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Costs Involved for Starting a Business in Dubai

Last Updated on 12 October 2017 Posted on 14 January 2017 Author: Published in: Business Setup Published by: Shuraa Business Setup

Starting a business in Dubai can be a progressive decision as well as a challenging experience. When it is about company formation, the cost of setting up business in Dubai becomes the most essential criteria. Comprehending with the business setup cost in Dubai as well as in various other parts of Emirates is vital, however, unawareness and lack of knowledge can lead to extreme undesirable overheads.

Nevertheless, while starting a business in Dubai, UAE here are a some of the questions that may arise:

  • Where to setup a company in Dubai?
  • How to estimate a business startup cost?
  • Is there any way to establish a low cost business setup in Dubai?
  • Which Dubai freezone company setup cost would be the cheapest?
  • Will I have to pay the Dubai business license cost in advance?
  • Are there any affordable business solutions in Dubai or cheap business setup services in UAE?
  • What are the charges or cost of LLC company formation in Dubai?
  • What are the charges allocated by the Dubai Government for setting up a business?

If you are also wondering or questioning yourself these thing, then here is the answer to all your queries;

Government alters the business setup cost in Dubai from time to time and having a fixed cost or fees is unlikely. Hence under such instances, well-informed and affordable business setup services in Dubai

let entrepreneurs know the charges included at an initial stage, keep them updated with fluctuating judicial prices, alert them about the instability in the governmental expenses, advise them on probable expenditures and save from incurring unwanted disbursements.

Cost of setting up a company in Dubai also depends on the business activity, the opted jurisdiction for setting up the business, the approvals and certifications involved and so on. Nevertheless, to make things simpler Shuraa Business Setup has listed the current and the standard costs of business setup in Dubai. The costs are separated in three categories - Mainland Business Setup, Freezone Business Setup and Offshore Company Formation.

Cost for Mainland Business Setup / LLC Company Formation:

Mainland Business Setup / LLC Company Formation

Sr.No

Service

Fees

1

Initial approval from DED

220 AED

2

Approving the Trade name

720 AED

3

Office on Rent for LLC Business Setup

Starts 45000 AED (Per Annum)

4

Attestation Memorandum of Association MOA

1800 AED

5

Drafting the contract of LLC in Arabic and English

575 AED

6

Department of Economic Department Fee (DED Fees)

Starts from 9960 AED

7

Mainland Trade License Fee

Included in the DED Fees

8

Commercial License Fee / Tejari Fee

Included in the DED Fees

9

Chamber of Commerce Fee

Included in the DED Fees

10

Commercial Services Improvement Fee

Included in the DED Fees

11

Administrative Services Fee

Included in the DED Fees

12

General trading company formation one-time fees is applied 

Starts from 25000 AED

13

Contracting license one-time fees is charged

12000 AED

14

Economic department charges real estate brokers company fees

10000 AED

15

Government charges a small percentage on the amount of the premises rented. In case of an office or shop 5% is payable while for a warehouse 20% is payable.

5 % to 20 % of the Rent

 

Costs of LLC business setup in Dubai and UAE described briefly:

  • Initial approval from DED – 220 AED

The department of economic department DED provides initial approvals to start the business operations right away.  A nominal fees lets you start your operations for maximum 6 months, until then you can complete your other documentation as well. This is a onetime expense included in Dubai business setup costs.

  • Approving the Trade name – 720 AED

Trade name is basically the name under which you will be managing your company. In some instance there are possibilities that the price may fluctuate on the basis of the name you demand. Trade Name includes fees such as – reservation fees, commercial name fees, foreign company name fees, and so on. It may further extend varying as per your mandate. Approving a Trade name is also a onetime cost.

  • Office on Rent for LLC Business Setup – Starting from 45000 AED (Per Annum)

Renting an office space for a Mainland Business Setup in Dubai is mandate as it helps authorities to ensure companies are legitimate. Rented office locations allow officials to conduct inspections, monitor operations and ensure immigration laws are adhered. Getting an office space for rent could be a yearly or a termly cost.

