If you think that starting a company in Dubai is a good opportunity, you may be 100% correct. It is a great region with investor friendly laws and high living standards. This is why there is a high number of expatriates that have relocated and established their businesses in the city-state.
Whilst it may be a lucrative option, the costs are a factor that you must be fully aware of before moving.
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Costs According to Area
The first factor to be noted is that the costs of business setup in Dubai may vary accordingly to where you decide to open it. The options include Offshore, Mainland, and Free Trade Zones (FTZs).
Free Trade Zone Company Set up Costs
Company formation in Free Zone may cost you less as there is a one-time fee for registering your business in the area and reserving the name of the company. Other than that, there is an annual fee for the office space and renewing your trade license.
One additional cost may be the visa fee for yourself and dependents. Another factor to consider is that you will have 100% ownership of your company here, regardless. The total costs of free zones licenses can range between AED 10,000 to AED 50,000.
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Mainland and Offshore Company Setup Costs
In the event that you choose business setup in the Mainland or Offshore area of Dubai, you will be liable to a whole other host of costs and fees. This is due to the governments charges for operating in that coveted area.
These charges include one-time fees for the initial application approval, company name approval and notarization of the Memorandum of Association with your local sponsor. Additional costs may include the yearly license renewal fee and government tax on foreign names.
A rough figure estimate to consider for setting up an LLC in the mainland can be AED 300,000 yearly. This is the minimum share capital that is required, however, once you have received your license; you will be allowed to use this share capital as a working capital.
Additional Yearly Company setup Fees
In addition to the above, the other annual fees you need to consider in the mainland are for the following factors:
- Registration at the Ministry of Economy
- Registration at the Chamber of Commerce
- Yearly Audit and Auditor
- Certification of parent company
- Corporate PO Box
- PRO Services for Trade License Management
These are just some fees that you may incur for formation of your company. However, there may additional, hidden costs that arise according to the activity, nature, and structure of the company you wish to establish.
For this reason, we recommend services of a business setup consultancy in Dubai. They can accurately provide a costing structure and take care of each aspect of the business setup at a nominal cost, which includes paperwork, office location and local sponsor duties negotiations. They can also provide a full list and details of the costs that you have to bear.
For further information and assistance on how to register your company in the UAE, speak with our experienced consultants. Book your FREE consultation today at +971 558654072, +971 4 3827780Â or drop us a line on info@companysetup.ae
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