A Complete guide on how to start business in Dubai without money

Have you ever wondered how to start a business in Dubai without money? Even though it may seem like something impossible, the truth is that there are many opportunities in this promising city. Thus, you just have to do your research to create your business from scratch with a tight budget.

In this article, you will learn everything you need to know about how to start business in Dubai without money. Moreover, you will find out more about the government initiatives, supports, and regulations so you can have success.

Identifying Business Ideas with Low Capital Requirements

Although Dubai is a thriving city with a booming economy, it does not mean that to invest in a business you must have a lot of money. Therefore, you can enjoy an opulent lifestyle with a minimum budget by incorporating your company.

Nonetheless, one of the crucial steps for knowing how to start a business in Dubai without money is to research great business ideas. Also, these ideas must have low capital requirements, so you can fulfill your goal.

Identifying business ideas is not an easy task. So, to do it, you should understand the following recommendations:

• First of all, be realistic about your expectations. Look for those areas where you have talent or in which you can offer a service that requires minimal or no investment.
• Design a strategic approach to how you will carry out this idea as a business.
• Be completely sure that starting a business in Dubai With No Money is possible. You just have to rely on your capacities and form alliances with other like-minded entrepreneurs.
• Learn more about each Emirate’s method of doing business. For example, look for an introduction to business in Abu Dhabi or Dubai.

Market Research for business in Dubai without money

The first step on how to identify potential business ideas with low capital requirements is doing extensive market research. But, make sure to follow the proper steps so you can

If you want to know how to start a business in Dubai without money, go through the following for market research:

1. Define your customer (buyer persona): think about who will your ideal customer be. With this, you can consider the audience that will be interested in your business. Keep in mind that you want to have a business that provides a great profit, even though you are starting it without too much investment.
2. Look for businesses where this buyer persona is interested but requires less investment.
3. Research which businesses are cheaper to run
4. Write your business plan based on what you have found.

Once you have carried out your market research, the next thing you have to do is consider where you want to incorporate your company. For instance, you could open a business in Dubai Mainland or a Free zone.

Niche Opportunities in Dubai’s Market

The following are the best niche opportunities for those wanting to know how to start a business in Dubai without money:

• Dropshipping: Dropshipping is a business that you can start from scratch without having too much money, and even without investment. So, you have to learn how dropshipping in the UAE works. This consists of selling products from a supplier, but you do not need to buy the product as you are just the seller. You would need a website or just preparing a great catalog for your social media.
• Tutoring: if you have extensive knowledge of a subject, you can start your tutoring service. Thus, you do not need much to start, perhaps a whiteboard and markers, or an internet connection if you will be tutoring using digital platforms.
• Social media management: As a professional with knowledge in design, content creation, and posting on social media, you can offer this service to businesses and individuals.
• Pet sitting: Another great idea as many pet owners in Dubai do not have time to walk them or take care of them for several reasons. Therefore, you can offer an at-home service.
• Website development: As a website developer, you can start your online company in UAE offering this service to corporations that want to boost their online presence.
• Accounting: Consultancy in areas such as accounting and bookkeeping is another great idea as it requires low investment.
• Marketing: In case you are a marketing specialist, you can start your marketing agency and offer your services to businesses that want to expand their reach.

Keep in mind that some businesses, although lucrative, require a considerable investment to start, like a food truck business in Dubai for example.

Taking Advantage of Government Initiatives and Support

The UAE is an attractive business location not only for its promising economy but also for the great support investors get from the government.

As such, if you want to know how to start a business in Dubai without money, you have to learn how you can take advantage of what the UAE Authorities have to offer.

The following are some of the initiatives from the UAE Government:

• Opportunities for SMEs and startups in various sectors such as health, tourism, technology, and others.
• Funding for SMEs and startups
• Policies regarding visas and business ownership
• Beneficial partnerships with organizations looking to enter the MENA region

Government Grants and Incentives

Those that are looking for how to start a business in Dubai without money, must be aware of the several incentives and grants provided by the UAE Government.

Some of the great incentives are the following:

• 100% company ownership: investors from anywhere in the world can establish their businesses without the need for a local sponsor. Thus, this change was included in the Commercial Companies Law in 2020.
• Free zones with tax exemptions: in addition to fully owning companies, investors can get flexibility in taxes by incorporating a company in a Free Zone.
• No income tax and free repatriation of profits 100%.
• No minimum capital for LLC companies to facilitate the incorporation of new businesses
• Low custom tariffs
• Benefits for the industrial sector: investors working in strategic sectors can get access to competitive financing facilities, competitive tariffs, custom exemptions, and production inputs.

Supportive Programs for Entrepreneurs

If you want to know how to start a business in Dubai without money, then you should look for supportive programs for entrepreneurs by the UAE Government.

