Dubai in recent times has established itself as the hub of businesses between the east and the west. Many companies across the globe are trying to utilise the country’s strategic position of trade which according to experts will help the nation reach a GDP of $12.3 trillion by the end of 2030.
Most businesses in recent times are considering expanding to Dubai; however, are facing challenges when it comes to setting up business in the nation. Therefore, in this article, we decided to give business owners an outline of costs involved to set up a business in Dubai.
Dubai on the commercial front is divided into two zones, one is the free zone and the second is the mainland. The costs for businesses vary depending on the type of region you choose.
Costs Involved in Freezone:
The free zone is beneficial for businesses which are in their early stages and are looking to save on the costs of setting up a business in this Arab region. While there are multiple types of free zones, the setting up costs remains the same. Some of the prime expenses involved in Dubai free zone company formation include:
Company Name Registration Fee
This is a one-time fee, which the business owners have to pay to register their company name. This can range from 400 AED to 700 AED depending on the nature of business.
Company Registration Fee
This again is a one-time fee payable to the government, where you register your company with the corresponding agency. Registration fee for free zone starts from 8000 AED.
Annual Business License Fee
A significant chunk of your investment goes into the annual business license fee, which you are required to pay to the government every year you wish to do business in the region. To obtain a business license, you are required to pay approximately 8000 AED to 12000 AED per year to the Dubai (UAE) government.
Miscellaneous Annual Fees
Aside from these fixed costs which you will have to incur as you set up a business in Dubai, there are other costs, for example, rent of office space, the visa fee for your employees etc. which you will be required to pay from time to time to the government.
Costs Involved on the Mainland
You will also incur all the costs which we have mentioned above for the free zone if you are setting up a business on the mainland. Some expenses which you need to keep in mind as you register your business on the Mainland include:
Business Incorporation Fees
A business owner is required to submit all the necessary documents to the concerned organisation before they can commence operations on Dubai mainland.
Further, you are required to register your business with the Department of Immigration and the Ministry of Labour. In addition to this, there are costs such as legal fees (to be paid one time), sponsor fee etc. which you are required to pay as you set up your business. The fee structure is as under:
- Company registration fee: 13000 AED
- Renewal of the licence every year: Approximate cost 8000 AED to 13500 AED
- Local sponsor fee: 6000 AED
In addition to this, you need to pay immigration file and visa costs also.
- Fee for Foreign Branch Maintenance
If you decide to open a foreign branch of your company, instead of setting up a new company, there are different costs involved. Some of them are:
- Trade License Fee
- Ministry of Economic Trade Fee
- Business Auditing Fee
- Waste Management Fee etc.
As you can see, there are many costs involved in setting up a business and missing out on even one can make you liable to legal penalties. Therefore, in such times it is wise to hire a consultant such as Maven Consults, who can guide you through the complete process of setting up your business in Dubai in no time.
If you think we can help, reach us at +00971-55-679-1998.