Starting a business in Dubai can be an exciting prospect with many advantages like tax-free profits and excellent infrastructure. However, entrepreneurs need to understand the minimum investment required and key costs involved to launch a successful business in Dubai. This article will provide an overview of the minimum capital needed, registration fees, visa costs, office space rental, and other expenses to factor when planning your Dubai business.
Company registration and licensing costs for a Dubai business starting from AED 15,000
The first major investment for starting a business in Dubai is company registration and licensing fees. The cost varies based on activity but starts from around AED 15,000 for a mainland company. Key licenses like trade license, immigration card, establishment card, and Ejari contract for leasing office space will add to costs. Using a business setup consultancy can help navigate rules and minimize costs.
Residency visa expenses for entrepreneurs and employees in Dubai
To legally live and work in Dubai, the business owner and any staff need residency visas such as the Entrepreneur Visa or Employment Visa. These have fees of AED 6,000 to AED 10,000 per person depending on visa type. There are also mandatory health insurance fees of around AED 3,000 per visa. Annual renewal fees are AED 6,000 per visa.
Office rental costs starting from AED 20,000 annually in Dubai
Renting office space is a major expense, with business centers in Dubai costing AED 20,000-30,000 annually for a small space. Upscale offices in prime areas like Downtown Dubai or DIFC can cost over AED 100,000 per year. Shopfront rental in malls starts from AED 60,000 yearly. Coworking spaces offer more flexibility with monthly plans from AED 1,500.
Employee salaries averaging AED 60,000 to AED 120,000 in Dubai
Quality staff is crucial for success, and salaries in Dubai are relatively high to attract talent. Average junior to mid-level salaries range from AED 60,000 to AED 120,000 per year. Senior executives can earn over AED 300,000. Salaries vary by industry, experience level and skills. Hiring costs include visas, insurance, amenities etc.
Professional services expenses for legal, accounting, marketing etc
In addition to employee costs, entrepreneurs need professional services like legal advisors for AED 10,000+ per year, accounting at AED 30,000+ annually, marketing agencies for AED 50,000+ etc. Ongoing fees for PRO services, trademark registration etc add up.
While launching a business in Dubai does require considerable capital and has ongoing costs, the opportunities and advantages also make it an attractive option for entrepreneurs worldwide. Performing in-depth financial planning and utilizing professional advisors can help maximize ROI.