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The cost of starting a company in Dubai might fluctuate over time, and there is unlikely to be a set fee for all permissions and documentation. That is why it is a good idea to contact an experienced and reasonably priced company setup consultant in Dubai, such as A &A associate. These corporate advisors can help you comprehend the fees you will have to pay when you first start out, keep you up to date on any changes in government fees, and advise you on how to save money and prevent unnecessary expenses. and provide you Tips to reduce the cost of starting a business in Dubai.
The cost of starting a company in Dubai might fluctuate over time, and there is unlikely to be a set fee for all permissions and documentation. That is why it is a good idea to contact an experienced and reasonably priced company setup consultant in Dubai, such as A&A Associate. These corporate advisors can help you comprehend the fees you will have to pay when you first start out, keep you up to date on any changes in government fees, and advise you on how to save money and prevent unnecessary expenses
Cost of Starting a Business in Dubai Mainland
Dubai Commercial License Cost: This includes
- Initial approval fee of AED 120 (one time gov’t fees)
- Name approval fee of AED 620 (one time gov’t fees)
- Tasheel fee of AED 230 (one time gov’t fees)
- Notarization of MOA fee of AED 15,000 (one-time)
- Yearly license fee is 5% of the Ejari value (yearly gov’t fees)
- Yearly foreign name fee of AED 2,000 (if an Arabic name is not chosen).
Dubai Professional License Cost: This consists of :
- Initial approval fee of AED 120,
- Name approval fee of AED 620,
- Tasheel fee of AED 230,
- Notarization of MOA fee of AED 900 (one-time)
- Yearly license fee is 5% of the Ejari value (yearly gov’t fees)
- Yearly foreign name fee of AED 2,000 (if an Arabic name is not chosen).
*The cost may fluctuate in accordance with the prevailing government regulations.
Essential Business Registration Fees
DED Initial Approval
The Department of Economic Development (DED) provides initial approvals to begin business This entails a small cost that allows enterprises to begin operations for up to six months, giving them enough time to complete other essential papers. It is a one-time cost associated with the setup procedure.
Trade Name Approval
Obtaining approval for your company’s trade name is a critical The cost varies according to the chosen name and includes expenses such as reservation fees, commercial name fees, foreign business name fees, and so on. This is a one-time fee as well.
Renting an Office for an LLC
Renting an office space is required for mainland business setups in Dubai. This allows authorities to perform inspections, monitor operations, and ensure compliance with immigration regulations by verifying the authenticity of Office rental charges might be incurred on an annual or term basis.
Attestation of Memorandum of Association (MoA)
Drafting the LLC Contract in Arabic and English
The contract for an LLC formation in Dubai is written in both Arabic and English, making it easier for all shareholders to understand. In addition to contract preparation, translation charges may be paid, however this is a one-time cost associated with the setup procedure.
Additional Licensing and Governmental Fees
The contract for an LLC formation in Dubai is written in both Arabic and English, making it easier for all shareholders to understand. In addition to contract preparation, translation charges may be paid, however this is a one-time cost associated with the setup procedure.
DED Fee (Department of Economic Development imposes)
Mainland Trade License Fee (Included in DED Fee)
Obtaining a Trade license in Dubai for a mainland business is a one-time payment, albeit the cost varies depending on the type of the business A security deposit may be requested in some situations during the license application procedure.
Commercial License Fee / Tejari
Dubai Chamber of Commerce Fee
Chamber of Commerce of Dubai Membership in the Dubai Chamber of Commerce requires an annual fee. The precise amount can vary, with charges varying for general commerce, industrial, and manufacturing businesses.
Administrative Services Fee:
Other Important Expenses
Fees for one-time general trading company formation, a one-time contracting license fee, economic department charges for real estate brokers’ companies, and government charges based on the percentage of premises rented (e.g., 5% for offices or shops, 20% for warehouses) are examples of additional Additional fees may apply depending on the nature of the business setup.
When evaluating cost of limited liability company LLC formation in Dubai, these charges highlight the significance of budgeting and planning. As expenses fluctuate, it is important to stay informed and obtain advice from qualified sources, such as company setup consultants, who can provide insight into the most recent fees and laws. Understanding these prices is a critical step toward effectively beginning your company venture in Dubai’s dynamic and flourishing city.
Cost of Starting a Business in Dubai Free Zone
Variation in Costs Across Different Free Zones
The costs associated with setting up a business in free zones across the UAE can vary significantly. While certain aspects like local sponsorship, rental expenses, and visa fees may be similar, other components such as the type of office space (smart desk, office unit, warehouse), license fees, registration fees, share capital requirements, and bank guarantees may differ based on the specific free zone chosen for your business.
