Company licences in Dubai are one of the most important aspects of establishing a business in the country. The Department of Economic Development (DED) regulates and supervises the issuance of company and business licences in Dubai (DED).
All kinds of organisations, from small and medium-sized firms to global corporations, need a business licence in order to operate lawfully. For those asking how much a small business licence in Dubai costs, the short answer is between AED 8000 and AED 10000, depending on your specific needs (approx.). However, there are a variety of contributing variables that, taken together, may raise the cost of obtaining a business licence in Dubai significantly.
The following are the three most significant contributing variables that have an impact on the cost of a business licence in Dubai –
– The nature of the company –
Business licences in Dubai are granted depending on the nature of the business, which is sometimes referred to as the business activity or the business type, among other things. The licence system is primarily split into four categories of businesses. Commercial licences are issued to trading and commercial entities, professional licences are issued to businesses that provide professional services, industrial licences are issued to manufacturing companies, and tourism licences are issued to businesses that provide travel and tour services. There are several types of licences available. The type of the company’s operations is the most important element in determining the cost of a business licence in Dubai.
The number of business partners –
Another element that may influence the cost of a business licence in Dubai is the number of company partners involved in the enterprise in question. Small businesses with just one owner as a partner are the most cost-effective since they have less expenses. Partnerships are also dependent on the kind of licence that you choose. When applying for a commercial licence in Dubai, it is mandatory to have two partners; however, with a professional licence, you are allowed to be the only partner in the business.
Office space in Dubai that has been rented –
If you rent an office space, it will raise the cost of your company licence by 2.5 percent. Businesses in Dubai are required to contribute 2.5 percent of the entire rent amount towards the cost of obtaining a business licence, according to rules established by the Department of Economic Development. Consequently, it is critical that you choose an inexpensive office space for rent in Dubai to meet your needs.
Approvals have been increased –
The number of permissions and sanctions needed to get a business licence in Dubai is a major factor that may affect the cost of a business licence in Dubai. Additional permits may be required depending on the nature of the company, which may raise the cost of a business licence in Dubai even more. Additional permits that are needed are considered indirect expenses and will not be included in the cost of the business licence.
Consult with a professional –
As a small company, it may be beneficial to analyse these variables in order to reduce the cost of your business licence in the United Arab Emirates. However, consulting with a company setup consultant or an expert from Generis Global is a more effective method of dealing with the situation. A business licence is critical to the success and expansion of your company in the future. Business licences are important for a number of reasons. They not only identify your business activity, but they also play a role in whether or not you decide to grow your company.