  • Attestation Memorandum of Association MOA – 1800 AED

Attestation of the Limited Liability Company’s Memorandum of Association is done between the partners or the shareholders of the company. The attestation cost may further differ depending on share capital although it is just a onetime cost.

  • Drafting the contract of LLC in Arabic and English – 575 AED

The contract of a limited liability business setup in Dubai is typed under the mutual consent of the partners. It is essential that the contract is drafted in Arabic as well as in English for better understating between all the shareholders. The translation cost may be incurred apart from drafting of the contract. This again is a onetime cost.

  • Department of Economic Department Fee (DED Fees) – Starting from 9960 AED

The ministry of economy also known as the department of economic department under every emirates charges a nominal onetime fee to register the limited liability company. However, there are other years’ fees that include this cost and depends from business-to-business.

  • Mainland Trade License Fee (Included in the DED Fees)

Acquiring a trade license is a onetime expense although depending on the activity of the business the trade license fee may vary. Sometimes it is also needed to show a security deposited while Trade License Fee. Licenses and other viable activities are under regular scrutiny from the departments and could involve probable cost on intervals.

  • Commercial License Fee / Tejari Fee (Included in the DED Fees)

Commercial license fee is also called as a Tejari fees that needs to be paid every year for engaging in commercial activities.

  • Chamber of Commerce Fee (Included in the DED Fees)

The chamber of commerce needs to be paid every year. The amount mentioned is for a general trading company. For an industrial or manufacturing company the cost may differ.

  • Commercial Services Improvement Fee (Included in the DED Fees)

A yearly fees paid towards the improvement works done by the governmental departments.

  • Administrative Services Fee (Included in the DED Fees)

There is also an administrative fees charged for all the paperwork by the department however it is a onetime expense.

  • Other important expense noted are –
    • General trading company formation one-time fees is applied – Starting from 25000 AED
    • Contracting license one-time fees is charged – 12000 AED
    • Economic department charges real estate brokers company fees – 10000 AED
    • Government charges a small percentage on the amount of the premises rented. In case of an office or shop 5% is payable while for a warehouse 20% is payable.
    • Further additional charges may vary depending on the nature of the business setup.

Cost for Freezone Business Setup:

Cost for Freezone Business Setup

Sr.No

Service

Fees

1

Freezone company registration (FZC Registration)

Starting from 17500 AED to 15000 AED

2

Rental Cost

(Included FZC Registration)

3

Smart Desk

(Included FZC Registration)

4

Office Units

(Included FZC Registration)

5

Permanent Office / Warehouses

(Included FZC Registration)

6

Freezone License Fee

(Included FZC Registration)

7

Freezone Registration Fee

(Included FZC Registration)

8

Share Capital Requirements

(Included FZC Registration)

9

Freezone Visa Fee

From 5000 AED to 7500 AED

10

Bank Guarantee for Freezone

(Included FZC Registration)

11

Registered Agent Fee

Starting from 6000 AED


Costs of Freezone business setup in Dubai and UAE described briefly:

  • Freezone Company Registration Fee - Starting from 17500 AED to 150000 AED

A registration is a one-time payment made to the freezone authority at initial stage of registering a business. The cost differs according to the company type – such as FZE or Branch Office.

  • Freezone License Fee (Included FZC Registration)

This is a yearly charge functional to companies under a freezone jurisdictions. The licensing fees is applicable to trading companies, services companies as well as industrial companies. The licensing is done by the freezone authority of a particular jurisdiction – this is a single window procedure

  • Rental Cost (Included FZC Registration)

Office rent cost in Dubai freezones are among the first charges involved in a Freezone Business Setup – that provides you 100% ownership of assets and liabilities in the company. However, with convenience and control there is also flexibility available while renting an office space. Freezone rental costs could be monthly/ yearly or even a lease of several years. Also, cheapest option for setting up business in free zone depends on the freezone jurisdiction and the renting choices the jurisdiction offers. Further, the rented place states the number of visas that can be obtained or the business activities that can be conducted.

