Author: Ayushi Doegar

Qualified tax consultants, accountants and bookkeepers are in demand across the globe, but business is booming in Dubai and the UAE. In this article, we will explore how to start an accounting or tax consulting business in Dubai and the UAE. We will cover the following topics:

• Tax and accounting business in Dubai or the UAE
• Steps to get an account license in the UAE
• Cost of Starting an accounting business in the UAE
• Why choose SPC Free Zone?

Tax and accounting business in Dubai and the UAE

In the past decade, as the startup scene in Dubai and the UAE has expanded exponentially, demand for qualified tax auditors, bookkeepers and accountants has rocketed. This demand shows no signs of slowing down either. With the government driving efforts to create an appealing business ecosystem for startups and SMEs, more and more businesses are looking to outsource their financial operations.

For almost all onshore registered companies in the UAE, an annual license renewal requires a mandatory annual audit too. Businesses registered in free zones may not need to submit this document to local authorities to keep hold of their license, but it is still a legal obligation to keep all financial records of the company, regardless of whether they need to submit the report.

Furthermore, many businesses will need to submit an audit or updated financial records for business matters, such as bank loans. That’s a lot of potential business and opportunity for local tax and accounting businesses.

There are other benefits to starting an accounting business in Dubai and the UAE too, such as:

• Increasing demand

The government is taking significant steps to diversify the economy, offering incentives to startup businesses, specialist talent and specific industries. Such businesses require financial support.  

• Introduction of corporate tax

The UAE recently announced the introduction of corporate tax in 2023 for mainland businesses. These firms will need to prepare their books to be compliant with the new laws and will be looking for accounting and tax consulting businesses to help them achieve this.

• Large expatriate community

Around 80% of the UAE’s population are expats. Most of these business owners are unlikely to be familiar with local tax and financial customs, so will be looking for additional financial services support.

• Business-friendly infrastructure

The UAE is one of the most digitally connected countries in the world, with first-rate services, facilities and infrastructure.

• Easy business setup

With help from SPC Free Zone’s bespoke company formation services, you can have your tax or accounting consultancy business up and running in no time. 

What do you need to set up an accounting or tax consultancy in Dubai or the UAE?

In order to open an accounting, tax or bookkeeping consultancy in the UAE, you will need to ensure that you have the correct professional license. You will also need specific accreditation to work in the profession, though this may vary depending on the specifics of your work. For instance, you may need an accounting degree or special qualifications for more specific services, such as forensic accounting and SOX auditing. You will also need to be able to prove relevant financial or auditing experience, with the possibility of an inspection too.

Steps to getting an accounting license in the UAE

Ready to set up your tax or accounting consultancy in the UAE but unsure where to start? The process is relatively straightforward, but you’ll need to ensure you’ve ticked all the boxes to get up and running. We’ve broken the process down into three simple steps:

Step 1: Submitting your application

To acquire a professional license, you will need to submit an application. This document details your business activity (or activities), as well as your company name. Remember, the UAE has strict rules around business names. You should ensure that the name is not already registered and make sure you steer clear of any words that could be considered offensive or blasphemous. Providing there are no bumps along the way, you can receive your professional license in as little as two hours with SPC Free Zone.

Step 2: Authorise access to e-channel services

In order to help speed up the business setup process, the UAE has introduced an e-channel service that eliminates any unnecessary paperwork. To benefit from this service, you will need to sign up for the portal. It will make it easier for you to obtain your entry permit too. This entry permit will allow you to stay in the region for up to 60 days.

Step 3: Activate your status change

When you have received your entry permit, you’ll be able to activate your change in status. To do this, you will either need to activate this in Dubai or elsewhere in the UAE, or exit and re-enter the appropriate emirate. SPC Free Zone can help advise on the best way to do this depending on your country of citizenship. The UAE requires all visitors to undergo a series of medical tests to enable them to acquire an Emirates ID. This ID card is essential since you will require one to open a bank account. Without it, you won’t get paid.

While the steps to getting an accountancy license in the UAE may seem straightforward, they can be difficult to navigate for outsiders. Our friendly business advisors at SPC Free Zone can help you navigate each stage to make the process as pain-free and affordable as possible.

Cost of starting up an accountancy business in the UAE

The cost of a trade license in the UAE starts at AED 6,875. However, the final cost will depend on a number of factors, such as the free zone in which you are applying for a license, the number of licensed activities, the number of shareholders, and other factors.

SPC Free Zone offers some of the most affordable business setup packages in the market but you should also keep in mind additional costs, such as e-channel registration, medical tests, and Emirates ID cards.

Get in touch with the SPC Free Zone team today for a free quote tailored to your specific requirements.

