What is the minimum investment to start a business in UAE
What is the minimum investment to start a business in UAE
If you are reading this, it’s most probably because you are planning to start your own business in the UAE. And just like many people out there, the first question in your mind would be “what’s the minimum investment required to start a business in UAE?” Before we look into that, let’s try to find out why we choose UAE out of all other countries in the world to do business and what advantages are there.
First of all, it’s the geographic location and since the middle east is treated as a central hub for trading and flight connections, UAE is considered as a centre point in the world map as people from all other countries can travel to UAE easily.
This is definitely a big advantage for people who want to set up a business there as their business can reach a hefty number of people from all parts of the world.
On top of that, the UAE has kind people and friendly rules which attracts entrepreneurs from all over the world. Also, the UAE is always evolving. Cities in the UAE like Dubai are growing like no other city in the world even when Covid situation affected the economies of many other countries.
Now, let’s look at the business establishment options in the UAE. Mainly there are two location options to set up a business which are Mainland and Free zone. Since we are looking at the cost of business set up in UAE, we should understand that cost can vary depending on whether it is in the mainland or free zone, the type of business and the size of the business. Particularly, the cost of business establishment in the UAE is low compared to other developed countries in the world.
The cost of setting up business in the free zone is comparatively lower than in the mainland. Although, choosing a mainland or a free zone in The UAE should be based on your business type. If your business is connected to the government or with the local economy, then the mainland is the best option. Likewise, if your business is of production or remote work, you definitely can choose any free zone in the UAE.
To set up a business in mainland UAE, obtaining a trade licence is the first step. It starts around 1390 AED a year. Then there is a minimum investment requirement. You don’t need a local sponsor, Thus 100% foreign ownership is possible. To be honest, the exact business setup cost varies depending on location, business type and sponsor’s approval. As a general rule, businesses may need a budget anywhere between 50,000 to 300,000 AED or possibly more. For instance, a company aiming to establish itself in Abu Dhabi, where the minimum investment required can be set at AED 18,000 including an investor visa. Nevertheless, bigger businesses might face even higher expenses depending on their needs and scalability.
In contrast to the Mainland, establishing a business in a Free Zone in the UAE involves a lower minimum cost. For example, you can get a business licence in a Free Zone as low as AED 12,900, making it more attractive to new entrepreneurs. This makes them establish their companies in a cost-effective manner without compromising their goal of starting a business in the UAE.
Now that you’ve gotten an idea about how much you will have to spend to set up your business in the UAE, it’s better to look at how you can save some money as well as your precious time. The best way to do it is to get in touch with an experienced business consultant like us so that you can get your business licence and all the paperwork done in no time which will help you reach your business goals quicker.