Business setup in the UAE. Registration cost.

Business setup in the UAE. Registration cost.


Doesn’t matter how small you start,
it’s about what you can offer Hey everyone, I am here with Marcel Head of corporate services at Garant Business Consultancy And today we’re gonna talk about how to set up a business in Dubai, what the requirements are, how much it costs and And then we will reply to some of your questions. Hi Marcel, can you please introduce yourself? Thank you for your kind introduction My name is Marcel. I’m a business consultant. I’m advising people on how to set up a business in the UAE, and make it in a cost-effective and time-effective manner. What are the five reasons why people should start a business in Dubai. I can highlight the five most distinguished reasons why you should open a business in the UAE. First I think it is the low tax regime which allows you to generate your profits at the maximum level. There is the only tax which has been introduced a year back which is VAT and the rest are not available such as the corporate tax and other income taxes the second reason I can say the market itself, it’s quite saturated in terms of high-net-worth people whatever business you do generally it has great potential because you can have your own audience and it is very much available The third reason is that the infrastructure to do your business is very well-developed You have that ease of doing your business. It’s systemized, you have set standards which are easy to follow. Another reason is that the UAE has a large exposure on the market In particular, we are talking about the GCC A lot of business entrepreneurs enter the local market in order to further expand their operations in the region. And last but not least reason is profit repatriation There is no financial control on repatriating your own profit and funds back to your country or wherever else you want it to be. And I heard about this new 10-year residence visa for investors Can you tell us about it? That’s correct. It’s been introduced. There are two visas that were recently introduced: ten years and five years There are certain conditions and criteria that you need to meet Mostly those would be related to your investment 10 million dirhams for your 10-year visa and 5 million dirhams for your 5-years visa And how much money do you need to have to start a small business in Dubai Let’s say I want to start an e-commerce business or open a marketing agency Well, this depends on the type of the companies I would say that the cheapest option the most budget one would be around US$4,000 Those would be companies in offshore jurisdictions Then there is a choice of a Freezone company or the LLC which is the mainland company there you have to budget around US$11,000 and US$20,000 Do you need to have a local partner? This would depend on the type of business that you want to do In all the cases when your business is located in the mainland it would require a local partner where the share distribution within the company would belong to the local partner or 51% and 49% will be held by foreign investors And how long does it take to obtain the license The timeframe for licensing is quite short If all the required documentation is in order then the licensing takes about three to four working days Probably another question on how soon you get your business operated so this is a little bit more complex and I would say that the shortest time you can have your business set and running is about four weeks What are the benefits of having an agency to help you to set up the company? Well, it’s very important to seek professional advice. I personally know a lot of cases when people try to do their own business setup without the proper knowledge and then they committed several mistakes which took some consequences So having a local agent to do your business setup is very important since they have in-depth knowledge They can assess your budget and they can make your proper business plan very precisely so that you will know your budget in advance Not just when you start your business and then you realize that your budget is not fitting into what it is in reality And what are the main mistakes people usually make when they try to set up a business on their own? Well, I think I can highlight two main points First would be an activity of the business as we may know there are around a thousand different business activities in the UAE and each of them is kind of focused on a particular sphere So this is very important when you approach your business you would need to select those business activities that would match your goals and will be eligible the second point is I think it is banking A lot of people know this struggle to open bank accounts for their business It is also quite a complex procedure And again agents would definitely know how to prepare your documentation and other business factors in a correct manner And let’s say I want to open a business in the Dubai Land where I need to have a local partner So where can I find this local partner? How does it work? Is there is any database or special agencies? Well, yeah, if you are working with an agency from the beginning they have their own database of local partners whom they can refer they would be classified there are some requirements when you let’s say register a construction company it may not be registered just under any name of the local partner so even the local partner should qualify for this kind of activities. Marcel, I have some questions from my subscribers about the business setup in Dubai and I promised them to get the answers from you. So let’s go through some of them. The first question is how to set up a consultancy business. What are the requirements? Well, it’s quite easy We can recommend some budget options again with the total budget of around