Related Article: Emirates ID Renewal Guide for Expats

Why choose SPC Free Zone?

SPC Free Zone offers fast, flexible and affordable business setup in the UAE. Conveniently located right in the heart of Sharjah, just 15 minutes from Dubai International Airport, we offer onsite immigration services. That means that you can get your UAE professional license issued in less than two hours.

Dedicated to helping you build and expand your business, SPC Free Zone offers up to 20 visas under one license, a dual-license option offering both mainland and free zone on the same license and a choice of more than 1,500 business activities.

Add to this, zero paid-up share capital, and 100% foreign ownership, and it is little wonder why thousands of aspiring entrepreneurs have chosen to work with SPC Free Zone.

Ready to set up a successful accounting or tax consultancy business in Dubai and the UAE? Reach out to SPC Free Zone today for a helping hand.

#SPCFreeZone #TaxLicenseUAE #AccountingLicenseUAE

As most of the world shifts online, the digital marketplace is becoming more lucrative than ever. Regardless of your niche, it’s possible to create an online business in almost any sector, from teaching to affiliate marketing. And, as one of the world’s most digitally connected countries, the UAE and Dubai have become popular destinations for aspiring online business entrepreneurs. In this article, we will discuss some of the most popular and lucrative online business ideas for Dubai and the UAE. We will cover the following topics:

• Why start an online business?
• 10 online business ideas to start in Dubai or the UAE
• Cost of starting an online business in Dubai or the UAE
• Why choose SPC Free Zone?

Why start an online business in the UAE?

It’s no secret that online sales are soaring in the UAE. The e-commerce market is rocketing, the global workforce is moving to a more remote model and rapid technological advances have created a whole host of new employment opportunities. There are huge benefits to setting up an online business too, including:

Scalability

As customer demands fluctuate more rapidly than ever, scalability is becoming increasingly important. An online business allows you to expand your resources as you grow.

Flexibility

Setting up online means you can operate your business from anywhere – you don’t need to be in a fixed place to reap the rewards.  You can choose your own hours, clients and focus too.

Lower overheads and operating costs

Launching your business online removes expensive overheads and operating costs, such as warehouse, inventory, transportation, and retail spaces.

Access to a global market

Depending on your field of work, your business can stay up and running 24/7 without geographical boundaries. That means that, in theory, you can even earn money while you sleep.

10 online business ideas to start in Dubai or the UAE

When it comes to starting your online business, there are virtually limitless avenues for you to explore. But, if you’re looking for inspiration, let’s dig into some of the most common and profitable online business ideas in Dubai and the UAE.

• Blogging

As well as providing a valuable creative outlet, blogging can mature into a full-time, well-paying business. Blogging has come a long way in the past couple of decades, and it’s now possible to monetise your blog through multiple income streams, such as affiliate marketing.

• Business coaching

Settling for a standard 9–5 job is no longer the norm, and there’s now a huge demand for specialists who can help individuals create a more fulfilling career. New business owners are looking for guidance on how to grow their businesses, too. The UAE’s startup scene is ripe with opportunities for those with the right qualifications and experience in business coaching.

• Consulting

As more entrepreneurs look to set up their businesses, demand is growing for specialised services to help support business growth, such as HR, resourcing and project management. You can specialise in a wide variety of industries and set up your online consulting business with minimal capital too.

• IT tech support

IT has always been a vital part of operations but, as technology advances, remote IT support is becoming even more popular with business owners. As companies increasingly look to outsource their businesses’ IT requirements, online IT tech support businesses are becoming more profitable and popular.

• Life coaching

Life coaching is a rewarding and satisfying profession that can empower both you and your clients. It can help people make real changes in both their personal lives and their careers. Plus, you can specialise in interests that you are passionate about, such as relationships or nutrition.

• Online retailer

With the rise of digital marketplaces like Amazon, eBay and Shopify, it’s never been easier to set up an e-commerce shop. Unlike a bricks-and-mortar shop, you can benefit from easy access to a huge global market and online marketing tools to gain insights into your customers’ needs, all while reducing your overheads.

• Subscription box services

Subscription box services have exploded since COVID-19 and are projected to reach $473 billion by 2025. By offering a convenient, personalized, and low-cost way to buy what they want, you can turn one-time buyers into repeat business. That means a more predictable revenue and guaranteed loyalty.

• Translation services

Are you bilingual or fluent in more than one language? You could be sitting on a valuable asset. There’s a huge market for translation services in the UAE, particularly in the medical, commercial, technical and legal fields.

