How much does a small business license cost in Dubai?
Business licenses in Dubai are one of the crucial elements of starting a business. Company and business licenses in Dubai are monitored and mandated by the Department of Economic Development (DED).
From small and medium enterprises to multinational companies – all types of businesses need to be licensed to operate legally. If you are wondering how much a small business license cost in Dubai, then the quick answer to that is minimum AED 8000 to AED 10000 (approx.). However, there are a lot of contributing factors that may collectively increase the cost of a business license in Dubai.
The three most prominent contributing factors that influence business license cost in Dubai are described below–
Nature of the business–
Business licenses in Dubai are issued based on the nature of the business also referred to as the business activity or business type. The licensing structure is mainly divided under four business types. They are commercial licenses issued for trading and commercial entities; professional licenses issued to businesses offering professional services; industrial license issued to manufacturing companies and tourism licenses issued to travel and tour services. The nature of the business is the prime factor that defines the cost of business license in Dubai.
Number of company partners–
The number of company partners in a business could be another factor that may fluctuate the cost of business license in Dubai. If you have a small business with only yourself as a partner in the company, that would be best to keep the costs lower. Partnerships also depend based on the license that you opt. Some licenses such as a commercial license in Dubai mandatorily require you to have two partners, while with a professional license you can be the only partner in the company.
Rented office in Dubai–
Renting an office space will increase your business license costs by 2.5%. Due to the regulations noted by the Department of Economic Development, businesses have to pay 2.5% of the total rent amount towards the cost of business license in Dubai. Thus, it is crucial to ensure that you get an affordable office space on rent in Dubai.
A significant part that may differ the business license cost in Dubai is the number of approvals and sanctions required. Based on the business activity additional approvals may require that further increases the cost of business license in Dubai. Additional approvals required are indirect costs and will not be directly levied on the business license cost.
Speak to an expert–
Analyzing these factors can be a good idea as a small business in order to lower your business license cost in Dubai. But a better way to deal with it is by speaking to a business setup consultant or an expert from Shuraa Business Setup. A business license plays a key role in the future and scope of your business. The business license you choose does not only define your business activity but also matters when you consider expanding your business.
To get the right business license in Dubai, speak to a business setup consultant from Shuraa Business Setup.