How to start a business in Dubai without money
How to start a business in Dubai without money
Strictly speaking, it’s impossible. Legally you can not start a business in Dubai without money even online even as a freelancer since the tax regulations involved in all UAE business aspects.
To have a legal business in Dubai, you need to be licensed, which costs money of course. So the only way would illegal, which would be far from a good idea.
Don’t be like those dodgy dreamers that work off the back of a spouse visa, or consider themselves freelancers or influencers, without the proper documentation.
Of course, people fly into Dubai as a visitor, ‘Test the market’ with their business idea yet if it does succeed, very rarely feel compelled to ‘get legal’.
1 How could you open a bank account for your business?
2 How could you raise finance or bill companies?
3 How could you take a registered office address, or lease a home, or car?
Yes, there are start-up groups and hubs, but they all need money. Even if you find a sponsor, you need money in Dubai.
It’s Dubai baby, no money no honey.
If you are technically strong or have some new business idea then it is possible otherwise it doesn’t look possible as for a legal business you must have to spend money.
But again as I mentioned at the start, if you have some skill then you can find some partner (it will not be easy though) who can invest in the business and you take the business to next level using your skillset.
Keep trying, hope luck will favor you. Ideally, it is possible but not realistically.
How to Start a Business in Dubai With No Money as a Foreigner in 2021
It depends on the type of the business you want to establish (manufacturing, trade, services or retail); however, the following is a broad guideline to keep in view while you do your planning for the capital/finances that you would require:
1 – legal costs (business setup costs, professional fee, government charges, etc): it starts from US$2,000 and goest up to US$10,000. This is the approximate fee for setting up a business in the trade, retail, or services sector and does not include manufacturing.
2 – lease of commercial office/retail space (mandatory for the issuance of business license): commercial office space starts, in Dubai, starts from US$30 /sq ft/year and goes up to US$200 / sq ft/year.
Retail space starts from US$90 / sq ft / year to US$500 / sq ft / year. The prices in other emirates are cheaper. To get a license issued, please note, that you would need either the lease of a commercial office space or retail space.
Once you are done with above then you would be able to start the operations of your business. As a thumb rule, I would suggest that you shall have a working capital (in addition to the costs mentioned in point #1 and 2 above) sufficient enough to cover the operational expenses of the business for 4 – 6 months.
Other than above I would strongly suggest keeping your business model where you shall be able to receive cash payments for the services/goods delivered in advance or at least at the time of delivery. Currently, the trade credit cycle is around 120 days.
Business margins are good in Dubai but the biggest challenge is to stay always cash positive.
How much money do you require (minimum) to start a business in Dubai?
Without many details about what kind of business you’re planning or interested in, It’s tough to give you a budget idea.
Apart from that, there are some other factors that play a key role while making a budget plan (Like in which area you are planning to start your business?
In the free zone or near the city? Do you have a local partner? etc.)
- If you’re planning to start a grocery store, it will cost around 75–80K AED.
- Setting up a restaurant will cost you around 60–70K AED (Prices may vary depends on how luxurious you want to make your restaurant).
However, just to incorporate a business/company, be it in a free zone or by sponsorship, you will need at least 40–45K AED (Excl. Rent and other investments).
There are plenty of companies you can find online who can help you setting up your business there.
What business should I start with 10000 AED in Dubai?
If you want to establish your independent business in Dubai by following legal channels which is LLC (Limited Liability Company) then this amount is peanuts.
Sorry if something hurts you or your feelings but my suggestion would be that please check the complete requirements of business establishment first.
You should be knowing that here you cannot establish a business without the sponsorship of UAE nationals.
Here in every business or company, local nationals are 51% shareholders without any investment because that is the policy by the government because they are the sponsors and you will be only 49% shareholder of the company.
But this is not a thing to be worried about because as of now they are not getting any benefit or profit from you as being your sponsor or partner.
But in the future, it may happen. So be prepared for everything.
How to start a business in Dubai without money
UAE nationals are doing business in establishing new businesses. They take their annual fees of 8–10 thousand Dhs for being your sponsor.
Then 10–25 thousand Dhs annually for license depending on your category of business. If you are thinking of a general trading license it can be around 11–13 thousand Dhs.
Remember you are allowed to do business only for the category you have selected. Like if you have taken a license for a software company then you can only deal with software distribution or selling. You cannot sale or install any hardware unless you have a license for that category too.
If you are going for the LLC option then before getting a license you should have office space. The government will only give you a license depending on your office space.
Your license would have limitations depending on the office space and category you select, like a number of work visas you can have for your employees will depend on this.
Company name reservation 1000 DHS. In special cases, you have to pay 2000 DHS extra every year.