• Virtual assistant

If you have a good understanding of fast-paced working environments and exceptional organisational skills, you should consider offering your skills as a virtual assistant. There are now dozens of online platforms like TastVirtual and VaVaVirtual that make it easy for you to connect with local entrepreneurs looking to tidy up their busy lives and delegate tasks. 

• Web design

As the world becomes increasingly connected online, businesses are seeing the benefits of a well-designed website. The market also rewards newcomers who can keep up with the times with the latest knowledge and experience.

Cost of starting an online business in Dubai or the UAE

The cost of starting an online business in Dubai or the UAE starts from AED 6,875. However, you will need to take into account additional costs too, such as additional visas, offices, and warehouse spaces. For instance, at SPC Free Zone, you can start an online business for as little as AED 6,875 with coworking spaces and no visas. If you need to add visas or permanent office space, this price will rise.

For a free bespoke quote tailored to your individual business needs, get in touch with the team at SPC Free Zone.

Why choose SPC Free Zone?

Conveniently located in the heart of Sharjah, SPC Free Zone offers a fast and flexible business setup in the UAE. You can receive your e-commerce license in UAE in just two hours and benefit from immigration services onsite, too. We offer a wide range of competitive packages with a choice of over 2000 business activities, up to 20 visas under one trade license, and a dual license option that offers both mainland and free zone on the same license. Entrepreneurs can also maximize their profits with 100% foreign ownership and zero-paid-up capital.

Ready to start your online business in the UAE? Get in touch with our friendly advisors for help with business setup in the UAE today.

#OnlineBusinessIdeasDubai #BusinessSetupInTheUAE #SPCFreeZone

The Definitive Guide to Business Setup in the UAE

In the high paced world of today, developing a business is one of the top priorities for individuals who pursue change. Climbing the corporate ladder demands enthusiasm, which entrepreneurs demonstrate with good grace.

Before establishment, a corporation must be registered in the country it plans to function within. In this regard, the location where the business is registered plays a pivotal role. It is important to remember that the ease of regulations and performance standards depend on the rules and restrictions of a company’s home country.

UAE ranks on top amongst the many tax-free countries in the world, because of the competitive options it provides. With government-based incentives to attract foreign investments and options like the golden visa, foreigners and citizens prefer registering their companies in the UAE.

If you are planning to register your company, read on for a detailed guide on everything you need to know.

Advantages of Registering a Company in the UAE

Tax-Free Zone

Compared to many other countries in the world, the taxation laws of the UAE are lenient. With Sharjah emerging as competitive business centres of the world, they have become a magnet for startups and established companies alike.

The UAE government imposes income tax only if the incorporated company is in the foreign banking, oil, or gas industry. Otherwise, corporations of every kind are exempt from taxation in the UAE. Moreover, the free zone areas of the UAE offer lucrative opportunities for businesses.

In tax-free zones, individuals can enjoy tax-free profits. To add zest to the opportunities, it is worth noting that the UAE has signed double taxation agreements with various countries to ensure that foreign entrepreneurs do not have to pay taxes to their country of origin.

Tax Residency

If you register a company in the UAE, it provides you with an opportunity to take up residence as well. The UAE offers long-term visas for entrepreneurs, business owners  and their families that allows them to  stay in the UAE for up to 10 years. The UAE also offers tax residency that significantly reduces the overall tax burden , and provides  the chance of higher profits increasing by leaps and bounds.

Astounding Infrastructure

The UAE, with emirates like Sharjah, takes pride in being the hub for astounding infrastructure. Businesses often thrive in regions where other businesses have successfully established their foundations, mainly because of improved infrastructure, accessibility to talent, and ease of transportation.

A well-developed city with firmly established infrastructure and economy allows companies to thrive in the market. The UAE is one of the most well-reputed countries and, as a result, serves as a great option for business owners from around the world .

Easy Banking

Businesses around the globe often prefer countries where the transaction is easy. The genuine boost of an organized bank system in a company’s home country is essential for growth.

Moreover, a company’s success is mainly dependent upon the right form of credit, ease of banking, and accessibility to banks with a global presence. For companies, this notion is not a hassle since there are a multitude of international banks to choose from in the UAE.

Ownership

Registering a company in the free zone of the UAE implies that foreign investors will have complete ownership of the company they have established. However, keep in mind that the majority of foreign investors who aim to develop a business on the UAE mainland will need the assistance of a local sponsor.

No Capital Requirement

Amongst the various types of companies registered in the UAE, the free zone possibility is one of the most remunerative. A free zone company is ideal for those who are looking for a “tax relief-invoicing facility.”

To set up a free zone company, there is no minimum capital required or a necessity for an actual office facility.

