill to efficiently launch new ventures in style. The manner in which the new venture is launch will impact on developing relationship with stakeholders. The presence of an expert can instill the attitude; that is desire in determining the significance of each variable in the implementation phase. Inside out planning is requires with punctilious and elaborate planning to remove all the grey areas. The genuine value of each variable must be establish. Your outcome will depend on how planning as carried out, isn’t it? The extent of ease and simplicity that is indispensable is central to the launch process. You must rigorously pursue excellence.
Start business in uae
It is not about how you start the venture; sustainability is as essential as any other aspect. You have to make sure that start business in uae does not get into any clash after its launch. The documentation as well as its approval from the concern authority in important; and work as an important factor in the process of business setup. The knowledge of identifying different factor that can put an end to the business must be explained at the begging. Expert can simplify what needs to be done and how to explore.
Experts can find out how core values must be expertly incorporated by the management. Starting business in Dubai can help as the connecting link; that is between good and best launch of a new commercial undertaking. Your practical capacity may be limited; expert assistance can relieve you of unnecessary burden and you can get the real value of your investment.
Why Us Shams Consultant for Starting business in Dubai
We are pleased to introduce Shams Consultant as a largest mid cap global Corporate Services Provider; as well as holding an experience of over 5 years in Dubai and UAE Market; that is for Starting business in Dubai, Offshore Banking and Company setup. We currently work with firms; who want to expand globally and act as corporate business advisory for many SMEs worldwide.
We are the specialist of formation of Trading LLC, Real Estate, General Trading, Auditing Firm; also travel agency, free trade zone company setup; offshore companies formation, Professional as well as industrial Licenses.
We also provide powerful as well as high profile UAE national local partner. We usually assist our clients to open bank accounts in UAE; and also other international jurisdictions.
We consult, implement and manage diverse business solutions necessary for enterprise growth and success.
Our Services for Starting business in Dubai Includes
- Business Set up in Dubai UAE
- LLC Company formation (Dubai, Abu Dhabi, Sharjah, Ajman as well as Umm Al Quwain)
- High profile and Reliable UAE National Local Partners.
- Free trade zone Company setup (Across all 7 Emirates)
- PRO Services (Visas, Amendments, Renewals Etc.)
- Offshore Formation in Dubai-UAE & Internationally
- Business Centre Facility.(Business Bay)
- Trademark Registration etc.
- Accounting & Book Keeping
We are looking forward to knock from you to discuss our Services in more detail; and would also interested to understand your services to join our hands together for long term business relation.
Opening a franchise in Dubai has pick up speed with lots of international and domestic brands knowing the importance of the model. Now the question is when to start Opening a franchise in Dubai. Franchise business start when the products or services become a big brand and gain some values; then other investors want to repeat its established concept. Once a business becomes a brand then the business owner becomes a franchisor. In the franchise model, the business man sells the rights to other people like him. The franchisor gets up-front fees from the people who wish to do the same business and using his brand as well as his logo. The initial fee also includes training and equipment support. Additionally, the franchisor also receives a percentage of profit shares; that is from its franchisee from time to time as agreed upon by both parties.
Opening a franchise in Dubai is a business model to expand the business in a market. Franchising is a way of business that is gradually growing; and accounts for more than one-third of the world’s retail sales. A franchise acts like a permit for fast growth; It is also a brand’s recognition and offers a reliable system to carry your brand‘s promise. Opening a franchise in Dubai is based on a business relationship between the franchisor and franchisee. In this article we will discuss that what is franchising; how it works, why franchising is growing as a way of doing business; also what makes a good franchise? Apart from a simple concept of franchising; we will also considers the benefits of franchising; and provides basic guidance to allow businesses to benefit from innovation.
Opening a franchise in Dubai is not limited just to fast food franchise in Dubai. There are now franchises for mentoring managers and sports people and franchises for online shopping. In the future the economy of Dubai will more likely be filled by new and creative franchises; which seek to exploit on their market lead and intellectual property advantage.
Fast food franchise in Dubai and other UAE Franchise opportunities
The market of Fast food franchise in Dubai is dominated by American brands and French brands. The scenario has started to change as most of Pakistani and Indian brand in food are coming to Dubai for food franchise in Dubai; and also the opportunities are available in varied sectors; and many Asian franchisers are entering the market. Until now, the Dubai franchise market has seen control of few big retail firms having multi brands in their portfolio; and mostly the Master Franchisee engagements; but now the trend for small franchisees and sub franchising is picking up.
As there is no specific law for UAE Franchise opportunities; there for general contract and commercial law is applicable to franchises contract in Dubai. Also, the principles of Sharia law apply to commercial contacts in the Emirate. As per the UAE law, only UAE citizens or companies wholly owned by UAE citizens or those with a UAE sponsor are allow to do this business. Therefore, due diligence on part of franchiser for normal laws and also while selecting the local sponsor. Furthermore, the franchise agreement needs to be disclosing before a Dubai court.