Office rent will be included as per space. Starting from a minimum of 25 thousand a year which can be given in 4 installments.
Afterward, visa expenses are there. 6000 Dhs for you and you each family member or employee. 3000 visa processing fees and 3000 security deposit which will be returned on visa cancellation.
Then minor expenses for documents typing. Like EJARI. Etc etc.
And so on…
If you are looking for a thing like freelancing or self-employment in which you don’t want to have office space and visas for your employees you can go for a Free Zone option known as FZE in which you will get a license to work and visa for yourself only.
And you can work as a freelancer but in this option business categories are limited and still the first time you will be needing 25–30 thousand Dhs. initially excluding paperwork cost and then 15–25 thousand for license annually.
So let me conclude here by saying that 10,000 is nothing. If you want to establish business with cool office space comes with 100,000 or at least 50,000 for low budgeted business.
Here are some great ideas for a small budget:
- Food Processing & Delivery Services
- Green Business
- Home-Based Cooking Business
- IT Industry
- Jewelry making
- Poultry Farming
- Real Estate
- Recruitment Agency
- Recycling Business
- Vending Machine
1- Food Processing & Delivery Services
Demand Soars for Food Delivery Companies, but They’re Still Not Profitable. … The good news for the food–delivery players is that demand has skyrocketed as the Covid-19 pandemic has forced people to stay at home. Order size has increased as well.
Sometimes, to help them pay the commission fee to the delivery service provider, the prices of items on the menu is marked up by the restaurants. The customers are also charged a flat fee for every restaurant where you place an order. When an order comes in, it is sent to the couriers closest to the pick-up location.
Get started with Instacart here. Since you shop and deliver orders, each order will take longer, but this also means you’ll likely earn more per order than you would with another one of the best delivery apps like GrubHub or DoorDash. Instacart is a great way how to make $100 fast.
Here are some clear and easy steps to get you started:
- Determine how much money is needed to start a business. …
- Research your target market. …
- Plan your food delivery menu and services. …
- Cover your legal and financial requirements. …
- Third-party injury and medical payments. …
- Third-party property damage. …
- Personal & advertising injury.
A food delivery app can earn revenues based on a commission-based model. Whenever a customer simply places an order, the restaurant has to pay a certain commission to the app owner.
2- Green Business
A green business plan must also account for the environmental and social impacts of the proposal. This is called a triple-bottom-line approach: measuring success according to the impacts on people, the impacts on the planet, and the generation of profit.
Sustainability in-house policies can easily be leveraged to turn businesses into far more profitable entities. Consumers start to avoid those companies that don’t pay attention to their sustainability policies and don’t put extra efforts into improving their solutions and policies.
Is Being a Green Business Right for Your Company?
- Start with an environmental audit. …
- Use recyclable materials. …
- Repurpose or redesign your products. …
- Place recycling bins throughout the office. …
- Encourage and reward environmentally conscious behavior. …
- Reduce paper use. …
- Get everyone on board.
The concept of Green Business Models tackles these initiatives by proposing business models that deliver value to customers while encouraging sustainability, including by reducing resource use/waste and promoting environmental benefits.
Starting a handyman business may seem like a difficult job. Although there is freedom to the work, it doesn’t seem very lucrative. After all, the average handyman (maintenance and repair worker) only makes about $36,000 a year according to the Bureau of Labor Statistics.
Many women love a man who doesn’t mind getting dirty. Handymen have an “edge” about them that women love. Women love he fact that a handyman has expertise in many fields. Although most women know how to do many things a handyman can, but it’s better to watch the show than be a part of the cast sometime.
Start a handyman business by following these 9 steps:
- Plan your Business. …
- Form a legal entity. …
- Register for taxes. …
- Open a business bank account & credit card. …
- Set up business accounting. …
- Obtain necessary permits and licenses. …
- Get Business Insurance.
- Define your brand
- Establish your Web Presence
Hiring a handyman typically costs $65 to $1,200, or $390 on average, using hourly or flat rate pricing. Expect to spend $60 to $125 per hour plus materials when quoted hourly rates. Flat rate.
Handyman duties and responsibilities
- Clean facilities regularly.
- Regularly perform maintenance jobs and light repairs.
- Regularly perform various landscaping tasks.
- Fill gaps and provide painting services.
- Perform lighting installation and carpeting.
- Repair equipment and various machines and appliances.
An early career Handyman with 1-4 years of experience earns an average total compensation (includes tips, bonus, and overtime pay) of AU$25.34 based on 12 salaries. A mid-career Handyman with 5-9 years of experience earns an average total compensation of AU$27.05 based on 12 salaries.