If these advantages seem lucrative to you, read on to find out the different types of business structures you can choose from.

Business Structures in the UAE

The two main types of business structures that a company in the UAE can adopt include:

1. Free Zone Company

This form of business structure is 100% owned by the person who has set it up. One would not need a sponsor or an agent to act as a liaison to manage the venture.

2. Mainland Companies

A mainland company is simply an onshore entity that is registered with the relevant emirate’s government body.

The fundamental feature of a mainland company is that there are no restrictions on its commercial activities.

Once you have decided whether you want to set up a free zone company or a mainland company, you need to understand which type of license suits your business the best.

Types of Business Licenses

There are four types of licenses available in Sharjah:

1. E-commerce License

E-commerce licenses enable entrepreneurs to set up online businesses. It means they can buy and sell goods through their own websites or through online portals, such as Amazon. This is a popular option for those looking to leverage a booming e-commerce market in the UAE.

2. Service License

Service licenses allow entrepreneurs to set up businesses without tangible assets, such as consulting, project management and legal services. There is a wide range of business activities to choose from, including accounting, business setup, education, HR, immigration, marketing, and more. To apply for a service license, you will need to have experience and knowledge of the relevant industry.

3. Commercial License

Commercial licenses enable entrepreneurs to trade and sell specific goods and services in the UAE, export and sell outside the UAE or trade solely within the UAE.

4. General Trading License

General trading licenses allow entrepreneurs to export, re-export, import and trade any number of unrelated goods under one license. So, this means that you could choose to trade in everything from food to furniture. Some specific commodities are not permitted, including tobacco, oil and goods that do not meet health and safety requirements.

As with all the UAE’s free zones, it’s important to make sure you acquire the correct license before launching your business. Failure to do so could result in heavy penalties and loss of credibility in the market.

Step by Step Guide to Register a Company in Sharjah

Setting up a company in Sharjah is a relatively straightforward process that can be broken down into three simple steps:

Step 1: Submit your application

First, you’ll need to select your business activity and choose your company name. The UAE has strict naming conventions, so make sure it isn’t already registered and avoid using blasphemous or obscene language. If your initial application is approved, the Sharjah authorities will issue your license in less than two hours.

Step 2: E-channel services and entry permit

To help speed up business setup in Sharjah, the local authorities have introduced e-channel services. This online portal removes unnecessary paperwork and makes it easier for you to obtain your entry permit. Once your entry permit has been issued, you can stay in the region for up to 60 days.

Step 3: Status change

The final stage involves activating your status change. You can do this in-country or by exiting and re-entering Sharjah, depending on your country of origin. Then, you’ll need to undergo medical tests to apply for your Emirates ID card. This ID card will allow you to open a bank account, take out contracts and rent a property.

Cost of Registering a Company in Sharjah

The cost to register a company in Sharjah starts at AED 6,875. However, you’ll need to factor in additional costs too, such as multi-year licenses, types of business activities and visa quotas. If you require offices, warehouse premises or storage spaces, you will need to pay for these too.

Interested in finding out exactly how much it costs to register a company in Sharjah?

Reach out to our business advisors at SPC Free Zone for an accurate quote tailored to your specific situation and requirements.

Why work with SPC Free Zone?

Our team are experts in company formation in Sharjah. SPC Free Zone offers fast and flexible business setup in the UAE, conveniently located in the heart of the emirate. Entrepreneurs can benefit from unrivaled connectivity, just 15 minutes from Dubai International Airport and seven minutes from Sharjah International Airport.

Our offices also offer immigration services on-site, which means you can get company documents issued within a day and a license issued in under two hours. What’s more, you can choose from more than 1,500 business activities and maximize your profits with zero paid-up share capital and a whole host of more affordable setup packages. SPC Free Zone also offers up to 20 visas under one license and a dual-license option that offers both mainland and free zone on the same license.

Ready to get started with company formation in Sharjah? SPC Free Zone is ready to help you make it happen.

Over the past three years, the spare parts industry has undergone a significant transformation. In the wake of Covid-19, many spare parts business owners have needed to adapt in order to gain a competitive edge and are looking to more lucrative markets, such as the UAE, to grow their businesses. Entrepreneurs looking to start up a spare parts business with the best chance of success are turning to the region, too.

In this article, we’ll discuss the opportunities, legal requirements and setup process for launching a spare parts business in the UAE. We’ll explore the following topics:

• Spare parts business in the UAE – the market opportunity
• Steps to Starting a spare parts business in the UAE
• Benefits of starting a spare parts business in the UAE
• Spare parts business license cost
• Why work with SPC Free Zone?

