For all those planning to form a company or migrate their business to Dubai, capital investment of setting up a business can be a big deterring factor. Having a clear idea of how much it may cost to set up a business in Dubai can make the process easy for businesses aspiring to establish a presence in Dubai. In this blog, we’ll give you a breakup of the costs involved in business setup in Dubai.
Take a note: you need to choose an area for your business in Dubai. You have two options: the emirates free zone area or the more coveted mainland area. The business setup costs incurred will depend on which of the two areas you choose conduct your business activities.
Cost involved for business setup in Dubai mainland
Initial approval fees
The Department of Economic Development provides Initial Approval to start business operations. A nominal fee lets you start your business operation for a maximum of 6 months until you can submit of the requirements. This is a onetime expense included with Dubai business setup.
Fees for trade name approval
The tradename is basically the name of the company. In UAE, there are possibilities that the cost for tradename may fluctuate on the basis of the name you demand. You may be asked to pay reservation fees and commercial name fees, foreign company name fees.
Office rent leasing
Renting an office space for mainland business setup in Dubai is a mandate as it helps authorities ensure companies are legitimate. Offices also allow officials to conduct inspections, monitor operations and ensure immigration laws are adhered. Getting an office space for rent could be yearly cost.
Cost for attestation of memorandum of association
The attestation cost for a Memorandum of Association may further differ depending on share capital although it is just a onetime cost.
Fees for permits and licenses
The processing of legal business documents including trade licenses for company registration is subject to varying costs, depending on the type of documentation and the operations of a business among others. The commercial license fee is also known as tejari fee that needs to be paid every year for engaging in commercial activities. It is also imperative to know that the business license permit requires to be renewed once every year, were additional costs should be considered.
Cost involved for Dubai free zone
Free zone company registration fee
A registration fee is a onetime payment made to a free zone authority at the initial stage of registering a business. The cost differs according to the company type e.g. free zone company or representative office
Free zone license fee
This is a yearly charge to companies under a free zone jurisdiction. The licensing fees are applicable to trading companies, service- based companies as well as industrial companies. The licensing is done by the free zone authority of a particular jurisdiction.
Office rental cost in Dubai free zones is among the first changes involved in a free zone company setup. Free zone authorities allow 100% ownership of assets and liabilities in company. Along with the convenience and control, there is also to rent on a flexi desk which is a desk in a shared office.
Other expenses specific to free zone
- Name approval charges
- Notarization charges
- Police clearance
- Medical check
- Emirates ID
The cost mentioned in this article are the general ones involved in starting a business in Dubai. To get the exact quote for business setup in UAE speak to our business consultants today.
Before you do, here are the common questions of entrepreneurs and investors on business setup in Dubai
Which authority is responsible for approvals for company registration in Dubai?
The Department of Economic Development is the concerned government al authority responsible for issuing approvals for all activities in a mainland business set up. Every free zone or offshore jurisdiction has its own dedicated authority for free zone business setup
How many activities can be carried out under single license?
Under the single license, you are allowed to manage ten activities. However, you have to ensure that you engage yourself in the activities that have been labeled in the DED standards.
What are the different types of company structures that can be established in the emirate?
Dubai offers several company structures for entrepreneurs to establish. The primary ones are as follows:
- Free zone establishment
- Branch office / representative office
- Limited liability company (LLC) for mainland business
- The free zone companies