Some of the supportive programs developed for investors and entrepreneurs are the following:

• National SME Program: incentives, assistance, and benefits for members to help them succeed in the market. Some of the initiatives include financial support, training, and participation in foreign exhibitions.
• Dubai SME: aimed at Emiratis and GCC nationals who want to run their businesses from home.
• In5 Incubator: a government-supported incubator that looks for supporting startups in several areas, such as strategy, presentation, and many others that go from establishment up to networking.
• Skill Up Academy: launched by the Ministry of Economy, it attracts young talent to equip them with entrepreneurial skills and mindset to establish their businesses.
• Goodforce Lab: another incubator, founded in DAFZ (Dubai Airport Free Zone), that looks to support several sectors by providing entrepreneurs the possibility to meet mentors to expand their vision.
• Fourth Industrial Revolution Network: launched by the government to support industries with cutting-edge technology.

Legalities and Regulations

Although you may not need a huge investment to start your business, you still need to follow the same regulations as any other in the UAE.

Thus, if you want to know how to start a business in Dubai without money, you also have to learn about legalities.

In this regard, it is advisable to learn about the following:

• Rules for applying for visas
• Procedure to obtain a business license
• Learn about which types of companies need a local sponsor
• Research about if your desired business requires additional approvals
• Understanding how to renew your visas and licenses timely
• Research about which documents you will need to incorporate your company

Navigating Dubai’s Business Setup Procedures

When you are learning about how to start business in Dubai without money, you need to understand the legal framework that surrounds incorporating a company in the UAE.

Even though your business requires minimal investment, you also have to go through the same legal steps.

The following is an overview of the business setup procedure in the UAE:

1. Select the proper corporate structure: in Dubai, you can incorporate an LLC, branch, sole proprietorship, and many other entities. However, be aware that some of them are more expensive than others. In this regard, look for the type of company that is cheaper to incorporate.
2. Choose the jurisdiction: decide whether you want to carry out your operations from the Mainland or any of the over 45 free zones in the UAE. Since each one has different regulations and requirements, some are cheaper than others.
3. Select the business activity: Select the activities that align with the nature of your business and that are related to the tasks you will carry out.
4. Apply for the business license: Fill out the application and gather the documentation to submit it to the respective UAE Authority.
5. Get the UAE Visa: apply for the UAE Residence Visa so you can run your company from Dubai without inconvenience.
6. Open a bank account: lastly, open a bank account where you will manage the finances of your company.

Another important consideration is the place from where you will carry out your business. Keep in mind that a top company location is highly important for ensuring success.

Understanding Sponsorship and Visa Requirements

Since applying for visas is a crucial requirement for running your business, you need to know how to obtain them. In addition, because you are in search for knowing how to start a business in Dubai without money, you have to look for the best options.

The UAE encourages foreign investment, and for that reason, offers several types of visas and a streamlined process. The following are the visas available for investors:

• Golden visa: allows investors to opt for a long-term residency in the UAE. Nonetheless, it is aimed at high investments of AED 500,000 or more.
• Visas for entrepreneurs and investors: in this case, individuals can apply for a 5- or 10-year visa paying a lesser fee of around AED 650-1200.

Along with the visa application, the individual must submit the following:

• Passport copy
• Birth certificate
• Marital status
• Local investment proof
• Health insurance
• Photographs
• Biometric data

Keep in mind that you have to follow the new visa rules in UAE as of 2024, so you can obtain all the documentation for your employees, partners, and even yourself.

Avoiding Unnecessary Costs and Penalties

One of the crucial aspects of running a Business in Dubai With No Money is avoiding incurring extra expenses. Thus, you have to keep your business up-to-date to avoid penalties.

For example, you have to be aware of the expiry date of your visas, business license, and Emirates ID, to renew it timely. Otherwise, you have to pay fines for non-compliance or late renewal.

Moreover, if you are going to hire employees, make sure to make payments on time. Thus, you have to avoid doing anything that may cause a complaint.

As such, since the UAE has a stable currency, you may not have to worry about a fluctuating economy. And with its low import duties and competitive workforce cost, you can keep your business running smoothly. This is by keeping your operational expenses on track.

Thus, make sure to follow the next recommendations to avoid extra expenses:

• Look for cost-reducing opportunities, for example, cheaper renting facilities
• Promote remote working to save costs
• Learn about VAT rules, fines and penalties
• Implement effective strategies
• Renew your documentation (visa, license, Emirates ID, etc.) timely

Conclusion

Once you know the basics of how to start a business in Dubai without money, you need all the help you can get to boost your chances of success. Contact us to let us know how we can assist you. Launch your UAE business with us.