Spare Parts Business in the UAE – The Market Opportunity

The spare parts industry can be a lucrative space to move into anywhere in the world, but particularly so in the UAE. The region is a leading supplier of spare parts for Iran, India, Africa and Eastern Europe. It is also the second-largest automotive market in the Gulf Cooperation Council (GCC), with notably high demand for parts such as radiators, exhausts and electrical components. This, coupled with a rapidly growing population and ongoing construction development, means this market is only set to get stronger too.

As rising inflation and interest rates slow down the automotive industry, demand for spare parts will grow too. Reconstruction and personalisation is already rising in popularity in the UAE, particularly amongst younger generations. The government is also committed to investing in the latest technologies, like 3D printing. As this develops and demand increases, business owners based in the UAE will be able to optimise their production lines to produce more for less.

Steps to Start a Spare Parts Business in the UAE

To start a spare parts business in the UAE, you’ll need to complete several steps. We’ve broken down the process into four simple stages to give you an idea of what to expect.

Stage 1: Pick your business name and register your company

First, you’ll need to choose your company trade name. Make sure this adheres to the UAE’s specific trading requirements and does not include any blasphemous or offensive language. Once you’ve selected your trade name, you can submit an approval form. If the authorities approve this, you can receive your license in under two hours.

Stage 2: Sign up for e-channel services

To help speed up the business setup process, the UAE has introduced an e-channel service. This online system requires minimal paperwork and enables you to get your entry permit faster. Your entry permit is a temporary visa and is valid for 60 days.

Stage 3: Change of visa status and Emirates ID

After you’ve received your entry permit, you’ll be able to update your visa. Depending on where you are from, you can do this in-country or by briefly exiting and re-entering the country. Then, you’ll need to take a medical test, which involves X-rays, blood tests and other relevant check-ups. Once you’ve passed this, you can apply for your Emirates ID card.

Related Article: Emirates ID Renewal Guide for Expats

Stage 4: Open your bank account and rent a property

As soon as you receive your Emirates ID card, you’ll legally be able to open a corporate bank account, rent a property and sign leases, and take out phone contracts in the UAE.

Applying for a spare parts business license and setting up your business in the UAE isn’t exactly rocket science, but it does require some careful planning and knowledge of the specific legal and local business requirements of the market. Working with SPC Free Zone makes the process much more straightforward and can help speed up each stage, too. For more information about setting up your spare parts business in the UAE, reach out to us today.

Benefits of Starting a Spare Parts Business in the UAE

Entrepreneurs who set up a spare parts business in the UAE are in a better position to maximise their profits by leveraging a wide range of strategic, legislative and business-friendly advantages, including:

• Strategic location

The UAE boasts one of the most convenient locations for spare parts businesses in the world. Located in the heart of the Middle East, entrepreneurs have Asian, African and European markets at their fingertips. It’s also home to some of the world’s busiest seaports, and one of the busiest airports in the world. That offers up a rich pool of import and export opportunities.

• Highly developed manufacturing industry

The government has identified the manufacturing industry as one of the region’s most promising markets. Along with friendly government policies, manufacturing is also becoming more localised as supply chains and global value chains are regionalised.

• High demand

The UAE’s automotive market has recorded the highest demand in the past five years. This applies to all cars too, whether you’re looking for a run-around or luxury model. Many UAE car buyers are now willing to pay a premium for spare parts. Modifications and personalisation to cars are in high demand, too.

• Business-friendly incentives

In free zones like SPC Free Zone, you can benefit from 100% ownership, 100% repatriation of profits, zero paid-up capital and low corporate and income tax.

• High quality of life

Owning a lucrative spare parts business enables you to make the most of the UAE’s famously high living standards. From world-class restaurants and brilliant beaches to first-rate infrastructure and healthcare, entrepreneurs can live a life of luxury for a fraction of the cost of that in other highly-developed cities.

Spare Parts Business License Cost

The cost of a spare parts business license in the UAE is around AED 6,000.  However, you’ll need to price in other factors to the total cost, such as warehouse and facilities, logistics expenses, visas, legal fees and more.

SPC Free Zone offers some of the most affordable and comprehensive business setup packages in the UAE and its free zones. For a bespoke quote tailored to your specific business needs, reach out to us today.

Why work with SPC Free Zone?

SPC Free Zone offers fast, affordable and flexible business setup in the UAE. Conveniently located in the heart of Sharjah, SPC Free Zone is located just 15 minutes from Dubai International Airport and seven minutes from Sharjah International Airport. With immigration services on-site, business owners can get company documents issued within a day and a license issued in under two hours.

