Are you considering starting a business in Dubai? If so, you are not alone! Dubai has become one of the top destinations for entrepreneurs and investors worldwide. The good news here is that business setup cost in Dubai today is more affordable than ever.
The UAE government continues to reduce the cost of setting up a business in Dubai to attract more businesses and create a thriving economy. This makes it easier for new business owners to take their first steps without being burdened by high initial expenses.
The business setup consultants at Asad Abbas & Co. Chartered Accountants are here to help business owners like you navigate the entire business setup process with ease. This ensures that you won’t face any unexpected costs and can start your dream business in the UAE without any hassle.
In this blog, we will break down the business setup Dubai cost and cover the expected expenses before and after your company is established so you can plan accordingly. So, let us begin!
Understanding the business environment in Dubai
Dubai has become a global business hub thanks to its strategic location, business-friendly policies and modern infrastructure. Entrepreneurs and companies from around the world are drawn to Dubai for its growing economy and vast opportunities.
If you are planning to start a business in Dubai, it is essential to understand the cost of setting up a company in Dubai. Knowing these setup costs is crucial for anyone looking to establish a business in the UAE. Moreover, a clear understanding of the business setup cost in Dubai and the required steps can help you save both time and money.
Before you look into the details of UAE business setup cost, it is important to understand that Dubai has different business zones, each with its own set of rules, regulations and cost structures. These zones include Free Zones, Mainland and Offshore.
- Free zone companies: Great for businesses that focus on international trade. They offer benefits like 100% foreign ownership and tax exemptions.
- Mainland Companies: Perfect for those who want to do business directly with the local UAE market without restrictions.
- Offshore Companies: Best for businesses that want to operate outside the UAE or act as holding companies. They offer advantages like tax benefits and privacy.
Your choice of business zone will play a big role in determining both your registration costs and the flexibility of your operations.
Cost of setting up a business in Dubai
The UAE business setup cost depends on several factors, including the type of business, the location, the license required, and more. In some cases, you can get a business license for as low as AED 12,900. Generally, the cost to register a company in Dubai ranges from AED 15,000 to AED 28,000. However, the cost may increase if you need special permits or privileges.
For example, if you require a foreign trading name or government approval, these factors can raise the overall cost. You can consult with the experts at Asad Abbas & Co. Chartered Accountants to ensure you do not pay more than necessary. We will offer you the best business setup services in UAE and guide you through the process to ensure you stay within your budget.
Four main costs when setting up a business in Dubai
Company registration fee
The company registration fee is a one-time cost paid to the free zone authority when you first set up your company. The exact fee depends on your company’s legal structure and the free zone you choose.
License fee
Choosing a business license is an important step when setting up your company in a Dubai-free zone. The three most common types of licenses are for trading, services and industrial businesses. Unlike the one-time company registration fee, the license fee is an annual cost, typically ranging from AED 10,000 to AED 50,000 per year.
Office rental fee
You need to rent office space to obtain your business license in Dubai. Each free zone in Dubai offers different types of office setups, such as serviced desks, flexi-desks and smart desks, with prices typically ranging from AED 15,000 to AED 20,000.
Share capital
The required minimum share capital varies across different free zones, ranging from as low as AED 1,000 to as high as AED 1,000,000, depending on the type of business and the licenses you need. On average, the share capital requirement in most free zones in Dubai is around AED 50,000.
Additional expenses
Several other costs can impact the total investment needed to register a company in Dubai:
Professional fees
Hiring business setup consultants, accountants and legal experts can provide valuable support but will add to the setup costs. These fees can range from a few thousand AED to tens of thousands, depending on the complexity of your business and its ongoing needs.
Compliance and approvals
Some businesses may require additional approvals, compliance and certifications with specific regulations, which can add extra costs during the planning stage.
Visa costs
You will need to obtain a visa for yourself, your employees and your dependents. It includes expenses for processing, medical tests and Emirates ID registration.
Insurance
Depending on your business, you may need various types of insurance, such as worker’s compensation, property insurance or liability. The costs will vary depending on the level of coverage and the risks involved.
How can you reduce costs when starting a business in Dubai?
Managing business setup Dubai cost effectively and planning strategically is essential for a smooth business setup in Dubai. Here are some tips to help:
- Do your research: Make sure you understand the specific costs related to your chosen business type and location.
- Get expert advice: Hiring experienced business setup consultants can help you save money when starting your business in Dubai. Therefore, consult with business setup specialists to help you navigate the registration process and identify ways to save on costs.
- Create a flexible budget: It is important to have a detailed budget that includes all potential costs. Do not forget to set aside extra funds for unexpected expenses to ensure your business stays financially stable in the early stages.
Asad Abbas & Co. Chartered Accountants is a top consultancy firm in Dubai known for providing the best business setup services in UAE. We can simplify the process and ensure your business follows all local regulations while keeping your setup costs low.
Our experts offer customized solutions to help you negotiate better office space deals and share useful strategies to save money throughout the setup journey. Get in touch with us today to start your business setup in Dubai with ease and confidence!
Also Read: Why Every Business in the UAE Should Consider a Financial Audit
