What is the cost of establishing a company in Dubai?

The cost of establishing a company in Dubai includes many costs that we will discuss in this article, in addition to how to establish a company in the Emirates, and the privileges that the investor or business owner obtains, such as full tax exemption and the freedom to dispose of profits as well as the company’s capital, in addition to many other advantages that make Dubai is an attractive investment area.

The cost of establishing a company in Dubai

The cost of establishing a company in Dubai is divided into two costs:

First: Obtaining the necessary licenses to practice the company’s activity

• The fees for initial approval to conduct the company’s business are approximately 100 UAE dirhams.
• The fee for issuing a company name is about 210 AED.
• Obtaining licenses for the company’s activity according to the type of activity varies from one activity to another, as the fees for obtaining a professional business license are estimated at 500 UAE dirhams, and obtaining a business license is 600 UAE dirhams.
• The fee for obtaining services from an authorized agent’s office is approximately 500 AED.
• Receiving and printing the license, the fee is estimated at approximately 500 UAE dirhams.

Second: Entry fees to the markets

The second fee regarding the cost of establishing a company in Dubai is market entry fees:

• The cost of entering markets subject to the local law system is approximately 5% of the value of the company’s lease contract.
• There are fees estimated by a committee affiliated with the competent authorities in Dubai regarding if the company’s headquarters is owned by a foreign investor.
• Residence fees for foreign investors in Dubai are estimated at approximately 5% of the value of the housing contract.
• Waste fees are estimated by the UAE Waste Committee

How to establish a company in the UAE

After learning about the cost of establishing a company in Dubai, we will discuss how to establish a company in Dubai :

To establish a company in the Emirates, you must obtain a business visa in the Emirates and establish a company in one of the free zones appropriate to the nature of the activity you wish to establish, such as the Jebel Ali region. Work visa fees range from about 2,500 to 16,000 dirhams, depending on the free zone. You must also obtain a commercial license to practice work. Business owners or investors in Dubai enjoy many privileges to revitalize the investor experience. If you need to know more about the cost of establishing a company in Dubai, you can contact us and one of our experts will assist you in all procedures without requiring you to make an effort or waste time.

Tips to reduce the cost of establishing a company in Dubai

You can establish a company in Dubai at a reasonable cost and achieve success in the business world, with good planning and taking advantage of the tips that we mention below:

Choose the type of business carefully
Make sure the type of business does not require expensive special permits or approvals.
Look for businesses with small capital and few operational requirements.
Choose the appropriate legal form
Compare different legal forms for companies and choose the form that suits your needs and budget.
Some legal forms such as an LLC require less capital than others.
Find a suitable office
Find an office in a suitable area and at a reasonable price.
You can share the office with other companies to reduce the cost.
Take advantage of remote work options to reduce the need for large office space.
Use specialized advisors.
Use legal and financial advisors to provide you with advice and reduce the costs of establishing the company.
Make sure you get the best offers from different providers.
Take advantage of government incentives.
The Dubai government offers many incentives to investors, such as tax and customs exemptions.
Make sure you meet all the conditions to get these incentives.
Use free tools and services
There are many free tools and services that can help you establish your company, such as:
Dubai Department of Economic Development website
Social media platforms
Entrepreneur support groups
Accomplish some tasks yourself
You can save money by doing some tasks yourself, such as:
Writing a business plan,
designing a website,
managing social media accounts,
negotiating prices.
Do not hesitate to negotiate prices with service providers, such as: lawyers, accountants, and leasing offices.
Use available resources
There are many resources available to help you establish your company, such as: chambers of commerce and industry, entrepreneur support centers, workshops and conferences.
Plan Carefully
Before starting your company, make sure you plan carefully to determine all potential costs.
Set a realistic budget to avoid any unexpected surprises.
In addition to these tips, here are some additional ways to reduce the cost of setting up a company in Dubai.
Take advantage of free incorporation offers: Some companies offer free or low-cost company incorporation offers.
Join a business incubator: Business incubators provide many services and support to startups, such as:
office space, consulting services, and financing.

Factors affecting the cost of establishing a company in Dubai

If you want to calculate the cost of establishing a company in Dubai, some factors and standards must be taken into consideration, including the following:

Type of business activity

The cost of establishing a company varies according to the type of commercial activity, as some activities require special permits and approvals, which increases the cost, as there is a commercial activity that requires special permits and approvals, such as: pharmaceutical manufacturing, food trading, in this case the cost is high, while the activity Commercial that does not require special permits and approvals, such as: management consulting, website design. The cost will be low.