With SPC Free Zone, you can choose from over 1,500 business activities, get up to 20 visas under one license and select a dual-license option that offers both mainland and free zone on the same license. We can help you maximise your profits with low corporate and personal income tax, zero paid-up share capital and a whole host of more affordable setup packages.

Interested in learning more about setting up a spare parts business in the UAE? Get in touch with our friendly advisors today.

#SparePartsBusiness #BusinessSetupInTheUAE #SPCFreeZone

The UAE is one of the most business-friendly countries in the world, so it follows that it offers a variety of business setup options for budding entrepreneurs. As well as deciding whether you want to set up on the mainland or in one of the UAE’s free zones, you’ll need to decide on a specific business entity. In this article, we’ll explore one of the most common business entities in the UAE – the sole establishment. We’ll dive into the benefits and setup process while covering the following topics:

• Sole establishment in the UAE – what is it?
• Advantages of a sole proprietorship or an establishment
• Disadvantages of an establishment or sole proprietorship
• Sole establishment UAE vs LLC UAE – what is the difference?
• How do I start a sole proprietorship in the UAE?
• Eligibility Criteria to establish a sole establishment in the UAE
• How much does it cost to start a sole establishment in Sharjah, UAE?
• Why choose SPC Free Zone?

Sole Establishment in the UAE – What is it?

Sole establishment (also described as sole proprietorship) means that one individual owns the business entity with a trade license issued in his or her name. This means that, unlike other business entities offered in the UAE, a company or corporate body cannot own the business. This individual becomes personally liable for business activities. That means creditors can claim personal assets to compensate for company debts, too.

You can form a sole establishment in the UAE regardless of whether you are a UAE, Gulf Cooperation Council (GCC) or foreign national. However, you will need to meet specific criteria and conditions to have the greatest chance of success.

When it comes to sole proprietorship, UAE nationals, and GCC nationals have more options. They can form any type of sole establishment in most fields, including trading, import-export, real estate development, industrial and professional services. They can also set up consultancies covering a range of different business activities.

Foreign nationals applying for sole proprietorship can only acquire a professional license. For instance, if you wanted to get sole establishment in the UAE as a foreign national, you would need to offer professional services, such as consulting, IT, legal, engineering and marketing. You would not be eligible to do business in import-export, trading or real estate development.

In order to secure sole proprietorship, UAE laws require foreign nationals to appoint a Local Service Agent to liaise between the company and government entities. This can either be an individual or a company. This is an important step and we recommend working with a reputable business. Our market-leading, friendly business advisors at SPC Free Zone have helped countless individuals secure their sole proprietorship.

Advantages of a Sole Proprietorship or an Establishment

While sole proprietorship might look more limiting for foreign nationals at first glance, it offers considerable opportunities and advantages too, including:

• Sole ownership

Foreign professionals can retain 100% ownership of their business without shareholders, enabling total control of business operations.

• Profit retention

Business owners retain 100% of their profits.

• Affordable setup

Setting up a sole establishment involves lower startup costs and no business capital requirements, making it a more affordable option for entrepreneurs.

• Faster business registration

The business setup process for sole establishment is easier and quicker to set up than you think.

• Practise in any location

The business can legally practise professional service anywhere in the UAE. There are no restrictions on office premises locations either.

Disadvantages of an Establishment of Sole Proprietorship

That said, securing sole proprietorship is not without its challenges and disadvantages, such as:

• Personal liability

A sole proprietor of the business is personally liable for business debts. The company is inseparable from the individual.

• Office space is required

Unlike a free zone company, sole establishment requires office space to incorporate the company. Virtual offices are not recognised by the Department of Economic Development (DED).

• Harder to sell your business

While you’re unlikely to be thinking about selling your business before you’ve even started it, you may need to consider this in the future. The sale of sole establishment also means the sale of debt.

Sole Establishment UAE vs LLC UAE – What is the Difference?

Sole establishment and Limited Liability Company (LLC) are two popular business entities in the UAE, although there are a few important differences between them.

The key difference between the two entities is that sole establishments can only be owned by one person, but LCCs must be owned by several individuals and corporate bodies. An individual cannot own an LLC. Unlike sole establishment, LLC business owners are not personally responsible for business debts and liabilities. Instead, liability is limited to the shareholder’s investment in the company’s capital.

LLCs also need to be careful about mixing business and personal accounts, ensuring that you keep funds and banking records separated. Any violation of this can result in you losing your limited liability protection.

However, like sole establishment, there are no minimum share capital requirements for LLCs. LLCs are also able to obtain a number of visas without restrictions and can purchase real estate without restrictions.

How do I Start a sole Proprietorship in the UAE?

Setting up a sole establishment is easier and faster than you think, providing you jump through the right hoops and have all of your documents in order.

