With world-class medical infrastructure and economic growth, Dubai is a hot spot for investing in a medical care facility. Be it an entrepreneur or a healthcare professional, understanding the establishment process, compliance requirements, and costs is vital.
This article breaks the process into precise components to ensure you are well-equipped.
Setting up a medical center in Dubai has many advantages
- Strategic Location: A global milieu for medical tourism and healthcare innovation.
- Opportunities for Business Development: An ever-increasing population and healthcare awareness set in place an ever-increasing demand for quality medical services.
- Favourable Tax Environment: Competitive tax policies encourage entrepreneurship in the healthcare sector.
Step-by-Step Process to Set Up a Medical Center in Dubai
Phase 1: Getting Initial Approval from the DED
The first process in establishing a medical center is to receive initial approval from the Dubai Department of Economic Development. The approval covers your trade name and business activities.
Approximate Cost: AED 1,350.
Required Documents:
- Passport copies of shareholders.
- Proposed trade name.
- Business activity details.
Phase 2: Secure NOC from DHA
The No Objection Certificate(NOC) is a document by which the DHA pre-approves a project in compliance with healthcare regulations.
Estimated cost: AED 3,500
Following Steps:
- Submissions for business plans, facility layout, and shareholder details.
- This area must meet all DHA standards.
Phase 3: Get a DED Trade License
After availing of the approval for the DHA NOC, it is the best time to apply for a trade license from the DED to formalize your business afterwards.
Approximately Cost: AED 20,000
Municipality Fee: 5% of the rent payable for the premises annually.
Calculation:
If the annual rent is AED 200,000, the municipality fee is AED 10,000.
Phase 4: Establish the Facility as per DHA Standards
The DHA has its requirements concerning infrastructure, security, and functioning standards of the medical center, and these must be met before an inspection takes place.
Important Actions include:
- Installation of medical specials.
- Implementation of health, safety, and waste management legislation.
Cost: The cost varies depending on the administrative cost of setting up a medical center. Consult local experts for an appropriate budget.
Phase 5: DHA Inspection and Granting of the License.
After the preparation of your facility, request a DHA inspection. If successful, the DHA will issue a separate license for each medical activity to be carried out.
Cost: AED 16,000 per activity (e.g. General Practice, Pediatrics).
Inspection Requirements:
- Waste management systems in place.
- Sufficiency of space and layout for the provision of patient care and staff.
Operational Requirements
To run a medical center, you must employ DHA-approved doctors and nurses. The CDA must verify their credentials for compliance.
Average Salary:
- Doctors: AED 15,000-30,000/month
- Nurses: AED 5,000-10,000/month
Corporate Tax and VAT Considerations
While building your medical center, you will be micro-managed to follow the UAE’s corporate tax and VAT laws:
Corporate Tax: The UAE’s new 9 per cent corporate tax applies on business profits over AED 375,000. Ensure your finances are in alignment with these requirements.
VAT Registration Threshold: Businesses whose taxable supplies exceed AED 375,000 per annum must register for VAT; that is the same for all medical centers expected to earn revenues above this threshold.
RAS Corporate Advisors can assist with VAT registration and conforming to corporate taxes so that you avoid any legal and financial troubles.
Opening a Corporate Bank Account
It is a must for a medical center to have a bank account so that money management for the company becomes easy and offers credibility.
Requirements to Open a Bank Account:
- Valid trade license.
- DHA license betoken.
- Proof of business activities.
RAS Corporate Advisors provide end-to-end assistance in opening a bank account with specific solutions tailored to entrepreneurs within the healthcare industry.
RAS Corporate Advisors
Starting a medical center in Dubai requires a lot of approvals, regulations, and finance. RAS Corporate Advisors Provides:
- All advice on DED and DHA approvals.
- VAT registration and corporate tax compliance.
- Putting you in contact with banks that can open corporate accounts based on your business needs.
Start your Journey Today
Ready to set up your Healing Center in Dubai? RAS Corporate Advisors will be with you every step of the way, easing you into setting up.
Call us today for a consultation, and let us unveil the potential of the thriving healthcare market in Dubai.