Friday, October 5, 2012

The Costs Of Starting A Business In Dubai

Dubai offer effectively tax free business operations, making it a very attractive business destination - but there are costs that one must consider when looking at setting up shop in Dubai.

In addition to the natural financial aspects of starting a business (startup expenses) there are other costs that needs to be considered, though these costs should be mentioned in the financial papers of a business, they are specific to certain government requirements in order to have the legal status of the business.

In Dubai, some of the fees paid to the Department of Economic Development include:

- License and registration fees.

- Photocopy fees.

- Working round the clock fees.

- Commercial registry issuing fees.

- Service agent fees.

- Representatives card fees.

- Preliminary approval fees.

- Decorations permit fees.

- Trade name reservation fees.

- Commercial name Fee Scope Indication.

- Trademark name fees.

- Foreign company name fees.

- Abbreviation fees.

- Temporary advertising sign boards.

There are other bits and pieces and fees that are specific to certain types of business activities. There are also fees that are related to changes and amendments to specifications and legal status of the business and its partners and/or senior directors.

Companies need to also consider the renting costs of their premises, be it an office or a show room, as rents play a major role in starting up any business in Dubai, just like any other major city, where prices vary greatly depending on the location chosen for the business premises.

Other costs are associated with the number of workers/employees working for the company, these fees are paid to the Immigration Department of Dubai, and they include:

- Visa fees.

- Labor card.

- Health Card.

- National ID.

Again, certain businesses might have to pay additional fees for their employees, for example, restaurants needs to pay Waste Fees that depends on the number of workers the restaurant recruits.

Certain government authorities also have specific requirements to be met depending on the nature of the business, and it is very important to understand the requirements related to the business in question, in order to avoid having to make changes and adjustments in the business physical sittings in later stages.

Business owners might consider using the services of one of the companies specialized in facilitating the business start up process, such companies offer business packages that covers all the above costs, while it may not save them money, it will certainly save them the hassle.

Ben J Simmons is Dubai business consultant and has assisted many companies set up shop in Dubai's many freezones, including DAFZA ( and Dubai Internet City.

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