One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

Costs of setting up a company in Dubai

تأسيس شركة أوفشور offshore في دبي

٠٧ يونيو Costs of setting up a company in Dubai

What are the costs of setting up a company in Dubai? Because when considering setting up a company in Dubai, understanding the expected costs is an essential step to ensuring the success of the process. Dubai is a global business destination due to its advanced infrastructure, strategic location, and investment-friendly economic environment. However, the costs of setting up a company in Dubai vary based on several factors such as the type of business activity, the type of license required, and the location of the company whether in the free zones or within Dubai. It is essential to consider the costs of licensing, visas, and other legal and administrative procedures that are part of the incorporation process.

Costs

Costs of setting up a company in Dubai

The costs of setting up a company in Dubai include many factors that can affect the total value, the most prominent of which are:

  1. Type of Business License: License costs vary depending on the business activity. An industrial license is different from a commercial or professional license, and the cost of the license directly affects the overall costs.
  2. Location: Setting up a company in a free zone such as Jebel Ali or Dubai South is different in cost than setting up in a city. Free zones offer advantages such as 100% foreign ownership, but they do require certain costs such as office or warehouse rental fees.
  3. Visas and Residency: Company formation involves obtaining residency visas for investors and employees. The cost of issuing visas varies depending on their number and type.
  4. Government and administrative fees: These include registration fees with the Department of Economic Development, security approval procedures, and fees related to various government services.
  5. Offices and commercial space: The cost of renting an office or commercial space varies depending on the location and the space required. In some cases, businesses need physical offices to meet business license requirements.
  6. Legal Consultations and Services: You may need to consult with specialized business establishment companies such as “Atqan”, which provide services that include legal and administrative guidance, which adds to the cost but helps facilitate the process.

These factors combine to determine the final cost of setting up a company in Dubai, and they must all be taken into consideration to ensure a successful start-up.

Steps to establish a company in Dubai

Establishing a company in Dubai requires following a set of legal and administrative steps to ensure full compliance with local laws. Below are the basic steps to establish a company in Dubai:

  1. Determine the business activity: The first step is to choose the type of business activity you wish to practice, whether commercial, industrial, or professional. This requires knowing the classifications available at the Department of Economic Development.
  2. Choosing a legal entity: You must choose the type of legal entity for the company, such as a limited liability company (LLC), a subsidiary, or a representative office. The choice depends on the size of the business and the type of activity.
  3. Choosing a trade name: An appropriate trade name must be chosen for the company, and the conditions related to trade names must be adhered to, including that the name does not contain any offensive or illegally famous words. This requires obtaining the approval of the Department of Economic Development.
  4. Obtaining initial approvals: After determining the business activity and name, initial approval must be obtained from the relevant authorities in Dubai, such as the Department of Economic Development or the authorities responsible for the relevant activity.
  5. Determining the company’s location: It is necessary to rent an office or workspace for the company, as obtaining an approved lease contract is a basic condition in the establishment steps.
  6. Preparing legal documents: Legal contracts such as articles of association and agreements between partners (if any) must be prepared. These documents require approval from the relevant authorities.
  7. Obtaining a commercial license: After submitting all the required documents, the commercial license for the company is issued by the Department of Economic Development or the Free Zone Authority (if the company is in a free zone).
  8. Registration with government bodies : The company must be registered with other government departments such as the Dubai Chamber of Commerce and Industry.
  9. Issuing Visas and Residencies: After establishing the company, you can apply for residency visas for investors and employees based on the company structure and the number of visas allowed.
  10. Opening a bank account: A business bank account must be opened for the company to facilitate financial transactions and receive funds.

These steps represent the general framework for establishing a company in Dubai, and you can seek the services of specialized companies such as “Atqan” to simplify the procedures and ensure full compliance with legal requirements.

