Cost of Business Setup in Dubai in 2024

Dubai, the hub spot of economic activity in the Emirates, is no stranger to new business ideas and the challenges that accompany them. The glittering ambitions of Dubai aren’t the only things that glitter here.

For aspiring business enthusiasts, the cost of business setup in Dubai can go as high as up to $9500. This includes all the registration and licensing fees, including the trade license as well. If you are an aspiring business enthusiast and wish to set up your first ever rodeo in the economic hub of the Middle East, you’ve come to the right place.

If you already have a business idea but do not know where to start or the financial aspects of it, then we have prepared a list of things that you need to take care of when you are beginning that business journey. 

Understand the setup to understand the costs

While it is true that one size will not fit all, however, there are a few business setup procedures that every company has to get done to get started. These include general procedures like obtaining a license, securing a location, and getting the initial registrations done. 

Depending on the type of business setup you are wishing for, the cost may vary only slightly. For a clearer idea,

• Company Size and Structure: The size of your company, compiled with its structure, can either help you cut costs or not. For example, a sole proprietorship business will be much less expensive than a limited liability company (LLC).
• Location-Based Costs: Suppose you set up your business on the Dubai mainland; this will give you more freedom of business but cost you more, while if you set it up in the free zone, it will allow you to have 100% ownership but limit your business freedom. 
• Licensing Fees: Depending on your business structure, the licensing fees will also look different. If your business is going to be in a specialised niche like education or healthcare, you will need to have a specialised license, and that costs more than a general trade license.

Apart from these, other things may also take up space in your expenses. Suppose you have to outsource more talent from overseas and have to arrange employee visas for them as well; it will cost more. 

Breakdown of the Cost of Business Setup in Dubai in 2024

Now let’s get to breaking down each of the cost requirements that will be needed once you start to set up that dream business of yours. 

Governmental Fees

• Trade License: This lies at the core of your business setup; without a trade license, there can be no business setup. Now, this depends on your chosen business location as well as the type of license you apply for. 

While free zone licenses can cost you a lesser margin, a mainland license can cost you anywhere from AED 5000 to AED 50,000, depending on your business type and the complexities of your operations.

• Department of Economic Development (DED): This fee will aim to cover all administrative costs associated with processing your business registration.

• Visa Fees: If you are sourcing talent from overseas for your business, then it is safe to say that you will also have to pay for the visa processing fees for the same. This also depends on the type of visa you are applying for; typically, it is an employee visa. 

Business Setup Service Fees

For an easier business setup procedure, it is always advised to go with a business setup consultants in Dubai, like CDA. These professionals typically streamline the entire business setup process and ensure compliance with regulations as well.

Now, depending on the type of company you wish to set up, the complexities of hierarchy and operations, and the market you are targeting, this can have different ranges. This also depends on the consultant that you have onboarded for your business setup as well. So go into the details and get the setup costs settled first. 

Additional Expenses 

This includes all the additional expenses that may occur along with the business setup procedure. This includes rental office spaces, requisite approvals, and other expenses. Depending on the size of the company and the staff you have, the expenses can either go up or down. 

This also includes legal, audit, and accounting services that your business might require from time to time. As a beginner, we suggest that you consider these additional costs in your budget as you start your business as well. 

Another example of additional expenses can be the opening of the opening of a corporate bank account and the maintenance of all the transactions within the company. And depending on the chosen bank and their operations within the country or overseas, it may be different from your expectations.

Conclusion 

Setting up a business in Dubai requires a carefully planned and strategic approach. The better your planning and strategy are, the more cost-saving you can manage on your business setup journey.

Even if the initial strategizing and execution of a business plan in Dubai seem daunting, it is still a great, cost-effective destination for all business ventures.

By understanding the cost structure, acknowledging the long-term value proposition, and exploring cost-saving strategies, you can set up one of the best business models for your niche market, with the right professional help, of course.

CDA for Your Business Setup in 2024

Business setup can be a tricky field to navigate alone. But it need not be so tricky with the right kind of professionals in your contacts. Who wouldn’t want to understand all the deep dives into business setup (in your niche) from seasoned professionals?

Here’s where CDA comes into the picture. If you’re one of those ambitious people eager to begin that entrepreneurial journey, CDA has some of the best experienced professionals to help you navigate the seemingly new world of business. Our team can get you sorted all the required documents, location, setting up processes etc. All you have to do is make that call, and you’re good to go!

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