The Ultimate Guide to Setting Up a Business in Dubai: Understanding the Costs Involved
Dubai is becoming a business hub worldwide, with its state-of-the-art infrastructure and strategic location, and business-promoting and supportive policies. Dubai is the best place to set up a business as an entrepreneur. However, before starting a business in Dubai, it’s essential to understand the process and cost involved in set-up a business in Dubai.
We’ll guide you about the costs you must cover while starting a business in Dubai.
Legal Cost
Legal cost is the first thing you must consider while starting your business in Dubai. The legal costs involve registering your company with the relevant departments and obtaining permits and licenses. The legal costs depend on the nature and location of your business.
For instance, to set up a Limited Liability Company (LLC) in Dubai, you must register with the Department of Economic Development (DED), pay the registration fees, and obtain the trade license. The legal costs for establishing LLC in Dubai can range from AED 20,000 to 30,000.
Office Space Costs
Another cost you need to consider when setting up your business in Dubai is office space. The office space cost can differ depending on the office type and location you choose. Dubai offers business options, including business centers, free zones, and commercial buildings.
Free zones are designed for businesses with 100% foreign ownership, no customs duties, and zero tax. However, the cost of office space in free zones can be higher than in other areas. The cost of setting up an office in Dubai can range between AED 50,000 to 70,000 per annum.
Visa Costs
You must obtain a work permit and residence visa to operate your business in Dubai. The cost of a visa depends on the duration of stay and the type of visa. The visa costs also include processing fees and medical tests. The visa costs for setting up a business in Dubai can be between AED 7000 to 20,000 per person.
Employee Costs
If your business also needs employees, you must consider the employee costs. The employee costs include benefits, salaries, and other allowances. The salaries in Dubai for employees depend on their skills, experience, and qualifications. The employee costs depend on the size of your business and the number of your employees.
Miscellaneous Costs
Apart from the above-explained costs, there are other miscellaneous costs you need to consider when starting up a business in Dubai. This includes advertising costs, insurance, utilities, transportation, and losses.
Final Words
Setting up a business in Dubai is a lucrative opportunity for entrepreneurs. However, it is important to understand the costs needed in the process. The costs depend on the location, type, and other business factors. By considering the legal costs, visa costs, office space costs, employee costs, and miscellaneous costs, Understanding the overall cost of starting a business in Dubai will be easier.