Renting options available in majority of the Freezone Business Setups:

  • Smart Desk: The most inexpensive way to start a freezone business setup is through Smart Desk service – which as the name suggest means having only a desk for yourself. This is best for freelancers or small-time businesses.
  • Office Units: Office units are small units created into a self-sufficient office space. The cost of an office unit under a freezone jurisdiction, again depends on the jurisdiction selected.
  • Permanent Office / Warehouses: A permanent office is a full-fledged office space. Cost of a permanent office is comparatively more than a smart desk or office unity, nevertheless it also offers more perks, same goes for a Freezone Warehouse.
  • Share Capital Requirements (Included FZC Registration): Establishing a freezone company requires investment by the shareholders of the company or the sole-proprietor. Decide the share capital at an initial stage as it makes the proceedings easier. The amount may either be equally divided among the shareholders or may also be a total investment within the company. Most of the freezones around Dubai, UAE have a minimum share capital requirement to start a freezone company.
  • Freezone Visa Fee – Starts from 5000 AED to 7500 AED: A freezone company has limited employment visa entitlement, that depends according to the area of office space acquired by the owner. Visa can be a yearly fees and requires renewal. For a new employee outside of UAE expenses involve; Residency Stamp, Medical Fitness Certificates and ID Card. Whereas, for a new employee inside UAE has expenses such as Residency Stamp, Medical Fitness Certificates, ID Card, Issue visa without leaving UAE.
  • Bank Guarantee for Freezone (Included FZC Registration): Another expenditure for freezone companies is the prerequisite of having a Bank Guarantee. A freezone company needs to show a certain amount of bank guarantee for every employee.
  • Registered Agent Fee – Starts from 6000 AED: Unlike Limited Liability Companies, in a freezone a UAE local agent is required to mandate all the governmental procedures. This register agent needs to be paid for his assistance, it is an initial cost that can be repeated during renewal of licenses and so on.
  • Other important expense noted are – (Depends from freezone-to-freezone)
    • Name Approval Charges
    • Notarization Charges
    • Insurance expenses
    • Premium bank account in Dubai
    • Typing and shipping fees
    • Medical check
    • Police clearance
    • Emirates ID card

Cost for Offshore Company Formation

Cost for Freezone Business Setup

Sr.No

Service

Fees

1

Offshore Company Registration Fee

Starting from 11000 AED to 20000 AED

2

Standard Share Capital

(Included in offshore registration fee)

3

Offshore Registered Office Fee

(Included in offshore registration fee)

4

Charges for Opening Bank Account

(Included in offshore registration fee)

5

Nominee Services

15000 AED (Per Annum)

6

Agent Fee

 (Included in offshore registration fee)

7

Offshore Business Maintenance Fee

7000 AED to 10000 AED (Per Annum)


Costs of Offshore business setup in Dubai and UAE described briefly:

  • Offshore Company Registration Fee – Starting from 11000 AED to 20000 AED

An offshore company registration fees is a yearly fee. The registration fee varies depending on the offshore jurisdiction opted by the owner of the company as well as the business activity that will be carried out.

  • Standard Share Capital – (Included in offshore registration fee)

An offshore business is a flexible instrument to conduct commercial activity as well as make investments. However, some offshore jurisdiction might have a requirement of a standard share capital, while some do not have any such constraints.

  • Offshore Registered Office Fee – (Included in offshore registration fee)

Having a local presence is essential for incorporating an offshore company in Dubai. It is not compulsion to have a fully operational office subject to the business activity. Yet, having a registered address is a must. This expense is payable annually.

  • Charges for Opening Bank Account – (Included in offshore registration fee)

Opening up a bank account is essential to commercially regulate in UAE. This is a preliminary expense, that only occurs once. 

  • Nominee Services – 15000 AED (Per Annum)

Directors, shareholders or related nominees are appointed for decisive and signatory purposes during the absence of the owner. The nominees are given limited rights by the owner and their services are chargeable.

