How Much Does It Cost to Start a Company in Dubai?

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Table of Contents

Introduction

Starting a company in Dubai is an attractive option for entrepreneurs due to the city’s strategic location, business-friendly environment, and tax incentives. However, the costs associated with setting up a business can vary significantly depending on the type of company, location (Mainland, Free Zone, or Offshore), and the specific business activities. This guide provides a comprehensive breakdown of the costs involved in starting a company in Dubai.

Types of Company Jurisdictions in Dubai

Mainland
Free Zones
Offshore

1. Setting Up a Mainland Company in Dubai

Mainland companies are licensed by the Department of Economic Development (DED) of the respective emirate. These companies can operate anywhere within the UAE and have access to government contracts. Here’s a breakdown of the typical costs:

Trade Name Registration: AED 620 – AED 2,000
- Cost varies depending on the type of trade name and whether it’s in Arabic or English.
Initial Approval: AED 1,100 – AED 1,500
- Required to confirm that your business activities are allowed in the UAE.
Legal Structure Documentation: AED 2,000 – AED 3,000
- Fees for preparing the Memorandum of Association (MOA) or Local Service Agent Agreement.
License Fee: AED 10,000 – AED 15,000 (per year)
- The fee varies depending on the business activity.
Office Space Rental: AED 15,000 – AED 50,000 (annually)
- Mandatory requirement; prices vary based on location and size.
Government Registration Fees: AED 5,000 – AED 10,000
- Includes various government charges and approval fees.
Local Sponsor Fees: AED 8,000 – AED 20,000 (annually)
- Required if your business is not eligible for 100% foreign ownership.
Visa Fees: AED 4,000 – AED 7,000 (per visa)
- Costs for residence visa processing for owners and employees.

Total Estimated Cost: AED 45,720 – AED 107,500

2. Setting Up a Free Zone Company in Dubai

Free Zones are designated areas in the UAE where businesses can enjoy tax exemptions, 100% foreign ownership, and no customs duties. Each Free Zone has its own regulations and costs:

Trade Name Registration: AED 500 – AED 2,000
- Similar to mainland, but processed through the Free Zone authority.
License Fee: AED 10,000 – AED 50,000 (annually)
- Varies significantly based on the Free Zone and business activity.
Office Space Rental: AED 10,000 – AED 40,000 (annually)
- Prices depend on the Free Zone and type of office (virtual, flexi-desk, or physical office).
Company Formation Fees: AED 9,000 – AED 15,000
- Includes registration, documentation, and administrative fees.
Visa Fees: AED 3,000 – AED 6,000 (per visa)
- Includes processing costs for residence visas.
Capital Deposit: AED 0 – AED 50,000
- Some Free Zones require a minimum capital deposit, which varies.

Total Estimated Cost: AED 32,500 – AED 163,000

3. Setting Up an Offshore Company in Dubai

Offshore companies are primarily used for international trading, asset protection, and tax optimization. They cannot conduct business within the UAE market but are popular for holding companies.

Registration Fee: AED 10,000 – AED 15,000
- Includes company name registration and initial setup.
License Fee: AED 3,000 – AED 6,000 (annually)
- Required for company operation.
Office Space (Virtual Office): AED 3,000 – AED 10,000 (annually)
- Offshore companies generally do not require physical office space.
Legal and Notary Fees: AED 2,000 – AED 5,000
- Costs for legal document preparation and notarization.
Nominee Services: AED 5,000 – AED 10,000 (annually)
- Optional, but often used for privacy and asset protection.

Total Estimated Cost: AED 23,000 – AED 46,000

Additional Considerations

Audit Fees: AED 5,000 – AED 20,000 (annually)
- Required for Free Zone and Mainland companies depending on the Free Zone’s regulations.
Bank Account Opening: AED 5,000 – AED 10,000 (minimum balance)
- Varies by bank; required to deposit capital.
Insurance: AED 2,000 – AED 5,000 (annually)
- Depending on business activities and number of employees.

Conclusion

The cost to start a company in Dubai can vary widely depending on the type of company, its location, and the specific business activities. Entrepreneurs should carefully consider these factors and possibly consult with a business setup consultant to ensure they understand all the costs involved.

For the most accurate and up-to-date information, refer to the following government resources:

These resources provide comprehensive guidelines and updated fee structures for business setup in the UAE.