One of the most important steps in creating a viable business plan is understanding the initial costs of setting up a business. Dubai’s tax free nature is attractive to many entrepreneurs, but it’s important to keep in mind the fees involved in issuing a new trade licence. The DED’s website offers a useful tool which allows potential business owners to estimate the fees involved in obtaining their trade licences.
If you are planning to start a business in one of Dubai’s many free zones, keep in mind that each free zone has different start-up procedures and fees. Many free zones also require that the business owner have a minimum amount of capital if they are establishing the company or enterprise in the free zone as opposed to just opening a branch of an existing company. Another cost of running a business in Dubai or in a free zone is sponsoring your employees and providing them with the necessary visas and paperwork to allow them to reside in the country.
Trading companies should also consider the future costs of importing goods to the country. Dubai Customs has clear guidelines to the types of goods that can be brought in, as well as the costs of importing those goods. If the company will only be trading within the GCC, customs fees will be less expensive thanks to the newly established GCC common market, which promotes trade and employment among GCC nationals.