If you’re dreaming of starting your own small business in Dubai, like a cosy coffee shop or a freelance graphic design service, or an online store selling handmade crafts, guess what? You need a small business license in Dubai. This license works like your official ticket to operate legally in the city, and it is as important as the business you’re setting up. So, don’t worry, I’ll walk you through what it costs, why prices can change, and how to make sense of it all. Let’s dive deep.
Why Do You Need a Business License in Dubai?
Imagine trying to sell your crafts without permission; yes, it’s not allowed, and you could get in trouble. A business license shows that you’re following the rules set by the Government of the UAE for the different economic Zones. In addition, it also allows you to open a bank account, hire people, and even get visas if needed.
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There are a few main types of licenses, and the cost depends on what your business does. For example:
Commercial License:
As the name suggests, it is a commercial license, so it is basically good for buying and selling stuff, like a small shop.
Professional License:
A Professional license is perfect for someone who is providing services, like consulting or freelancing. It is sort of ideal for a one-person team or an individual.
Industrial License:
An Industrial license is for making things or manufacturing goods, like a small workshop or even a large-scale business.
E-commerce or E-trader License:
Well, if you’re selling online, this can be super affordable. These are simply licenses that you get for your e-commerce online business, for example, a shopping website on Shopify.
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How does a Small business license cost define?
You see, not every small business pays the same amount; it’s not a one-size-fits-all kind of strategy. I can point out some of the stuff that affects the cost of setting up a small business.
What Your Business Does:
Some activities cost more because they need extra checks. For instance, opening a restaurant might push costs higher than a simple consulting gig due to health, sanitation, building, and raw food approval.
Where You Set Up:
Dubai is mainly divided into the mainland and free zones. Free zones, such as DMCC, can be cost-effective and will include perks like tax-free profits. Mainland is mostly for brick-and-mortar commercial stores.
Office Space:
You usually need some kind of space, even if it’s just a shared desk. Renting a small spot might add a hefty fee, plus a 2.5% fee on that rent for the license. The majority of professional license holders tend to skip offices as they are mostly working from home.
Visas and Partners:
If you need visas for yourself or employees, things gonna get costly.
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How can I get a small business license?
If you want to set up a small business in Dubai, Universus Consulting is here to help you out. We can help you calculate exact costs for free, and that too at a more affordable rate than ever. And let me tell you, teaming up with a business setup expert can save you time and avoid mistakes.
Documents needed for a Small Business License
For a small business license, you’ll be required to submit these to the authority.
- Filled-out application form.
- Your business plan, which explains what you’ll do.
- Passport copies for all owners or shareholders (plus visa copies if you’re already in the UAE).
- Passport-size photos of the manager or director (usually 2-3 colour ones).
- No Objection Certificate (NOC) from your sponsor.
- Bank reference letter or your last two years’ financial statements.
- A letter of intent, which is a short note saying why you’re starting the business.
- Details of your share capital
- Notarised Memorandum of Association (MOA), outlining ownership and rules.
- Proof of your office address.
At the end
The Dubai government wants small businesses to succeed, so trust me, there are ways to save. Our ideal suggestion would be to go for a free zone if you’re okay with their rules. If you’re testing an idea or setting up a subsidiary company, go small. You need to avoid fancy offices at first and use shared spaces to cut rent costs. This will save you tons. However, be realistic: These costs are just the start. You’ll also need money for expenses such as marketing and inventory.
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Starting a business in Dubai can be thrilling, and with the right license, you’re on your way. If this fits your dream, reach out to us and we will help you setup business in dubai.