Cost Of Starting Company In Dubai | UAE

Starting a company in Dubai is a strategic move for global entrepreneurs due to its business-friendly environment. The cost varies based on the business type, license, and location. For instance, a Free Zone license ranges from AED 10,000 to AED 50,000, while a Mainland license may cost between AED 15,000 and AED 40,000. Additional costs include visas, office space, and registration fees. It’s crucial to understand these expenses to budget effectively. Here’s a detailed breakdown:

Cost ComponentEstimated Cost (AED)Free Zone License10,000 – 50,000Mainland License15,000 – 40,000Visa Fees3,000 – 5,000 per visaOffice Space10,000 – 30,000Registration Fees3,000 – 10,000

Understanding these costs ensures a well-planned start for your business in Dubai.

Cost of Opening a Company in Dubai, Rakez, Sharjah Freezone

Setting up a business in the UAE offers numerous advantages, including tax benefits, strategic locations, and a dynamic economy. Here’s a detailed look at the costs associated with setting up a business in various free zones across Dubai and Sharjah:

Free Zone Business Setup Costs

Free ZoneStarting Cost (AED)DetailsSharjah Media City Freezone (SHAMS)5,500Basic Business LicenseIFZA Dubai12,500Includes business license and other benefitsDUQE Freezone12,500Offers various business setup packagesMeydan Freezone12,500Includes competitive packages for startupsRAKEZ Freezone11,990Business License + 1 Lifetime Visa

Additional Considerations:

• Promotions and Discounts: It’s advisable to consult with business setup consultants, as many free zones offer promotions and discounts on company setup fees.

Cost of Company Formation in Dubai Mainland

Cost of Company Formation in Dubai Mainland involves several costs depending on the nature of the business, the number of visas required, and the premises. Here is a breakdown of the primary expenses involved in the process:

Dubai Mainland Company Formation Costs

ServiceCost (AED)DetailsInitial Approval from DED235One-time cost for obtaining initial business approvalTrade Name Approval735One-time cost for approving the trade nameOffice Rent50+ per sq. foot per annumVaries based on the size and location of the officeAttestation of Memorandum of Association (MoA)1,200One-time cost for drafting and attesting the MoA by all partnersContract Drafting and Court Agreement Attestation500One-time cost for typing the contract; all partners or their attorneys need to sign the attestationRegistration with Ministry of Economy3,000One-time cost for registering the company with the Ministry of EconomyTrade License Fee10,000 approx.Annual fee for obtaining the trade licenseMarket Fees5% of rent for shops, 20% of rent for warehousesFees paid to the government as a percentage of the office rent

Total Estimated Costs

The overall cost of setting up a company in Dubai Mainland typically ranges between AED 14,500 and AED 25,000, depending on the specific requirements and choices made during the setup process.

Additional Considerations:

• Office Location and Size: The cost of office rent is a significant factor and varies based on the location and required area. Average rent starts at AED 50 per square foot per annum.
• Market Fees: These are calculated as a percentage of the office rent and vary based on the type of premises (shops or warehouses).

Requirements for forming an LLC in the UAE

Initial approval from DED

The Department of Economic Development (DED) must grant initial permission before a company can start operating. You can begin operations for a small fee for up to six months, giving you plenty of time to complete your other papers. This is a one-time cost included in the startup costs for a business in Dubai.

Approval of a business name

The trade name is the name you will operate your firm under. Depending on the name you choose, the price could change. Trade name fees include expenses like reservation fees, commercial name charges, foreign business name expenses, and so forth. Depending on your directions, it might be expanded further. A one-time fee is also charged for the approval of a trading name.

Renting an office for LLC

Renting office space is necessary for a mainland business operation in Dubai because it helps the government ensure that businesses are legitimate. This makes it possible for officials to conduct inspections, keep an eye on activity, and ensure that your company abides by the law. You can lease an office on an annual or temporary basis.

Attestation of MoA

The partners or owners of the company certify the LLC’s Memorandum of Association (MOA). Despite being a one-time fee, the attestation cost could change depending on the share capital.

Drafting the LLC contract in Arabic and English

The partners give their consent to the typing of the contract for establishing an LLC in Dubai. To guarantee that all stockholders can comprehend the contract, it must be written in both Arabic and English. The cost of translation might also be incurred in addition to the authoring of the contract. Additionally, this is a one-time cost.

DED Fee

The Ministry of Economy in each Emirate charges a small one-time fee for the formation of LLCs. Other yearly expenses, however, vary from business to business.

Mainland trade license fee (Included in the DED fee)

The cost of a trade license is a one-time expense, however, it varies depending on the business activity. Regular departmental inspections of licenses and other practicable operations may at some time be charged.

Ejari / Fee for commercial license

Tejari or a commercial license fee is required to conduct commercial operations. It is a type of fee that must be paid annually.

Fees for the Dubai Chamber of Commerce

It is necessary to pay the Dubai Chamber of Commerce annually. The amount is for a general trading company. An industrial or manufacturing company may charge a different price.

Fee for commercial services improvement

This is an annual sum provided to the government for the development of its departments’ work.

Fee for administrative services

Additionally, there is an administrative fee for all of the department’s records; however, this is an upfront expense.

Other major expenses

1. Initial setup costs for a basic trading business
2. One-time fee for a license to contract
3. The economic department assesses a fee to real estate brokers’ businesses
4. Based on the price of the rented space, the government assesses a small fee. For an office or a store, a 5% fee is needed; for a warehouse, a 20% fee is needed.
5. There can be further charges, depending on the type of company establishment.

Costs incurred for free zone business setup

The processes and costs for establishing a business in Dubai may vary because each of the UAE’s free zones is governed by its own set of laws and regulations. While certain characteristics, such as having a local sponsor, renting out jackets, and paying the visa price are consistent across all regions, others, such as the smart desk, office space, warehouses, licensing and registration fees, shared capital requirements, visa fee, and bank guarantee.

Cost of establishing a free zone business in the UAE

Free zone company registration fee

When registering a business for the first time, this one-time payment is made to the free zone authorities. Depending on the form of company, such as an FZE or a branch office, the charge varies.

Free zone license fee (included FZC registration)

Businesses operating in the Freezone must pay this annual levy. The license fee applies to all enterprises, including those engaged in service, trade, and industry. It is a one-stop shop, and the free zone authority of a certain jurisdiction handles the license.

Rental cost (included FZC registration)

One of the early fees related to Dubai Freezone company formation is the cost of office rent. You now have total control over your possessions and obligations. Freezone may be rented on a monthly, yearly, or even multi-year basis. The legal system and the available rental possibilities determine which option is the least expensive. The rental location also details how many visas can be obtained or what kinds of business can be conducted there.

Important expenses according to the freezone

• Name approval charges
• Notarization charges
• Insurance expenses
• Business bank account
• Typing and shipping fees
• Medical check
• Police clearance
• Emirates ID card

How Radiant Biz helps you

In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Radiant Biz – Business Setup Consultants in Dubai strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.