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Cost of Starting a Business in Dubai

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Cost of Starting a Business in Dubai Companies

Dubai, a global business hub, offers a plethora of opportunities for entrepreneurs and investors. The cost of starting a business in Dubai varies significantly based on several factors, primarily the type of business license and its location. In this guide, we’ll delve into the cost breakdown for setting up three main categories of businesses in Dubai: Mainland, Freezone, and Offshore companies.

Mainland Company

Trade Name and Business Activity Approval:

  • Trade Name Approval Fee: AED 776.50 (Approximately $212)
  • Initial Approval Fee: AED 256.50 (Approximately $70)
  • Office Space: Varies based on location and size. An average estimate is AED 25,000 to AED 100,000 per year.

License Fees:

  • Commercial License: AED 8,000 to AED 25,000 (Approximately $2,178 to $6,810)
  • Professional License: AED 8,000 to AED 15,000 (Approximately $2,178 to $4,086)
  • Industrial License: AED 8,000 to AED 25,000 (Approximately $2,178 to $6,810)
  • Sponsor Fees: If applicable, varies based on the sponsor.

Freezone Company

Trade Name and Business Activity Approval:

  • Trade Name Approval Fee: AED 776.50 (Approximately $212)
  • Initial Approval Fee: AED 256.50 (Approximately $70)

Office Space:

  • Flexi Desk: AED 8,000 to AED 15,000 per year (Approximately $2,178 to $4,086)
  • Office: Varies, typically starting from AED 20,000 per year.

License Fees:

  • Commercial License: AED 10,000 to AED 20,000 (Approximately $2,725 to $5,450)
  • Consultancy License: AED 10,000 to AED 20,000 (Approximately $2,725 to $5,450)

Offshore Company

Registration Fee:

Registration cost ranges from AED 10,000 to AED 50,000 (Approximately $2,725 to $13,620)

Office Space:

Not applicable. Offshore companies typically do not require physical office space in the UAE.

License Renewal Fee:

Annual renewal fee varies by the free zone and activity but is typically around AED 10,000 (Approximately $2,725).

It’s important to note that all the figures quoted above are approximate costs and can vary significantly depending on the specific free zone or mainland location, the nature of the business, and any additional services or support you may require.

Starting a business in Dubai involves several other costs, such as visa processing fees, legal fees, and PRO services, which may range anywhere from AED 10,000 to AED 15,000 (Approximately $2,725 to $4,086).

In addition to these costs, businesses may need to consider ongoing expenses, including visa and sponsor fees, rent, utilities, and employees’ salaries.

Starting a business in Dubai offers numerous advantages, including tax benefits, strategic location, and access to a growing market. Understanding the costs involved is crucial for planning and budgeting effectively. When starting a business in Dubai, working with a reputable business setup consultant can simplify the process and help you make informed decisions regarding the most suitable type of company and location for your venture.

Starting a business in Dubai offers immense potential, but navigating the complex landscape of licenses, zones, and costs can be daunting. Whether you’re considering a Mainland, Freezone, or Offshore company, it’s crucial to make informed decisions. That’s where our expertise at Al Kabban & Associates comes into play.

We are your dedicated partners in business setup in Dubai. With over 30 years of experience and a deep understanding of the local regulations, we guide you through every step of the process. Our team of professionals can help you choose the right type of company, select the ideal location, and ensure that your business adheres to all legal requirements.

Don’t let the complexities of business setup hold you back. Contact Al Kabban & Associates today to explore the countless opportunities Dubai has to offer. Our legal experts are ready to assist you in building your business empire in the heart of the UAE.

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