Do You Want to New Company/Business Setup in Dubai, UAE?

You can register a company in the UAE with a very limited starting capital. This goes to say that people with varying levels of budget can start their own company in the UAE. This is because there are various factors that go into starting a business here.

And each of these factors will differ from one company to the next. As a result, the actual cost to register a company in the UAE will differ from business to business.

Here are the three main areas where your cost will differ when you want to register a company in the UAE:

License Fee

First and foremost, depending on the business activities you want to perform, you need to obtain a business trade license for your company. This is because the license ensures that you can perform your business activities legally in the UAE. However, there are different types of business trade licenses in different economic zones in the country.

Additionally, the cost of these licenses differs as well. This is why the cost of obtaining the business trade license will depend on the economic jurisdiction and the business activities of your company.

Office Cost

All businesses in the UAE need to obtain office space for their operations before they can register their company in the country. This is because it is a mandatory step from the government of the UAE.

However, there are various options when it comes to obtaining office space in the UAE. Besides the different types of office space in the UAE, you will also need to decide whether you want to rent or lease office space.

Starting Capital

Last but not the least, after the successful registration of your company in the UAE, you need to start performing your business activities. However, as different businesses perform different activities, the starting capital requirement to kick off your business operations will differ from other businesses.

A foreigner can own a business in Dubai by starting a business in one of the free zones. Dubai Government allows you to retain 100% ownership if you start your business in the free zone. You will need a local sponsor who will own 51% of the business if you start your business on the mainland.

The cost of starting a company in Dubai will depend on a lot of factors starting from your choice of location to the size of your business. For example, there are economic jurisdictions in Dubai where you can start your business.

They are the mainland, the free zones, and the offshore companies. To clarify, the cost of starting a business in Dubai will vary depending on which of these economic jurisdictions you choose for your company.

Generally, starting a business in a free zone is cheaper than starting a business on the mainland. If you have any questions regarding the economic jurisdictions, you can contact the Company Setup experts.

To give you a general idea of the cost of starting a company in Dubai, the cost of setting up a Limited Liability Company in Dubai is approximately AED 22,000 which translates to around USD 6,000.

Additionally, it is mandatory to get an office space when starting a business in Dubai. However, if you want to start an online business and do not need a physical space for your business operations, then you can opt for a virtual office which is significantly cheaper than any physical office space.

Most business owners choose to live in Dubai with a residency visa because of the high quality of life here. However, it is not mandatory to have a permanent residency visa to find success in Dubai. This means that you can easily open a company in Dubai without a residence visa. To do this, you can contact Company Setup experts, who will start your company in Dubai for you.

As a result, you do not need to move to Dubai permanently to open a business here. However, there are certain factors that you need to be aware of if you do not plan to move to Dubai permanently.

For starters, you need to work with a local sponsor to start your business if you do not want to move to the UAE. However, they will not be involved in the decision-making process of your company and will require a small fee for their services. Additionally, you can easily start a company in one of the free zones in Dubai without a residency visa. Whichever route you choose to start your company in Dubai without a residency visa, you can contact the Company Setup Consultant to make your life easier.

Here is the process you can follow to register your online business in Dubai:

• Finalize the legal framework for your business
• Select a location.
• Choose and register a trading name.
• Apply for a license.
• Apply for an initial approval certificate.
• Draft an MOA.
• Rent or lease a physical office in Dubai.

Here are the available types of company structures to set up a business in Dubai:

1. Sole Proprietorships
2. Partnerships
3. Corporations
4. Limited Liability Company (LLC)
5. Free Zone Company
6. Holding Company

Dubai is the best place for you to start your business. The economy of Dubai is growing exponentially. So, you can expect stable growth for your business. The is no corporate or personal tax. Dubai also has a world-class infrastructure and transportation.

Yes. An Indian can easily start a business in Dubai and enjoy the benefits like no tax, low import duty, advanced infrastructure, and many others. The tax benefits in Dubai outweigh the taxation policy of India. So, starting a business in Dubai is very lucrative for an Indian.

