Setting up a business in Dubai can vary in cost depending on different factors. These factors include the type of business you want to start, the area or jurisdiction in which you want to establish your company, and the necessary approvals and certifications required. Company Setup, a company with experience in assisting entrepreneurs with business setup in Dubai, has created a list of costs based on the current and typical expenses involved in setting up a business in Dubai.
company setup consultants has categorized the costs into two main categories: Mainland and Free Zone Company Formation Cost in Dubai.
Now the actual mainland company setup Dubai cost will vary depending on a lot of factors. To begin with, there are two ways you can start your mainland business in Dubai.
But most importantly, it’s the cost-effectively of mainland company setup in Dubai that is the attraction of so many investors from all around the world.
You can do it alone, which is highly discouraging if this is your first time, or you can do it with the help of Company Setup consultants. Either way, you can expect to spend somewhere around the ballpark of AED 25,000 to AED 50,000.
When you want to start your business with company setup consultants, the Dubai mainland company formation cost starts from just AED 15,000.
Dubai Mainland Company Formation Cost and Requirement
As we have mentioned before, the Dubai mainland company formation cost will differ from others. This is because there are different steps in the setup process that requires a different amount depending on their choices and decisions.
Here are the costs of the different steps in the process of mainland company formation in Dubai:
• Mainland Company Registration Fee
First and foremost, the mainland company registration fee will depend on the number of shareholders, visa applications, and company structure of your firm. You can also pay extra to enjoy some of the exclusive privileges of owning a business on the mainland.
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• The Cost of Acquiring the Business Trade License
The cost of acquiring your business trade license from the Department of Economic Development in Dubai will depend on the business activities you mean to perform in mainland Dubai. Also, it is important to note that you need to renew your business trade license each year as well.
• Rent or Lease of an Office Space
It is mandatory to rent or lease office space when starting a company in Dubai. The cost of acquiring an office space in Dubai will depend on the type of office space you choose. If you do not need office space to perform your business activities then you can rent a virtual office space in Dubai.
• Trade Name Reservation Fee
The trade name registration fee is similar for all businesses. At the time of publishing, the trade name reservation fee in Dubai was AED 620. However, if you choose to use a foreign trade name, you may need to pay additional fees.
• Local Service Agent’s Annual Fee
Last but not the least, you can enjoy 100% ownership of mainland businesses even as a foreigner in Dubai now. You can work with a local service agent who will not have any legal ownership of your company. Their fees will depend on the local service agent you choose in Dubai.
Process of Mainland Company Setup in Dubai
The process of mainland company setup in Dubai can be a little confusing for first-timers. However, Company Setup experts can navigate the steps in the process with relative ease. They will ensure there are no hiccups that may cause expensive setbacks otherwise.
Here are the steps in the process of mainland company setup in Dubai explained briefly:
• Select business activities and company structure
The first step is to make some crucial decisions about your business. The business activities you choose to perform will determine the trade license you need to apply for. And the company structure you choose will determine the laws and legislations you are subjected to.
• Register the trade name of the business
Before applying for a business trade license in Dubai, you need to register your trade name in the general journal and post the announcement in two local newspapers. If no one challenges your trade name, it will be registered as your trademark.
• Get initial approval from the DED
The governing authority for handling the registration of new businesses in the Department of Economic Development in Dubai. You need to fill up an application form that they will provide, and if everything turns out alright, they will provide the initial approval.
• Get office space and external approvals
After receiving the initial approval, you can go ahead and acquire office space in Dubai. Be sure to receive the tenancy contract and EJARI as these are mandatory. After getting an office space, you need to get the external approvals as directed by the DED.
• Open a corporate bank account
After receiving your trade license from the DED, the last step is to open a corporate bank account in Dubai. Ensure that you research the financial institution and read their terms carefully before opening a bank account.
Cost of Freezone Company setup in Dubai
Setting up a business in Dubai’s free zone areas offers inherent cost-saving advantages, making it a popular choice for entrepreneurs. However, the cost of forming a Freezone Company in Dubai can vary depending on the specific free zone you choose.
For instance, Sharjah Media City Freezone (Shams) offers an attractive starting point with license fees beginning at AED 9,200. On the other hand, Dubai South Freezone has a higher starting point, with license fees starting at AED 25,000.
It’s important to note that these figures are provided as general examples and are subject to change. It’s always recommended to consult with business setup consultants or the respective free zone authorities for accurate and up-to-date information on costs.
Documents Required for Mainland Company Formation in Dubai
Some documents are mandatory and need to be submitted to the Department of Economic Development in Dubai. These documents are required for regulatory purposes and will help identify your firm in any future legalities.
The authorities in Dubai follow a no-compromise policy for paperwork, so these documents must be presented to get your mainland company setup in Dubai.
Here are the documents required for mainland company setup in Dubai:
- List of business activities to be performed by the firm.
- List of trade names for the firm.
- Copies of the passports of all the shareholders of the firm.
- Copy of the entry stamp or the visa page of all the shareholders of the firm.
- Passport size photographs of all the shareholders of the firm.
- The attested Memorandum of Association.
- The initial approval letter from the Department of Economic Development in Dubai.
- The attested lease agreement or tenancy contract with the EJARI.
- The approval certificates from the respective external authorities.
- The formal agreement letter with a local sponsor or a local service agent.
How much does it cost to set up an LLC in Dubai?
To register a limited liability company in Dubai, the cost can range from AED 20,000 to AED 30,000. It’s important to note that these fees can vary based on the specific industry type and services you plan to offer.
If you’re interested in obtaining an investor visa, the cost typically falls between AED 4,000 and AED 5,500. However, it’s worth mentioning that the fee for the visa can also be influenced by other factors.
When it comes to hiring employees, the fees associated with each category of employee can range from AED 5,000 to AED 7,000. The exact fee will depend on the specific category of employee you plan to hire for your business.
How much is the Dubai mainland license in 2023?
In 2023, the cost of obtaining a Dubai mainland license starts at around AED 10,000. However, it’s important to note that this cost may increase based on additional factors such as acquiring extra permits, visas, government fees, and other related expenses.
What is the lowest business setup cost in UAE?
The lowest business setup cost in the UAE can vary depending on several factors, including the type of business activity, the jurisdiction, and the specific requirements involved. While it is difficult to provide an exact figure for the lowest cost, there are certain free zones in the UAE that offer cost-effective options for setting up a business. These free zones often have packages tailored for small and medium-sized enterprises (SMEs) with competitive rates and simplified processes. It’s recommended to research and explore different free zones and their offerings to determine the most affordable business setup cost that aligns with your specific requirements in the UAE.
How can Company Setup Consultants help you?
If you are looking to get started with your mainland company setup in Dubai at the most affordable cost structure, then you are in the right place. Company Setup consultants have years of experience starting various mainland companies for the most affordable price possible. Contact us today and hit the ground running.
For further information and assistance on What is the Cost of Mainland Company Setup in Dubai? 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 firstname.lastname@example.org.