When
establishing a business, the elementary step is to determine the preliminary
cost of the entire setup. Talking of Dubai and the other Emirates of the UAE,
their tax-free nature is more than appealing to investors the world over. If
you too are contemplating building or expanding your business in Dubai, you
must consider the various costs it entails, specifically in issuing a trade
license.
If your aim is
to launch a venture in Dubai’s free zones, keep in mind the fact that every
free zone has its own start-up procedures and costs. As a business owner, there
is a minimum prerequisite of capital investment that you must possess in order
to establish the company in the free zone.
Another significant
cost of setting up a business in Dubai free zone is sponsoring employees for
the business. This includes the provision of suitable visas and completion of paperwork
for your employees in order to allow them to live in Dubai.
·
The Costs of Establishing a Business in Dubai
For those you have made up their mind to set up a business in Dubai,
it becomes obligatory to apply for a Dubai business visa and bear the costs
incurred. If you are going to open a limited liability company (LLC), you are
not bound by the condition of minimum share capital. However, the investors who
are keen to harness the potential of the free trade zones in Dubai must
understand that though they will have complete ownership of their company but they
will have to consider the substantial cost associated with the business
start-up process in the city. No need to sulk or let your spirits weigh down as
there are no taxes on profits of companies established in Dubai, with the
corporate tax exemption that lasts for about 50 years.
·
Expenditure on Permits and Licenses
Dubai is a sanctuary for investors who are looking for expansion of
their business. That said, establishing a flourishing business doesn’t come
cheap as obtaining the company’s permissible legal documents, the business
licenses and other registration procedures will be subject to various costs. Additionally,
every business license or permit must be renewed once every year, for which you
will again have to bear the expenses. Going further, you will need to lease
office space for your start-up and hustle up the insurance, and the equipment
and all this is also going to cost you some pretty penny.
·
Factors to consider when setting up a Business in Dubai
No
business can be established without a few fundamentals like a bank account for
various cash transactions. It is advisable for you to track down the
prestigious banks in Dubai and enquire about the charges for their services. For
an entrepreneur, it is imperative to draw up a thorough assessment and solicit
information about all costs involved in establishing a new business in Dubai.
You can also leverage the services of an experienced Business Consultant for an
accurate analysis of the costs involved in setting up a company or companyliquidation in Dubai.
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