Cost Of Starting Company In Dubai | UAE

Starting a business in Dubai offers numerous advantages, from a strategic location to diverse opportunities across sectors. However, before diving in, entrepreneurs must choose between setting up on the mainland or within one of Dubai’s many free zones. This choice directly impacts your business's regulatory requirements, ownership structure, and overall costs.

Costs Involved in Dubai Mainland Business Setup

For Dubai mainland businesses, costs include government licensing fees, trade name approvals, and office rental. Here’s a breakdown:

• Department of Economic Development (DED) Fees: Initial licensing costs around AED 110.
• Trade Name Registration: Ranges from AED 700 to AED 3,000 depending on the name type.
• Office Space Requirement: A physical office is mandatory, and costs vary based on size and location.

Costs Involved in Free Zone Business Setup

Free zones provide 100% foreign ownership and easier repatriation of profits. Each free zone has specific licensing costs, which vary based on business type and location.

• Basic Office Space: Starts from AED 15,000 annually.
• License Fees: Vary by business activity and free zone regulations.
• Streamlined Packages: Many free zones offer bundled packages with licenses and visa quotas.

Cost of Company Registration in Dubai

The cost of company registration in Dubai depends on the jurisdiction (Mainland, Free Zone, or Offshore). The primary expenses include:

Documentation & Attestation

• Verification of key documents like shareholders' agreements, Memorandum of Association (MoA), and business licenses.
• Documents must often be notarized and attested.

Business License Fees

• Free Zone License: Starts at AED 6,876.
• Mainland License: Varies based on business activity and local authority requirements.

Visa Processing & Immigration

• Includes UAE residence visa, Emirates ID, and investor/employee visas.
• Required for legal residency and business operation.

For businesses like a civil company with a virtual office, annual costs range from AED 25,000 to AED 29,000.

Essential Startup Fees for Business in Dubai

1. Registration Fee

• A one-time payment to the free zone authority during initial registration.
• Ranges between AED 9,000 and AED 10,000.

2. License Fee

• Recurring annual fee for business operation.
• Typically between AED 10,000 and AED 50,000.

3. Office Rental Fee

• Mandatory for business licensing in Dubai.
• Costs between AED 15,000 and AED 20,000 annually.

4. Share Capital

• Varies across free zones from AED 1,000 to AED 1,000,000.
• Most Dubai free zones require an average share capital of AED 50,000.

Mainland Dubai vs. Free Zones

Dubai Mainland has higher setup costs but offers extensive business support and value-added benefits. The streamlined process allows companies to launch within 2–4 weeks, with remote registration options available.

Free zones, on the other hand, offer lower costs and full foreign ownership, making them attractive to international investors.

Cost Breakdown for Free Zone Setup

Office Rental and Setup

• Costs depend on the free zone, business location, and visa requirements.
• Some free zones charge a service fee based on lease amount.

Annual Free Zone License

• Required for business operation, with fees varying based on business type and activity.

Business Registration Fees

• Differ across free zones, depending on whether you set up as a Free Zone Establishment (FZE) or a Branch Company.

Visa Renewal

• Costs depend on visa quotas and employee residency.

Financial Guarantee

• Employers must provide bank guarantees covering 45 days’ salary plus a one-way ticket to the employee’s home country.

Mainland Setup Costs

Business License Approval

• Issued by the Department of Economic Development (DED).
• Fees vary depending on business type.

Trade Name Reservation

• Fees for trade name approval, including foreign names and commercial names.

Office Rental

• Mainland businesses must have dedicated office space, with costs varying based on size and location.

Attestation of Memorandum of Association (MoA)

• Required for partnership-based businesses.
• Fees vary based on capital share of each partner.

Contract Drafting and Court Agreement Attestation

• Legal contracts must be translated into Arabic and English.
• All partners or representatives must sign in court.

Ministry of Economy Fees

• A recurring annual fee paid to the relevant authority.

Trade License Fee

• Varies based on business type.
• Some activities may require a security deposit.

Chamber of Commerce Fee

• Membership allows businesses to obtain necessary certifications for tariff estimation.
• Fees differ for trading, manufacturing, and industrial businesses.

Frequently Asked Questions (FAQs)

How Do I Set Up a Business in Dubai?

1. Choose Your Business Activity – Select a legal structure like LLC or Free Zone Establishment.
2. Pick a Trade Name – Must comply with UAE regulations.
3. Apply for a Business License – Based on your activity type.
4. Secure Office Space – Choose a physical or virtual office.
5. Complete Registration – Obtain initial approvals and finalize licensing.

How Do I Register a Company in Dubai?

You need a business license based on your activities:

• Commercial License – For trading businesses.
• Industrial License – For manufacturing or industrial work.
• Professional License – For service-based businesses.

Registration requires initial approvals, a Memorandum of Association, and documentation based on business location.

What Are the Costs Involved in Starting a Business in the UAE?

• Mainland – Minimum share capital starts at AED 1,000.
• DMCC Free Zone – Requires a minimum of AED 50,000 per company.

Additional expenses include licensing, office space, and visa processing.

Can Foreigners Own a Business in Dubai?

Yes, Dubai allows 100% foreign ownership in Free Zones. Mainland LLCs permit up to 49% foreign ownership, with the remaining 51% owned by a local sponsor.

What Are the Most Profitable Businesses in the UAE?

1. Import-Export Business – Due to Dubai’s strategic location.
2. Real Estate – High demand in both commercial and residential sectors.
3. Tourism & Hospitality – Dubai attracts millions of visitors annually.
4. Technology & IT – A growing sector with strong government support.
5. Consulting Services – Businesses need advisory services across various industries.

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