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Costs of Setting Up A Business In Dubai

  • May 11, 2023
  • Business Setup In Dubai
Key Factors to Consider for a Business Partnership in Dubai

Dubai is a hub for business setup due to its favourable tax laws and strategic location. Setting up a business in Dubai can be straightforward if you follow the proper steps.

Dubai offers numerous opportunities for entrepreneurs and businesses to succeed. The city has various industries, including finance, tourism, real estate, and technology. The Dubai government also offers incentives and support for startups and small businesses, making it an attractive destination for entrepreneurs.

Overall, Dubai offers a dynamic and promising environment for businesses to thrive, and With the appropriate strategy and assistance, you can build a thriving business in this vibrant city.

Firstly, you need to determine the type of business entity you want to establish, such as a Free Zone Company, Limited Liability Company (LLC), or Branch Office. Each option has its requirements and advantages.

Next, you must register your business with the Department of Economic Development (DED) and obtain a trade license. You will also need to secure a physical office space for your business.

It is important to note that all businesses operating in Dubai must comply with local regulations, including having a local sponsor or service agent.

Costs to Setup a Business in Dubai

The cost of setting up a business in Dubai may differ depending on various factors, such as the type of business entity, office space, and visa requirements. Here are some of the costs you may need to consider when setting up a business in Dubai:

  1. Business License: Acquiring a business license can vary in cost, typically ranging from AED 10,000 to AED 15,000. The specific amount depends on the license type and the nature of the business activity.
  2. Office Space: Renting office space in Dubai can have a yearly cost ranging from AED 40,000 to AED 150,000. The exact amount is influenced by location, size, and the type of office space.
  3. Visa Fees: The expenses associated with obtaining visas for your employees can fluctuate based on the visa type and processing time. Visa costs generally range from AED 5,000 to AED 10,000 per visa.
  4. Other Costs: There may be additional costs involved, such as legal fees, accounting fees, and registration fees, which can add up to AED 5,000 to AED 10,000.

It is important to note that the costs associated with setting up a business in Dubai may be higher if you opt for premium office space or outsource certain services such as accounting or legal. However, with thoughtful planning and strategic budgeting, you can set up a business in Dubai at a reasonable cost.

Documents Required to Setup a Business in Dubai

The documents required to set up a business in Dubai may differ depending on the type of business entity and the location. However, here are some of the essential documents you may need to provide:

  1. Passport copies of all shareholders and directors: You will need to provide a copy of the passport for all shareholders and directors of the company.
  2.  Proof of address: You must provide proof of address for all shareholders and directors, such as a utility bill.
  3.  A Memorandum of Association (MOA) outlines the company’s activities, objectives, and capital. This document is required for Limited Liability Companies (LLCs).
  4.  Trade License Application: You must complete and submit a trade license application to the Department of Economic Development (DED).
  5.  Tenancy Contract: You must provide a tenancy contract for your office space.
  6.  No Objection Certificate (NOC): If you are setting up a business in a free zone, you will need to obtain a No Objection Certificate from the free zone authority.
  7.  Bank Reference Letter: You must provide your bank’s reference letter.
  8.  Power of Attorney: You may need to provide a power of attorney if you cannot attend the registration process in person.

It is important to note that the specific requirements may differ depending on the business activity, location, and legal structure. It is advisable to seek guidance from a business setup consultant to ensure you possess all the required documents and to receive assistance throughout the process.

Cost of Setting Up a Business in Dubai with Business Diaries

Setting up a business in Dubai can be challenging, but we can simplify the process with Business Diaries. Contact us to learn more about the costs of setting up a business in Dubai and how we can help you easily navigate the process.

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