Dubai, recognized globally for its flourishing markets, robust economy, and simplified company setup processes, stands as one of the most attractive destinations for entrepreneurs worldwide. With the right approach and guidance from experienced business professionals in Dubai, entrepreneurs can significantly reduce the cost of company registration in the region. The journey to establishing a company in the UAE is influenced by multiple factors, including the business location, choice of trade name, office space leasing, regional sponsorship, and the type of commercial activities planned. In this blog we are going talk about cost to Register a company in Dubai, in 2024.
Benefits of Company Registration in Dubai: The advantages include low tax rates with VAT at only 5%, a thriving and diversified economy, and a strategic geographical location advantageous for international trade. The environment is business-friendly, with support for new and growing businesses, and the city is known for its advanced technology and infrastructure. Dubai offers a safe, diverse cultural setting conducive to business and lifestyle.
Process for Company Registration in Dubai: The process involves choosing the right company structure (like LLC, Sole Proprietorship, or Free Zone Company), selecting a business name according to Dubai’s naming rules, preparing necessary documents, choosing an office location, obtaining the correct business licenses, and completing final formalities such as obtaining a company stamp and arranging work visas if necessary. Each step requires careful planning and adherence to local laws and regulations.
Required Documents: For Mainland companies, documents needed include the owner's passport, a white background picture, name reservation, initial approval certificates, and possibly external department’s approval and EJARI registration. For Free Zone and Offshore companies, the requirements vary slightly but generally include passports, photographs, and relevant approvals.
For Mainland Company Registration:
Copy of the owner's passport and a passport-size photograph with a white background.
Proof of trade name reservation and initial approval from the Department of Economic Development (DED).
External approvals if required, depending on the business activity.
Ejari registration certificate indicating office space and address.
Memorandum of Association (MOA), depending on the company type.
Local Service Agent (LSA) agreement, if applicable.
For Free Zone Company Registration:
Owner’s passport copy and passport-size photograph with a white background.
Application form for the chosen Free Zone authority.
Business plan (required by some Free Zones).
Board resolution appointing Manager/Director (for corporate entity).
Memorandum and Articles of Association (MAA).
Office space agreement provided by the Free Zone authority.
For Offshore Company Registration:
Passport copy of the proposed director(s) and shareholder(s).
Original proof of residence for the director(s) and shareholder(s).
Detailed CV for each director and shareholder.
Bank reference letter for each shareholder.
Bonus: Documents that are occasionally required, such as:
Company stamp.
Bank reference letter for all shareholders.
Proof of share capital deposit in a UAE bank.
Board resolution authorizing the shareholders to establish the company and appoint directors.
Power of Attorney for the company’s legal representative.
Statement of Good Standing if the shareholder is an existing company
Cost of Company Registration in Dubai: Costs vary significantly based on the company’s size, type, location, and specific requirements. For Mainland setup, costs can range from AED 15,000 to AED 50,000, depending on various factors including government fees, visa costs, and office space. In Free Zones, costs can be somewhat lower but also depend on the specific zone and business type. It’s reported that the general cost for company registration in Dubai ranges from AED 12,500 to AED 28,500 for normal business activities.
Estimated Cost to Register a Company in Dubai in 2024
Expense Category | Mainland (AED) | Free Zone (AED) |
Initial Approval and Trade Name | 1,000 - 2,000 | 1,000 - 2,000 |
License Fees | 10,000 - 20,000 | 5,000 - 15,000 |
Office Space (Annual) | 20,000 - 100,000+ | 15,000 - 50,000+ |
Visa Costs (Per Visa) | 3,000 - 5,000 | 3,000 - 5,000 |
Miscellaneous Fees | 5,000 - 10,000 | 5,000 - 10,000 |
Total Estimated Cost | 39,000 - 137,000+ | 29,000 - 82,000+ |
Saving Money on Registration Costs: Comparing different Free Zones and Mainland options based on your business needs can help save money. Consulting with industry professionals for low-cost solutions and considering virtual or flexi-desk options instead of renting an office can also help reduce costs
Further Read: How to Set Up Your Business in Dubai from India
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