Helping business owners/ entrepreneurs with business set up in Dubai is something that we do regularly at company setup Consultants. Our team comprises of experienced people who have led to the success of hundreds of companies all the way up to entering the market in the UAE successfully. In this case, we present a practical, and plain break-down of the cost of doing business in Dubai to include current market statistics and practical experience.
Table of Contents
Why Choose Dubai for Your Business?
Dubai is not only a global tourist attraction centre, but also a worldwide business centre of excellence. Dubai has numerous benefits, as far as business consultants of several years of experience in the region, we have witnessed how Dubai has provided benefits that are unmatched and these include:
Strategic Global Location
: Dubai located at a geographic location touching Europe, Asia, and Africa.
Robust Infrastructure
: This city has superior logistic facilities, telecom facilities, and financial facilities.
Pro-Business Government Policies
: The UAE government has been granting constant incentives and reduction in regulations to owners of firms within the country.
Economic Diversity
: The economy of Dubai is well rounded and strong and takes care of activities such as finance, tourism and logistics.
Tax Advantages
: Various operations enjoy zero personal income tax and reasonable corporate taxes systems.
We have history of supporting clients in over 30 industries by using these strengths to secure their measurable growth.
Key Factors That Impact the Costs of Business Setup in Dubai
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Jurisdiction Matters
The location of your company in Dubai will play a great influence on the costs:
Mainland
: Free trade is permitted in Dubai and all over the UAE. The amount of registration fees acts on average of AED 15,000 to AED 50,000 needing little office.
Free Zone
: Allows 100 percent foreign ownership and may involve reduced establishment costs of Business Setup in Dubai (registration costs ranges between AED 10,000 and AED 30,000) although the companies are restricted to trade within the free zone or with special permission.
Offshore
: Best suited to a company that targets international rather than direct operations in the UAE. Income tax is generally lower and the licensing fees are limited here.
Our experience in practice: By choosing the zone properly, clients usually manage to cut the costs and enjoy the flexibility.
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Type of Business License
License fee varies according to business activity:
Businesses with a wider scope will require Commercial license, Industrial license or Professional licenses with prices beginning at approximately AED 8,000 (mainland) and up to AED 30,000 or more.
Additional savings can be made by combining free zone licenses with flexi-desk, or virtual office solutions whereby free zone licenses are bundled together and the charges are standardized making it even cheaper.
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Company Structure and Legal Form
Depending on your legal business model such as LLC, sole ownership of a business, or branch business, not only do initial costs and obligations vary but also future maintenance needs. As an example, the structure involving LLC on the mainland will require more paperwork and fees but allow to gain access to the local market.
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Office Rental & Business Address
Rent of offices is an important factor of costs:
Mainland: Even physical office is required, with minimum rate of AED 15,000/year on standard premises (but in great locations this can be rather expensive).
Free Zones: The flexi-desks or virtual offices start at AED 5,000/year and the traditional offices go up to AED 30,000/year.
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Visa and Residency Costs
Free Zone Visas: It is common to bargain package deals with a fixed rate of AED 3000-8000 an employee that will cover medical tests as well as fees on Emirates ID.
Mainland Visas: Extremely different, however generally there is a slight increase to accommodate the office procedures and office formalities.
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Government and Registration Fees
Save some money to be used to be given the necessary approvals:
- Reservation of company name/trade name: Approx AED 700 -800
- First authorization: Approximately AED 250 300
- Application and registration fees: 1000-9,000 and more
- AED 2,000+ Articles of Association (AoA) drafting
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Additional and Recurring Expenses
In our practice, among newly established business owners the following are disregarded:
PRO Services: It begins at AED 20005,000 (document handling).
Auditing and Accounting: The audit comes at a fixed price of AED 5,000-15,000 each year.
Banking Fees: Once a corporate account has been opened, it can introduce operating accounts fees, set up fees or balance fees (bank dependent).
Renewal Fees: Visa and license renewal has to be done annually to renew the operations.
Example Cost Breakdown Table
Setup Element Mainland (AED) Free Zone (AED)
Registration/Licensing 15,000–50,000 10,000–30,000
Office Rent 15,000–40,000+ 5,000–30,000
Visa per Person 4,000–8,000 3,000–8,000
Application Fees 1,000–10,000 1,000–10,000
PRO/Legal Services 2,000–5,000 2,000–5,000
Costs of business set up in Dubai will vary depending on business activity, size, and your choice of service providers.
How to Reduce Your Business Setup Costs in Dubai
company setup Consultants professionals suggest:
Prudent Jurisdiction Choice: The zone or mainland should be selected according to the cost control requirements.
Free zones: Doing away with costly leases through coworking spaces can save free zone considerable amounts of rent.
Bundled Services: Most consultants (And we at company setup Consultants) are offering fixed-priced package deals that offer little or no surprises.
Professional Guidance: Hiring a professional advisor will prevent doing something wrong and keep obscure costs in all phases of establishment.
Our Editorial and Expert Process
All of the guides provided in the company setup Consultants are written or proofread by certified lectors of business formation solutions who possess rich real-life experience in company setup in the UAE. This information is reviewed regularly to ensure that it is accurate in terms of Dubai legal, regulatory and fee changes.
The work was accomplished through the cooperation of consultants on the setup, legal advisors, and entrepreneurs who had established successful businesses in the area and each fact and suggestion have been checked and confirmed by team members with first-hand experience of the area.
Conclusion
Initiating a business set up in Dubai is a strategic business move, however, it should be carefully planned in detail and all the set involved costs be seriously considered. Applying the knowledge of company setup Consultants consultants will help you make the process of going to the Dubai market and then settling to operate there both smooth and cost-efficient and devoid of any regulatory issues.
To have a bespoke suggestion and up-to-date deals on business setup offers, call company setup Consultants today. We guarantee to give you clear and dependable information that will see you enter the UAE business environment successfully.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