Currently, UAE Franchise opportunities are in fast foods, restaurants, soft drink bottling; also auto leasing, apparel, hotels, toys, beauty products, jewelry, photography; also vending machines, dry cleaning, hardware stores, furniture, office supplies, natural health products; publications, quick printing as well as florists; sport goods, retail stores, maid as well as personal services. Today, the biggest sector in this business is Fast food franchise in Dubai with most major US fast food Company.
Option for Opening a franchise in Dubai
There are two main options for Opening a franchise in Dubai. First, is a product distribution franchising. The second, is a business format franchising.
In a product distribution franchising, the franchiser make the products and the franchisee just sell that product. In this case, products need some groundwork and post-sale service. Also i n product distribution franchising there is a solid proof of identity with your brand. For example, products that are typically franchised are soft drinks, automobiles.
Business format franchising is known as a system of delivery which is more important in the product distribution franchise. This is more establishing in the restaurant, hospitality and leisure businesses.
Agreement for Opening a franchise in Dubai
The agreement for Opening a franchise in Dubai is an agreement between two parties; where a franchisor license the franchisee, in exchange for a fee. The franchise system is usually a package together with the intellectual property rights, such as:
- Trade name as well as logo
- competitive advantage as well as goodwill associated with the business
- Own the rights to use the trade mark
- Own the rights of any creations such as patents or designs as well as trade secrets
- Expertise of the business and any relevant lists
- Copy-righted works linking to the production,
- Sale of goods as well as the delivery of services to clients
It is suggested that you look out for your IP which is unique to your corporate and provides your firm with its competitive benefit and market place.
How to Open a New Franchise in Dubai
There is no special law for franchising in Dubai. A common agreement as well as commercial law is applied to franchising. UAE law orders that only UAE national or UAE local wholly own company or those with a UAE sponsor are allow doing business. But note that Businesses located in the UAE free zones are exempt from this.
However, Dubai has strict rules about new business setup. Franchising combines the tactical thirst of a small business man with the skill and resources of a bigger company. This kind of structure is very effective and offers you supreme profits in addition to support from the franchisor. In order to open a New Franchise in Dubai; you need to have a business mind with a positive, self-confident and fanatical attitude. Dubai offers an open business atmosphere in its terms of corporate taxation, full repatriation of profit; as well as good infrastructure, entity ownership and human resources.
Steps to Open a New Franchise in Dubai
- Angle your interests and expertise and categorize the service business you wish to enter. Create a list of the existing UAE franchise opportunities by look through local ads and poster; as well as inquire from your neighbors, relatives and friends.
- Create the list of franchisors based on a number of factors such as brand image; consumer preferences as well as quality of service. Slender down the list to a few persons and contact them through call; or mail them your interest in the UAE franchise opportunities.
- Confirm the rules and regulation to open a franchise in Dubai. You need to be a Dubai citizen, and also you need a local sponsor to open a franchise in Dubai; according to UAE law. This law does not apply to a company; if you open company in Dubai free zone; however, you will need a much larger capital base to open a franchise in Dubai free zone. You will need to have good contacts and impact to start and run a franchise in Dubai; and a sponsor will be very useful.
- Sign an agreement with one of the franchisors that suits your desires. Consult a lawyer before you submit the contract to talk over possible bad terms within the contract.
- Write a business plan that contains your business summary; competitor analysis, market development in the specific service, your core competency; also your financial plans, marketing policies as well as your funding alternatives.
- Register your franchise agreement before a UAE court. And apply to obtain the trade license for your business.
- Choose a right location establish on your target market and meet the terms with local zoning rules.
- Open your franchise. Advertise your business from side to side with the help of franchiser.
Shams Consultant is advising customers for a quite some time on a various business structure. But most of the time clients are asking to recommend low cost business setup options; or cheapest freezone in Dubai. But it is also not a surprising thing; that a lot of people are looking to determine the most practical solution; as opening and operating a new business in a foreign state can be quite expensive.
The answer to the question of the cheapest freezone in Dubai may be clear for those who are the residence of UAE; but even then the selections of a cheapest freezone in Dubai require guidance and advice from business setup consultant. Because living in Dubai and know about the business are two different thing. And for those, who are planning to come to the UAE and to start a new company here, it might be very challenging to study the plenty of setup options which Dubai free zone is offering, and to select one that suits your requirement. Today we will share with you information on how to select and find the cheapest freezone in Dubai.
