Decisions Affecting Cost

Setting Up Business In Dubai | 4 Ways To Cut Registration Costs 

Setting up business in Dubai: Company types, 4 cost influencers, activity selection effects costs notably, and significance of Dubai

Setting up business in Dubai: There are 2,000+ activity licenses and 28+ jurisdictions to choose from. Many jurisdictions have bundled packages of visas, activity & office space.

So it is complicated to make a choice.

Please invest 2 minutes of your time to watch the setting up business in Dubai video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

 

 Setting up business in Dubai: Get a free quote now by filling in the box on the right and discover how to cut the registration costs

Setting up business in Dubai: There are 4 types of companies

  • Offshore
  • Locally registered with a 51% UAE national ‘Sponsor’ on paper
  • Locally registered ‘Professional’ company with a UAE national ‘Service Agent’
  • Free zone

Each type has its own advantages and disadvantages. If your objectives are clear, you may be able to decide on the least cost option, but with help. Some company types are restricted to certain business activities and you may not have a choice.

Costs vary by jurisdiction, company, license type, activity and office size

For example:

  • If you only want a single man operation, Umm Al Quwain may be the least cost option.
  • If you don’t want a physical United Arab Emirates (UAE) presence, but only need to do banking and invoicing, an offshore company may be the least cost one.
  • If you propose to do cross-border trading only and not sell in the local market, a free zone company may be best. Maybe in Sharjah.
  • If you want to operate a restaurant, a local company is the only option.
  • If you must be in Dubai, then you know you have to pay Dubai prices.
  • If your business depends on sea freight, Jebel Ali maybe the best but higher initial cost option.
Setting Up Business In Dubai | 4 Ways To Cut Registration Costs

Dubai, Burj Khalifa

Setting up business in Dubai: Get a free quote now by filling in the box on the right and discover how to cut the registration costs

Setting up business in Dubai: 4 criteria to consider that influence overall costs

Here are other insights about how most clients make their selection.

1. Location

  • Do you need your company to be registered and located in Dubai or will Sharjah, Ajman, Umm Al Quwain, Fujairah or Ras Al Khaimah do for you?
  • This decision narrows down the selection of the free zone.
  • Dubai free zones are more expensive, but you may want to be in Dubai for business reasons. More information below.

2. Activity

  • Some business activity licenses are available only in certain free zones or for a local company. See below for more information.
  • If you are clear about the type of license you need that will narrow down your choice further.

3. Visa requirement

  • If the initial number of employment visas required is certain, then that will determine the amount of office space you will be required by law to have.
  • Please note that the cost of living for your employees will be less in Ajman, Sharjah, Ras Al Khaimah, Umm Al Quwain and Fujairah when compared to Dubai.

4. Office space

  • Authorities generally require 10 sq mtrs [~100 sq ft] of office space per employee visa.
  • Naturally, office space doesn’t come in straight multiples of 10 sq mtrs.
  • So the office space you rent will be dependent on the next largest size available.
  • Ask about any special free zone deals that are being offered currently.

Setting up business in Dubai: Get a free quote now by filling in the box on the right and discover how to cut the registration costs

Your choice of activity can affect the cost of your company registration significantly

Some ways your company registration costs are affected:

  • Some jurisdictions offer unique licenses not offered by others.
  • Your options in cost are limited to what they charge if you must have that activity
    e.g. Fujairah offers legal consultancy, Hamriya offers tobacco trading, RAKIA offers real estate consultancy.
  • Many activities require additional approval from different ministries increasing costs and processing time e.g. Oil and gas trading, precious metals trading, education, health.
  • Imbalance of demand and supply for certain activities causes the governments to restrict the issue of licenses by increasing fee or deposits or by freezing temporarily e.g. Construction, tourism, manpower supply.

This is not to say that you shouldn’t enter these fields. Naturally, profits are higher wherever barriers to entry are higher. But costs will be higher.

Setting up business in Dubai: Get a free quote now by filling in the box on the right and discover how to cut the registration costs

Setting up business in Dubai: Why Dubai

As the real estate people say, location is very important. A Dubai address in itself brings a certain cachet to start with.

Dubai has some very specific advantages that cannot be emulated by Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain or Fujairah in the United Arab Emirates [UAE]:

1. Physical location and specialization

  • DWC is at the Expo 2020 site, so it’s fast becoming a magnet for tourism and logistics.
  • DIC & DSO specialize in software companies, and you will have well-established neighbors.
  • Dubai local companies can sell to the Dubai government.
  • JAFZA is at the Jebel Ali port, the largest with the quickest turnaround in the region.

2. Well established registration procedures

  • Infrastructure is unparalleled in the UAE.
  • Many company formation steps are strictly laid out and not discretionary.
  • Dubai’s infrastructure and easy transportation, as well as connections to the outside world, are legendary.

The above translates into higher registration costs and office and housing rents. Ask yourself if you have a competitive advantage by being in Dubai.

If it’s only for prestige see if that will translate into profits for you. If not, then look at the other Emirates.

Throughout your decision making process, your company registration agent should be available to advise you on making an optimum selection, help you to overcome hurdles, prepare registration documents, submit them physically, monitor the registration progress, troubleshoot with issues that will arise, act on your behalf and help with your bank account set up.

Setting Up Business In Dubai | 4 Ways To Cut Registration Costs

Sheik Mohammed Bin Rashid Blvd, Dubai

Setting up business in Dubai: Get a free quote now by filling in the box on the right and discover how to cut the registration costs

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Decisions Affecting Cost was last modified: September 29th, 2019 by Manu Raj

Manu Raj

Has a positive attitude towards the job, is friendly and a team player.

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