What is the Cost of Starting a Business in Dubai?

What is the Cost of Starting a Business in Dubai?

The best decision, progressive implementation, and at the same time being a challenging experience in setting up a business in Dubai is knowing the cost of starting and setting up a business there. Also, in creating a business plan that is viable, one can’t do without understanding the cost of starting up a business. You can’t stop wondering as the guess for the fee and cost keeps ringing in your ear over and over again.  Nevertheless, this cost optimally depends on the business activity you want to start up; this should put your mind at rest in now.

However, this cost varies from time to time with no tremendous instant change and it depends on the standard cost applied to the company; this is also based on the activities carried out in the company. Worry less as this cost is based on three categories namely “Free zone, Mainland, and Offshore business setup cost” but we will go into the first two in details. Follow the guidelines to the cost of everything as stated below.

Categories of the cost of starting a business in Dubai

Free zone Business Setup Costs

Free zone business setup guarantees you 100% ownership and much more benefits that come from free zone but the initial cost required is the Rental cost. This cost is very flexible with the free zone as it could either be paid monthly, per year or leased for several years. The following are some of the options you have for the rental cost.

  • Smart Desk: this is the least expensive of all rental cost, most suitable for small-time business as well as free-lancers.
  • Office Units: the space of the office here is self sufficient and the cost depend on the selected jurisdiction.
  • Permanent Office and warehouse: here, you have access to a full-fledged office space. Obviously, the cost can’t be compared with that of smart desk and office units.

Consider the following as they follow suit with rental cost.

1) Annual Free zone Business license fee

2) One-Time Free zone registration fee

3) Share capital requirement: company is required to have investment by shareholders/owners or sole-proprietor.

4) Free zone visa fee per person

5) Having a Bank Guarantee for free zone

6) Registered Agent fee

And other important expenses to be noted such as medical check, police clearance, Emirate ID cards and others.

Mainland Business Setup Costs

In mainland Business setup, you are meant to provide an initial approval to start up your business and that is the instant License issued by the Department of economic Department (DED). In Dubai business setup cost, this is a onetime expense.

  • The next step to take in the cost of setting up your business with Mainland is “Approving a trade Name”. The trade name comes alongside fees in different categories such as foreign company name fees, reservation fees, commercial name fees, and much more. Note that this is also a onetime cost.
  • Rent an Office Space: this is very mandatory for you to set up a business in Dubai. This is to ensure company’s legitimacy and other accredited values.
  • Onetime “Attestation Memorandum of Association” (MOA) this is also a onetime cost followed by the “Drafting of LCC fee” a onetime cost that may incur additional translation cost for better understanding between your shareholders.
  • Ministry of Economy Fee, Mainland Trade License Fee, Commercial License Fee, Chamber of Commerce Fee, Commercial service Improvement, Administrative Service Fee and other expense to be noted such as contact license and so on.

Understand that the fee structure of setting up business in Dubai might require you to hire a business advisory organization. However, we have been an eye opener to seeing the exact cost of starting up a business in Dubai!

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