Cost of Setting Up A Business in Dubai

Published: 14th March 2011
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Iím assuming youíre interested in starting a company in Dubai? Otherwise you would not be reading about this. Companies in Dubai have paid their fair share to establish get going. The abundance in the Dubai employment market has made it easier than ever to start a business today and run at full speed tomorrow.

I was also interested in setting up a business in Dubai not long ago. So this discussion is based on my personal research and experience from the time I was serious about the idea. If you'd like to establish your corporation in Dubai you will have to go through the Dubai Department of Economic Development or the "DED" as most refer to it.

This agency was established in order to stimulate economic activity which would grow the emirate of Dubai. Most cities, states, provinces have an agency of identical stature that reviews business applications, approves them and grants them licenses to operate.

Your cost of setting up a business in Dubai would include the following costs:

* License involved with the kind of business activity you engage in (service vs. manufacturing vs. intellectual capital)

* Business and liability insurance (still a comparatively weak infrastructure compared to the USA)

* Specialist fees (legal and accounting)

* The cost of a local partner (this varies from Dhs. 20k to 2M a year based on their greediness)

You can always approach the banks in Dubai for start-up capital. However, be prepared to sign for the loan with a personal guarantee. Even if the banking companies in Dubai ever lend money to you, its crucial to show them the proper credentials and the economic performance of your business during the last several years. After all, everyone wants to protect their behind.

So as to avoid paying a local partner, various entrepreneurs begin their companies in one of the many free zones in Dubai such as the Jebel Ali free zone. These free zones were established by the Dubai Government to encourage business formation and foreign investment. These zones are treated as stand-alone entities and they can be your "silent partner" in business.

If you'd like to get an idea on the amount of money required to begin a company in Dubai, visit the DED website Dubaided(dot)gov(dot)ae and select the "English" option on the upper left hand side of your monitor. This is only if the web-site reads in Arabic. Once youíre in the English mode, navigate to the eservices menu where you could do the cost simulation.

As much as Iím an entrepreneur at heart that likes to take charge and execute things first hand, setting up a business in Dubai is something which I DO NOT RECOMMEND you do alone. There are several cracks to slip through and they can prove really expensive for you both in the short short term and long term perspective.

You must comprehend the legal infrastructure and the rules of business in Dubai in general. Starting your company in Dubai all by yourself can also end up costing you way more than what it should.

If youíre serious about doing business in Dubai, I strongly suggest you consider the team at Global Office FZ led by Christine Orth. Christine has over 6 years of work experience, as of 2006, and is my single trusted point of contact with everything that has to do with doing business in Dubai. You could read more about their credibility and qualifications here.

This is a really serious move and you would like to ensure you go about it the right way. Having the right business mentor to guide you will make all the difference as you get started and continue to need assistance along the way. I wish you very well and Iím definitely eager to hear about your experiences. Do come back and give us an update. Weíd be keen on featuring your success story in our Dubai personal stories section.

2010 UPDATE New - Virtual Office company set up with full business license and 3-year residence visa now available in Dubai. Costs start at AED 18,000 p.a. You as an Investor are entitled to get 5 visa for you and staff and could sponsor your family and a maid.

The set up is approved by Abu Dhabi High Court and is being licensed through a Northern Emirates Free Zone thatís legally entitled to offer Free Zone business licenses in Dubai.

Their business center is conveniently situated at Dubai Marina with loads of restaurants, hotels and ample free parking in walking distance . Please consult our business partner Christine for more information regarding this topic.

The Dubai Information Site is a website on Dubai City put together from a practical and first-hand perspective. The site covers information about Dubai entertainment, sightseeing, business in Dubai , sports, flights, hotels, weather, visa information, tourism, holidays, history and more. Visit Dubai Information Site to learn more about Dubai.

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