For all those planning to migrate their business to Dubai, costs of setting up a business can be a big deterring factor. Having a clear idea of how much it may costs to set up a business in Dubai can make the going easy for businesses aspiring to have a presence in Dubai. In this blog, we give you a breakup of the costs involved in setting up a business in Dubai.
When it comes to choosing an area for your business in Dubai, you have two options: the city’s free zone area and the more coveted mainland area. The costs incurred will depend on which of the two areas you choose to do business.
Free zone Setup Costs
Setting up your business in the city’s freezone area has its own advantage, particularly in terms of costs. However, costs vary by free zone i.e. it depends on which free zone you choose to set up your business. Besides, costs in a free zone area also depends on the business structure, nature, building, and a number of visas sought. The following are part of the costs:
- One-time fee for registering a business in the city
- One-time fee for name-reservation
- An annual fee for a business license
- An annual fee for building
- Visa fee/person
Mainland Setup Costs
Just like free zone costs, the costs of setting up business in the mainland area depends on factors such as the nature of the business, visa permit counts, and premises. However, some additional expenses that inflate the bill include:
Mandatory government fees
These include notary fees, trade license, registration at government department and legal translations. All these fees may either be a one time or annual fee.
Business incorporation fees
This includes fees for document submissions, an arrangement of inspections etc. This is primarily a onetime fee.
Another mandatory requirement is new company registration with Immigration and Ministry of Labor. The registration has to be renewed every two years.
Additionally, you will have to shell out an annual sponsor fee, a one-time legal fees, commercial premises fee and visa per person.
If you are planning to establish an LLC, the share capital required would be AED 300, 000. Once you receive the trade license for LLC, you can convert this share capital to working capital. (It is not mandatory to show the share capital)
To maintain a Foreign Branch Office in Dubai, you also need to expand on the following on an annual basis:
- PRO Service fees for trade license management
- Fee for Ministry of Economy registration
- Fee for Chamber of Commerce registration
- Fee for yearly audit by a local Auditor
- Fee for Waste Management
- Fee for certification of Parent company’s audit by a local Auditor
- Fee for Waste Management – Not applicable in Dubai
Fee for Corporate PO BOX
You may be all at seas trying to understand the fee structure of setting up business in Dubai. Hiring a business advisory firm to register your business startup Dubai may make things a lot easier for you; Local business set up advisories like Commitbiz can lead you right through the setting up process and help you start a business on a turn-key basis. Contact us today.