Company Formation Cost in Dubai Mainland

Company Formation Cost in Dubai Mainland

Dubai stands as a favoured spot for entrepreneurs and investors worldwide. Serving as the Middle East’s central business hub, the city flaunts outstanding global connectivity and embraces entrepreneur-friendly commercial regulations. Consequently, establishing a company in Dubai Mainland proves immensely lucrative, thanks to its advantageous demographics. Nonetheless, comprehending the Company Formation Cost in Dubai Mainland is crucial. Insufficient knowledge in this regard may result in unwelcome overheads. Shuraa Business setup will help guide you through this blog, continue to read more.  

Process of Mainland Company Setup in Dubai 

The process of establishing a mainland company in Dubai may seem daunting for newcomers, but with the guidance of Company Setup experts, navigating the steps becomes much smoother. These professionals ensure a seamless process, preventing costly setbacks. Here’s a concise explanation of the steps involved: 

1. Choose business activities and company structure 

Begin by making critical decisions regarding your business activities and structure. The chosen activities determine the required trade license, while the company structure dictates applicable laws and regulations. 

2. Register the business trade name 

Before applying for a trade license, register your trade name in the general journal and advertise it in two local newspapers. Upon no challenges, the name will be registered as your trademark. 

3. Obtain initial approval from the DED

The Department of Economic Development (DED) in Dubai oversees new business registrations. Complete the provided application form, and upon approval, obtain the initial approval. 

4. Secure office space and external approvals 

Once initial approval is granted, secure office space in Dubai. Obtain the tenancy contract and EJARI, as they are mandatory. Additionally, acquire external approvals as instructed by the DED. 

5. Open a corporate bank account 

Upon receiving the trade license, the final step is to open a corporate bank account in Dubai. Prioritize research on financial institutions and carefully review their terms before proceeding. 

Required Documents for Mainland Company Formation

These documents serve regulatory purposes and are essential for establishing your firm’s identity for future legal matters. Here is a list of the necessary documents for mainland company formation in Dubai: 

  • List of business activities to be conducted by the firm. 
  • List of proposed trade names for the firm. 
  • Copies of the passports of all shareholders of the firm. 
  • Copy of the entry stamp or visa page of all shareholders of the firm. 
  • Passport-sized photographs of all shareholders of the firm. 
  • Attested Memorandum of Association. 
  • Initial approval letter from the Department of Economic Development in Dubai. 
  • Attested lease agreement or tenancy contract along with EJARI registration. 
  • Approval certificates from relevant external authorities. 
  • Formal agreement letter with a local sponsor or local service agent. 

Services Included in the Cost of LLC Business Setup in Dubai 

1. Initial Approval from DED 

The Department of Economic Development (DED) grants initial approvals to commence business operations. A nominal fee allows for a maximum of six months to complete other necessary documentation. This expense is incurred only once and is part of the Dubai business startup costs. 

2. Approval for Trade Name 

The trade name, the name under which the company operates, may incur varying fees based on the chosen name. These charges include reservation fees, commercial name fees, foreign company name fees, and others as required. The approval of a trade name is also a one-time cost. 

3. Renting Office Space for LLC 

Renting an office space for a mainland business setup in Dubai is obligatory, facilitating regulatory oversight and ensuring compliance with immigration laws. This cost may be incurred on a yearly or monthly basis. 

4. Attestation of Memorandum of Association (MoA) 

Attesting the LLC’s Memorandum of Association is a one-time expense done between partners or shareholders, with potential variations based on share capital. 

 5. Mainland Trade License Fee (Included in the DED Fee) 

Acquiring a trade license incurs a one-time expense, with costs varying depending on the business activity. Occasionally, a security deposit may also be required during the application process. Licenses and associated activities undergo regular scrutiny by departments, potentially incurring intermittent costs. 

6. Commercial License Fee (Tejari) 

The commercial license fee, known as Tejari, must be paid annually for engaging in commercial activities. 

7. Dubai Chamber of Commerce Fee 

An annual fee is payable to the Dubai Chamber of Commerce. The specified amount is for a general trading company; however, costs may differ for industrial or manufacturing companies. 

8. Commercial Services Improvement Fee 

This yearly fee contributes to the improvement of governmental department services. 

9. Administrative Services Fee 

An administrative fee is charged for paperwork processed by the department, though it is a one-time expense. 

10. Other Important Expenses: 

  • One-time formation fee for general trading companies. 
  • One-time contracting license fee. 
  • The economic department charges real estate broker company fees. 
  • The government levies a small percentage of the rented premises’ amount; 5% for offices or shops, and 20% for warehouses. 
  • Additional charges may be imposed based on the nature of the business setup. 

How much does it cost to establish an LLC in Dubai? 

Registering a limited liability company (LLC) in Dubai typically incurs costs ranging from AED 20,000* to AED 30,000*. It’s important to bear in mind that these fees may vary depending on the specific industry type and services you intend to offer.

For those seeking to obtain an investor visa, the cost generally falls between AED 4,000* and AED 5,500*. However, it’s important to note that visa fees can also be influenced by other factors. Regarding employee hiring, fees associated with each category of employee can range from AED 5,000* to AED 7,000*. The exact price will be determined by the specific sort of employee you plan to hire for your business. 

Dubai Mainland Company Formation cost

The cost to establish a Mainland Business Setup in Dubai varies from AED 12,500 to AED 30,000. This range depends on the license type, visas, office space, nature of operations, business size, and other variables. However, it’s essential to recognize that this price may escalate due to supplementary factors like acquiring additional permits, visas, government fees, and other associated expenses. 

Commence Your Business Journey with Shuraa Business Setup 

Our team of business setup experts can assist you in establishing your business in Dubai or any Emirate in the UAE swiftly and effectively. While our services are chargeable, we apply a nominal fee for the comprehensive support we provide. However, the investment is worthwhile as it saves considerable time, effort, and, most importantly, money! 

For further details on Dubai business setup costs or to explore low-cost business setup options in Dubai or any other Emirate, reach out to Shuraa. We offer competitive prices in the market to ensure your business setup journey is smooth and cost-effective. 

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