Setting up a business in Dubai is beneficial for an entrepreneur in many ways. Here are the main advantages of setting up a business in Dubai: 

• Huge tax benefit
• Easy and quick setup process
• Advanced infrastructure and business-friendly environment
• Can Retain 100% ownership if set up in the free zone
• No local sponsor is required if set up in the free zone
• Availability of skilled workforce
• 100% exemption from import and export duties.
• 100% repatriation of capital and profits.
• No limitations or restrictions regarding minimum starting capital.
• No limitations when recruiting.
• No requirement for annual audits.
• Visa sponsorship opportunities based on office size.
• Available and flexible office spaces

Besides these, there are countless benefits of starting your business in one of the free zones in Dubai. Different free zones provide different benefits and cater to the needs of different businesses, so do your own research before selecting an economic zone for your business.

Strictly speaking, a free zone company is allowed to do business within its own boundaries only. However, there are several ways a free zone company can do business in mainland Dubai, or even internationally.

There are certain business activities that are allowed. That means if you provide certain services from a free zone, you can also provide those services on the mainland without any restrictions. In cases of business activities that are not allowed for free zone businesses, they can still provide those through a middleman, also known as a local service provider.

Another way is to acquire specific licenses and documentation from the Department of Economic Development in Dubai that allows you to perform those business activities in the mainland. You can establish a branch office or limited liability company on the mainland and perform your business activities as well.

Alternatively, you can sell your products through a DED-licensed distributor on the mainland from the free zone you are in. These distributors can operate on the mainland on your behalf for a small fee.

The exact cost of starting your company in one of Dubai’s various free zones will vary depending on a lot of factors. For example, it will depend on the free zone you select, the type and size of the office space you choose, the company structure you choose, etc. Many free zones have a minimum starting capital requirement that you need to meet in order to set up a company there.

Here are some of the biggest costs related to starting a business in Dubai:

Company Registration Fee:

The registration free will depend on the free zone you select for your business. However, it does not vary too much. The range of the fee for registering your company in one of Dubai’s free zones is around AED 9,000 to AED 10,000.

Trade License Fee:

The trade license fee is a recurring cost, and you need to pay it again when you renew your trade license. The amount of the trade license fee will depend on the type of trade license and business activities you mean to pursue. It will range anywhere between AED 10,000 to AED 50,000 per year.

Office Space Rent:

The rent of the office spaces varies vastly depending on the type and size of the space you get. You can rent serviced desk spaces in Dubai which cost around AED 15,000 to AED 20,000.

Minimum Capital:

The minimum capital requirement will also depend on the free zone you choose for your business. Many free zones do not have a minimum capital requirement, while some have a requirement of AED 50,000.

In the past, you had to have a sponsor to own a business on the mainland. Only free zones allowed foreigners to own 100% of a business in the UAE. But the free zones were catered to the needs of certain businesses only. And there were certain restrictions and limitations in the free zones that made them unattractive to many foreign entrepreneurs.

If you wanted to own a business on the mainland of UAE then you could only own 49% of the business, even if you were the founder of the business. The rest of the 51% had to be owned by a local sponsor. This was a big red flag for businessmen and entrepreneurs from other countries who were interested in the UAE.

However, the government of the UAE had made some amendments to their previous laws. Now, most of the sectors allow 100% of ownership to foreigners all throughout the UAE. That means, you no longer need a local sponsor to start a business in the UAE.

The only sectors where 100% ownership is still not available for foreigners are the sectors that are strategically important to the UAE. For example, 100% ownership for foreigners is not possible in the oil and gas sector, the transportation sector, weapons manufacturing sector, etc. You can only own 49% of a company in these sectors as a foreigner in the UAE.

You do not need to form your own company in the UAE though. You can easily invest in any of the public companies in the UAE. The UAE recently announced the golden visa that allows long-term residency for foreigners.

Non-residents can open bank accounts in Dubai. However, most of the banks in Dubai allow non-residents to open a saving account, not a current account. Non-residents also cannot receive a checkbook. They are issued debit cards that can be used to withdraw money.