Dubai has been the center of attraction for quite some time now, making headlines for its latest technology, visa reforms, conducive business environment, and more. It is a dream business location for almost all entrepreneurs, especially since you may only require a minimum investment to start a business in Dubai. With low-cost business setups and high profits, who wouldn’t want to set up a business here?
This is one of the reasons why so many Foreign entrepreneurs are now eye Dubai as their next business location. Foreign entrepreneurs make up most of Dubai’s 80% ex-pat population. As per reports from 2019, Dubai had issued a whopping 64,360+ licenses to 246,737 Foreign entrepreneurs. Of these licenses, 77.5% of the total active licenses were commercial, followed by professional, industrial, and tourist licenses.
However, as an Foreign entrepreneurs, you may wonder: What is the required minimum investment to start a business in Dubai? If you want to know the answer to this question and everything else about a business with minimum investment, stay with us and keep reading. This blog will tell you all you need to learn.
What Makes Dubai a Global Business Hub?
There are several reasons why Dubai ranks at the top of the list of business locations. Some of the notable ones are –
- Strategic location at the north, south, east, and west crossroads, providing unlimited access to local and international markets.
- A melting pot of cultures allows you to interact and partner with individuals and businesses worldwide.
- High standards of living, helping businesses like spas and salons grow and expand.
- An exceptionally skilled workforce that simplifies business operations and enhances its quality, paving the way for growth.
- Chance for mainland businesses to pitch for public projects and strengthen their ties with the government, which, in turn, also solidifies the business’s national and international reputation.
- A safe business environment that is regulated by stringent government rules to avoid fraud and cheating.
- Zero taxation on personal or corporate capital gains.
- 100% ownership of your business in 13 areas, including e-commerce, logistics, and IT.
Top 3 Free Zones
Dubai itself hosts more than 20 free zones that offer world-class business facilities. Here are some of the top free zones that require a minimum investment to start a business in Dubai –
1. RAKEZ
The RAKEZ Free Zone is a prime location for foreign investors since 2017. Above all, the RAKEZ Free Zone provides cheap licenses for various commercial operations to international investors. Business executives may interact and network in this free zone while working together.
2. Dubai CommerCity
Another brand-new free trade zone in the United Arab Emirates that offers company owners first-rate facilities and a wealth of commercial infrastructure is Dubai CommerCity.
The Free Zone, close to the Dubai International Airport, serves as a center for global trading firms. The Free Zone is perfect for companies whose operations depend heavily on logistics. Additionally, the Free Zone provides multi-year business licensing packages (2, 3 & 5 years).
3. International Free Zone Authority (IFZA)
Dubai’s IFZA Free Zone is the most affordable. The investors are exposed to various cutting-edge office options that meet international standards. It features a warehousing facility constructed to the best logistical standards available worldwide. For investors who want to keep their operational expenses to a minimum, IFZA also provides Flexi-desk and flexible renting alternatives.
Top 3 Minimum Investments to Start a Business in Dubai
1. Digital Marketing Agency
Each new day brings more enterprises and corporations into existence. Therefore, to draw customers and establish themselves as industry leaders, many firms want assistance with their advertising. A digital marketing firm is an ideal partner to work with. You may set up a digital marketing agency with minimal investments. Ideally, you can start alone and hire a team as you grow.
Read More: 18 Profitable Business Opportunities in Dubai for 2024
2. eCommerce Business
E-commerce solutions have seen unprecedented growth. Unlike most other enterprises, a small amount of cash is needed to start an online store. With the right guidance, you may fast expand your eCommerce firm, given the contemporary Dubai market.
Read More: 10 Profitable Business Ideas For Ladies In Dubai
3. Consultancy
Many companies in Dubai specialize in numerous industries. For the most part, small firms need professional advice to develop and thrive. Starting a business consultant will be easy for you if you have a lot of expertise and understanding in these areas. Also, this business idea does not need a high capital investment. You can always start small, onboard clients, and expand your team.
Read More: Top 25 Successful Business Ideas in Dubai, UAE – 2024
What Is The Process of Minimum Investment to Start a Business in Dubai?
The process for starting a business in Dubai is straightforward. Here is a brief overview of the same –
- Start by deciding your intended activity. This is crucial for deciding what type of license you will need, your business’s legal structure, and the need for additional permits.
- Next, finalize your business’s legal structure. Weigh the pros and cons of all to make a wise decision.
- Next, decide on a company name. Ensure it is short, distinct, and complies with all the applicable naming rules. Then, register this name.
- Then, search for a location. See which place will serve best for your intended activity. Once found, you may rent or lease this space and register it with Ejari.
- Then obtain initial approval from the authorities. Once you obtain it, see if you need to obtain any additional permits. If yes, obtain them.
- Once you have the additional permits, gather all documents, fill in the license application form, and submit it to the relevant authorities. Pay the fees as well.
- If everything goes well and there are no issues with your documents or business activity, you will be issued your license. You may start operating, hiring a team (if needed), opening a bank account, and applying for a visa.
Documents Required to Start a Business in Dubai
To set up a business in Dubai, you must provide the following documents to the authorities –
- Application Form for the Business Plan
- MOA and AOA that have been properly notarized by the authority
- Copy of the Sponsor’s passport to certify that he or she is a citizen of the United Arab Emirates
- NOC from the Sponsor
- Bank Reference Letter for Each Shareholder
Depending on your chosen activity, you might need to provide more documentation. To make setting up your business as simple as possible, Bizinvestfirm professionals can help you with all the business paperwork and information regarding the investment needed for business in Dubai.
Cost of Minimum Investment to Start a Business in Dubai
The growing popularity of Dubai as a business hub has brought about a change in the capital investment needed. However, with Establishing a firm in a free zone requires a minimum investment to start a business in Dubai from AED 10,000 to AED 50,000.
Start a Business in Dubai With Bizinvestfirm
Although the business setup process in Dubai is simple, it is advisable to get assistance. Experts from the Bizinvestfirm will break down the whole expense to your advantage, point out potential savings, and make sure you only spend what is required.
As you go through the many phases of launching a business, our business advisers help you with your needs, including paperwork and licensing. All you need to do is get in touch with us, and we will take care of the rest.
