21 Dec How Much does a Small Business License Cost in Dubai?
Your aspirations to open a small business in the UAE can reap rich dividends, thanks to the supportive business laws. 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. 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.
What is the Cost of a Small Business License in Dubai?
There are many contributing factors that influence the Dubai business license cost. However, if you don’t require any exclusive business privileges, you can expect an investment of around a minimum of AED 8,000 to AED 10,000 (approx.) depending on your requirements.
The factors that impact the UAE business license cost include:
- Type of Business (your business category)
- Business Location (the local area you choose to run the business)
- External Approvals (approvals required from govt. authorities)
- Business Partners (number of partners you have in your business)
Here, we discuss each factor in detail:
1. Type of Business
The small business license cost in Dubai depends predominantly on the nature of your business. Moreover, it also defines the type of license you need to obtain to launch your venture in the Emirates.
You can apply for a commercial, professional, industrial, or tourism license based on your business type. Note that the cost for each license varies, and you’ll need to connect with the license experts at Shuraa Business Setup to understand the cost of each license type.
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. External Approvals
The UAE’s government maintains a comprehensive list of permissible business activities. You need to choose the ones you wish to carry out in the Emirates once you’re done with the incorporation process. However, there are a few approvals that you need to gain from external authorities too depending on the Business.
Furthermore, the cost for each additional approval varies depending on your requirements. However, it’s imperative to obtain these approvals to carry out the desired business activities in Dubai while staying compliant.
4. Business Partners
How many partners do you wish to have for your small company? This is critical as it impacts the small business license cost in Dubai. More partners imply more visa applications. Therefore, you’ll need to pay additional money to secure visas for your partners.
How to Get a Business License in Dubai?
You need to follow the steps mentioned below to apply for a small business license:
- Finalize the Business Activities (list down all activities)
- Book a Trading Name (Finalize a business name)
- Choose a Location (Decide and confirm a business location)
- Apply for a Small Business License (Start your application process)
- Manage Visas (Apply for appropriate visa)
Here’s a stepwise description of each point to make things easier for you:
1. Finalize the Business Activities
First, you need to list down the desired business activities. Once done, you need to send this list to the DED or the concerned economic department for their scrutiny. The governing authority will analyze your business application request and provide approval accordingly.
2. Book a Trading Name
Next, Indian investors and other expatriates need to reserve a trading name for their small ventures. Moreover, ensure that you follow all the naming protocols and avoid using derogatory terms or controversial words. Furthermore, note that an additional fee needs to be paid for using a foreign trading name.
3. Choose a Location
You need to choose the ideal business location to make the most of the opportunities in the UAE. Indian investors can open their small businesses in the mainland region or in the free zone based on your operational requirements.
4. Apply for a Small Business License
You can apply for a small business license once you have completed the steps discussed above. Ensure that you cover all the desired business activities in your business license.
5. Manage Visas
Visa management is imperative to ensure the safe stay of yourself and your family members in the Emirates. All you need to do is follow the procedure established by the government to secure the desired visa permits.
Benefits of Opening a Small Business in the UAE
- 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%.
- Another benefit of incorporating a company in the UAE is the opportunity to explore diverse business sectors. The DED itself maintains an exhaustive list of more than 2,000 permissible business activities.
- UAE and Dubai (in specific), is a hub for international business. Investors and entrepreneurs from multiple countries open their start-ups in Dubai. By collaborating with these businesses gives you a big opportunity to grow your business at an international level.
- Dubai is a gateway for international trade in gulf countries. So if your business is into trading (be it online or offline) you can enjoy these benefits and grow your business at an international level.
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.
Click here to book a free consultation with our experts at the Shuraa Business Setup and know more about license costs for small businesses in Dubai.