The cost of Setting Up a Company in Dubai depends on the type of business, its size, and the chosen location within the emirate. The expenses generally include government fees, licensing, office space rental, visa processing for employees, and any additional services required, such as legal and consulting fees. Not all free zones in Dubai are governed by the government; many operate independently. Dubai provides several free zones, each with its cost structures and advantages.
Businesses operating within these zones can benefit from tax exemptions and retain full ownership rights, both in the mainland and within the free zones. These costs can vary significantly, making it essential for entrepreneurs to conduct thorough research and financial planning before establishing a company in Dubai. Shuraa Business Setup will help you to know the exact cost of setting up a company in Dubai.
Exploring Company Formation in Dubai: Common Queries
Some common questions about company formation in Dubai are mentioned below:
- Selecting the Optimal Location: What is the best place to start a company in Dubai?
- Financial Planning: How can I calculate the funds needed to set up a business in Dubai?
- Cost-Effective Business Options: Is there a method for creating a budget-friendly business in Dubai?
- Affordable Free Zones: Which Dubai free zone offers the most economical business options?
- Payment Procedures: I must pay the Dubai trade license fee upfront.
- Accessible Business Services: Are there reasonably priced business solution providers or affordable business setup services in the UAE?
- LLC Formation Expenses: What is the expense of forming a Limited Liability Company (LLC) in Dubai?
- Government Fees: What are the various charges imposed by the Dubai government for commencing a business
Benefits of Setting Up a Business in Dubai
The benefits of setting up a business in Dubai are as follows:
Tax Benefits
- No corporate taxes.
- Full profit repatriation.
- No minimum capital requirement.
- Low VAT of 5%.
Ownership Advantages
- Full foreign ownership for expats, even for mainland companies.
- No local sponsor is needed for trading companies, thanks to recent legal changes.
Industry Opportunities
- Access to a wide range of industries.
- Lucrative opportunities for both MNCs and startups.
- Choose from a comprehensive list of legal business activities by the DED.
- Get external permissions for activities not covered by the DED.
For detailed guidance on UAE’s taxation protocols, contact Shuraa Business Setup.
Expert Insights on Dubai Company Registration:
The cost of registering a Dubai company fluctuates due to changing regulations. Fixed rates for approvals and documentation are rare, making it essential to consult knowledgeable and affordable business setup services in Dubai. Experienced corporate advisors assist entrepreneurs by explaining initial charges, keeping them updated on price fluctuations and government service costs, and offering advice to minimise unnecessary expenses.
Moreover, the setup cost varies based on factors such as the type of business activity, chosen jurisdiction, required approvals, and certifications. Shuraa Business Setup has compiled a comprehensive list of the latest standard costs for setting up a business in Dubai to simplify the process. These prices are categorised as Mainland, Free Zone, and Offshore options.
Services Covered in the Cost of Setting Up a Company in Dubai- LLC Business
Below are the services Covered in the Cost of Setting Up a Company in Dubai- LLC Business
1. Initial Approval from DED
The Department of Economic Development (DED) grants initial approvals for launching business operations. A nominal fee allows you to initiate procedures for up to six months, providing ample time to complete your other required documents. This one-time expense is part of the startup costs for businesses in Dubai.
2. Trade Name Approval
The trade name is essentially the name you’ll use to operate your company. In some instances, the cost might vary depending on the name you select. Trade name approval includes reservation fees, commercial name fees, foreign company name fees, and similar charges. It could also vary based on your specific requirements. Approving a trade name constitutes a one-time expenditure.
3. Office Rental for LLC
Securing an office space for a mainland business setup in Dubai is obligatory, enabling authorities to validate the legitimacy of companies. This arrangement allows officials to inspect, oversee operations, and ensure your company complies with immigration laws. Renting an office space can be an annual or term-based expense.
4. Memorandum of Association (MoA) Attestation
The attestation of an LLC’s Memorandum of Association (MoA) takes place among the company’s partners or shareholders. The attestation cost may vary based on the share capital, but it remains a one-time expenditure.
5. Drafting the LLC Contract in Arabic and English
The contract for an LLC established in Dubai is created with the mutual agreement of the partners. It must be prepared in Arabic and English to ensure a clear understanding among all shareholders. Apart from drafting the contract, there might be additional costs for translation. This expense is also incurred only once.
6. Department of Economic Development Fees (DED Fee)
The Ministry of Economy in each Emirate imposes a nominal one-time fee for registering LLCs. However, additional annual prices vary from one business to another.
7. Mainland Trade License Fee (Included in the DED Fee)
Obtaining a trade license is a one-time cost, with the specific amount varying based on the nature of the business activity. Occasionally, a security deposit might be necessary during the trade license application process. Licenses and related activities are subject to regular monitoring by relevant departments, which could involve occasional additional costs.
8. Commercial License Fee (Tejari)
The annual payment of the commercial license fee, commonly known as Tejari, is mandatory for engaging in commercial activities.
9. Dubai Chamber of Commerce Fee
The Dubai Chamber of Commerce fee is an annual obligation. The specified amount applies to general trading companies; however, the cost may vary for industrial or manufacturing companies.
10. Commercial Services Improvement Fee
This is an annual payment made to support improvements carried out by government departments.
10. Administrative Services Fee
An administrative fee is imposed for the paperwork handled by the department; it is a singular cost.
Other Significant Expenses:
- One-time fee for general trading company formation
- One-time fee for a contracting license
- Economic department charges for real estate brokers’ company
- The government applies a small percentage based on the premises rented. For offices or shops, it’s 5%, and for warehouses, it’s 20%.
- Additional charges may be imposed based on the specific nature of the business setup.
Cost of Setting Up a Company in Dubai
The cost of setting up a company in Dubai is based on the company’s needs. It includes the size of the business you are working in, the type of business you choose, location, and specific requirements for the licenses.
The mainland business setup costs start from AED 15,000* to AED 50,000*. To know the exact cost, you can contact our Shuraa experts.
Commence Your Business Journey with Shuraa Business Setup
Our team of business setup experts is here to assist you in establishing your business swiftly and efficiently, whether in Dubai or any other part of the UAE. While our services are charged, the nominal fee is a worthwhile investment, saving you valuable time, effort, and, most importantly, money!
For detailed information about Dubai business setup costs and low-cost business setup options in Dubai or any other Emirate, contact Shuraa. We guarantee you the best prices available in the market.
FAQs
Q1. Is it easy to start a business in Dubai?
It’s 100% easy to start a business in Dubai if you consult the right consultants. You can contact Shuraa to help set up a business in the UAE.
Q2. What is the cost of setting up a business on the mainland?
The cost of setting up a business on the mainland starts from AED 15,000* to AED 35,000*. To know the exact cost, you can consult with our Shuraa experts.
Q3. What is the cost of starting a business in the Freezone?
The cost of starting a business in the free zone starts from AED 10,000* and it can range between AED 30,000*. The cost is based on a lot of different factors. Like, the size of the business, and the type of business you are doing. Types of business licenses needed and more.