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How Much Money You Need To Become An Owner of Small Start-up Businesses In UAE?

Starting a new business in a city like Dubai is an exciting process. But it has another aspect too where you need to pour a huge amount of consideration before making any major decision. The factor which is needed to be judged the most is nothing but money. Starting a business setup in the UAE requires money. Therefore, as an owner, you need to be very conscious of the different realms of business expenditures. While inferring the cost of starting any Freezone business setup Dubai, you need to be logical.

But why? Because starting a business is risky as well as intriguing. Hence, it’s mandatory to evaluate the facts like office space, legal fees, payroll, business credit cards and other institutional expenditures. The key factor of any successful business is an early calculation of launching a business.

Apart from all these factors, there are plenty of factors that are required to be assessed while starting a new business. You need to estimate the cost of launching a business before your business will open its door to customers. Contemplation of these aspects may help you obtain better insight into the long and difficult process of a company formation.

Keep reading this article to know the best way-outs of calculating the estimated cost of a hassle-free company formation in Dubai. But before that let’s take a quick look at the factors about which you can get to know while calculating the cost.

  • Calculate profits
  • Perform a break-even analysis
  • Ensure loans
  • Captivate investors
  • Redeem money with tax deductions

Specify The Business Type

The first step in evaluating the cost of starting a business is none other than calculating the business expenditure first. Remember every business falls into three major categories.

  • Brick and mortar business
  • Online business
  • Service provider.

Each of these categories of business has its own expense structure. Hence, it’s advisable to review the type of business you are planning to start. You’ll need to pay money as per the type of your business set up in the UAE.


After determining the type of your business, the next big thing of consideration is the location of your business. Whether you are renting an office space or purchasing an office space, it may require a big portion of your estimated budget. You might expend between $100 per month up to $1,000 per month when it comes to the matter of renting an office space.

But your expenditure would completely depend on the type of space and the area you’re borrowing. You can reduce these costs if you offer work from home or appoint a space that can be co-workable. Both the ideas are appropriate for a Freezone business setup in Dubai. And if you want to launch a service-based business, you can visit customers directly to further lower maintenance costs.

Business Appliances

No matter what kind of business you wish to launch, every successful business requires relevant and effective equipment to ensure better functionality and improve productivity. Equipment costs for start-ups can vary from $10,000 to $125,000, relying on the category  and size of the company.

For example, if you are opening a salon, you may require styling chairs and other hair accessories. If your choice is opening a restaurant, you need to purchase relevant furniture, commercial-grade ovens, utensils, diseases and many more. If you are interested in launching a moving or shipping company, you need to purchase a truck. So every business demands different equipment.


Another most important factor of a company formation in Dubai is assigning the best capable and trained employees. Whatever the business you are planning to open, you’ll need employees to run the business efficiently. You might pay between $100 per employee per month up to $1,000 per employee per month. Hiring talented employees not only ensures better productivity but also secures the functionality of the equipment.

Legal Fees or Licenses

While starting a new business, one of the most important to-dos is to choose the business entity which includes tax, legal and financial suggestions. If you determine to assimilate your business or wish to set a particular detriment company, you’ll require to document incorporation statements or company statements. The filing tariff can range from $50 to $725 completely relying on the state.

Though, the fee is under $300 in the majority of states in the UAE.

If you don’t want to incorporate, you’ll possibly require to pertain to federal or state licenses or permits. The kinds of legal papers that are required would differ in various initiatives and locations of free zone company set up in Dubai.

  • For example, businesses that are related to the agriculture or aviation sectors demand federal licensing.
  • While on the other hand, service-based businesses may require trade-specific licenses.
  • Retail business organisations are likely to demand sales tax licenses or permits.


In recent contemporary years, marketing has been becoming one of the most important factors in starting any business. No matter what would be the type of business, whether it’s an offline store or an online company, marketing is regarded as one of the game-changers. Marketing can be two major types, one is physical marketing and another is digital marketing.

Some digital marketing elements can be costly like ads but the good news is that some marketing elements can be extremely beneficial and are available free of cost. The entire thanks go to social media for providing some free marketing methods when you are planning a Freezone business setup in Dubai.


There is nothing more helpful than a company website to provide lucrative business prospects. Though there is plenty of free website creating services are there, you may require a premium plan for creating a website for businesses that may improve the overall business possibilities. Here we are attaching the estimated cost of taking the best website crating services for your business.

  • Wix: For Wix, you may need to pay $13 to $39 per month for a premium plan.
  • Squarespace: If you select Squarespace, you have to expend $12 to $26 per month.
  • Weebly:The cost of taking the service of Weebly is $5 to $25 per month.


The next aspect of planning the cost of new start-ups is nothing but the inventory charges. If you’re in the retail, wholesale, manufacturing, or distribution trend, you may be required to conserve inventory to sell, as soon as you probably can. You should assign almost 17% to 25% of your budget to inventory while planning a free zone company set up in Dubai that relies on your business type.

Apart from all these aspects, other major considerable aspects of calculating the cost of a start-up business is the following.

  • Insurance
  • Lawyer and accountant
  • Market Research
  • Printed marketing material
  • Utilises

Again it’s better to cite that commencing a business can be both exciting as well as risky. Therefore, evaluate all the factors well to get a better idea about the cost of opening a new start-up business in Dubai, UAE.

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