With about $20.5bn worth of investments in the UAE from the United Kingdom, the country offers a growth-oriented business environment to UK investors. Moreover, Dubai’s geographic location makes it one of the most sought-after business destinations in the world. As a business hub, the place offers excellent global connectivity and entrepreneur-friendly commercial laws.
Being a UK investor, you can enjoy full ownership rights and long-term residence visas in Dubai. However, when it comes to starting a business in Dubai, understanding the Dubai company registration fee structure is an important criterion.
This article gives you a brief idea of the company registration cost in the UAE for different offshore and onshore businesses.
Components of business registration cost in UAE
There are various considerations when it comes to UAE company registration fees. Here is a breakdown of various costs investors must consider while setting up a business in Dubai.
1. Registration Fee
The Dubai company registration fees are a one-time payment made to the authorities during the registration process. The actual amount depends upon several factors including the number of shareholders, visa applications, commercial activity, the legal structure of the firm, and the free zone.
2. Office Space
Obtaining a company license in Dubai necessitates the rental of office space. Since it will be your official address, the authorities send all legal paperwork and correspondence to this location only. Each free zone in Dubai has a choice of workspaces to suit your demands, including service, smart, and Flexi-desks. Experts at Shuraa UK Branch can help you find an appropriate and affordable office space for your firm.
3. License Fee
One of the most important steps in operating your business in Dubai is opting for a company license. The four most common sorts of company licenses are:
- Commercial License for general trading businesses
- Industrial License for manufacturing goods.
- Tourism License for travel and tours.
- Professional License for service-related businesses.
A company’s trade license must be renewed every year. Hence it is recurrent expenditure. Additionally, the license fee depends on your business activities and chosen jurisdiction.
4. Share Capital
Depending on the company’s operations and licenses, the minimum share capital amount varies greatly in each free zone and can range from as little as AED 1,000 to as high as AED 1,000,000 approximately. The minimum share capital requirement for free zones in Dubai is around AED 50,000 in general.
5. Initial Approvals
Companies need to get an initial approval before obtaining the trade license. Besides, you can determine the economic activities, the legal form of the company, and the license parties (partners) through initial approval. UK investors can obtain it before or after the trade name reservation. The total cost of issuing the initial approval is AED 120 approximately. Moreover, it is a one-time government fee
6. Trade Name Reservation
Reserving the trade name is the process of securing a name for your company by which it will be identified. The fee for registering the trade name in Dubai is approximately AED 620. However, if you want to register a foreign name, you need to pay around AED 2000 as the registration fee.
7. Corporate Bank Account
If you’re a UK investor looking to register a corporate bank account, you might be wondering how much it costs to do so. The real kicker is that UAE local banks, like most banks in other countries, do not charge any fees for opening a bank account. However, all local banks need you to maintain a minimum monthly average balance, which ranges from around 50k AED to 500K AED. Besides, each bank has different minimum monthly average balance categories.
Cost of forming a company in Dubai
The cost of forming a company in Dubai ranges from AED 20,000 to 30,000. As a result, there is no rough figure that can give you an estimate of the cost of forming a company in Dubai. Hence, it is best to reach out to a reputed Company Formation Specialist to help you get familiar with the country’s rules and regulations.
Consultants at the Shuraa UK Branch can help you know the charges levied at the initial stages, update you on government services, and even find you an affordable location for your office.
The company registration cost in UAE also depends upon the nature of your business, jurisdiction, visa applications, and so on. We have discussed below how much the prices can differ, by providing you with an estimate of Dubai business setup Costs for Mainland, LLC, Free Zone, and Offshore company.
Mainland
One of the most sought-after business investments in Dubai is mainland company registration. Investors can actively reach out to a multicultural audience and build their business in Dubai.
The cost of starting a business in Dubai Mainland depends upon the nature of the business, the cost of obtaining a visa, and the cost of renting or purchasing office space. It includes notary, licensing, and registration expenses, as well as legal translations, which are all required by the government.
A mandatory fee that has to be paid by the investor is the Investor Visa fee which should be renewed every three years. In addition, an investor must pay a yearly sponsorship charge, one-time legal expenses, and a commercial property fee, as well as the cost of a visa for each individual.
LLC
The cost of forming a Limited Liability Company in Dubai is generally between AED 18,500 and AED 24,000. However, this figure excludes fees for getting a trading license as well as additional charges like rent and visa fees. In Dubai, the entire cost of forming a Limited Liability Company is projected to be significantly greater.
Free Zone
Alternatively, UK entrepreneurs can also register a company in a free zone. In free zones, the cost of registering a business in Dubai is substantially lower, starting at around AED 10,000 to AED 28,500. Depending on the free zone selected, this cost may vary. Similarly, the fees related to getting a trading license are separate.
Offshore
The Jebel Ali Free Zone, Ras Al Khaimah (RAK), and Ajman Free Zone are the three primary jurisdictions in the UAE where international investors can set up offshore corporations. The Dubai company registration fees will vary based on the jurisdiction you select. All corporations must be formed by a registered agent who is certified by an accreditation authority in the UAE to provide corporate counsel and other legal services.
Documents required for company Registration in the UAE
- Memorandum of Association (MOA) and Articles of Association (AOA):
- Shareholders’ and directors’ passport copies
- Proof of residential address
- Company name reservation form
- Ejari contract
- Trade license
- NOC from the sponsor
- Bank reference letter
Start Your Business in Dubai With Shuraa
The cost of forming a business in Dubai depends upon many factors. As a result, there is no one-size-fits-all estimate for the total company registration cost in the UAE. However, you can start any business with an option to choose from numerous Dubai company setup packages when you collaborate with Shuraa.
The company formation experts at the Shuraa UK branch provide end-to-end business assistance. Furthermore, our nominal upfront fees model is the perfect option for all business types, whether you are a startup, a branch office, or a limited liability company.
