Low Cost Company Setup
Starting a business in the UAE is tiring and costly if you do not have proper knowledge and resources. The cost is an important factor when it comes to forming a company. Low cost company setup in UAE can only be done if you are experienced or you are forming a business through a business expert. Hiring an expert will not only reduce the cost of starting a business but also saves a lot of time. In addition it ensures that you have your operational costs estimated.
Some of the factors that affect the ultimate cost of the business setup in the UAE are:
- The type of Business activity are you planning to carry out in UAE.
- Whether the business will be trading or transporting in or outside the UAE.
- The number of resident visas your company will need.
- The jurisdiction of the company.
- Whether you will setup your office by renting an office space or buying it.
Business Activities and Cost:
The cost needed to set up one’s business depends on the nature of the business. You should have a well-drawn business plan with the initial cost estimated. The cost may vary depending on the type of activity such as trade or transporting within or outside the country. You need to choose, a set up near the airport or the port which is also important for cost reduction. When setting up a business, there is a need to choose the business entity which has important tax, legal, and financial implications.
Jurisdiction of the Company Registration:
Cost of the company setup in the UAE depends on the jurisdiction you are opting for your business operations. If you select it wisely, it will be beneficial for you not only during the setting up of the company but also in the long run.
In UAE, you can start a business or a company in any of the three jurisdictions, Mainland, Free zone and Offshore.
The Department of Economic Development (DED) controls the mainland in UAE. Hence it not only decides the cost in the business setup but also the taxation and other operational costs.
Whereas the free zones and the offshore are governed by the respective authorities in the region. You will have some relaxation for taxes and other commercial terms while working in free zone.
Renting or Owning Business Facility:
It was compulsory to own an office space for setting up your business in the mainland but recently, DED has started giving flexi desks options just like free zones and offshore which makes forming a company cheaper than before. Getting an office can be expensive but it is better to rent an office space that fits your budget and minimize the cost of starting a business in the UAE.
You must complete setting up the business in the UAE within a time frame to avoid penalties. Moreover, each business activity has different requirements that may further change the cost of setting up a business.
To sum up, a business setup consultant can help you to estimate and reduce the cost for starting a business in the UAE. This will help you to determine the various benefits of setting up a company in the UAE. In addition you will also have a long term plan for your company’s future expenses.