International Free Zone Authority (IFZA) License Costs
IFZA offers different license options with varying For example, the cost for a license with one investor visa is AED 17,900, while the cost without a visa is AED 11,900. Prices may also differ based on the type of company, such as Free Zone Entity (FZE) or branch office.
Services Included in Free Zone Business Setup Costs
The costs of starting a business in Dubai free zone typically include various components:
Free Zone Company Registration Fee
This is a one-time payment made to the free zone authority during the initial registration of your The cost varies based on the type of company, such as Free Zone Entity (FZE) or branch office.
Free Zone License Fee (Included in Company Registration)
This is an annual fee applicable to companies operating within a free zone jurisdiction. It covers trading, services, and industrial companies. The licensing process is usually streamlined through the free zone authority.
Rental Cost (Included in Company Registration)
Rental Options for Free Zone Business Setups
Free zone business setups offer various rental options to suit different needs:
Smart Desk:
This is a cost-effective option suitable for freelancers and small It provides access to a dedicated desk space.
Office Units:
Small, self-sufficient office spaces are available, with costs depending on the selected area.
Permanent Office / Warehouses:
Full-fledged office spaces and warehouses are also available, offering more amenities but at a comparatively higher cost.
Share Capital Requirements for Free Zone Companies
Starting a free zone company may require an investment by shareholders or the sole proprietor. Share capital can be divided among shareholders or provided as a total investment. Most UAE free zones have minimum share capital requirements.
Free Zone Visa Fees and Entitlements
Free zone companies have limited employment visa quotas, which depend on the size of the office Visa fees are levied annually and require renewal. Costs may include residency stamps, medical certificates, ID cards, and visa issuance.
Bank Guarantee Requirements for Free Zone Companies
Free zone companies are often required to provide a bank guarantee for each employee.
Registered Agent Fee for Free Zone Companies
Unlike LLCs, free zone companies may need a local agent to handle governmental The services of this registered agent come at an initial cost and may be repeated during license renewals.
Additional Expenses Depending on Free Zone Choice
Depending on your chosen free zone, additional expenses to consider can include name approval charges, notarization charges, insurance costs, premium bank account fees in Dubai, typing and shipping fees, medical checks, police clearances, and Emirates ID card fees. These expenses can vary depending on the specific free zone’s requirements and regulations.
Cost of Starting a Business in Dubai Offshore
Standard Share Capital – No Deposit Required
Aside from its thriving mainland and free zone business environments, Dubai also offers the option of forming an offshore company through the Jebel Ali Free Zone Authority (JAFZA) and the RAK International Corporate Centre (RAK ICC). We present a full analysis of the estimated expenses for offshore company formation, taking into account the cost of starting business in Dubai.
Offshore Company Formation Fee
This is the initial cost of establishing an offshore company in Dubai. It covers the basic stages for forming an offshore entity, such as legal papers and registration.
Offshore Registered Office Fee
Nominee Services – Included in Formation Fee
Maintenance / Renewal Fee
Services Included in the Costs of Setting Up an Offshore Business in Dubai, UAE:
Charges for Opening a Bank Account:
A bank account is required to setting up a business in Dubai. Opening a bank account is a one-time expense that is required for undertaking financial transactions.
Agent Fee:
Offshore business arrangements, like mainland and free zone enterprises, necessitate the use of a local agent. The services of the local agent, which include assistance with governmental procedures, are normally compensated on a yearly basis.
Offshore Business Maintenance Fee:
This is an annual fee paid to the offshore region’s jurisdiction authority. While the price for the first legal year may vary, a fixed sum is usually paid annually thereafter to ensure the company’s continuous compliance.
Important Considerations for Cost of Starting a Business in Dubai
It is important to note that the prices listed for business setup are provided as a guideline for entrepreneurs and aspiring business owners. Actual expenses may vary depending on company type, business setup jurisdiction, legal structure, and other considerations. It is best to speak with expert business consultants for accurate pricing matched to your individual business needs. They can supply you with the most competitive estimates and a tailored pricing structure for your business startup or company proceedings.
The business setup costs in Dubai is determined by a variety of factors, including the location of the firm—mainland, free zone, or offshore. Understanding the costs particular to your business type is critical for good financial planning. Whether you want to take advantage of Dubai’s dynamic business environment, tax efficiency, or worldwide exposure, completing thorough research and consulting with company setup professionals will ensure a simple and cost-effective establishment procedure. Dubai is a popular destination for entrepreneurs eager to make sensible investments in their businesses and capitalize on the city’s attractive opportunities. including obtaining a general trading license in Dubai.
Expert Guidance for Starting a Business in Dubai
For expert guidance on Cost of starting a business in Dubai, UAE, consider consulting A&A Associate, a leading business setup consultant in Dubai. Our experienced advisors can provide valuable insights and support to help you navigate the complexities of starting and managing your business in Dubai’s diverse landscape.
