If you are determined to start a business in Dubai, you will first need to be familiar with the rules and regulations of setting up a business here. One of the essential rules of launching a company in Dubai or anywhere in the United Arab Emirates is to hold a valid trade license to begin. However, many startups and new entrepreneurs are not very comfortable with the trade license cost and look for alternatives that can help reduce the costs. But, in this effort, many fall prey to fraudulence, and many may end up with other problems. Therefore, it is suggested, before you plan to apply for a business license, you must make yourself familiar with all essential information related to the issuance of a license in Dubai.
This blog will help you understand a few basic ways to reduce the cost of obtaining a trade license in Dubai.
1. Avoid Choosing Foreign Name for Your Company
People worldwide fancy English names for their companies. But in Dubai, it may cost you more. So, avoid a foreign company name, be it English or any other non-Arabic name, instead opt for an Arabic or Khaleeji name. It can help you save 2000 DH. According to UAE rules on company naming convention, you have to pay an additional 2000 DH for an English name.
2. Avoid Eastern European or any Other non-Arabic Name
If you have a regional name in your company’s original name – that from any region other than local (Arabic or Khaleeji), let’s say, Eastern Asian, South Asian or European or any other regional name, again you can remove that and save 1000 DH.
3. Reduce the Number of Business Partners
You can reduce the number of business partners mentioned in the trade licence for a cost-effective solution.
4. Lessen the Involvement of Business Partners
We tend to include all business partners when we apply for a business license. You can try to reduce or lessen the involvement in the trade licenses.
5. Limit Your Business Partners for LLC
In a Limited Liability Company, there are many business partners. You can limit that number or have one party in a trade license to save money while obtaining your trade license.
6. Rent a Smaller Office Space
Make sure when you go out searching for office space, you find a smaller space or lesser rent space, which is available at a low cost.
7. Rent a Virtual Office Space
If your business permits, you can also opt for virtual office space instead of physical office space. It can help you operate without having any physical space. Virtual office space is comparatively much cheaper than a physical office space.
8. Have an Ejari in Your Name
If you live in Dubai and have an Ejari in your name, you can save 1000 DH – by receiving your trade licence payment voucher at that address.
Above, we have listed a few tricks and tips on how you can be cost-effective while applying for a trade licence in Dubai or anywhere in the United Arab Emirates. You can follow them when you plan to set up a business in Dubai or other emirates.
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