5 ways to lower your Dubai business set up costs agents won't tell you.

Mar 23, 2024

In this post, I’m sharing my personal tips on how to make business setup in Dubai cheaper, based on my experience as a local business owner.

If you've been here for a while, you know this is a passion topic of mine. Last year, I set up my own business in Dubai and was disappointed by the dishonest players and misleading information that made it seem soooo difficult.

That's why over the months, I've shared a lot of content in this newsletter about starting and running a business in Dubai, including launching a free, crowdsourced AI chat that answers all your basic questions and recommends founder-trusted advisors - askfounder.ae.

So, what are my 5 tips?

1. Don't do it.

Jokes aside, do the numbers really work in your favor?

Dubai is an amazing place, and I'm happy having my business here, but I see so few people really understanding the true cost of setting up and running a business.

A 9% tax (not zero anymore) comes with a price tag. License, visa, accounting, staying 6 months in the country to be a tax resident, VAT, all the knowledge fees 😃. Those are tens of thousands of dirhams every year just to do business legally.

Do the math first. Will you really save on taxes? Is your product/service a fit for the local market? Agents won't tell you this since they make business when you see everything with pink glasses on. Be a rational business owner and answer these hard questions first.

2. Do it on your own.

If you run a standard business without a complex structure, there's really no point in using an agent, in my honest opinion.
Both Freezones and Mainland have dedicated teams of experts to navigate you through the process, without the need for a middleman.
You can easily save 5k-30k AED by just reaching out to the Freezone directly and doing the medical, biometrics, and bank account opening yourself.
I did that last year too and had everything done in a few days.

If you run a business somewhere, you should also educate yourself about the rules and not rely 100% on external advice.

You can check this article or my full guide covering every single detail of the process step by step.

Dubai Freezone company set up - this guide will save you money

Kristina

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3. Launch in an incubator / startup program.

If you're launching/scaling your startup in the UAE and aren't in a hurry to get your license within a week, I recommend applying to a couple of startup programs that usually offer discounted licenses (since they often run as part of a Freezone).
Just read the terms properly and check if renewal fees aren’t too crazy.

And you can easily meet with other founders, too. As you already know from my posts, the network is everything here.

in5, Sheraa, DIFC Innovation Hub, Hub71, Sandbox by dtec, and many more are worth checking.

4. Set up outside Dubai.

Due to its popularity and number of businesses, Freezones in Dubai are also the most expensive ones.
Other Emirates like Sharjah, Ras Al Khaimah, Fujairah have packages 30-50% cheaper.
You can live anywhere in the UAE with your visa, so there's no impact. But when it comes to offices and overall convenience, you maybe won't get that level of comfort. Their regulations might also be very different.
I would probably only go outside Dubai if I'd want to use the company for business outside the UAE or only for a visa (if not eligible for Golden/Green visa).

5. Use referral discounts.

These are hard to get, not every Freezone is giving a referral bonus (Mainland certainly does not) and you need to know a person who’s with them already.

I'm a happy customer of Meydan Freezone and often recommend them to others, since their process is fully digital and their staff is honest and knowledgeable.

Use my referral that will give you 700 AED discount on your license (that’s 12 500 AED). Drop me an email at kristina@melsova.com, and I'll connect you with Meydan directly (they even offered a VIP service to my referrals, which is really kind).

Hope this was helpful, and all the best with your venture!

See you next Saturday,