The cost of establishing a company in Dubai

The cost of establishing a company in Dubai is one of the success steps that must be known at the beginning of the path towards success in the business world, as Dubai is the gateway to global trade and a business center in the Middle East, and an ideal destination for entrepreneurs who seek to establish a successful company. In this article, we will provide you with a comprehensive guide about… How to start a company in Dubai, from the main steps to practical tips to ensure the success of your project.

The cost of establishing a company in Dubai

The cost of establishing a company in Dubai varies depending on several factors, including:

Company type: Incorporation fees vary depending on the type of company, such as joint-venture companies, limited liability companies, and joint-stock companies.
Business activity: Fees vary depending on the type of business listing .
Number of partners: Fees vary according to the number of partners in the company.
Additional services: Fees vary depending on the additional services you may need, such as obtaining a commercial license or opening a bank account.
The costs of setting up a company in Dubai can range from AED 10,000 to AED 50,000 or more.

Factors affecting determining the cost of establishing a company in Dubai

Dubai is an ideal destination for entrepreneurs seeking to establish a successful company, thanks to the stimulating business environment, advanced infrastructure, and flexible legal systems. Establishing a company in Dubai is the process of creating an independent business entity with its own legal rights and duties. Various types of companies can be established in Dubai, from Sole proprietorships to publicly traded companies, depending on your business activity and needs.
However, the cost of setting up a company in Dubai varies depending on several factors, including:

1. Company type:

• Solidarity companies: They are considered one of the cheapest types of companies, as their cost ranges between 10,000 dirhams and 20,000 dirhams.
• Limited Liability Companies: More common, their cost ranges between AED 15,000 and AED 30,000.
• Joint stock companies: The most expensive type of companies, their cost ranges between 30,000 dirhams and 50,000 dirhams or more.

2. Commercial activity:

• Restricted business activities: Requires approval from specific government agencies, which may increase the cost of establishment.
• Free business activities: enjoy tax and customs advantages, which may reduce the cost of establishment.

3. Number of partners:

• Sole Proprietorship: The cheapest option, as it does not require partners.
• Companies with partners: The cost of incorporation increases with the number of partners.

4. Additional services:

• Obtaining a commercial license: Fees vary according to the type of license and commercial activity.
• Opening a bank account: Fees vary depending on the bank.
• Insurance: Fees vary according to the type of insurance.
• Company establishment office services: Some company establishment offices provide services at competitive prices.

5. Location:

• Free zones: They provide a stimulating business environment and tax exemptions, but the cost of renting offices may be high.
• Mainland: Office rental costs less, but procedures may be more complicated.

6. Nationality:

• UAE citizens: receive some exemptions from fees.
• Residents: pay an additional fee.

7. Company size:

• Small businesses: Requires lower setup costs.
• Large companies: require higher set-up costs.

8. Hiring a lawyer or consultant:

• It is recommended to seek the help of a lawyer or consultant specialized in establishing companies.
• Their fees vary depending on their experience and reputation.

Advantages of establishing a company in Dubai

Dubai is characterized by exceptional advantages that make it very good at saving the cost of establishing a company in Dubai. It is an ideal destination for entrepreneurs. The advantages of establishing a company in Dubai include the following:

• Stimulating business environment: Dubai provides a stimulating and supportive business environment for investors, with flexible laws and legislation that facilitate the establishment of companies.
• Advanced infrastructure: Dubai has an advanced infrastructure that ensures ease of doing business, from international ports and airports to a modern communications network.
• Strategic location: Dubai is strategically located at the crossroads of global trade, opening the way to access new markets and huge investment opportunities.
• Cultural Diversity: Dubai is a global city with tremendous cultural diversity, which makes it easy to communicate with different nationalities and build successful business relationships.

Steps to establish a company in Dubai

The process of establishing a company in Dubai includes nine main steps:

• Determine the business activity: Choose the appropriate business activity taking into account the needs of the market, your experience, skills and available capital, while taking into account the cost of establishing a company in Dubai.
• Choosing the legal form: Various legal forms are available, such as joint-venture companies, limited liability companies, joint-stock companies, and one-person companies.
• Reserve a business name: Choose a unique and distinctive name to differentiate your company from competitors.
  Obtaining initial approval: The Ministry of Economy provides the service of obtaining initial approval online or by submitting a paper application.
• Preparing company incorporation documents: The required documents vary according to the legal form of the company, so you must review the Ministry of Economy or seek the help of a specialized lawyer.
• Registering your company with official authorities: After obtaining a commercial license from the Ministry of Economy, the company must be registered with other official authorities such as the Tax and Customs Department and the Ministry of Labor.
• Opening a company bank account: Opening a company bank account is necessary to receive customer payments, pay employee salaries, pay company bills, and manage company finances.
• Obtaining the necessary visas: All shareholders and employees of the company need a valid work visa.
• Follow Laws and Regulations: It is important that you and your company adhere to all applicable laws and regulations in Dubai.

Types of business companies in Dubai

Dubai, the global business gateway and business hub in the Middle East, is an ideal destination for entrepreneurs seeking to establish a successful company.

Dubai offers a stimulating and supportive business environment for investors, with flexible laws and legislation that facilitate the establishment of companies.

But, what are the types of business companies in Dubai? What is the cost of establishing a company in Dubai?

We will review the most important types of commercial companies in Dubai, explaining their advantages and disadvantages, and the cost of establishing each type.

1. Joint liability companies:

Joint liability companies are a type of commercial company characterized by joint and unlimited liability among all partners.

