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 cheap business setup in the 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 the 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 the UAE
- Steps to start a low-cost business in the UAE
- Benefits of having a low-cost business licence in the UAE
- How much does it cost to start a small business in the UAE?
Low-cost business setup in the UAE
SPC Free Zone has a low-cost licence that will help you set up your business in the UAE. The cost of a licence from SPC Free Zone is AED 5750
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 licence options. You can also choose from more than 1,500 business activities and combine as many as five different activities under one licence.
As well as being affordable, the process is fast, too. It takes just two hours for a licence 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 in the 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 licence application. You’ll also need to name your business, avoiding any offensive or blasphemous language.
Step 2: Apply for your licence
Next, you’ll need to apply for your licence. SPC Free Zone’s business advisors can help you make sure your papers are in order. Once approved, you will receive your licence in just two hours.
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 licence in the UAE
There are countless benefits to starting up a low-cost business in the 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, 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 business in the UAE is AED 5750. However, there are additional costs to consider when starting a small business in the UAE.
To set up your business, you’ll need to make sure you have the right licence. SPC Free Zone offers four different licences: Commercial, General, Services and Trading. Prices differ depending on the type of business licence 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 licences 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 licences 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 licences issued in just two hours.
We offer over 1,500 business activities and multiple visas under one licence too. Our clients also enjoy competitive benefits such as 100% foreign ownership with zero paid-up capital and a dual-licence option that offers both mainland and free zone on the same licence.
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 business in the 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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