How to select cheapest freezone in Dubai
First and foremost, let us inline the main point that can help you to select the best free trade zone for company formation in Dubai free zone. These strategies are as follows:
- Location of the free trade zone
- The structure of your business
- Registration cost that free zone offer
- Also consider License cost as well
- Choosing a company package, which allows you for a fewer number of resident visas.
- Renting a flexi-desk instead of a permanent office.
- Choosing the free zone with lowest resident visa charges.
These are the main point that a person can follow; when looking for the cheapest business setup in UAE. But also note that the above mentioned points are not applicable for every activity or in all cases; because every request must be look on a case to case basis. Since we are not looking at a precise case, our guidance will be of more general nature.
Looking for cheapest free zone outside of Dubai
How can setup of a company outside of Dubai help to accomplish the decrease in the setup costs? First of all, the company license fee and company registration cost in free zones outside of Dubai are lower as compare to Dubai free zone. By opening a company there, you can save on license charges and registration fee which can be used for operational needs.
Secondly, free zone outside of Dubai does not have compulsory health insurance constraint with only health cards required for your employees.
Thirdly, most of free zone outside of Dubai does not require annual audit statements. As a result, company will have internal accounting but no extra costs on auditing services.
And last but not least, many free zones outside of Dubai do not require share capital into company’s bank account. At the begging it may be difficult for a businessman to deposit an amount between AED 150 000 and AED 300 000; and also to transfer it from abroad. By selecting a free zone that does not requires share capital deposit; businessmen will also reduce their financial load.
As you may see from abovementioned arguments, sometimes considering another emirate could be a more financially viable option than trying to find the cheapest free zone in Dubai.
Choosing cheapest freezone in Dubai with a flexi desk
Rent of an office space in Dubai free zone is interlinked with a license and number of visas. The bigger office space will allow the company to apply for more visas; and company will be able to hire more employees.
Flexi desk is the minimal option the company may pick to be able to receive a business license. Simply in other words, it is not possible to get a license for your business without a flexi desk or rent an office space; and also note that flexi desk facility, which is a work station in a business center for use of up to 16 hours a week. Flexi desk will allow you to get a quota of 2 to 3 employment visas for your company and will cost you 3 times less, than a standard office.
Therefore, if your aim is to select cheapest freezone in Dubai to cut expenses, you should think through to rent a flexi desk facility. The more visas you require for your business, the bigger your physical office will have to be in the future.
Lower fees for resident visas
Resident visa charges in different free zones may slightly differ, therefore, when working on reduction of your set up costs, you may look for a free zone, which has lowest fees for resident visa issuance.
Comparison of cheapest free zone license in UAE
|Ras Al Khaima||Dubai South||DUBAI MULTI
FREE ZONE (AFZ)
FREE ZONE (HFZ)
|Incorporation time||2 – 3 working Days||1 week||6-8 weeks||2 business days||3-5 business days|
|Share capital||0||0||50000 per company||185,000||Price of License|
|Monthly Payment Plan (post dated cheques)||No||No||No||Yes||No|
|Flexi Desk Option||10,300||17000
No. of Visa Allotment: 2
No. of Visa Allotment: 3
|Flexi Office Facility||Yes||Yes||N/A||Starting from 21950
No. of Visa Allotment: 2
No. of Visa Allotment: 4
|Industrial License Available||Yes||Yes||Yes|
|Warehouse Facility||Yes||Yes||N/A||350 per sq m
No. of Visas: 14
|255 per sq m
No. of Visas: based on activity
|General Trading License||20000||20000||82000||27150||35000|
|Visa – Shareholders||4000||4000||4510 /3300||4000||3500|
|Visa – Employees||4000||4000||Outside 3300 /
|4000 + Deposit / Ticket||3500 + Deposit / Ticket|
|All shareholders must travel required for company formation||Yes||No||Yes||Yes||Yes|
|100% foreign ownership||Yes||Yes||Yes||Yes||Yes|
|Minimum number of directors||1||1||1||1||1|
|Minimum number of shareholders||1||1||1||1||1|
|Corporate directors allow||No||No||No||No||No|
|Corporate shareholders allow||Yes||Yes||Yes||Yes||Yes|
|Free Zone directory listing company info||Yes||Yes||Yes||No||Yes|
|Exempt of corporate tax on profits||Yes||Yes||Yes||Yes||Yes|
|Access to UAE double tax treaties||Yes||Yes||Yes||Yes||Yes|
|Statutory audit required||Yes||Yes||Yes||Yes||Yes|
|Rent office premises outside free zones||No||No||No||No||No|
|Allow to export goods||Yes||Yes||Yes||Yes||Yes|
|Allow to import raw materials||Yes||Yes||Yes||Yes||Yes|
|Compulsory to appoint an Auditor||No||No||Yes||No||Yes|
Dubai is one of the fastest rising markets in the world; Dubai is the impeccable place for foreign looking to develop in their skill and get more and more opportunity. The matchless opportunity to expand one’s prospects together with the likely to earn well; which is what attract most of the foreigner to Dubai in search of opportunity.
