Dubai, the flag-bearer of UAE’s progress, is well-known for its flourishing economy. Moreover, the growing market, expanding opportunities, diverse start-ups, friendly policies, and ease of company setup makes it effortless to incorporate a company in Dubai. However, before starting to form your company, it is important to decide which location you want to operate it, which structure you would set up, and most importantly how much money you will need to start off your project.
Hence, to answer your queries, we have gathered all the necessary costs involved in the process as well as the expected expenses before and after the company’s establishment.
Costs involved in incorporating a company in Dubai
The cost of business setup in Dubai may vary depending on the location. However, there are certain costs that cannot be avoided and will undoubtedly be a part of your basic overheads when you incorporate a company in Dubai.
Registration fee
The business registration fee is usually a one-time thing paid during the initial stages of company formation. The exact price of registration is however determined by the company’s legal structure.
License fee
Selecting a business license is one of the most critical steps in the company formation process. The most common business licenses available in Dubai are trading licenses, service licenses, and manufacturing licenses. Additionally, license fees are recurring, unlike the registration costs.
Office fee
To obtain a business license in Dubai, you are required to rent an office space. Each zone in Dubai offers a variety of working spaces to meet your company’s requirements, such as service desks, innovative desks, flexible desks, shared offices, and dedicated offices. Thus, the costs may vary depending on the facility you choose for your need.
Share capital
Depending on the business activities and trade license, the share capital requirement may also vary in Dubai. The business advisors at UAE Expansion can guide you on the same and even suggest you some of the best cost-effective company formation packages complementing all your business requests.
Free Zone Company Setup Costs
When you incorporate a company in Dubai Free Zone, you come across several advantages, especially in terms of costs. Since there are numerous free zones in Dubai, the incorporation costs will also vary accordingly. And apart from the location, there are several other factors that influence the business setup costs such as business structure and activities, infrastructure and visa requirements, access to suppliers and raw materials, etc.
Let’s have a look at some of the most sought-after costs associated with a free zone company setup –
Office rent
Free zone authorities determine the rent for the office space you would require for your business. Further, the size of your office will help in determining the number of visas you can actually apply for. Apparently, these costs are all incurred on an annual basis while establishing a company in Dubai.
Free zone license
While starting a business in Dubai Free Zone, you would require a business license to operate legally. Hence, the trading companies, service companies, and industrial companies will be charged a license fee to establish themselves lawfully in the Free Zone.
Business registration
This cost is incurred when a business is registered in a free zone. And therefore, the exact price will also be determined by the authorities of the respective free zone where the company is located. For example, Dubai Multi Commodities Center, Hamriyah Free Zone, etc. Additionally, this cost will also include the legal structure of the company. For instance, Free Zone Establishment (FZE) or Branch Company.
Visa renewal
The free zone company is required to apply for employee visas on the basis of the office space chosen by the company’s management. The visa fees may vary depending on the nationality of the employee, whether they are from outside the UAE or local residents. This is again a recurring cost because once the visa expires, the company will have to re-apply for visa renewal.
Bank Security
Free zone companies are obligated to provide a financial guarantee for all of their employees as proof that the hiring process of the company is genuine and not a scam.
Mainland Company Setup Costs
The costs of Mainland company setup are relatively high compared to free zone company setups in Dubai. However, just like free zones, the costs are determined by the factors like the legal form of the company, the number of visa permits, and the location of the business. In addition, some additional costs may also add up over time.
Apart from that, the majority of expenses that a Mainland business can incur are as below –
Preliminary approval
Just like any other business, Mainland companies are also required to obtain a business license from the DED (Department of Economic Development) for their operations. The cost of the license may vary depending on the type of license the company applies for.
Trade name registration
Getting approval for the trade name is a critical requirement for the business setup process. Hence, to get this approval, the business owner will have to incur the following expenses –
- Reservation Cost
- Cost of Commercial Name
- Cost of Foreign Company Name.
Office rent
Businesses require dedicated offices to ensure that they are legal. This facility thus allows authorities to carry out inspections, oversee business operations, and ensure that immigration laws are properly followed in the company. Hence, the size of the office space you choose, the amenities provided, and the office location will determine the cost of office rent.
MOA Attestation
The Memorandum of Association is a corporate document created in agreement with the partners or shareholders of the company. And to incorporate a company in Dubai online or offline, you have to get your documents attested before submitting them to the concerned authorities. The cost of attestation of MOA will depend on the capital invested by the shareholders or the allocation of shares as per the agreement.
Contract drafting and translation
As per the rule, the documents need to be drafted in Arabic and English during the incorporation process. Hence, foreign businesses may have to pay a price for contract translation. However, this price can be negotiable if you work with UAE Expansion for your business incorporation in Dubai. Their experts can help you prepare your documents as per the guidelines and offer you cost-effective services for your business setup in Dubai.
MoE fees
Companies operating in Dubai Mainland pay this fee annually to the Ministry of Economy for conducting commercial activities in the region. This fee will include –
- Trade license fee
- Chamber of Commerce fee
Contact UAE Expansion business advisors and get the most cost-effective business setup options for your Mainland Company Formation in Dubai.
Incorporate a company in Dubai from India with UAE Expansion
So, in conclusion, several factors that are involved in forming a company will determine the overall cost that you will incur during your business setup in Dubai. Nevertheless, if you use the right strategies and seek professional advice, you can trim the fat and save a lot of money.
UAE Expansion Business Setup specializes in successful low-cost company formation across UAE. Their expert business consultants will guide you through the process and make sure that you obtain your business license at the most affordable cost.
Contact UAE Expansion and get settled in Dubai economically.
