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In this post, I would like to highlight the main requirements and fees for opening a yoga studio in Dubai. I will consider the most expensive option, compare it to the services we provide (and how it is a better option economically), and lay out the cost of time as well.

Let’s assume you have a great desire to open a yoga studio in a fancy area in Dubai like Al Serkal Avenue, which is a well-known hub for contemporary arts and collection of galleries. Apart from the yoga lessons, you plan on providing to customers, the idea of a cafeteria with snacks and beverages where they could dine in and freshen up is ideal. You start pondering on other attributes that would make your yoga studio desirable, then you think that selling Yoga merchandise (clothes and apparel, etc.) would be an ideal business move. Now that may sound difficult to accomplish, but let me tell you that it’s easier than it seems to achieve – I am here to help you take the initiative to create a good project out of all these desires, and in doing so you’ll allow your yoga business to thrive

Now, let’s look at the cost of three business activities (which would be the ones previously stated). One should note,  that these activities – Cafeteria, Yoga Center, Sportswear trading – require three separate licenses. Another important thing to pay attention to is that carrying out any activity other than those that are mentioned on your license could mean facing a huge fine of AED 50,000.

THE COST OF YOGA STUDIO INCORPORATION

Setup fees concerning the Yoga Center (Business Activity Number 8541008) include trade name reservation, professional license, local service agent, labor file opening, and all approvals. All of this will cost approximately AED 38,000. Expats can have 100% ownership, however, it is mandatory to appoint a local Emirati as a local service agent to represent the company. The fees concerning the Cafeteria (Business Activity Number 5610003) and Sportswear trading (Business Activity Number 4771107) will be AED 66,000 including all necessary steps for establishing your new business with annual local partner fees and labor file opening for employment visas. The share capital of each activity, excluding the Yoga Center, is AED 300,000, but the issuance of a bank guarantee is not mandatory.

UAE RESIDENCE VISA FEES

Partner/Investor visas with a validity of 3 years and employment visas with a validity of 2 years are available. Unlimited visas are available. The company complies with labor law and joins the wage protection system (WPS). A partner/investor visa will cost  AED 3,000 to AED 3,500 and an employment visa will cost AED 5,500 to AED 8,900 (it will vary depending on the person being inside or outside the UAE during the process). Our professional team takes care of the residence visa process from start-up until the time the visa is stamped on the passport. Acquiring a partner/investor visa may take as little time as two days, however, the whole process of obtaining an employment visa may take 10 to 15 days after issuance of the immigration card and opening a labor file.

HOW LONG WILL THE REGISTRATION PROCESS TAKE?

The setup process will take 2 or 3 weeks depending on the third party approval of each activity. The third-party approval refers to the approval of Government Authorities that regulate some activities. In the case of this project, the "Dubai Municipality - Food Control Section" is regulatory of the Cafeteria and "General Authority of Youth and Sports Welfare" is regulatory of the Yoga Center.

Besides, please consider 4 weeks for bank account opening. Once your company is registered, you will obviously need to ensure the acceptance of cash and cashless payments from customers. Also, you will need to get on the tax records, keep accounts, and provide VAT data on time.

Finally, the whole process of establishing a yoga center, cafeteria, and sportswear shop, opening a bank account, and processing visas will take 8+ weeks. The cost will be around AED 104,000. This price does not include 5% of VAT and 2.5 % of the annual Market fee. The cost of opening a yoga studio in the Free Economic Zone of Dubai will be 2 or 3 times cheaper than in Mainland.

Should you require any clarification or need additional information, please feel free to contact me. I will be happy to help you form your business in the UAE.

Kind Regards,

SEWIT BAHTA

Business Consultant at Garant Business Consultancy