The location of Dubai makes it one of the most sought-after business locations in the world. However, to migrate for business to Dubai it can prove to be a cumbersome task as the cost of setting up a E-commerce Business in Dubai is one of the major obstacles for both the established business owners and more so for the budding entrepreneurs.
However, if the business investor has a clear idea about the costs that will be incurred to establish a business in Dubai it can make the entire process much easier and smooth. While deciding to set up a business in Dubai, an investor has broadly two choices- either to set up the business in Dubai Mainland or any one of the Free zones. The cost incurred depends on the choice made by the investor.
The notable advantages of setting up an E-commerce business in Dubai are:
- Minimal taxation on capital investment and income.
- Low operating cost.
- Hundred per cent ownership of the company.
- Duty-free import-export.
- Growing Environment.
- Supporting government law.
Costs that will be incurred by an investor while deciding to set up a business in Dubai
Mainland Company
The costs of setting up the E-commerce business in Dubai Mainland depends on the nature of the E-commerce type, visa costs, and rent or buying cost of office space. Starting a business in mainland Dubai comes with the mandatory government fees for notary, fees to local agent, license, and registration at the government department along with the legal translations.
Such fees can be charged one time or can also be charged annually. The second mandatory fee that has to be paid by the investor is the Investor Visa fees that’s to be renewed every three years. Moreover, an investor will have to pay an annual sponsorship fee, one-time legal fees and, commercial property fee along with the visa cost per person.
A one-time fee for getting initial approval from DED(Department of Economic Development) is paid for getting a license that will allow an investor to start the business. When the investor chooses a name for his business setup, a one-time fee is paid.
Freezone Company
One of UAE’s most sought out business setup structures is Free zone company formation in Dubai. While other legal forms also exist, free zones offer a series of benefits that no other jurisdiction can contest. One of its key propositions is 100% foreign ownership, a privilege of owning 100% shares of the company despite being a foreign national in UAE.
This allows the expat investor to establish a company in any of UAE’s 45 free zones and get full ownership, 0% tax on corporate income, 0% tax on personal income and 100% repatriation of capital funds. Aside from this, company owner also enjoys financial privacy, free transfer of funds and specialized benefits depending on business activity. Free zone license must be renewed on a 3 yearly basis but again depends on the free zone you select.
Office space cost can vary from annual or termly payment with respect to the zone you select. Each zone practices its own set of rules and the prices can differ vastly. Considering the types of office space such as serviced, furnished or smart desk etc. according to your business capacity and the term you plan to pursue.
A fee is charged against the registration of your company with the free zone authority. Depending on the type of E-commerce and the free zone selected, the cost can vary indefinitely
The visa cost is also a one-fee to give the applicant the legal status of investor and the legitimacy of practicing business in the free zone. For employee visa, the process is faster than Mainland LLC but the number of visas are limited to the sized of the company.
Knowing all these costs information, do you want to start an E-commerce Business?
Register your E-Commerce Business with us
If you are looking to register an E-commerce business in the Dubai UAE, click on the link below for detailed information of E-commerce Business Registration Process.
Horizon Biz Consultancy Services:)
Horizon Biz Consultancy is providing best services in this area also since we have helped lot of Startup E-commerce Companies in the UAE.
Horizon Biz Consultancy is experienced in E-commerce business setup. Our qualified accountants are experienced working with Amazon, eBay, noon, Stripe, Shopify, Magento and many more popular E-commerce platforms.
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We can provide you not only Dubai’s but, UAE’s best Business Setup, Accounting, Taxation, Finance Consultancy, and other relevant services. We are working since 6 decades. And years of experience will never let you down.
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