Here is a step-by-step guide on what you need to start a business in the UAE and the estimated cost for each step:
- Determine the type of business: First, you need to determine what type of business you want to start, whether it is a sole proprietorship, partnership, or company. The cost of this step will depend on the legal structure of your business, but it can range from AED 500 to AED 10,000.
- Choose a business activity: You will also need to decide what type of business activity you will undertake. This can range from trading to manufacturing, and the cost of the license will depend on the activity. For example, a commercial license can cost between AED 15,000 to AED 30,000.
- Choose a business name: The business name you choose must be in accordance with the UAE's naming regulations. The cost of reserving a trade name is around AED 1,000.
- Apply for a trade license: You will need to apply for a trade license from the Department of Economic Development (DED). The cost of a trade license varies depending on the type of license and the business activity. For example, a commercial trade license can cost between AED 5,000 to AED 15,000.
- Get approvals from relevant authorities: Depending on the nature of your business, you may need approvals from various authorities. For example, if you are starting a restaurant, you will need approval from the Dubai Municipality. The cost of these approvals can range from AED 2,000 to AED 10,000.
- Rent an office or shop: You will need to rent an office or shop to conduct your business activities. The cost of renting a space will vary depending on the location, size, and type of space. The average cost of renting an office in Dubai is around AED 1,500 per square meter per year.
- Register for VAT: If your annual turnover exceeds AED 375,000, you will need to register for Value Added Tax (VAT). The cost of VAT registration is free.
- Register employees for work visas: If you plan to hire employees, you will need to apply for work visas for them. The cost of a work visa is around AED 3,000 per employee.
- Get business insurance: You will need to get business insurance to protect your business against unexpected losses. The cost of business insurance will depend on the size and nature of your business.
Overall, the estimated cost to start a business in the UAE can range from AED 20,000 to AED 100,000, depending on the type of business, business activity, and other factors. It is recommended that you consult with a business consultant or lawyer to determine the exact cost and legal requirements for starting a business in the UAE.