US$10,000 – US$11,000 From the requirements, we would need the passport copies, the proof of residence, the CVs and the bank reference letters. So these are basically the most common requirements to start any company, to make the registration process it would be important to choose the jurisdiction where they would like to practice their activities who would be their clients and and based on this They can start their company. Next question is from the guy from Portugal. He’s planning to move to Dubai and sell the furniture online across the UAE. What license does he need to obtain? How I see this this would be a normal trading license which will allow him to trade in furniture this will also depend on how he wants to practice the trading activity whether it would be his own products which is commonly called now a dropshipping business where he buys the product from his supplier and then he considers this as his own stock and then he sells further to his client. Then it would be a normal trading activity and And this would also depend on whether he needs to have his own warehouse If it is so there are options where he can rent the warehouse or he can let’s say get the warehouse from a third company on outsourcing basis. If the objective is to enter the market with the low costs and the minimum efforts, this would be a trading license probably in the Northern Emirate and most of the services will be outsourced such as logistics and the warehouse If you’re a solopreneur and you can’t afford to set up a company Are there any freelance solutions available on the market? Well, there are a number of freelance activities which you can have but those would be actually limited kind of limited Let’s say you can not have a trading activity under your freelance permit since the freelance permit would mean a professional scale this will suit individuals who are into photography or video shooting Let’s say they would be in marketing or in education. So those individuals may be easily licensed in one of the free zones with the freelance permit And if I need to get a visa, how much will it cost? Visas are averagely rated at a cost of US$1,000 or US$1,500 And the permit? And the permit would cost around US$2,000. So it’s around US$3,500 We can say about US$3,000 to US$4,000 And if you want to have a business bank account is it possible to have it with the freelance permit? Yes, this is possible Banks recognize such permits and they are classified as a business license Accordingly, you can have your corporate bank account on this permit Each country has its own business culture and laws. What are the challenges of running a business in the UAE? There are seven emirates in total and the law slightly changes from emirate to emirate But the real challenges would be taxation. It’s quite a new law that has been adopted in 2018, which is VAT. For new businesses, it is very important to have a proper consultant let’s say who can run this part on behalf of the company I would say this is a challenge and And the other challenge what most people face is the Sharia Law when it specifically comes to inheritance issues for non-muslims If you do not register a will which can be registered in the international court which is located in DIFC then all your assets would be distributed as per Sharia Law. To be specific, Around 12% goes to your wife, another 16% goes to your father, 16% goes to your mother 18% goes to your daughter and 36% goes to your son. So if you want to distribute your assets in a manner that you want them to be distributed then it’s always important to register a will, but this is applicable only for non-muslims. So what do you think about the future of the business in Dubai? And what are the industries that have the biggest potential? Well, I believe the future of Dubai is very positive the government is trying to develop their own country as much as they can and they have good success in it. Businesses are quite different they are competitive and a lot of people trying to enter this market as a As per statistics, we we noticed that a lot of trading companies set up their business in the UAE as well as IT companies which are mainly based in Dubai Silicon Oasis and Dubai Internet City so These are probably the most famous business setups in the UAE at this moment as we noticed So and the final question for today. If you’re just starting as an entrepreneur and you want to start your business in Dubai but you have quite a small budget. How difficult is it to compete with big players on the market? Well It is all about your business acumen if your product is competitive in the market it doesn’t matter how small you start It’s about what you can offer to the clients and how you can do this I would say that it will take some time if you start small and if you want to grow your business in the country, it will take probably years. But at the same time, you can still survive and if you assess your risks correctly and if you plan your budget precisely then you will get your success. Thank you Marcel for your time, thank you for sharing this useful information with us. I hope guys you find this video useful You got quite a lot of interesting information. If you have any questions please leave them in the comments below and I or Marcel would be happy to answer them. Thank you for watching See you soon. Bye bye

23 Replies to “Business setup in the UAE. Registration cost.

  1. Hi thank you for your valuable information. Here Anees. Also please make video about how to get job in dubai

  2. Hello #oksy, it's been a long time you haven't posted any video…

    This video is really good for those who want to setup a business in Dubai.

    #please make a video on ' How one can apply for Dubai jobs being in home country?

  3. Очень классное, полезное интервью👏, ты умничка и очень хорошо выглядишь👍🤗

  4. I love videos like these, please make more on these sort of topics 🙂
    My question is what does a website owner who sells information products like digital courses/pdfs/ad revenue from social media need to do. Does he need to get a trading license or a media license? because these aren't physical products they are digital. Thank you Oksy!

  5. Оксана, спасибо за видео! Вы как всегда профессиональны и по делу.

  6. This a really valuable and useful video we want to move to DXB but we need your opinion in our work as a marketer
    Please Oksy, Take a look at our Instagram account, @winter26_designstudio we’ve tried to DM you on Instagram with no reply but anyway
    Thanks so much truly appreciated

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  8. Hello Oksy, I like your all videos. I need some clear concept details about travel and tourism business in UAE. I want to setup my business in Dubai. Give me reliable consultant contacts please.

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