Creating a clear budget is a fundamental step for any new venture. Knowing the expected costs helps you plan your resources and avoids surprises. This guide provides a straightforward look at the main expenses you will encounter, giving you a solid foundation for your financial planning.
In the following paragraphs, we will detail the key costs involved in a DMCC free zone business setup.
License and registration costs:
The business license is your core fee. This cost depends on your chosen activity, like general trading, consulting, or media. The license fee generally covers the initial registration of your company with the authority. You must also budget for the issuance of the license certificate itself.
Office space requirements:
Most companies want a physical address. You can rent a private office, a flexi desk in a shared space, or use a simpler virtual office package. The price changes based on the size, location, and type of space you select. This is often a large part of your annual budget, so consider your necessities with care.
Government and admin fees:
Remember to include official government charges. These are separate from your license fee and cover the processing of your application. You will also want to pay for items like a company stamp and any document attestation that is mandatory. These are essential parts of making your company official.
Visa and employee costs:
If you plan to sponsor yourself or your team, include visa fees. Each visa has associated costs for application, issuance, and medical screening. There may also be deposits required, which are typically refundable under certain conditions. Factor in the number of people you wish to sponsor from the start.
Additional yearly expenses:
Your costs do not end after the first year. Budget for your annual license renewal fee. You will also want to renew your office space agreement. It is wise to set aside funds for potential legal or accounting services to help with annual compliance and reporting.
With these categories in mind, you can build a realistic budget. Always ask for a full, written breakdown of all expected costs from your service provider. Good planning at this stage sets your new business on a path to smooth and sustainable operation.
