Author: Ayushi Doegar | Published: February 9, 2024
Every year, thousands of aspiring entrepreneurs launch successful startup businesses in the UAE. Boasting one of the world's largest and most diverse economies, this cosmopolitan and well-connected region consistently ranks highly in terms of 'ease of doing business'. There are now 330,000 businesses registered across the mainland and its 45 free zones. With the introduction of the 'Fifty Economic Plan' – an economic framework dedicated to stimulating entrepreneurship and small to medium businesses – this number is only set to grow in the next few years.
This comprehensive guide covers everything you need to know about opening a business in the UAE, including the complete setup process from scratch, legal requirements, and the benefits of establishing a business in this region.
The business setup process in the UAE can be broken down into three distinct stages:
Submit documents and application to receive your license in under two hours.
First, you'll need to determine the legal entity of your business, depending on the number of shareholders involved. The available options are:
Select a trading name for your business. Your chosen free zone will be able to confirm whether the name has already been registered.
Submit your business license application with the relevant paperwork. If approved, you'll receive your license from SPC Free Zone in under two hours.
Receive your immigration card and e-channel application.
This step involves setting up your e-channel services. This online system removes unnecessary paperwork and speeds up the application process. Once you have registered, you will be able to apply for your entry permit.
Receive your entry permit and complete the final steps.
This temporary visa is usually valid for up to 60 days. Once you have received it, you can activate your status change in-country or by exiting and re-entering the UAE, depending on your nationality.
You'll need to take a medical test as part of the process.
Once you've received your medical test results, you can apply for your Emirates ID card.
The steps for setting up a business in the UAE are relatively straightforward. However, you will need to ensure your paperwork is in order to avoid any unnecessary holdups. SPC Free Zone can help ensure that setting up your business in the UAE is as quick and pain-free as possible.
It costs as little as AED 6,875 to start a small business in the UAE. With comparatively low upfront costs, starting a business in the UAE is highly profitable.
Understanding the full costs of a business startup is crucial to success. Consider the following factors:
| Cost Category | Considerations |
|---|---|
| Office Space | Will you start with a smart desk or require a full office unit? |
| Storage | If trading in goods, will you need warehouse and storage units? |
| Visa Costs | Do you require a visa as a foreign national? Will you employ individuals who require visas? |
| Administrative Fees | Notarization charges, medical checks, Emirates ID costs |
| Capital Investment | Requirements regarding capital investments |
| Free Zone Variations | Prices vary considerably between different free zones |
At SPC Free Zone, every business is different, which is why they offer free, bespoke quotations to clients. For an accurate estimation of how much it will cost to set up your small business in the UAE, contact their team of business advisors.
Yes, it is easy to start a business in the UAE. The region offers a comprehensive range of benefits for growing businesses:
The UAE's pro-business government is committed to providing world-class facilities, incentives and security for foreign investors. Legislation is constantly evolving to increase opportunities and make it easier for entrepreneurs and startups to expand.
Unlike most countries, Dubai offers total exemption from personal tax. While VAT does apply to specific business activities, total rates are significantly lower than elsewhere in the region. Additionally, businesses operating in free zones can benefit from:
Setting up a business in the UAE is now easier than ever, with help from business advisors in free zones like SPC Free Zone. The setup process requires less paperwork and can be broken down into easy-to-follow stages.
The UAE boasts some of the most advanced digital infrastructure in the world, with world-leading internet connectivity.
The UAE leads in multiple quality-of-life categories:
The UAE serves as the gateway to both east and west, offering:
The UAE attracts a skilled and effective workforce and proactively identifies human capital needs at competitive costs. Key workforce statistics:
SPC Free Zone is one of the best free zones in the UAE for several reasons:
| Feature | Details |
|---|---|
| Location | Located in the heart of Sharjah with immigration services on site |
| Processing Speed | Get your license in just 45 minutes |
| Pricing | Affordable packages for a range of businesses |
| Visa Allocation | Up to 20 visas under one trade license |
| Business Activities | Choose from over 1,500 business activities |
| Ownership | 100% foreign ownership |
| Capital Requirements | Zero paid-up capital |
| License Options | Dual license option offering both mainland and free zone on the same license |
Interested in setting up a business in the UAE? Get in touch with SPC Free Zone to kickstart your road to success.
It costs as little as AED 6,875 to start a small business in the UAE. However, there are other startup costs to consider including:
Prices vary considerably between free zones. SPC Free Zone offers free, bespoke quotations for accurate cost estimations.
Yes, it is easy to start a business in the UAE. The region offers:
SPC Free Zone is one of the best free zones in the UAE, offering:
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