  • Agent Fee (Included in offshore registration fee)

Alike freezone companies, offshore business setups also require a local agent. This local agent needs to be paid for his services, whenever the company engages in any governmental procedures. Moreover, the UAE local agent has to be paid yearly as well.

  • Offshore Business Maintenance Fee – Starts from 7000 AED to 10000 AED (Per Annum)

A maintenance fees is paid towards the jurisdiction authority of the offshore region. This is an annual fee for the first legal year after which, the second year onwards a fixed sum is paid towards the offshore authority.

Please note that the business setup costs specified in the article are to provide budding entrepreneurs and business aspirants an overview of the principal costs involved during setting up a business in Dubai or elsewhere in UAE. Whether you are planning on investing your Dollars or Euros, these costs will be calculated in AED and may totally be different, conditional to the company type, business setup jurisdictions, the legal structure of the company and so on. To get the best quotes and a tailored pricing structure for your business startup or company proceedings, speak to our business consultants today!

Our business setup service providers can help you establish a business in Dubai or anywhere in UAE with ease and efficiency. These services are chargeable and a nominal amount is applied for the facilities provided by them. Nevertheless, it is worth, as it saves a lot of time, effort and most importantly money!

To know more on cost of setting up business in Dubai or to find out low cost business setup in Dubai or in any other Emirates contact Shuraa Business Setup Service Providers, as we offer you the best prices in the market. Shuraa is a leading business service consultancy in Dubai and proficiencies in all the formalities and obligation involved while starting business in Dubai or anywhere in the UAE.


Showing 24 Comments
  • Kindly let us know about procedure to set up a company in Bangladesh for retail business as such computer peripherals, Networking Products related to ICT items. After company formation, we require a place in computer market or any super market to run the business. please advice in this regards about shop rent, advance, license from authority for retail shop. Kind regards

    • Thank for taking time and commenting on the blog post, Mr. Anowar Hossain. As per your inquiry, we would like to mention that we cater company formation and business related issues only across UAE. We are extremely sorry that we won't be able to guide you through company set up in Bangladesh. However, our associates will contact you with regards to business setup in UAE. Please feel free to revert.

  • Roderick says : Reply

    hi what is the procedure to set up company in Dubai for general service please advice in this regards Thanks.....

    • Thank You for your enquiry, Mr. Roderick. Business Setup in Dubai is a detailed process and can be done through swift ways with our assistance. If you would like to know what is the exact procedure, you could refer to this link - https://www.shuraa.com/blog/2016/08/basic-guide-on-how-to-setup-a-business-in-dubai.html or call us for a free consultation! We have also forwarded your enquiry to our consultants and they will get in touch with you, with regards to your queries.

  • Ahmed Nasr says : Reply

    kindly let me know how much will it cost me if i want to start a transportation company in UAE as of free zone without local partner ship ? please i need to know all the details about how many bus required for opening ? should be there an account with minimum amount in the bank as of guarantee or not ?

    • Thank you for enquiring with Shuraa Business Setup. Mr. Ahmed Nasr, with reference to your query, we understand that you require a detailed consultation. Thus, we have forwarded your concern and a business consultant from Shuraa Business Setup will get back to you at the earliest.

  • Zahidq says : Reply

    Hello there, I have a small training business and I would like to register my company in Dubai to organise some of the trainings in Dubai and other parts of GCC.. What would be the basic cost.. I will be registering in few weeks so kindly be quick in replying so that we can take this to the next level.

    • Thank you for enquiring with Shuraa Business Setup. Mr. Zahid, with reference to your query, we understand that you require a detailed consultation. Thus, we have forwarded your concern and a business consultant from Shuraa Business Setup will get back to you at the earliest.

