The UAE is the ninth largest FDI beneficiary of the MENA region as per the annual Global Investment Report. People looking to form their companies are choosing UAE, while Dubai has become the top priority for them in 2024. If you want to start a low-cost business in Dubai, it requires extreme determination and ambition.
This is not all, you need substantial investment to bear the business setup costs. Especially, if you want to form your company in Dubai as a business startup. It demands a specific business setup cost for the preliminary expenses alone.
The number of investors and entrepreneurs is growing year by year in the UAE. Whereas, the most of its investors come from Asia, Europe, and North America. Abu Dhabi (the capital of United Arab Emirates) is the second most desirable place to own a business.
What is the reason why the UAE is so investor-friendly? How you can start a low-cost business setup in Dubai? Keep reading to know some valuable tips to start a low-cost business in Dubai of your own.
Process to start a low-cost business in Dubai
Dedicating some time to preliminary research can decrease so much pressure of starting a company in the UAE. After all, you need to know about a run-down of things which are part of the procedure. Here are several factors to consider while thinking of setting up a business in Dubai during 2024.
- Choose a trading name for the company
- Plan your business activities
- Apply for initial approval from DED
- Apply for a trade license in Dubai that fits your business activity
That’s why it is highly beneficial to hire a reliable business setup consultant. There are many business setup consultants available who can help you set up your business in Dubai or any other emirate of the UAE.
Read more: Guide to start your own business in Dubai
How is low-cost business setup in Dubai a boon to SMEs?
In case, you intend to begin a business with a low-investment, then Dubai is the place to choose. The city is among the leading commercial hubs of the Middle East. It has an abundance of business and investment opportunities for small and medium-sized enterprises (SMEs).
Due to its strategic positioning in the Gulf region, Dubai has an easy accessibility to the world. This makes it attractive for both local and foreign investors. Dubai’s government is supporting startups and novice entrepreneurs by creating the business setup process easier and affordable for everyone.
The government is implementing several policies to befit the requirements of SMEs. For example, abolishing restrictions on foreign ownership, and revising tax policies. Numerous projects make Dubai a desirable destination for small businesses among the leading commercial hubs of the world.
Low-cost business resolutions for SMEs
Occasionally, the initial financing can turn into a devastating setback for the bulk of businesses. Thus, some aspiring entrepreneurs abstain from starting their enterprises owing to costlier investment requirements. Dubai as an emerging center for SMEs, diminishes this gap with the abundance of low-cost business opportunities.
There are many free zones that offer minimal rates to facilitate small and medium-scale businesses. Free trade zone business setup in Dubai is suitable for small companies that provide a broad range of services. These economic zones deliver multiple advantages to the startups and new business owners.
For instance, complete foreign ownership, tax exclusions, easily obtainable office locations, effortless transportation, and low prices. Facilities such as these make it more accessible for new enterprises to manage their business at low operational costs. Dubai mainland is costlier, but allows you to trade inside the emirate.
Further reading: Start a grocery business in Dubai
Initiatives that make Dubai perfect for startups
Small businesses are the chief causes of the economic expansion of the UAE. Therefore, its administrative body is expediting the shaping of Dubai into a fitting place for prolific and thriving SMEs. These are the ambitions that make Dubai excellent for setting up a low-budget business through 2024.
- Smart city project
- Investor-friendly business culture
- Digital ecosystem
Let’s take a look on these dynamic initiatives.
Smart city project
Launching in 2021, Dubai Smart City is an initiative that gives business/investment opportunities for all industries of the UAE. The principal goal of this breakthrough plan is to capitalize on the latest technologies to step into the future. For example, blockchain, robotics, artificial intelligence, self-governing (autonomous) transportation, etc.
In addition, this project places remarkable emphasis on shaping and molding the future of the country. SMEs are the driving factor that aids in the implementation of this ambitious yet intense project. Accordingly, it is transforming Dubai into the most suitable business hub that incites innovations and technological advancement in the emirate.
Investor-friendly business culture
The first task while setting up a business is to arrange seed funding. Presently, it is becoming exceedingly convenient due to the improvements in government policies that include lax tax reforms. The UAE is pulling several investors, both local and foreign, with its accelerating commercial growth.
As a consequence, investment and business opportunities for investors in Dubai are at an all-time high. It is a massive relief for emerging enterprises and makes low-cost business setup possible for SMEs. The growing FDI potential of Dubai is a testimony of its business-friendly culture.
Dubai is leading from the front when it comes to state-of-the-art infrastructure amenities. The government of Dubai is financing heavily to improve the existent facilities to make it affordable and readily accessible. Likewise, there are countless projects for further advancement of the business landscape of the city.
SMEs can work in readily available and economical office spaces in Dubai. Also, world-class conveniences and transportation facilities are an asset for the sustainable progress of the region. Digital ecosystem of Dubai is a major attraction for many newbie business owners.
Main benefits for SMEs in Dubai
The UAE in general, and Dubai in particular, have rising investment potential for startups, SMEs and large corporations. Subsequently, business setup in Dubai is profitable with many perks. Here are the advantages of beginning a business in Dubai amid 2024.
- Firms can start at lower setup costs as there is no minimum capital requirement.
- Office spaces are available at notable locations with convenient transportation and other facilities.
- The issuance of a business visa has become easy and takes shorter time.
- Effective government policies cater to the business setup requirements of SMEs.
- It is simpler for medium and smaller ventures to flourish in Dubai’s business-friendly landscape.
Affordable places for starting a company in the UAE
If you are planning to extend your business, UAE has numerous affordable areas available. The low-cost business setup in Dubai or any other Emirates entirely depends on where it is located. Dubai Mainland, Offshore, and Free Zone are the three principal jurisdictions in which UAE company formation is split. To start your company in Dubai mainland, you will need approval, as mentioned earlier, from the Department of Economic Development (DED).
Getting set off with low-cost business setup
Starting a new company in the UAE requires a well-thought procedure that can comprise several stages. It involves picking a suitable business activity, choosing a proper business location, and selecting a trading name. Ultimately, you apply for the business license by providing the necessary documentation to the requisite regulatory authority.
Business setup consultants help you in acquiring license to make your venture legal, while making the business incorporation procedure easy. They significantly reduce the extra-load from your head and make the process of company formation in Dubai extremely stress-free. With the guidance of a business advisor, you can start a profitable business in Dubai.
Professional company formation experts also save you from unwanted expenses and inform you of the UAE’s applicable laws. We at KWS Middle East make the whole business setup process hassle-free. Contact us today and book our commitment-free consultation call.
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