Step 1: Initial approval

The DED needs to first acknowledge that they have no objection to your business. Once this is approved, you’ll need to submit three trade name options, of which at least one must be approved to progress to the next stage.

Step 2: Local Service Agent agreement

Once the DED has acknowledged your intent and approved your trade name, you can sign an agreement with a Local Service Agent (LSA).

Step 3: Office space

As already discussed, all sole establishments legally require an office space. Once you’ve secured your desired space, you must submit the tenancy contract.

Step 4: Additional approvals

Depending on your specific circumstances, there may be additional approvals required.

Step 5: Make your payment

When everything is approved, you will receive a payment voucher to make your payment. Then, you’ll be able to collect your license for your sole establishment.

While the steps for securing sole proprietorship are straightforward, it pays to have support from those who are closer to the system. With support from SPC Free Zone, you can tap into a wealth of market, industry and legal knowledge.

Eligibility Criteria to Establish a Sole Proprietorship in the UAE

Establishing a sole establishment in the UAE is relatively easy and fast, considering you meet the conditions of sole establishment owners that include:

• Foreign nationals or expatriates can only start sole establishments that provide professional services, like medical services consultancies, management, legal and engineering consultancies, IT services, and similar services.
• The owner of a sole establishment that provide certain services should obtain educational qualifications to get the needed licenses, as well as a previous experience in the domain.
• Foreigner-owned sole establishments need to have an NSA; an entity or local UAE national who carry out all liaison activities like getting licenses and permits, but not necessarily has an actual involvement in managing the business.

How Much Does it Cost to Start a Sole Establishment in Sharjah, UAE?

SPC Free zone offers you a wide range of business setup packages that start from AED 6,875. However, there are additional costs to consider. The total price of your general trade license will vary depending on factors including:

• Type of business activity
• Business structure
• Visa quota
• Number of business partners
• Office and warehouse premises

Frequently Asked Questions

How much does sole establishment cost in UAE?

At SPC Free Zone, business setup packages start from AED 6,875.

Can I open a company in UAE without a residence visa?

Yes, in most cases. Though there may be conditions depending on the type of business you wish to start, your nationality, and the country of your tax residence.

How much does it cost to open a shop in UAE?

In terms of costs, you should anticipate paying anywhere from AED 6,875 and above depending on your requirements. Registering in a free zone is the most popular, cost-effective option.

What activities can be conducted under an Establishment or Sole Proprietorship?

A host of activities can be conducted under an Establishment or Sole Proprietorship including consulting, IT, legal, engineering and marketing.

Can I open a corporate bank account with a sole proprietorship?

Yes. A sole proprietor can open a business bank account.

Can I sponsor others as the owner of a sole establishment?

Yes, you may can sponsor your dependants’ visa applications.

Do I need to rent office premises with the sole proprietorship license?

While renting an office is optional, a sole proprietor must at least have a flexi-desk or co-working space. This also helps the sole proprietor when applying for a bank account.

Why Choose SPC Free Zone?

Looking for fast and flexible business setup in the UAE? SPC Free Zone offers quick, convenient, and competitively priced business support located in the heart of Sharjah. With immigration services onsite, you can get your license issued in just two hours. We also offer a dual license business option that offers both mainland and free zone on the same business. Plus, you can benefit from a choice of over 1,500 business activities, up to 20 visas under one trade license and 100% foreign ownership with zero paid-up capital.

If you’re looking to start a business, get in touch with SPC Free Zone’s market-leading experts today.

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The UAE combines a well-developed and diversified economy with world-class infrastructure, excellent transport links and attractive tax incentives for aspiring entrepreneurs. While the region is home to some of the world’s biggest business success stories, SMEs are still seen as crucial for economic growth. To ensure that startups can thrive in this ecosystem, the UAE has focused efforts on enabling entrepreneurs to start and scale businesses affordably.

Free zones offer the easiest way to enjoy low cost business setup in UAE. Acquiring a low-cost free zone license is simple, provided you work with specialists who understand the market, laws and compliance.

In this article, we will explore everything you need to know about low-cost business setup in UAE. We will dive deeper into the advantages of keeping costs down at the outset and explore everything you need to know about the setup process. We will cover the following topics:

• Low-cost business setup in UAE
• Steps to start a low cost business setup in UAE
• Benefits of having a low-cost business license in the UAE
• How much does it cost to start a small business in the UAE?

Low-cost business setup in UAE

SPC Free Zone has a low-cost license that will help you set up your business in the UAE. The cost of a license from SPC Free Zone is AED 6,875

When you choose to establish your business with SPC Free Zone, you can choose from a wide variety of cost-effective packages with multi-year license options. You can also choose from more than 1,500 business activities and combine as many as five different activities under one license.

