How Much Does it Cost to Start a Company in Dubai?

Dubai is a prime destination among investors as well as entrepreneurs all over the world. As the business hub of the Middle East, Dubai boasts outstanding global connectivity and provides entrepreneur-friendly laws. Moreover, the tax-free nature is an inviting point. Therefore, start a company in Dubai is profitable.

Cost to Set-up Business in Dubai

Owning a company in UAE is a dream of almost every business contender. In case you are thinking of setting up a company in Dubai, it is essential to pay attention to the cost. The lack of information could result in undesirable overheads. It is important to note that the cost of company registration in Dubai is changed from time to time. The fixed rate for different approvals as well as documentation is questionable. Moreover, the cost of the setting company varies according to the kind of business activity, certifications involved, and many other aspects. In case you have doubts regarding the cost of setting up business in Dubai, here is a guide to the different costs involved

Free Zone Business Setup Cost

The free zones in UAE are governed by their rules & regulations. Therefore, procedures, as well as company setup charges, also vary. While certain aspects like rental costs, visa fees, and having a local sponsor are similar. The other components like a warehouse, shared capital requirements, bank guarantee, license fee, office units, and registration fee might differ according to area choice.

The popular Dubai free zone license costs are IFZA (International Fee Zone Authority), SHAMS Freezone (Sharjah Media City), and Dubai South Freezone. The different costs of Dubai Freezone company setup are:-

• Company Registration Fee- The fee for free zone company registration in Dubai is a one-time payment that is made at the initial stage. It differs as per the company type- like FZE or branch office.
• License Fee- This fee is charged yearly to the companies under the free zone jurisdiction. It applies to service companies, industrial companies as well as trading companies. The Freezone authority of particular jurisdiction provides the license.
• Rental Cost- Office rent cost is among the initial charges that are involved in business setup cost. It provides complete ownership of assets as well as liabilities in the company. It is important to note that rental costs could be yearly, monthly, or even a lease of years. Moreover, the cheap option to set up a company in a free zone depends on the jurisdiction and renting choices provided.

Based on the free zone of choice, other key expenses to note are notarization charges, medical check insurance expenses, police clearance, Emirates ID card, etc.

Mainland Business Setup Cost

The mainland setup cost is quite similar to the cost of the Dubai Freezone company setup cost. The expenses of a start-up in land depend on numerous factors such as business nature, location, and visa grant tallies. For starting the business seeking the help of setup consultants could help. The common costs involved in setting up a business includes

• Government Charges-

  The compulsory charges of the government include initial approval name approval, license fee, and notarization of MOA (Memorandum of Association). These could be either yearly or one-time charges.

• Business Integration Fee- These are one-time as well as incorporate changes or integration fees that include the plan of reviews, record entries, and other costs. The extra compulsory fees are the new company enrolment with immigration as well as the ministry of labor. It is important to note that registration needs to be renewed after every two years.

Business incorporation costs include an amount for the document submission, understanding of inspections, etc. Along with this, you would need to give the annual legal fees, annual sponsor fee, commercial site fee as well as visa cost per person. In case you plan to set up an LLC, then there is a need for share capital that is nearly AED 300,000. After obtaining a trade license for LLC, you could change the share capital to the working capital.

Off-Shore Business Setup Cost

Opening an offshore business is a cost-effective as well as tax-efficient corporate structure for individuals looking forward to conducting international trade. For setting up such business, the different costs you need pay includes

• Registration Fee

The offshore company registration in Dubai is yearly. Depending on the offshore jurisdiction selected by the company’s owner and the kind of business activity, the registration fee could vary.

• Registered Office Fee

For incorporating a company, it is crucial to have a local presence. However, there is no need to have the fully operational office subjected to business activity. Still, having a registered address is essential. And, such expense is payable yearly.

• Nominee Services

During the owner’s absence, shareholders, directors, and related nominees are selected for signatory as well as decisive purposes.  The nominees get limited rights from the owner and they charge for their services.

• Agent Fee

Just like Freezone and mainland companies, the offshore business companies also need a local agent. This agent needs to be paid annually for his/her services, whenever the company involves in government procedures.

• Standard Share Capital

It is important to understand that offshore business is a flexible instrument for conducting commercial activities and making investments. However, certain jurisdictions might have the requirement of the standard share capital while some do not have such constraints.

• Maintenance Fee

The maintenance fee is paid towards the offshore region’s jurisdiction authority. It is a yearly fee for the first legal year and then from the second year, onwards a fixed sum is paid to the offshore authority.

Apart from these, you would need to pay charges to open a bank account for operating commercially in UAE. In case you still have doubt, it is advised to reach out to an informed and reputable business setup consultancy.