Advantages of joint liability companies:

• Ease of establishment: Partnership companies are characterized by the ease of establishment compared to other types of companies.
• Small capital: Partnership companies do not require large capital to start business.
• Joint control: All partners in a general partnership have decision-making authority and joint control of the company.
• Strong relationships: Partnership companies encourage building strong relationships between partners.

Disadvantages of joint liability companies:

• Unlimited Liability: All partners have unlimited liability for the company’s debts and obligations.
• Difficulty attracting new investors: It may be difficult to attract new investors to a partnership due to the unlimited liability of the partners.
• Difficulty in transferring ownership of the company: It may be difficult to transfer ownership of a joint liability company due to the agreement of all partners to transfer ownership of any share in the company.

The cost of establishing a company in Dubai, a joint liability company:

The cost of establishing a joint liability company is 1,500 dirhams in Dubai.

2. Limited liability companies

LLCs are a type of business company that features limited liability by the capital invested by each partner.

Advantages of limited liability companies:

Limited Liability: The main advantage of LLCs is that the liability of the partners is limited to the capital invested by each partner.
Ease of establishment: Limited liability companies are easy to establish compared to other types of companies.
Attracting new investors: Limited partner liability is a feature that attracts new investors to the company.
Transferring ownership of the company: Limited liability companies are characterized by the ease of transferring ownership of the company.

Disadvantages of limited liability companies:

Higher incorporation cost: Limited liability companies require a higher incorporation cost than partnerships.
Some Restrictions on Business Activities: Some states may impose restrictions on the business activities that LLCs can engage in.
Loss of some control: Partners may lose some of their control over the company with the entry of new investors.

The cost of establishing a limited liability company in Dubai:

The cost of setting up a limited liability company is AED 2,000 in Dubai.

3. Joint stock companies

Joint stock companies are a type of business company that is financed by selling shares to the public.

Advantages of joint stock companies:

Raising large capital: The main advantage of joint-stock companies is their ability to raise large capital through selling shares to the public.
Limited Liability: Shareholders’ liability is limited to the capital invested in the company.
Ease of transferring ownership of the company: Shareholders can transfer ownership of their shares easily.
Continuity: The company continues to exist even after the death or withdrawal of a shareholder.

Disadvantages of joint stock companies:

High establishment cost: Joint stock companies require a high establishment cost.
Difficulty of incorporation: Joint stock companies require complex incorporation procedures.
Loss of some control: Shareholders may lose some of their control over the company with the entry of new investors.
Possibility of control by large shareholders: Large shareholders may control the company and marginalize small shareholders.

Types of joint stock companies:

Public Joint Stock Company: Its shares are offered for public subscription on the stock market.
Private joint stock company: Its shares are not offered for public subscription, and their trading is limited to a specific group of shareholders.

The cost of establishing a joint stock company in Dubai:

The cost of establishing a joint stock company is 10,000 dirhams in Dubai .

4. Sole proprietorships:

Sole proprietorships are a type of business that is owned and managed by only one person.

Advantages of sole proprietorships:

Ease of establishment: Sole proprietorships are easy to establish compared to other types of companies.
Low setup cost: Sole proprietorships require a low setup cost.
Complete control by the owner: The owner of a sole proprietorship has complete control over the company.
Confidentiality of Information: Individual companies enjoy confidentiality of financial and business information.

Disadvantages of sole proprietorships:

Unlimited Liability: A sole proprietor of a company has unlimited liability for the company’s debts and obligations.
Difficulty attracting new investors: It can be difficult to attract new investors to a sole proprietorship due to the owner’s unlimited liability.
Difficulty expanding business: It may be difficult to expand business in an individual company due to lack of financial and human resources.

The cost of establishing a company in Dubai as an individual company:

The cost of setting up a sole proprietorship is AED 1,000 in Dubai.

Tips for establishing a successful company in Dubai

1. Conduct a comprehensive feasibility study:

Study the market, your business, your target audience, and competitors.
Identify market needs and opportunities for success.
Develop a comprehensive business plan that includes your financial goals and strategies.

2. Choose a suitable location:

Choose a strategic location that suits your business and target audience.
Taking into account the cost of rent and the availability of parking and services.

3. Building a distinguished work team:

Employing highly experienced and competent employees.
Providing a positive work environment that stimulates creativity and productivity.

4. Marketing and promoting your company:

Use different marketing channels to reach your target audience.
Providing distinctive offers and services that distinguish your company from competitors.

5. Compliance with laws and regulations:

Obtain all necessary licenses and permits.
Compliance with labor, tax and customs laws.

6. Providing excellent customer service:

Focus on meeting customer needs and providing excellent service.
Building strong relationships with customers that enhance their loyalty.

7. Investing in technology:

Using technology to increase the efficiency of operations and improve the customer experience.
Develop a website and mobile app to enhance your online presence.

8. Participation in business events:

Participate in conferences and trade fairs to network with entrepreneurs and other companies.
Searching for new opportunities for cooperation and partnership.

9. Keeping up with developments in the market:

Monitor changes in the market and customer needs.
Develop new products and services that meet market needs.

10. Patience and perseverance:

Establishing a successful company requires time and effort.
Don’t give up easily and learn from your mistakes.
With careful planning, patience and perseverance, you will be able to establish a successful business and achieve your goals in Dubai.

Establishing a company in Dubai is a fruitful step for entrepreneurs who seek to establish a successful business project. With careful planning, patience and perseverance, you will be able to achieve your goals and turn your dream into reality. Contact Itqan Company to establish your company in Dubai, as Itqan Company is a company specialized in establishing companies. Providing advisory services to investors in Dubai.

Itqan Company provides you with the service of establishing a company in Dubai easily and quickly, in addition to specialized legal and commercial advice, and supporting investors in obtaining the necessary permits and licences.