As well as being affordable, the process is fast, too. It takes just two hours for a license and six working days for a residence visa. Thanks to e-channel services, most of the process can be completed remotely too through state-of-the-art digital systems.

Steps to start a low-cost business setup in UAE

Regardless of your budget, the process for starting a business in the UAE involves a series of simple steps:

Step 1: Outline your business activities

First, you’ll need to choose from 1,500-plus business activities and list these on your license application. You’ll also need to name your business, avoiding any offensive or blasphemous language.

Step 2: Apply for your license

Next, you’ll need to apply for your license. SPC Free Zone’s business advisors can help you make sure your papers are in order. Once approved, you will receive your license in just 45 minutes.

Step 3: Visa approvals

Then you’ll need to apply for visas on behalf of you and your employees. To do this, you should apply for e-channel services to receive your entry permit, a temporary visa valid for 60 days.

Step 4: Status change

Once you have received your permit, the local authorities will activate your status change. This means that you can undergo your medical check and apply for your Emirates ID. It enables you to apply for things like a bank account, property rentals and mobile phone contracts.

Benefits of having a low-cost business license in the UAE 

There are countless benefits to starting up a low cost business setup in UAE. These include:

• Increased profit

By developing a lean cost structure from the outset, you can capitalise on wider margins. This means you can also offer a stronger value proposition to your clients by offering competitively priced products and services.

• Increased marketing spend

Good marketing enables you to keep your products and services at the front of your customers’ minds. Without it, you could have the most ground-breaking products but never reach your target audience. By saving on setup costs, you can divert your funds into a good marketing strategy.

• Increased hire spend

It’s important to get the right people on board your business from the outset. By shaving off unnecessary upfront costs, you can ensure your business attracts the best talent from the get-go.

• Easier operations

Entrepreneurs that make large initial investments are left with the heavy burden of high bills, staff, and other hidden costs. With a low cost business setup in UAE, you have more flexibility and more cash flow for smoother operations.

How much does it cost to start a small business in the UAE?

The cost of starting a small low cost business setup in UAE is AED 6,875.  However, there are additional costs to consider when starting a small business in the UAE.

To set up your low cost business setup in UAE, you’ll need to make sure you have the right license. SPC Free Zone offers four different licenses: Commercial, General, Services and Trading. Prices differ depending on the type of business license you require, as well as the type of business you will be conducting.

You’ll also need to take office and facility costs into consideration. For instance, will you be leveraging SPC Free Zone’s flexi-desk offering or will you need a permanent facility for your employees?

For an accurate and personalised quote tailored to your business requirements, get in touch with our friendly business advisors at SPC Free Zone.

What is the cheapest free zone in the UAE?

The cheapest free zone in the UAE is SPC Free Zone. Located in the Emirate of Sharjah, it offers hassle-free, multi-faceted setup for those looking to set up their dream business in the UAE.

While SPC Free Zone’s core licensing activities are Publishing and Printing, it issues licenses for over 1,500 business activities, ranging from e-commerce and engineering to consultancy and construction.

As well as being cheap, SPC Free Zone offers a whole host of additional benefits for entrepreneurs. These include:

• Proximity to the airport

SPC Free Zone is just 15 minutes’ drive from Dubai International Airport

• Fast services delivery

In-house immigration speeds up business setup significantly, with licenses issued in less than two hours and visas issued in seven working days

• Top-rated infrastructure

State-of-the-art 24/7 coworking spaces, unfurnished and furnished office spaces, storage solutions, shell and core solutions, and meeting rooms, located close to the Carrefour Mall

• Business-friendly eco-system

A wide network of entrepreneurs and startups to tap into, with real opportunities to actively contribute to the growing UAE economy

• Easy bank account opening

Wide range of banking partners to choose from

Why work with SPC Free Zone?

Offering fast, convenient and affordable business setup in the UAE, SPC Free Zone is the perfect launchpad for entrepreneurs and startups looking to keep business setup costs low, without compromising. Entrepreneurs can easily register a company and begin business operations without delay, with licenses issued in just two hours.

We offer over 1,500 business activities and multiple visas under one license too. Our clients also enjoy competitive benefits such as 100% foreign ownership with zero paid-up capital and a dual-license option that offers both mainland and free zone on the same license.

There’s no need to do it alone either. Our business advisors are experts in the market and can help you navigate your business setup, every step of the way.

Ready to launch your low cost business setup in UAE? Get in touch with SPC Free Zone to find out how to do this as quickly and cheaply as possible.

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