One of the most popular places in the world for entrepreneurs and investors to launch their ventures in a supportive business climate is Dubai.
The city is a desirable site for beginning a business because of its advantageous location, adaptable economic policies, and top-notch infrastructure. However, it is crucial to comprehend the startup costs, which differ based on the activity and location, before making the investment decision.
In this article, we will explain the minimum investment limit in Dubai with small capital, and we will explain how to invest in Dubai. Follow to the end.
why invest in Dubai?
Dubai is a great place to launch a business for a variety of reasons.
- Benefits related to taxes: There is no personal income tax, and corporation tax breaks apply to specific business sectors.
- Strategic location: Dubai is a worldwide economic hub since it serves as a commerce gateway between Europe, Asia, and Africa.
- Advanced infrastructure: The city has communications, logistics, and transportation infrastructure.
Flexible policies that facilitate investment in Dubai include strong and flexible legislation, support from the government to draw in foreign money, and everything administrative.
Difference between Free Zones and Primary Zones
Before determining the minimum investment in Dubai, you should understand the two main options for setting up a business in Dubai: free zones and primary zones in terms of advantages and disadvantages of each zone.
Free Zones
Free Zones in Dubai offer unique benefits such as full foreign ownership, tax exemptions, and fast incorporation processes. There are more than 30 free zones in Dubai dedicated to various activities such as IT, finance, and logistics.
1. Advantages:
- 100% foreign ownership.
- Exemptions from customs duties.
- No taxes for individuals or companies.
- Quick and easy procedures for setting up a business.
2. Disadvantages:
Cannot do business in the local market outside the free zone.
Primary Zones
Starting a business in primary zones allows you to operate anywhere within the UAE. This option allows you to deal with government agencies and local clients without restrictions.
1. Advantages:
- Freedom to work anywhere within the UAE.
- Possibility of expanding the scope of business.
- Ability to obtain government contracts.
2.Disadvantages:
In some sectors, a local partner who owns 51% of the company is required.
Minimum Investment for Business in Free Zones
The minimum investment in free zones varies depending on the free zone chosen and the type of business activity. Here are some rough estimates of costs:
Freelance License
If you are an individual and want to start your business as a freelancer, the cost can be relatively low. Freelance license fees start from $3,000 to $7,000 per year in some free zones, such as Dubai Media City or Dubai Design District.
Free Zone Company
To set up a company in a free zone, the minimum investment typically ranges from $12,000 to $50,000, depending on the type of business and the office space required.
Basic Costs:
- License Fee: $2,500 to $15,000
- Office Rent: $5,000 to $20,000 per year
- Visa Fee: $1,000 to $2,500 per person
- Administrative Fee: $500 to $1,000
Minimum Investment for Business in Major Areas
For setting up a business in major areas, the costs are usually higher due to some requirements, such as a local partner and more freedom in business activities.
The minimum investment in Dubai ranges from $15,000 to $40,000 depending on the type of business and location.
Local Partner Requirements
In some sectors, UAE law requires a local partner to own 51% of the company. This partner often acts as a silent owner and charges an annual fee of $5,000 to $15,000.
Basic Costs of Setting Up a Business in Key Areas
- License Fee: $4,000 to $12,000 per year
- Office Rent: $10,000 to $30,000 per year
- Local Partner Fee: $5,000 to $15,000 (if required)
- Visa Fee: $1,000 to $2,500 per person
Additional Costs to Consider
In addition to license and rental fees, there are several additional costs that can affect the minimum investment in Dubai required:
- Legal Fees: Some businesses may require legal advice or contract preparation, and these fees range from $1,000 to $5,000.
- Opening a Bank Account: Opening a business bank account can cost anywhere from $500 to $2,000.
- Marketing and Branding: Building a brand requires investments in marketing, and costs start at $2,000 depending on the strategy.
- Insurance: Health insurance for employees is mandatory, and costs range from $1,000 to $3,000 per year depending on the number of employees and the level of coverage.
Minimum Investment in the UAE by Business Type
Different types of businesses require different investments. Here are some general estimates for some types of businesses:
Small Consulting or Freelancing
- Minimum Investment: $3,000 to $10,000
- Example: Starting a consulting business in a Dubai free zone with a small office space and a freelance work permit.
Retail
- Minimum Investment: $25,000 to $50,000
- Example: Opening a store in a mall on the main land in Dubai.
E-commerce
- Minimum Investment: $10,000 to $25,000
- Example: Setting up an online store in one of the free zones specializing in e-commerce.
Real Estate
- Minimum Investment: $40,000 to $80,000
- Example: Setting up a real estate brokerage or property management company on the main land.
In the end, investing in Dubai is important for all investors, as all the necessary advantages and benefits are provided to every investor in Dubai. You can contact Tadbeer Company to inquire about any inquiries.
