Starting a small business in Dubai can be a great opportunity for entrepreneurs looking to establish themselves in a thriving market. Moreover, the small business license cost in Dubai is very affordable, and the licensing process is straightforward. Therefore, you should look to grab this opportunity with both hands and make a name for your small brand in Dubai.
However, one of the key aspects that entrepreneurs need to consider when starting a business in Dubai is understanding the licensing costs involved. Licensing costs can vary depending on the type of business and the activities being conducted, so it's essential to do thorough research and planning before diving in.
In addition, the business consultants at the Shuraa Business Setup are always available to provide end-to-end business assistance as well. You can get in touch with us, and we’ll help you launch your small business in the UAE.
How Much Does a Small Business License Cost in Dubai?
For small business license costs in Dubai, expect a minimum of AED 8,000 to AED 12,000 (approximately). This covers core fees like initial approval, trade name reservation, and the base license fee. However, there are several factors that can influence the final cost.
Factors Influencing Small Business License Cost in Dubai
There are several key factors that can influence the cost of a small business license in Dubai:1. Nature of the Business Activity
This is the most significant factor. Dubai issues licenses based on the type of business you operate, and some industries have higher fees than others. For instance, a license for a restaurant will likely cost more than one for a consultancy.
2. Business Location
Another critical factor that impacts the business license fee in Dubai is your business location. Opening a venture in a specialized free zone is cost-effective if your business activities match the requirements.
However, it can quickly become a costly affair if you don’t analyze the rules and regulations of the specified free zone. In addition, you don’t need to think a lot about the location if you want access to Dubai’s local market. All you need to do is get in touch with the DED and launch your small company on the mainland.
3. Rented Office Space
If you plan to have a physical office, the cost of renting that space will impact your license fee. The Dubai Department of Economic Development requires businesses to pay a 2.5% surcharge on their total rent towards the license cost. So, finding affordable office space can be a good way to keep your fees down.
4. External Approvals
Certain business activities may require additional permits or approvals from other government entities. These approvals can add to the overall cost of your license.
5. Number of Business Partners
The number of people you have sharing ownership in your business can affect the license cost. Generally, more partners mean more visa applications, which translates to additional fees.
6. Visa Requirements
The number of visas you need for employees can add to the overall cost. Some licenses may allow for a specific number of visas, while others may require additional fees for each additional visa.
7. Company Legal Structure
The legal form you choose for your business, such as a sole proprietorship, limited liability company (LLC), or branch of a foreign company, can also impact the license cost.
8. eTrader License
Dubai offers a simplified eTrader license for home-based businesses with limited activity. This license typically has a lower cost compared to a standard Mainland license.
Due to the various factors involved, the best way to get a precise estimate for your situation is to consult with a business setup consultant in Dubai at Shuraa. We can assess your specific needs and provide a more accurate cost breakdown.
How to Secure a Small Business License in Dubai?
Obtaining a small business license in Dubai can seem complex, but following these steps will simplify the process:
1. Identify Your Business Activity
First, clearly define what your business does. Dubai categorizes licenses based on trade, industry, or services. Research the specific category that best fits your operations.
2. Choose a Business Name
Select a unique and appropriate name that complies with Dubai's naming regulations. Avoid offensive terms and ensure it's not already registered. Our business setup consultants at Shuraa can assist with name selection.
3. Decide on a Legal Structure
There are various options like sole proprietorship, limited liability company (LLC), etc. Each has its own advantages and implications for licensing. Consider consulting a professional for guidance.
4. Register with DED
Apply for initial approval from the Department of Economic Development (DED) in Dubai. This typically involves submitting basic documents like business plans and paying initial fees. Some industries require permits from other government entities. Research any additional approvals needed for your specific business activity.
5. Finalize Your Business Location
Choose physical office space or opt for a free zone with its own regulations. Consider factors like cost, proximity to your target market, and free zone benefits (if applicable).
6. Register with Ejari
Register your tenancy agreement with Ejari, the official Dubai rental registration system. This is mandatory for obtaining a license.
7. Prepare Required Documents
Gather all necessary documents as per the DED's requirements. These typically include:- Passports and visas of owners and partners
- Business plans (if required)
- Tenancy contract (if applicable)
- Proof of any additional approvals obtained
- Memorandum of Association (MOA) and Articles of Association (AOA) for some legal structures
8. Apply for Business License
Once you have all the documents and approvals, submit the completed application form and supporting documents to the DED. You can submit it electronically or in person at their service centers.
9. Pay Licensing Fees
After your application is approved, you'll need to pay the relevant licensing fees.
10. Visa Requirements
Factor in the number of visas you'll need for employees, as this can add to the overall cost. Research visa options and fees associated with your chosen legal structure.
Keep in mind, consulting with a business setup consultant in Dubai can significantly streamline the process.
Benefits of Opening a Small Business in the UAE
The UAE, particularly Dubai, has become a global hub for entrepreneurs and businesses of all sizes. If you're considering opening a small business there, here are some of the key benefits to attract you:
1. Favorable Tax Structure
The best part about opening a small business in Dubai is the tax-free regime. In addition, you can also repatriate 100% of your profits and capital gains. Note that mainland companies need to pay a reasonable VAT of 5%.
2. Global Connectivity
Dubai is a major transportation hub which offers easy access to markets in Europe, Asia, and Africa. This makes it a prime location for import/export businesses or those seeking international expansion.
3. Top-Notch Infrastructure
The UAE has invested heavily in developing world-class infrastructure, including advanced transportation networks, reliable communication systems, and modern business facilities.
4. Access to Funding
The UAE has a growing venture capital scene, with investors actively seeking promising startups. This provides an opportunity for startups to secure funding for growth and expansion.
5. Networking and Collaboration
There are numerous business incubators, co-working spaces, and networking events in the UAE. These platforms allow startups to connect with potential investors, mentors, and collaborators within the entrepreneurial ecosystem.
Secure your Small Business License in Dubai!
Many factors contribute to the small business license cost in Dubai. However, you don’t need to worry about them when you collaborate with the business experts at the Shuraa Business Setup. We take care of everything related to company incorporation in the UAE.
Moreover, we offer our expert guidance to ensure you don’t pay a single penny extra for setting up your business. Our consultants maintain complete procedural transparency and offer post-establishment services too.
Book a free consultation today with our experts at the Shuraa Business Setup and learn more about license costs for small businesses in Dubai.
