Starting a business in UAE can be a progressive decision as well as a challenging process experience. When it is about company formation the cost becomes an essential criterion. Understanding business setup cost in different emirates is vital as unawareness and lack of knowledge can lead to undesirable overheads.
Also read: 4 Reasons to Hire Business Setup Consultants to Form a Company in UAE
How you can minimise the cost of starting a business in UAE
There are a couple of factors that affect the ultimate cost of business set up in UAE they are as follows:
Type of business activity
The nature of your business can have a bearing on how much you have to set up your business. The cost may vary depending on types of activity, such as media, medical or transport, if your business relies heavily on import and export, you will probably want to choose to set up near an airport or port which is also an important factor for considering in business setup UAE.
Incorporation fees
When setting up a business, there is a need to choose a business entity, which has important tax, legal, and financial implications. If you decide to incorporate or register your business as a limited liability company, making it a separate legal entity it comes with a set of advantages and disadvantages depending on the jurisdiction.
Jurisdiction of company registration
Cost of company setup in UAE depends on the jurisdiction you opt for regulating your business operations. Opting for the right jurisdiction can be extremely cost-effective not only during the incorporation stage but also in the run. UAE company formation can be divided into the mainland, offshore and free zone. The department of economic development derives the cost of business setup in UAE mainland as for the free zone business setup it is the discretion of the authority of the specific free zone to decide the cost.
Rental /lease of business facility
Having an office is mandated for mainland business setup, while free zone or offshore have optioned such as Flexi desks and offices on an hourly basis. Nevertheless, getting an office can be expensive. It is essential to rent an office space that fits your budget and minimize the cost of starting a business in the UAE.
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Business Setup Packages
Setting up a business in UAE is a step by step procedure that needs to be completed within a time frame to avoid penalties. Moreover, each business activity has different requirements that may further alter the cost of setting up a business. Business setup packages that are customized as per your budget ad prerequisites are a great idea.
Business setup consultants help estimate the cost of starting a company in the UAE. The experts can also help you minimize the cost of starting a company in any of the seven emirates. At FAR Consultancy Middle East, we help you understand the cost and discuss your best options for business setup. Contact us today for a free initial consultation