How Startups & SMEs can Take Advantage of Low-Cost Business Setup in Dubai
Dubai is the ultimate business hub for startups and SMEs as the emirate equips small business entrepreneurs with an atmosphere for low-cost business setup. Setting up a business in Dubai is an attractive option for the startup and SME entrepreneur due to reasons including ease of business, and a slew of regulations implemented by the UAE Government to make the economy meet the global standards. As of 2019, the UAE ranks 16 on the World Bank’s Ease of Doing Business Index and the regulatory measures like AML/CFT, VAT, and recent Economic Substance Regulations (ESR) and National Economic Register (NER) have not only strengthened the economy but also elevated its image in the global market. The affordable business setup in Dubai along with a regulatory atmosphere of global standards is a welcoming factor for startups and SMEs.
Low-cost Solutions for Business Setup in Dubai
In the other major global economies, the real struggle that the startups and the SMEs face are finding adequate capital for setting up a business. Just the thought of having the huge investment requirements pull the aspiring entrepreneurs from establishing their companies in such markets. In contrast, the process of business setup in Dubai offers low-cost solutions for small businesses to form a company.
The following factors explain how Dubai is providing low-cost business setup solutions for startups and SMEs
- As there is no minimum capital requirement, the startup company formation in Dubai comes at a lower cost
- The investors get access to modern office spaces with easy transportation and other facilities at low costs
- The business visa can be availed in a shorter time
- Policies by the Dubai government have become more lenient towards SMEs and startups
Mainland or Free Zone for a Low-Cost Business Setup in Dubai?
One of the critical aspects of initiating the process of business setup in Dubai involves the strategic decision of choosing the right jurisdiction. Both mainland and free zones offer affordable opportunities for company formation in Dubai, but free zones score better over the mainland setup. Yet, a final decision on the jurisdiction should be made after considering the pros & cons of business setup in Dubai mainland as well as free zones.
While the mainland businesses offer the investors to trade directly with the UAE market, the free zones allow the investors to trade within the free zones or trade globally for activities like imports and re-exports. The process of business setup in Dubai mainland requires the investors to find a local UAE Sponsor who will hold at least 51% share in the company. This is in contrast to the free zone company formation in Dubai where the investors get 100% business ownership and the process is quicker and cost-efficient. The selection of business jurisdiction requires expert assistance of experienced business setup consultants in Dubai, who will provide reliable business setup advisory for the entrepreneurs.
How Startups can Benefit from Company Formation in Dubai Free Zones
One of the perks of the startup company incorporation in Dubai is the presence of free zones that offer affordable startup licenses. By choosing the best free zones in Dubai, the entrepreneurs get access to the free zone facilities at low-cost. The following benefits await the startup entrepreneurs who opt for company incorporation in Dubai free zones:
- 100% ownership
- Business setup in low-cost Flexi Desk Facilities
- Zero Corporate Tax
- Total Repatriation of Capital
Cost of Setting up Business in Dubai Free Zones
Some of the Free Zones in Dubai have announced stimulus packages in wake of the COVID-19 pandemic to support the investors. The cost of business setup in Dubai free zones has drastically reduced after the stimulus packages announced by the free zone authorities. The following is the list of new cost packages in Dubai free zones,
Jebel Ali Free Zone
JAFZA has announced a 50-70% discount for company registration, licensing & related administration fees. The free zone authority has also created a flexible payment plan for DP world including Jafza, National industries Park (NIP), and Dubai Auto Zone (DAZ).
Dubai Multi Commodities Centre
DMCC Free zone has implemented an 80% reduction in the total fee on company formation for shareholders who are JLT residents. For regular investors, there is also a 50% reduction in total fee for business setup in DMCC along with a Flexi Desk for 1 year.
Dubai World Trade Center Free Zone (DWTC)
The DWTC has announced a 3-month temporary slash in free zone business license and visa fees. Apart from that over 50% discount is on Hot Desk for Commercial, professional, and event Licenses. The investors can also benefit from over 10% discounts on a new visa and transfer of visa.
Always Consults with Business Setup Advisors in Dubai
Startup and SME investors find the process of company formation in Dubai as a lucrative and low-cost opportunity due to a slew of factors including tax benefits, government support, stable political environment, etc. However, the success of a business is determined by how the investors are complying with the laws and regulations governing the process of company formation in Dubai. The regulations of free zones and the mainland are entirely different and the investors need to exercise caution while selecting the right jurisdiction. While the mainland provides the opportunity to trade in the wider UAE market, the free zones have many restrictions on the activities. The process of choosing the right business jurisdiction is a strategic decision that needs the expert assistance of a reputed business setup service firm like Jitendra Business Consultants (JBC).
JBC has years of experience in assisting businesses from a variety of industries in successfully executing the process of business setup in Dubai. JBC has a strong team of highly qualified business setup consultants who are well-versed in all the local laws and regulations. The sound knowledge in UAE regulations enables JBC to prepare every document properly and obtain approvals from the concerned licensing authorities. JBC stands with the investors in every step of company formation in Dubai right from the company registration to incorporation. The JBC provides other services including visa processing, business centre services, and Economic Substance Regulations compliance to ensure the success of the clients.