Obtaining a business license is an essential requirement when starting a business in Dubai, as it is regulated by the Department of Economic Development (DED). Whether you are establishing a small, medium, or multinational company, acquiring a business license is crucial for legal operations. Now, let’s delve into the small business license cost in Dubai.
Generally, the cost of a small business license in Dubai ranges from AED 8,000 to AED 10,000. However, it is important to note that additional factors may contribute to an increase in this amount.
There are various factors that can influence the cost of a business license.
Nature of Business
In Dubai, business licenses are approved and issued based on the nature of the business, also known as the business type or activity. The licensing structure primarily consists of four types: commercial licenses for trading and commercial entities, industrial licenses for manufacturing companies, professional licenses for businesses providing professional services, and tourism licenses for travel and tour services. The nature or type of business plays a crucial role in determining the cost of a business license in Dubai.
The number of company partners is a key determinant that can affect the Small Business License Cost In Dubai
The number of company partners can also have an impact on the cost of obtaining a business license in Dubai. In the case of a small business with only one partner, the costs are generally lower. The specific license type you choose also plays a role in determining the number of partners required. Certain licenses may necessitate having two partners, while a professional license allows for a single partner, which can potentially reduce costs.
Renting an office space in Dubai
When establishing a business in Dubai and renting office space, it’s important to consider that the cost of a business license can increase by 2.5% due to regulations set by the Department of Economic Development (DED). This additional expense requires you to allocate 2.5% of the total rent amount towards the cost of the business license. Therefore, to effectively manage your budget, it becomes crucial to not only find an affordable space for rent in Dubai but also consider its location, amenities, and suitability for your business operations. Conducting thorough research and exploring various options will help you strike a balance between cost-effectiveness and meeting your business needs.
Obtaining the necessary approvals
The number of sanctions and approvals required is another factor that can contribute to the variation in the cost of a business license in the UAE. Depending on the nature of your business activity, you may need to acquire additional approvals, which can further impact the overall cost of obtaining a business license in Dubai. It is important to note that these approval costs are considered indirect expenses and are not directly imposed on the business license itself.
Also read: Best Companies In Dubai
Here are the essential steps to start a small business in Dubai
Step 1: Collaborate with business setup consultants in Dubai
The first important step in starting a small business in Dubai is to partner with a business setup consultant. At Vigor Corporate Services, our expert consultants will assist you in managing all aspects of your company setup, including handling business activities, preparing necessary documents, and obtaining trade licenses. With our guidance, you can navigate the process of setting up your business in Dubai smoothly and efficiently.
Step 2: Select an appropriate legal structure
The United Arab Emirates has introduced Free Zones, which are designed to encourage and support businesses through specialized regulations. By selecting the appropriate legal structure, you can apply for a general trade license within a relevant Dubai Free Zone. This offers several advantages and ensures maximum benefits and support from the local government.
Step 3: Select and officially register a distinct business name
Vigor Corporate Services can assist you in selecting and registering a special name for your company through the UAE’s registry office. It’s important to follow the strict naming rules in the UAE, which means avoiding offensive or disrespectful language, as well as any references to religious terms.
Step 4: Getting Your Visas
We can also assist you in obtaining your work and residence visas for living and working in the city. Once you have your work visa in the UAE, you can also sponsor your dependents to obtain their visas. Our team at Vigor Corporate Services is here to guide you through the required procedures.
Step 5: Find the perfect rental space for your business needs
Once you have obtained your Dubai trade license, we can assist you in finding the ideal office space and completing a tenancy contract in the Free Zone area of the city.
Also read: Multinational companies business setup In Dubai
Here are the documents you need to open a small business in Dubai
Once your business name is approved by the Registry Office, you must apply for the notarization of your company’s Memorandum of Association (MoA) and Articles of Association (AoA) with the Department of Economic Development (DED).
To complete the application process, you are required to submit the following documents along with your business plan:
- Proof of identification and address for shareholders and directors
- Passport copies of directors and shareholders.
- Copy of the confirmation for the company name.
- Details regarding the planned business activity.
In conclusion, understanding the small business license cost in Dubai is crucial for entrepreneurs considering establishing their ventures in the city. While the exact expenses may vary depending on various factors, it is important to budget for license fees, government charges, and any additional costs associated with industry-specific regulations. By conducting thorough research and seeking guidance from professionals, entrepreneurs can ensure they are prepared for the financial requirements and regulatory compliance. Obtaining a small business license in Dubai opens doors to a wealth of opportunities in the city’s dynamic business environment, making it a worthwhile investment for aspiring entrepreneurs.
Also read: Masdar City Freezone Company Formation
