One of the greatest free zones in the world for company owners and investors wishing to launch a new venture in Dubai.
However, before venturing into the exciting world of entrepreneurship, it’s critical to understand the costs of starting a business in Dubai. This article will explore the Trade License Cost in Dubai, VAT Registration Charges in Dubai, and other costs you must consider before starting your business.
VAT registration charges in Dubai
In the UAE, Value Added Tax (VAT) was implemented in 2018. Businesses must register for VAT in Dubai if their yearly sales are AED 375,000 or higher.
The VAT Registration Charges in Dubai are AED 1,500 per year. However, failure to register for VAT may result in penalties and fines for businesses.
The cost of trade license in Dubai
- The price of a trade licence is one of the major expenses associated with opening a business in Dubai. Depending on the region and type of company activity, a trade licence might cost more or less.
- In Dubai, the Department of Economic Development (DED) issues trade licenses to businesses operating in mainland Dubai.
- The cost of a trade license in Dubai ranges from approximately AED 5,000 to AED 30,000. Hence, you can get a discount also if you contact IMAS, where you can get a free consultation.
- In contrast, businesses operating in Dubai must obtain a license from the respective free zone authority, which can cost between AED 10,000 to AED 50,000.
The cost of starting a business in the best free zone in Dubai
Starting a business in Dubai might be an engaging and rewarding experience. But it’s crucial to comprehend the startup costs for a business in Dubai. The free zones in Dubai provide several benefits to businesses, including tax savings, 100% foreign ownership, and no currency restrictions.
Businesses in the Best Freezone in Dubai must pay for office space, immigration fees, and other expenditures in addition to the Trade Licence Cost. But compared to mainland Dubai, starting a business in a free zone in Dubai is more expensive.
Advice for Dubai entrepreneurs on how to cut startup costs
There are several ways to reduce startup costs when looking to start new business in Dubai. For example, Businesses may consider renting office space rather than purchasing it, sharing it with other companies, and outsourcing non-core tasks.
Negotiating better terms and pricing with suppliers is another strategy to save costs. Also, you can get a license from IMAS, one of the best-known and most reliable companies in the UAE that focuses on helping different organizations grow by setting up businesses and offering services to them.