United Arab Emirates, the name itself is enough now if talking about a successful career or business. However, opening an office in Abu Dhabi is a big decision for anyone who wants to grow their business. This is one of the top cities in the world for businesses because it offers great opportunities, strong infrastructure and government support.
Before starting you business it is important to know the cost of opening an office in Abu Dhabi. Read on as this blog will explain each and every costs clearly so you can plan your budget and start with confidence.
Why Abu Dhabi is the Perfect Place to Start Your Business?
Abu Dhabi is a said to be a extremely great place for the beginning of your dream business. It gives many advantages that aren’t easy to discover elsewhere. The city has a convenient locations, easy guidelines for businesses and really low taxes. These big motives make Abu Dhabi a great desire for both small and large organizations.
One of the best things about starting a business here is that you can own 100% of your company in most industries. This means that you do not have to share your business with a local partner. On pinnacle of that, there may be no income tax and Abu Dhabi marketplace is growing quickly. That is why so many people see Abu Dhabi as the best location to set up their business.
Breaking Down the Numbers You Need to Know
The cost of opening an office in Abu Dhabi depends on your business type, location and size. Usually, the costs range from AED 9,000 to AED 30,000 which is about $2,450 to $7,900. Mainland offices usually cost more because they require extra approvals and licenses. Freezone offices are cheaper and still give you many benefits.
Here is a list of what you will need to pay for:
- Business Licensing Fees
- Office Rental Costs
- Government Approvals
- Visa Applications for You and Your Employees
Mainland Office Setup Costs and Things They Include
A mainland office comes with many advantages. You can directly work with the UAE market and bid for government contracts. However, setting up a mainland office is more expensive than other options.
Let’s take a look at what you will need to budget for:
- Trade License Fees
AED 10,000 to AED 15,000 per year.
- Government Approvals
Some businesses may need extra approvals depending on the type of work.
- Office Rental
Costs start at AED 1,000 per square meter per year.
- Visa Applications
Each visa costs between AED 3,000 and AED 7,000 and lasts for two years.
Freezone Offices Can Be a Valuable Option for Your Budget
If you are looking to save money, freezone offices in Abu Dhabi are a good choice. Freezones let you own your business completely, avoid taxes and make the setup process simple. Another advantage is that freezones often have shared office spaces or flexible desk options which are more affordable.
Here is what freezone costs look like:
- Registration Fees: A one time fee starting at AED 5,000.
- Annual Licensing Fees: Between AED 10,000 and AED 20,000.
- Office Space: Shared spaces or virtual offices can cost as little as AED 500 per month.
- Visa Costs: Each visa costs AED 2,500 to AED 5,000.
FACT:
Freezones are best for industries like technology, media and logistics where businesses need fewer approvals and specialized facilities.
The Biggest Factors That Impact Your Setup Costs
When planning the cost of opening an office in Abu Dhabi, many things can affect how much you will spend. Here is a simple explanation of these key points to help you understand better;
Business Type
The kind of business you want to open plays a big role in how much money you will need. For example, businesses like consulting or retail are usually easier and cheaper to set up because they do not have complicated requirements.Â
On the other hand, businesses in manufacturing or industries like construction often need extra permits and inspections. These extra steps, like ensuring safety or meeting environmental rules, increase costs.
Office Location
Where you make a decision to open your office impacts how much you may spend. Offices in busy areas or main business hubs in Abu Dhabi cost greater due to the fact they’re in high in demand. If you are searching out a more affordable choice, freezone offices are a better choice.Â
However, freezone places of work may not allow you to trade directly within the UAE marketplace so it is vital to consider what suits your business best.
Visa Requirements
The number of employees you plan to hire will decide how many visas you need to apply for. Each visa cost between AED 2,500 and AED 7,000 depending on how long it is valid. These expenses can add up quickly if you have a large team.Â
Besides the visa fee, you may also want to cover the medical health insurance or other requirements to your employees which will increase your expenses more further.
Legal Structure
Your choice between a mainland or freezone legal structure also affects your costs. Mainland businesses usually have higher registration and renewal fees because they require more government approvals.Â
However with these higher costs come benefits like full access to the UAE market and the ability to bid on government contracts. Freezone companies are cheaper to set up but they might restrict where you can do business within the UAE.
Additional Services
Some services are not optional and can increase your total setup costs. For example, official documents often need to be translated into Arabic which requires certified translators.Â
Legal help for registering your company or drafting important documents also costs extra. These services are necessary to meet local laws so it is a good idea to include them in your budget from the start.
Why Investing in Abu Dhabi is Totally Worth It?
Starting a business in Abu Dhabi is not just about costs as it is about opportunities. So here we have come up with some of the main reasons why Abu Dhabi is worth the investment;
- No Income Tax
You do not have to pay corporate or personal income tax which means you keep more of your profits.
- Access to Bigger Markets
Mainland offices let you trade across the UAE and even bid for government projects.
- Longer Licenses
Business licenses in Abu Dhabi are valid for two years which means fewer renewals and lower costs over time.
- Room for Growth
Abu Dhabi supports innovation and business development giving you plenty of chances to grow your company.
Let BHgroup Help You Make the Right Move
Opening an office in Abu Dhabi is interesting as well as a profitable experience but it could additionally be tough. That is why running with professionals like BHgroup could make a huge difference. BHgroup is one of the maximum relied on real property groups in Abu Dhabi. They will let you find the proper office area, recognize licensing rules and make clever choices.
If you are ready to open your workplace in Abu Dhabi then just connect with BHgroup and let them guide you little by little. Contact BHgroup today and turn your business idea into reality.