To start a small business in Dubai is the key to Dubai future progress; and while the start of a small business in Dubai is a complex procedure and needs a large volume of start-up capital; Dubai offers an operating environment that is among the most generous and eye-catching in the Middle East state.
So how does a person can thing about How to start a small business in Dubai; it is not as simple as you think but it can be after covering your entire basis. It is the process of turning your business idea into a productive business.
Before jumping in to launch your business, we recommend looking at three major components that will affect the profitability of your startup.
How to start a small business in Dubai
To understand the process of How to start a small business in Dubai you need to go through the following process
How to start a small business in Dubai | Type of business
You can operate your business under a specific license; your type of business will regulate the kind of license you need. It can be a professional, commercial license in Dubai or industrial license; these will describe the source of your setups. However, there are certain activities such as jeweler trade; food trading, veterinary activities and legal consultancy require further approvals from other departments. The DED in Dubai has a list of over 2100 activities you can choose from.
How to start a small business in Dubai | Ownership
The next thing in the process of How to start a small business in Dubai; is the business ownership. As an expat person, if you would like 100% ownership of your business, you need to go for a license in free zones of the UAE. There are specific kinds of activities that each free zone provides to and clearness in the first step will help you find your best option. If you need a local business or you want to operate locally; then you need a license from DED. But remember that DED license comes with certain limits on share of ownership for expat.
How to start a small business in Dubai | Legal form
After selecting a type of business and decide the ownership type; next step is to select the legal form. There are rules regarding the setup of the firm. For example, if you plan on a legal consultancy business, this can be through only as a branch of company or as a separate company. A sole proprietor is not allow to take up this activity. Each free zone has its own limitations about business structure and you can look these up on the official website of the zone.
Selection of Trade Name to start a small business in Dubai
The selection of a trade name is a very important part of the legal process. The trade name should ideally show the nature of business; unless it is a branch of another company.
Local support to start a small business in Dubai
For DED licenses, it is compulsory to have a local sponsor in Dubai and this is a great support for expat nationals. For free zones, taking a local contact can help take the business forward effectively. However, this is not mandatory and Dubai as a business destination boasts easy set-up for all businessmen regardless of nationality. A local sponsor who will hold the majority part of in your company and can thus, theoretically control it. Local partners can be single person or it can be a local own company; and they are not requires to pay financially to the startup. There are many ways in which a local sponsor can be paid; it is important to set the prospects earlier.
Premises needs to start a small business in Dubai
Once you have your legal processes ready to go; it also would be best to select some site with costs and other details. This would mean a clear path forward once you get your legal regulations out of the way. In free zones, you will get support to find locations fit to your requirement along with help to set up electricity, internet, water and other amenities.
Share capital required to start a small business in Dubai
Minimum share capital is regularly set out in the MOA of your propose company. In most cases, you do not need to pay minimum capital at the time of setting up.
Know your business
The success of a countless business project is conditional on complete information of the local market; thorough research into the capability and request for your product; as well as service and a credible business plan that is likely to attract partners.
Yes you have countless knowledge about your product and services; but do you think is there a demand for what you are offering? What does your opposition look like and what places your product and services a mark above the others?
You must need a proper study of the market; also spend some money on marketing to take out the demand for your product as well as services; which will save you a lot of money in the future.
How to start a small business in Dubai | Financial viability
As soon as your business is setup and up and running; the Ministry of Commerce will want you to show proof of financial investment. If you are new to the UAE and have no track record, you must be ready to find your own financial assets through your bank or by other means rather than depend on local support.
Once you convert your concept in to feasible business, still you need some money to run your business.
How to start a small business in Dubai as a Limited Liability Companies
Of these, the LLC Company is the most generally take on structure to start a small business in Dubai. LLC can be setup between as few as two or as many as fifty persons; whose liability in the company is limited to their share investment in the company. A local sponsor is requires to setup an LLC; where his share in the company will be 51%; and foreign equity in the company is limited to 49%. These are the steps that need to be followed for the set-up process:
- Select a name for your company that tells the type of business and have it accepted by the Licensing Department of the DED.
- Draw up a MOA which is a document that directs the external activities of the company. The MoA needs to be notarized by a Notary Public in a Dubai court.
- Apply for entry into the Commercial register at the Economic Development Department.
- Once approval is granted DED will issue a license; and the company’s name will be enter into the Commercial Register. The MoA will be published in the Ministry of Economy and Commerce’s Bulletin.
- The final step is to register the company with the Dubai Chamber of Commerce and Industry.