  • Hi sir how r u i wanna open llc licence for auto repairing and service station so plz can u send me the full details and quotations of licence

    • Thank you for your inquiry, Mr. Khalid Khan. We have forwarded your request for a quotation and a business setup consultant is working on the same. We will email you the related details at the earliest. If you have any other questions please book a free appointment with us or just send us a quick inquiry with your contact details and we will call you back.

  • Hello, I have a small e commerce website that is expected to be launching soon. As a start up business , please advice me the most economical way to register an advertising company for my website to start business in UAE market. We need a small office unit where 3 to 4 people can work. Should i go with free zone or LLC. Please advice.

    • Thank you for inquiring with Shuraa Business Setup Mr. Munzir. We understand your concern and have forwarded your inquiry to our business consultant, they will get back to you at the earliest.

  • S.A Raheem says : Reply

    Sir, I have an proposal from a Singapore based company to establish there company in UAE, primarily in Dubai. They want me to work from home office in the UAE for the 1st year with the primary objective of promoting their name and products and quoting projects and winning some contracts. The products they have are widely used in UAE similar to Sun Shades, small and large scale and upon winning the contracts it involves project management and sub contract all manufacturing and installation works to any local company. Kindly advise the licensing options with visa and company package fees. Thanks, S.A Raheem 052 2965067 Email: syedraheem69@hotmail.com

    • Dear S.A Raheem, thank you for a detailed enquiry on your prospective business venture. A business consultant is working out on your request and will contact you to summarise the legalities and requirements involved to start a business in Dubai.

  • I want to know an estimate cost of starting a saloon in Dubai or Sharjah including license cost and VISA cost

    • Dear Mr. Sunil Shahzad thank you for enquiring with Shuraa Business Setup. In order to tell you the specific cost, we would like to know which jurisdiction are you planning to start your saloon. Also, the costs vary for Dubai and Sharjah. Thus, we could advise you to book a free appointment or send us your contact details through a quick enquiry, in order to help you better.

  • I'd asked about canteen or small cafeteria business in Dubai, complete cost . How much amount is reauired . But no reply yet from Shuraa. Please tell me complete cost of licence llc or free zone, visa cost, place setup etc. How much minimum amount is required. Please reply me soon. And if possible contact me through urdu or hindi speaking consultant.

    • Dear Mr. Asif Mahmood, we have received your inquiry on Friday 22 Sep 2017 (which was an off day), however, we are extremely sorry for the inconvenience caused to you. To provide you the right answers to your concern, it is important for us to know which region are you interested to start a canteen/cafeteria in Dubai and what would be your specific requirements. A business consultant will call you at the earliest and solve all your queries.

    • Any where in Dubai. Both quotations are required llc as well as free zone. Which one will affoardable for me I go for that. I would like to know both cost llc as well as free zone. Preferable site us alqoze. I know not much well about Dubai

    • Sure, Mr. Asif Mahmood, we are working on your requirements and a business consultant has your contact details. He will email you the quotations and contact you with the suggestive locations that are affordable in Dubai.

  • alihasan says : Reply

    hello sir I want to start a small business in dubai which is called shuraa in dubhai can you please tell me how much it will cost ?

    • Hello Mr. Ali Hasan, Please let us know what kind of business setup are you looking for so that we can estimate and suggest you a certain cost accordingly. However, I have forwarded your concern and a representative will reach you shortly.

  • SHABIN says : Reply

    Hello, I would like to start a professional accounting firm any ware in UAE, with only 2 staffs (total 3 visa including me). Kindly advise me with minimum cost required to start this firm. Is it possible to start a professional firm in a freezone area?

    • Thanks for enquiring with Shuraa Business Setup Mr. Shabin. For a professional accounting firm in any of the free zones in UAE, the minimum sum for the license would be 20,000 AED to 30,000 AED. This will be costlier in Dubai, while other Emirates would be comparatively affordable. Also, each visa would cost up to 5,000 AED. Your cost of business setup largely depends on the free zone you choose. To get the exact cost, please speak to our business consultants at 971 4 4081900 or just send us a quick inquiry, with your contact details and we will get back to you.

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