4- Home-Based Cooking Business
Coffee, tea, chips and popcorn, muffins and cookies, and jams and honey are among the items, all non-refrigerated, that home-based food entrepreneurs are allowed to sell.
While Cottage Food laws allow a person to legally bake and prepare certain foods in their home kitchens and sell them on a small scale, (typically at farmers markets and direct to other consumers), very few states allow them to sell to restaurants and grocery stores.
The number one most profitable food and beverage business is a bubble tea shop. It’s the most profitable because the cost of goods sold (COGS) is relatively low. It ranges from 10% to 15%. The items are also super easy to make and it is relatively simple to keep the quality consistent.
10 Tips for Starting a Home-Based Food Business
- Learn the regulations and requirements for your state and county. …
- There has to be a market for your business to be successful. …
- You should conduct your business as a legal entity. …
- Hire professionals when needed. …
- Put everything in writing. …
- Having a professional image goes a long way.
- Your phone will not just magically ring with orders.
- Pricing can mean the difference between success and failure.
- Realize that your materials price will fluctuate.
- Buying in bulk can save considerable money
If you have gotten countless compliments on your cupcakes or find yourself with requests from your friends to be their personal chef for special occasions, a home-based food business might be a great way to earn extra money while doing something you enjoy.
But even though frosting cakes or bottling your homemade barbecue sauce may seem more fun than work, a home-based food business is still a business. As with any business, you need to plan and research before picking up your mixer or designing labels for your salad dressing.
5- IT Industry
Typically, a business plan is a document that will detail how a company will achieve its goals. Most business plans include the following sections: Executive summary: This section will include an overview of the company, your unique value proposition, and a team overview.
Many entrepreneurs still overlook the importance of a technology startup business plan. In a space as competitive as the tech industry, a lack of preparation will surely pave the way to disappointment.
Instead of diving in without any concrete strategy, a plan provides a foundation for sustainable business growth.
In this article, we’ll explore the essential elements of a tech startup business plan, and provide the insights you need to create a plan for success.
6. Jewelry making
Start-up costs can be fairly low–probably $500 to $1,000, or even less if you already have everything you need to get started. You can expect to earn $10,000 to $250,000 per year, depending on the number of pieces you churn out, how desirable they are and how aggressively you market your wares.
Jewelry making is a viable low investment business for hands-on creatives, but crafting skills aren’t required—making jewelry one of the most popular things to make and sell online. … Whatever your motivation or skill level, starting a jewelry making business comes with its own set of considerations and complications.
Making jewelry is therapeutic and profitable, you can make it at home, be your own boss, work at the hours when you feel best and, above all, is a wonderful profession in which you add beauty to people’s lifes through your jewels. Making jewelry is fun!
7 Steps to Start a Jewelry Business
- Define Your Line.
- Legalize Your Business.
- Separate Your Business and Personal Finances.
- Find Startup Funding.
- Find Suppliers and Create Your Jewelry.
- Sell Your Jewelry.
- Establish Your Brand and Start Marketing.
Multiplying your cost of materials + packaging x 4 in my jewelry pricing formula sets your retail price high enough so that if you sell your pieces at wholesale or on consignment to a shop, you’ll still make a profit. Wholesale and consignment prices are typically 50% to 60% of your retail price.
Startup costs. Quality photography equipment is notoriously expensive, so you’ll want to start off with the minimum: Buying a $5,000 lens doesn’t make sense if your business isn’t making money yet. Many professional photographers say to plan on budgeting about $10,000 to start your photography business.
There’s A LOT of truly great photographers out there in the world who can’t make a living from their photography. … Having a successful and profitable photography business is really not about being an amazing photographer! If it was then every amazing photographer out there would be rolling in cash… But they’re not.
“Photography is one of the most competitive businesses out there,” Farren says. “You need to be a very good business person to make a decent living. You’ll get there much more quickly if you start out right.” Creating a business plan may seem like a daunting task, but it doesn’t have to be if you have the right tools.
The Components of a Photography Business Plan
- Create an Executive Summary.
- Write a Product and Service Description.
- Consider Your Target Market.
- Assess the Competition.
- Develop Key Marketing Strategies.
- Consider Your Operations Strategy.
- Plan the Financials.
- SWOT Analysis.
- Make a Timeline
Professional photographers typically charge $100 to $250 per hour or around $25 to $100 per final edited image. Day rates range from $300 to $500 for birthday parties and $1,000 to $3,000 for a wedding. On average, freelance photographers make $17,000 to $78,000 annually.
Preparation and goal setting are crucial to success in any business. A plan for your photography business can make all the difference.
