How to Lower your Business Setup Costs: There are multiple things that one needs to invest in while setting up a business in the UAE. To save extreme expenditure, one needs to find a way to optimally spending on setting up costs, without spending more than you have to. Here are some ways to stay aware of and monitor your overhead costs:

Get an Expert!

Hiring an expert who has experience in business set up will help you determine all sorts of preliminary costs at the planning stage itself. Determining the various privileges of setting up a company will help you steer clear of all sorts of costs you can avoid.

Naming your Company

Giving your company an Arabic name can save you up to 2000 AED as the whole trade name fee can be exempted in the final payment voucher. If you choose a name in a foreign language, you will incur these costs. There would be a license fee on this every year that can simply be saved upon taking up an Arabic name.

Choosing the Right Jurisdiction

The company set up costs depend on the jurisdiction you choose to operate in. All areas have different set up costs. In the mainland, the costs are derived by the Department of Economic Development (DED). Whereas in the offshore and free zone companies, it is independent of that and each jurist=diction has its own system of governance that decides costs.

Choosing your Local Sponsor

Choosing a local sponsor for your business can be tricky. Ideally, they are 51% shareholders and have a share of the profits at a predecided rate, But since the majority shares are in their hands, they can choose to act upon it. Therefore, finding someone you can trust and keeps his word is important. Documentation can be drafted for this purpose.

Monitoring Accommodation Allowance Fee for Employees

The UAE law for mainland companies requires that the company pays a prescribed amount for its employees’ accommodation. By finding our which employees are actually from UAE, you can reduce the amount from the payment voucher and save money.

Doing enough research appropriately, depending on your type of operations and getting help from experts will help minimize costs and save you a lot of money in the long run.

Setup your Business Today!