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Company Formation Cost in Dubai Mainland and Free Zone

February 11, 2021

The United Arab Emirates, and Dubai, in particular, is an attractive destination for entrepreneurs and investors all over the globe. Dubai can be considered the MENA region’s business hub with excellent global connectivity, state-of-the-art infrastructure, and a business-friendly environment. All of this makes the idea of setting up in Dubai seem like a sound business proposition. However, a lack of understanding of the costs involved for business set up in Dubai can lead to inconvenient and excessive overheads.

Here are some of the most pertinent questions you need to be asking about company registration in Dubai :

  1. Where should I set up my company in Dubai?
  2. How can I calculate approximately the funds required for a business set up in Dubai?
  3. Which free zone in Dubai offers the cheapest company setup options?
  4. Is it possible to establish a low-investment business in Dubai?
  5. Do I need to pay for a Dubai trade license cost in advance?
  6. How much does it cost for a Limited Liability Company (LLC) formation in Dubai?
  7. What are the various payments charged by the government for business set up in Dubai?
  8. Are there any affordable business solution providers in Dubai or cheap business setup services in the UAE?

The fact is, Dubai business setup costs keeping changing over time since the government can increase or decrease the fees for the various processes involved at any time. Therefore, it will be challenging to compute a fixed rate for various approvals. The best option is to reach out to a knowledgeable and affordable business setup consultancy in Dubai. They can help investors/entrepreneurs become aware of the charges levied initially and update them on variations in judicial prices and other governmental services. An experienced business setup consultant will be able to and advises investors on probable expenditures, thereby saving them from incurring unnecessary expenses.

Company Formation in Dubai

Costs of setting up a business in Dubai

The cost of setting up a business in the UAE depends on factors such as the type of business activity, the jurisdiction under which the company falls, and the approvals and certifications required. Leveraging years of helping entrepreneurs with the company set up in UAE, Avyanco has created a list of costs based on current and standard business setup expenses in Dubai.

The prices have been calculated based on the two main categories – Mainland and Free Zone Company Formation.

Cost of Free zone business setup in Dubai

Setting up your business in Dubai’s free zone area has inherent cost-saving advantages, making it a popular option for business set up in Dubai. However, costs vary depending on which free zone you choose to set up your business.

  1. License fees in free zone is vary free zone to free zone.
  2. Sharjah media City Free zone( Shams) start with AED 9200/-
  3. Dubai South Free zone starts with AED 25,000/-

It is always better to check with business setup consultants prior to process the application as most of the time there will be promotion on company setup in various free zone.

Cost of Mainland business setup in Dubai

Like free zone, the costs of setting up a business in the mainland depend on factors such as the nature of the business, number of visas, and premises. There will also be certain additional costs such as mandatory government fees, business incorporation fees, etc.

  1. Initial Approval in DED (Department of Economic Development) AED 235 (One-time cost)
  2. Approval of trade name - AED 735 (One-time cost)
  3. Office rent – depends on the size of your office. Average office rent would be AED 50 and above per sq. feet per annum. Office rent depends on location and required area.
  4. Attestation of Memorandum of Association (MoA) - AED 1200 (One-time cost); to be drawn up and approved by all partners of the company
  5. Drafting of contract and court agreement attestation - AED 500 for typing (One-time cost); all the partners or their attorneys will need to go sign the court agreement attestation
  6. Registration with Ministry of Economy - AED 3,000 (One-time cost); your company will be registered upon the payment of this fee.
  7. Trade license fee - AED 10000 Approx.
  8. Market fees - to the government as a percentage of the office rent - 5% of the rent for shops, 20% of the rent for warehouses.
  9. UAE local Sposnorship fees-depends on the nature of the business. Average sponsorship between AED10,000 to AED 25,000. Certain activities like contracting and real estate would be more.

How to keep costs down while starting a business in UAE

The easiest way to keep costs down while starting a business in UAE is to call upon the services of experienced, expert business setup consultants like Avyanco. We are one of the leading business setup consultancy firms in the UAE. Avyanco prides itself in offering the most cost-effective business set up solutions for the UAE market. Contact Avyanco & allow our experts to helping with the most optimally-priced business set up in Dubai. Call/WhatsApp: +971 50 3989000, (T): +971 4 240 5000, Email: info@avyanco.com

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