Monday May 1, 2023

Business Setup Guide in UAE 2023

The United Arab Emirates (UAE) is renowned worldwide for its thriving business scene, where big ambitions, big money, and big opportunities abound. However, contrary to popular belief, the backbone of the UAE economy is not dominated by large corporations, but rather by small and medium-sized enterprises (SMEs).

According to the Dubai Chamber, SMEs make up more than 90% of the total companies in the Emirates, and they employ a staggering 86% of the private sector workforce. Many of these businesses are startups that have been launched on shoestring budgets, fueled by the entrepreneurial spirit and determination to succeed. After all, even the largest of enterprises start small.

If you’re aspiring to establish a business in the UAE and have budget constraints, don’t be discouraged. With the right support, setting up a low-cost business in the UAE is entirely achievable. The UAE offers a favorable environment for entrepreneurs, with various options and incentives tailored to support SMEs and startups.

From cost-effective business setup packages to favorable regulations and government initiatives aimed at promoting SME growth, there are ample opportunities for entrepreneurs to establish and grow their businesses in the UAE without breaking the bank. 

Here are some tips for setting up a business in the UAE with minimum investment:

1. Choose the right legal structure: The first step in setting up a business in the UAE is to choose the right legal structure. The most common types of legal structures in the UAE are the Limited Liability Company (LLC) and the Free Zone Company. An LLC requires a local sponsor or partner, who will own 51% of the company’s shares. On the other hand, a Free Zone Company allows 100% foreign ownership, and it’s ideal for small businesses with limited investment.
2. Select the right authority: The United Arab Emirates (UAE) offers several free zones that are ideal for low-cost business setup options for startups and SMEs. Ajman Free Zone, Fujairah Creative City Free Zone, Sharjah Media City (Shams) Free Zone, and Dubai South Free Zone are some popular choices. These free zones provide affordable office spaces, simplified licensing procedures, and competitive visa fees, making them attractive for businesses in various sectors such as trading, services, media, technology, and e-commerce. However, it’s essential to research and understand the regulations, requirements, and costs associated with each free zone, and seek professional advice for compliance with local laws. Elegant Services can help you set up your business in these free zones starting at AED 5,750.
3. Determine the initial capital: The UAE does not require a minimum capital for setting up a business, but it’s essential to have a clear understanding of the initial investment required to launch your business. This includes registration fees, rent, salaries, and other expenses. By determining the initial capital, you can plan your budget and allocate resources effectively.
4. Obtain the necessary licenses: Depending on the nature of your business, you may need to obtain several licenses and permits to operate in the UAE. This includes a trade license, a residence visa, and other permits. It’s essential to obtain the necessary licenses to avoid legal issues and operate your business smoothly.

Whether you’re looking to establish a sole proprietorship, partnership, or a company in one of the UAE’s many free zones, there are options that cater to different budget requirements. With careful planning, research, and expert advice from Elegant Services, you can take advantage of the opportunities that the UAE offers to small and medium-sized businesses, and make your mark in this vibrant business hub.

At Elegant Services, we understand that the cost of business setup in the UAE is a key point for start-ups & entrepreneurs. Please contact our business setup consultant we will cater the most affordable business setup package, which fulfill your business needs while ensuring the license package will be sufficient for your future requirement as well.

We understand that the application process can be complex, and it’s crucial to have a complete and error-free license application for a smooth process. That’s why we offer comprehensive services, including handling license applications, opening corporate bank accounts, and providing advice on the most suitable financial institution for your needs.

Our expertise goes beyond license applications – we also provide visa and immigration services, taking care of all government formalities, permissions, work permits, and visa applications required for trading in the UAE.

Get started on your business journey with Elegant Services. We’ll ensure that your low-cost business setup in UAE is efficient, effective, and hassle-free.