Start today by working on your photography business plan. If you can set aside 30 to 60 minutes a day, you’ll finish before you know it. And then you’ll be far ahead of most photographers, who have no plan whatsoever!
8. Poultry Farming
Poultry farming, raising of birds domestically or commercially, primarily for meat and eggs but also for feathers. Chickens, turkeys, ducks, and geese are of primary importance, while guinea fowl and squabs (young pigeons) are chiefly of local interest.
Generally speaking, it will cost you anywhere between 5,000 and 25,000 dollars to begin a small scale business in the poultry industry, and this includes the costs of your employees’ salaries for the first three months of operation.
How can I start poultry farming?
- Learn poultry farming from the nearest poultry farm.
- Decide the chicken products to focus on.
- Select a good poultry farm location.
- Set up a poultry cage for the birds.
- Purchase some poultry farming equipment.
- Buy starter chicks from a trusted supplier.
- Employ reliable workers for the poultry farm.
- Feed the chicks properly.
- Maintain a proper poultry health management program
- Market and sell your poultry harvests
Most notably, chickens and hens in intensive poultry farming often suffer from different conditions and pain. A lot of intensively reared chickens suffer from lameness as a result of fast growth, a result of selective breeding and concentrated feed.
Types of poultry.
- Chicken. …
- Turkey. …
- Duck. …
- Goose. …
- Game birds. …
- Ostrich. …
This poultry farming for beginners guide is just a tip of the iceberg of what you will find in poultry farming. I advise you to always consult with a poultry farmer near you.
Unless you already have prior knowledge of the business, I urge to start small, gather experience and expand your poultry business gradually. Don’t forget to write a poultry business plan that will guide your business decisions.
9- Real Estate
Real estate is one of the most lucrative careers in the UAE, with agents and brokers facilitating millions of transactions, architects designing world-famous structures, and developers churning out one project after the other.
Residential prices in Dubai and Abu Dhabi have fallen the most compared to 150 cities around the world, new research reveals. According to the latest Knight Frank Global Residential Cities Index for the second quarter of 2020, Abu Dhabi values fell by 8.3 percent and Dubai by 6.6 percent over the past 12 months.
How to Set Up a Real Estate Business in Dubai
- Explore the location and business type to set up your real estate company. …
- Register a trade name for your real estate business. …
- Educate or certify yourself for licensing process. …
- Hire back-office services. …
- Set up your real estate office.
Buying property in Dubai
In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.
Can a foreigner start a business in Dubai?
Dubai is a strategic location for many international companies that operate their businesses here.
Dubai is ranked as the world’s easiest place to do business by the World Bank.
UAE welcomes individuals and corporations that are interested in doing business in Dubai, With a sound financial system and a stable political environment.
Dubai offers an excellent springboard to jump-start or expands your business in the world.
Many global corporations chose to relocate their headquarters in Dubai because of benefits like attractive corporate tax rates, availability of funding, talented workforce, flexible immigration policies for expatriates, advanced infrastructure, low crime rate, etc…
The Key Points of starting a business in Dubai as a foreigner are :
- Get to know and understand Dubai first
- Company Registration
- Finding a reasonable business property
- Complying concerned law’s
- Apply for the work permit
How to start a business in Dubai without money
Of course, a foreigner/ex-pat can start a business in Dubai. Dubai welcome all investors, entrepreneur from all over the world with open arms.
Starting a business in the UAE should not take you more than a week once you’ve sorted all your legal procedures.
Some of the basic steps for a foreigner to start a business in Dubai are-
- Type of Business-our type of business will determine the kind of license you require. Whether it’s commercial, professional, or industrial licenses, these will define the basis of your operations.
2) Ownership-If you are looking for mainland company setup than 51% will be for UAE nationals and 49% will be for the ex-pat. It requires a minimum of 2 and a maximum of 50 shareholders in order to run the business and if you’d like 100 percent ownership of your company, you need to opt for a license and location in one of the many free zones of the UAE.
3) Legal form-Depending on your location and type of business, there are rules regarding the make-up of the company.
4) Trade Name-Trade name is a very important part of the legal procedure. The company name should ideally indicate the nature of the business unless it is a branch of another company.
5) Share Capital-Minimum share capital is usually set out in the Memorandum of Association of your proposed company.
6) Premises-Once you have your legal procedures and forms ready to go, it would be best to shortlist some offices with costs and other details
7) Employees-In most legal forms of the DED, you need to hire a manager to oversee operations and have him ready to be on board before your registration is approved. But in other cases, you may not be allowed to hire at all.
8) Local agent-For DED licenses, it is mandatory to have a local agent, partner, or sponsor and this is great support for foreign nationals who can help in all government offices.
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How to start a business in Dubai without money as a Foreigner Legally