Legal form of the company

The cost of establishing a company varies according to the legal form, such as a limited liability company or a public joint stock company. There is a limited liability company that is characterized by ease of establishment and low capital. Its disadvantages are that it has limited liability for shareholders, and the cost is low. As for public joint stock companies, one of its advantages is the ability to raise capital. Big money, ease of selling shares, its disadvantages include complex establishment procedures, unlimited liability for shareholders, and high cost.

The company’s website

The cost of renting or purchasing an office varies depending on its location in Dubai. The free zone has its advantages: tax exemptions and a supportive business environment. Its disadvantages are restrictions on doing business outside the free zone. The cost is high. As for the mainland location, one of its advantages is the freedom to do business throughout Dubai. Its disadvantages are the high cost of renting or purchasing an office, and in general the cost is average.

Number of Employees

The cost of establishing a company increases with the increase in the number of employees, as you must pay their salaries and insurance fees. A large number of employees has the advantage of increasing productivity, and one of its disadvantages is the high cost of salaries, so the cost is high, but in the case of a small number of employees, the advantage is the cost. Low salaries, the disadvantages are lack of productivity, and therefore low cost.

Additional services

You may need some additional services, such as legal or financial advice, which increases the cost. Legal services are characterized by ensuring compliance with laws and regulations, but they have the disadvantage of high cost. Financial services are characterized by obtaining financing and managing the company’s accounts, but they have the disadvantage of high cost, while marketing services It has the advantage of reaching target customers, but its disadvantage is high cost.

Approximate cost 

Which in turn depends on some of the following factors:

• A commercial license according to the type of commercial activity and the legal form of the company.
• Registration fees: which are calculated at the beginning of the steps to obtain an answer to the question: What is the cost of establishing a company in Dubai.
• Capital: The company must have sufficient capital to carry out commercial activity, and the value of capital varies according to the type of commercial activity.
• Renting or purchasing an office: Here, the cost of renting or purchasing an office is calculated annually depending on the location and space of the office.
• Employee salaries: The cost of employee salaries varies depending on the type of job and the employee’s experience.
• Additional services: There are always services added to all of this, and their approximate cost varies depending on the type of service.

Advantages of establishing a company in Dubai

• Strategic location: Dubai is strategically located at the crossroads between East and West, facilitating access to global markets.
• Supportive business environment: The Dubai government provides many incentives and services to startups, such as: tax and customs exemptions, free office space, and financial support.
• Advanced infrastructure: Dubai has a developed infrastructure of ports, roads and airports, which makes doing business easier.
• Multicultural Workforce: Dubai has a multicultural workforce, giving companies access to talent from all over the world.
• Ease of starting a business: Dubai offers an easy environment for starting a business, as you can obtain a business license within a few days.
• Stability and safety: Dubai is one of the safest and most stable cities in the world.
• Unique lifestyle: Dubai offers a unique lifestyle, with many recreational and cultural activities.

The impact of the advantages of establishing a company in Dubai on success

• Increased access to global markets: strategic location and ease of exporting through Jebel Ali Port.
• Reducing the cost of doing business: incentives, government services, and advanced infrastructure.
• Attracting global talent: a multicultural workforce and easy access to work visas.
• Accelerating business start-up: Ease of obtaining a business license and a supportive environment.
• Creating a safe and stable work environment: security, stability and a unique lifestyle.

Tips to ensure success in establishing a company in Dubai

Conduct a comprehensive feasibility study,
assess the market and target audience, and develop a business plan.
Choosing the appropriate type of business activity
and ensuring that the activity complies with the laws and regulations in Dubai.
Choosing the appropriate legal form
Evaluate the advantages and disadvantages of each legal form and choose the one that best suits your needs.
Taking advantage of government incentives and services
Search for incentives and services available for startups.
Build a strong team
Hire talent from all over the world.
Effective marketing of your products and services
using various marketing channels to reach the target audience.
Compliance with laws and regulations in Dubai
Ensuring that all laws and regulations related to doing business are followed.

Dubai is an ideal destination for starting a business, as it offers many advantages that make it easier for investors to establish their companies and achieve success. With good planning and taking advantage of the tips mentioned above, you can establish a company in Dubai and achieve success in the business world.