Advantages of the costs of setting up a company in Dubai

The costs of setting up a company in Dubai have many advantages that make it an attractive investment locally and internationally. Among these advantages are:

  1. Tax Exemptions: One of the most notable positives is the tax exemptions, as Dubai does not impose corporate or profit taxes, allowing companies to retain a larger portion of their revenues without a large tax burden.
  2. Encouraging business environment: The costs of setting up a business in Dubai include access to advanced infrastructure and e-government services that facilitate registration and licensing processes. Government support for foreign investment encourages efficient and rapid business establishment.
  3. Full Foreign Ownership: In free zones, foreign investors have full ownership of the company without the need for a local partner, which is a major advantage for foreign companies seeking to expand in the region.
  4. Easy access to global markets: The cost of setting up a company in Dubai gives you a strategic location to access regional and global markets, allowing companies to benefit from international trade movement and advanced port and airport infrastructure.
  5. Ease of company formation: Although there are certain costs, the simplified procedures and speed of obtaining a trade license make company formation in Dubai relatively easy compared to many other countries. Some free zones help in establishing a company in less than a week.
  6. Diversity of investment opportunities: Dubai offers a flexible environment that allows companies to establish in a wide range of economic sectors such as trade, tourism, financial services, technology, and industry. This diversity increases the chances of success and growth.
  7. Access to a diverse workforce: Thanks to Dubai’s thriving economy, the costs of hiring workers are favourable compared to the expected returns on investment, and talent can be brought in from all over the world.

The costs of setting up a company in Dubai, despite the initial investment, provide a stable and sustainable business environment with strong government support and great facilities that make it a preferred choice for investors.

Costs

Documents required to establish a company in Dubai

When establishing a company in Dubai , there are a set of required documents that must be submitted to obtain a commercial license and complete the company establishment procedures. The required documents include:

  1. Copies of Passports: Copies of passports of all partners and investors in the company must be provided. These copies must be valid for a specific period of time.
  2. Personal Photo: A passport-sized photo of each partner or owner in the company is required.
  3. Choosing a trade name: Proposals for the company’s trade name must be submitted and approved by the Dubai Department of Economic Development.
  4. Company Articles of Association: A company articles of association (or memorandum of understanding) must be prepared, specifying the rights and obligations of the partners and the percentages of profit and loss distribution. The contract must be signed by all parties and notarized with the competent authorities.
  5. Proof of Office Address: An approved lease agreement (“Ejari”) for the company’s headquarters or office in Dubai is required. This is necessary to complete the licensing procedures.
  6. Initial approvals: Some commercial activities require special approvals from other government agencies in addition to the Department of Economic Development, such as the Ministry of Health or Civil Defense, depending on the type of activity.
  7. No Objection Certificate (if applicable): If one of the partners is employed by another company in the UAE, a No Objection Certificate may be required from the current employer to allow him to participate in the establishment of the company.
  8. Legal Documents: If the company will include foreign partners, additional legal documents may be required such as a certificate of good standing or a certified power of attorney if the company will be managed from abroad.
  9. Capital Declaration: A document must be submitted proving that the partners have committed to determining the required capital in accordance with the Dubai Commercial Law. This declaration does not require depositing the capital in a bank account except in certain cases.
  10. Special Licenses: Some business activities require special licenses from government agencies or regulatory bodies. These licenses must be obtained and submitted as part of the required paperwork.

Once these documents are submitted, you can proceed with the issuance of the commercial license and complete the rest of the procedures related to establishing the company. You can use specialized companies such as “Atqan” to facilitate and prepare these documents and ensure compliance with all legal requirements.

In conclusion, establishing a company in Dubai is a strategic step for any investor or businessman seeking to benefit from the advanced economic environment and global infrastructure. Thanks to government facilities and the city’s strategic location, Dubai opens up vast horizons for growth and commercial expansion. With the support of specialized companies such as “Atqan”, procedural and legal challenges can be easily overcome, facilitating the process of establishing a company and increasing the chances of success in this vital market. Establishing a company in Dubai is not just a business decision, but an investment in a promising future that holds unlimited opportunities.

Frequently asked questions about setting up a company in Dubai