Dubai is one of the most favourite destinations for the global business community. However, when it comes to setting up a business in Dubai, the cost of company formation can be a significant deciding factor for them. Therefore, companies planning to migrate their business to Dubai would always prefer to clearly understand how much company formation in Dubai would cost.
Dubai offers two main trade zones to its business community – the free zone area and the mainland area. The costs applied for company formation depend on the two areas you select to establish your company. Through this article, you will get to know the various costs involved in setting up a business in Dubai mainland.
Dubai Mainland Company Setup Costs
There are multiple factors like – business activity type, number of visa permits, and office premises that influence the costs of setting up a business in mainland Dubai.
Here, you will be acquainted with the list of factors that will determine the total cost of business setup in Dubai mainland while registering your business. However, keep in mind that the factors listed here are just an idea depending on many factors and may differ when you go for an actual business setup. Some of the main deciding factors are – the type of company, business type, location, and business requirements. Some additional costs too may add up later.
The factors mentioned below are for Limited Liability Company (LLC) Setup. LLC is the most preferred business entity in the United Arab Emirates.
Preliminary License Approval
To start a business in Dubai, you will have to first obtain a license from the Department of Economic Development (DED) in Dubai. You can get it quickly and you have found the right business setup consultant to guide you in the process. License is a document to authorize you to set up business operations immediately. The cost of a Dubai Mainland license may differ depending on what type of license you have applied for.
Approval of Trade Name or Business Name
Your trade name or business name is the identity of your business. Therefore, you will need the approval of authorized bodies for the name you have chosen for your company. The trade name cannot be duplicated and must be unique. The cost may differ depending on the name. You will have to pay charges for – reservation cost, cost of commercial name, cost of foreign company name, etc.
Drafting Contract and Court Agreement Attestation
Contrat and court agreements of an LLC company are common documents drafted with the permission of all the stakeholders. It must be prepared in both Arabic and English. There may be an additional fee for the translation. All partners or their lawyers should sign the court agreement attestation at the court.
Attestation of Memorandum of Association (MoA)
The attestation of MoA is a process among the company’s shareholders/partners. Therefore, the cost of attestation may differ based on the invested share capital.
Office Space Rent for Business in Dubai Mainland
You will compulsorily need an office space to establish your business in Dubai mainland. Owning an office space legalizes your business as it allows all concerned departments and authorities to do audits, oversee operations, perform inspections, and approve that the company is obeying all immigration laws.
Trade License Fee
Trade license fees depend on the type of your business activity. Therefore, it may differ according to your business. In addition, when you go for a trade license, you may also be asked to prove a security deposit.
Administrative and Municipality Fee
The administrative fee is for all the essential paperwork done by the department, and the municipality fee is for public waste management.
Ministry of Economy Fees
This is an annual fee paid to the Ministry of Economy to run commercial activities.
Chamber of Commerce Fee
This fee may vary for a general trading company (manufacturing or industrial company).
All the factors mentioned above can influence the cost of company formation in mainland Dubai. Hire a professional business setup consultant to understand the entire process in detail, and for assistance in every step, you take.
