How Much Does a Small Business License Cost in Dubai?

Starting a small business in Dubai can be an excellent chance for entrepreneurs trying to establish themselves in a growing industry.

Furthermore, small company licences in Dubai are quite inexpensive, and the licensing process is simple. As a result, you should use this opportunity and establish a reputation for your little business in Dubai.

But comprehending the licensing fees involved is one of the very essential things for entrepreneurs wishing to start their businesses in Dubai. The cost of licensing varies depending on the type of business and its practices, hence a lot of study and preparation should be done before embarking on this.

In addition, our consultants and TVG management and consultancy are available for every type of business guidance.

In Dubai, the licences and authentication are usually provided by free zone authorities or the DED. The types of licences issued for business include:

1. Commercial Licence: Cost of trade licence for Dubai firms.

2. Professional Licence: This applies to firms and professionals that offer services.

3. Industrial Licence: This applies to entities involved in production or manufacturing activities.

Dubai's Small Business License Cost-Influencing Factors 

The following important variables may have an impact on the price of a small company licence in Dubai:

Type of Business Activity

The most important component is this.  Dubai grants licences according to the kind of business you run, with certain sectors requiring more payments than others. For example, a restaurant licence will probably cost more than one for a consulting firm.

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Location of Business

Your company's location has a significant influence on the cost of a business licence in Dubai. If your business operations fit the conditions, it is cost-effective to open a venture in a specialised free zone.

However, if you don't study the guidelines of the designated free zone, it can easily turn into an expensive affair. Furthermore, gaining access to Dubai's local market doesn't require you to give the site much thought. To start a small business on the mainland, all you have to do is contact the DED.

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Leased Office Space

Your licensing price will be affected if you want to establish a physical office and the cost of renting that space. Businesses must pay an additional 2.5% of their total rent to the Dubai Department of Economic Development in order to cover the cost of their licence. Thus, locating reasonably priced office space might help you save your costs.

External Approvals

It could be necessary to obtain extra permissions or approvals from several government agencies for some commercial operations. Your licence's total cost may increase as a result of these approvals.

Count of Business Partners

The cost of a licence may vary depending on how many people own a portion of your company. In general, having more partners results in filing more visa applications, which costs more money.

Qualifications for a Visa

The number of employee visas you require may raise the total cost. Certain permits might only permit a certain amount of visas, while others might charge more for each extra visa.

Organisational Law Structure of Companies

The type of business entity you choose to operate—be it a sole proprietorship, limited liability company (LLC), or foreign corporation branch—will also affect the licence's cost.

Licence for E-Trader

Dubai provides home-based enterprises with little activity with a simpler eTrader licence.  Usually, this licence is less expensive than a typical Mainland licence.

The best approach to receive an accurate estimate for your circumstances is to speak with a company setup expert at TVG Management and Consultancy in Dubai, as there are many things to consider. We can evaluate your unique requirements and offer a more precise pricing breakdown.

Breakdown of Dubai’s Small Business License Fees

Dubai's Commercial License Fee

Businesses engaging in trading operations must possess a commercial licence. The price of a Dubai trade licence consists of:

First Approval Fee: Between AED 100 and AED 300

Reservation Fee for Trade Name: AED 620 to AED 720

The licence fee for setup is AED 10,000 to AED 15,000.

Office rent varies from AED 10,000 to AED 50,000 based on location and size.

Between AED 3,000 to AED 5,000 is the administration service fee

AED 25,720 to AED 70,720 is the total cost.

Extra expenses could be incurred by:

Market fees shall be approximately two point five percent of the monthly rental amounts, whereas agent fees on an annual basis may differ from AED five thousand to AED fifteen thousand.

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Dubai's Professional Licensure Fees

Professionals and businesses offering services require a professional licence. The price of a company licence in the UAE consists of:

The first approval fee might be between AED 100 to AED 300 While the cost for reserving a trade name would be AED 620 to 720. One can also obtain a licence of AED 5,000 to 10,000 along with office rent of up to AED 1

How can you secure a small business licence in Dubai?

It may appear difficult to obtain a small company licence in Dubai, however, it is easier if you follow these steps:

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Determine What Your Business Does

First, specify exactly what your company performs. Licences are categorised by trade, industry, or services in Dubai. Look into the particular category that most closely matches your business.

Select a Name for Your Company

Choose a name that fits Dubai's naming requirements while remaining distinctive and relevant. Keep your language civil and make sure it hasn't already been registered. At TVG Consultancy, our business setup consultants can help you choose a name.

Select a Legal Framework

A limited liability company (LLC), a sole proprietorship, and other choices are available. Everyone has benefits and implications specific to licensing. Take into consideration seeking advice from an expert.

Sign up with DED.

Request preliminary clearance from Dubai's Department of Economic Development (DED). Usually, this entails paying upfront costs and submitting simple paperwork like company plans. Permits from various governmental bodies are necessary for some sectors. Look into any extra permits required for the particular business activity you're involved in.

Decide on a Business Location

Invest in real office space or go for a free zone that has its own rules. Take into account elements like price, target market location, and (if relevant) free zone benefits.

Sign up with Ejari

Use Ejari, the official rental registration platform for Dubai, to register your tenancy agreement. This is required to receive a licence.

Gather the necessary paperwork

Compile all required documentation by DED guidelines. Usually, these consist of:

·         Owners' and partners' passports and visas

·         Plans for businesses (if necessary)

·         Tenancy agreement (if relevant)

·         Evidence of any further authorizations received for certain legal entities' articles of association (AOA) and memorandum of association (MOA)

Make a business licence application.

Send the completed application form and any accompanying documentation to the DED as soon as you have all the necessary paperwork and approvals. You can turn it in in person at their service centres or electronically.

Cover licensing costs

The applicable licensing fees must be paid after your application is accepted.

Requirements for Visas

Consider how many employee visas you'll need; this can raise the total cost. Examine the costs and available visas for the legal structure you have selected.

Remember that speaking with a Dubai-based business setup specialist can greatly expedite the procedure.

A Small Business's Advantages in the United Arab Emirates

Dubai in particular has developed into a major worldwide hub for companies of all kinds and entrepreneurs. Here are some major advantages that should entice you to create a small business there if you're thinking about doing so:

Favourable Tax Structure

The tax-free business environment is the finest reason to launch a small enterprise in Dubai. Furthermore, you are eligible to repatriate all of your capital gains and earnings. Keep in mind that mainland businesses must pay a fair 5% VAT.

Worldwide Networking

The transportation hub of Dubai provides swift access to major Asian, African, and European markets. As such, it has turned out to be an appealing place for multinational corporations in search of expansion or import/export businesses.

Top-Notch Architecture

The UAE has made significant investments in creating cutting-edge transit networks, dependable communication systems, and contemporary office buildings.

Funding Availability

Venture capital is expanding in the United Arab Emirates, as investors are aggressively looking for new firms. Startups now have the chance to obtain capital for development and expansion.

Cooperation and Networking

There are many communal places to work in the UAE, networking occasions, and business incubators. It is here that aspirants may link up with their teachers, investors, and other associates in the field of business.

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Get a Dubai small business licence today!

The cost of a small company licence in Dubai is determined by a number of criteria. But when you work with the business specialists at the TVG Consultancy, you won't have to worry about them. Everything about incorporating a company in the United Arab Emirates is handled by us.

In addition, we provide our professional advice to guarantee that you incur no additional costs when establishing your company. In addition to providing full procedural openness, our advisors also provide post-establishment services.

Make an appointment for a free consultation with our professionals at TGV Management and Consultancy to find out more about licensing prices in Dubai for small businesses.

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