And it all comes down to the financial stage of setting up a business. Without calculating the initial costs of getting started with a business, no one commits to actually establishing. The costs can include rent, utilities, workforce, taxes and just supporting the business until it gets on its feet. Depending on the country and how big your enterprise is, the costs will vary. If you are in the middle of figuring out the expenses of starting a business in Dubai then you’ll definitely appreciate this article.
Capital requirements and government fees
The amount you are going to pay will largely depend on the type of entity that you choose. Is it an offshore company, an LLC or you’re just expanding your business and adding a new branch in Dubai? Specialists and consultants unanimously claim that offshore companies are the cheapest. If you’re not familiar with this concept, it basically means to register the business outside of one’s country. Why is it cheap? For starters, you don’t need to have a local sponsor, who will own the 51% of your business. Secondly, you will not have to pay for rent or salaries, which make up most of the costs. Now, let’s take a look at some numbers to have a better understanding. Owning an LLC in Dubai will cost you around $20,000 for the first year and twice as cheaper the next year. The same amount applies to branches.
Free Zone costs
Another option is to set up a business in a Free Zone. Just like offshore, Free Zone indicates that you are 100% the owner of the business. However, you need to meet the criteria of Free Zone businesses. You can’t set up anything government related or something in a big city. Free Zone also takes away certain privileges and discounts. Free Zones usually cost higher in the first year than any other entity but it gets cheaper the following year. Abu Dhabi has a free zone and the costs are $24,350 and $7050 for the first and second years respectively.
The profile of your business is what decides the price you are going to pay. Different enterprises require different resources, thus leading to various prices. Take into account anything that your business will need in order to prosper as well as federal fees, and taxes. You can always hire financial consultants who are specialized in opening businesses in Dubai, so you can use their experience for your gain.