Cheap company formation
Very often we get asked about the cheapest way to do the business setup in Dubai. And it is quite understandable, however, when you are choosing the registration options you have to consider not only the price but what you get and what you need.
A lot of our clients ask us about hidden fees. Why is that and what kind of hidden fees can be there?
Why do people ask about hidden fees?
Not all consultants are honest and instead of giving you the full information, they omit some facts, so that not to scare the customer away. As a result, they get a cheap initial price with builds on in the registration process. It ends up with not a cheap setup at all.
What kind of hidden fees can be there?
Based on experience from clients who faced issues, we can say that it can be the following costs:
- Flexi desk/office,
- Memorandum and Articles for association for single shareholder,
- Medical check up or Emirates ID
How to avoid additional charges?
When you are sending a request to business formation companies don’t put only «cheap company formation» in the company formation form. Make sure you express your needs in the request. For example, you can mention that you need a company and a bank account. You can ask which set of documents you will receive. Try to contact several consultants and compare the information which you receive.
There are many criteria for choosing a business setup consultant in UAE and the right registration for yourself but you can focus on several points:
- Comprehensive information,
- Straight to the point,
- Answering your questions,
- Comfort of communication,
- Reasonable pricing with a clear description of fees.
As for the registration itself, it is a more complex question as there are a lot of factors involved into the process. We usually have to look into many details until we are able to advise on the right setup option. Our basic questions to you will include:
- Do you plan to conduct your business and receive payments from/to UAE?
- Will you require any resident visas for yourself/family/employees?
- Do you need a physical facility- warehouse or office?
- What is your nationality and place of residency?
- Do you need a personal or a corporate bank account?
There are many other questions which can be asked but the ones above are the top priority ones. Answers can help us to figure out in which direction to move and how to go around client’s requirements. At the same time, some clients have a perception of their situation and requirements and when a major factor is the price, we have to adjust to it and be cooperative so that to meet the budget of the client. So what is in demand these days?
Usually, the option of the cheapest offshore company formation is one of the most popular. It is a small setup that is done without your personal presence and allows you to link it with an online payment solution or a payment gateway. It is usually chosen by those who want to do online business in Dubai or in other countries. It can work out for trading activities and even consulting services.
Choosing an offshore or a non-visa license in a free zone with a digital solution, you will avoid a lot of expenses, such as flight, hotel costs, insurance, visa fees. You will get the setup with a fast registration process and fast opening of a digital account. Nowadays digital accounts are getting opened much faster compared to the process of the corporate bank account in UAE banks along with a resident visa (it is asked by most of the banks).
So what is your opinion? Is it easy to choose the right authority and open a small company and banking solution for it or not? Yes, it is. It is indeed very easy to start a company in Dubai when you know your requirements for the company and have set the right expectations.
All you need for this is the right consultant and a clear vision of what you need. Give us a shout if you need a piece of advice and we will be happy to provide you with a bit of free advice.