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Why is Dubai one of the hottest business hubs today? It’s not just the iconic skyscrapers and luxury lifestyle. Dubai offers exceptional global connectivity, top-notch infrastructure, and a business-friendly atmosphere. With a VAT rate of just 5%, one of the lowest worldwide, both businesses and consumers enjoy reduced tax burdens.
As experts in Dubai’s business setup scene, we often get asked, “How much does it cost for a business setup in Dubai?” With years of experience helping entrepreneurs get started, we can give you the inside scoop on what it really costs to launch your business here.
Key Takeaways
- Freezone setup costs range from AED 5,500 to AED 12,500, while mainland setup can cost AED 25,000 to AED 29,000.
- Expect to pay for registration (AED 10,000), office rent (AED 15,000-20,000), a business license (AED 12,000/year), and a residence visa (AED 3,000).
- Dubai offers low taxes, 100% foreign ownership, and a strategic location with global market access.
- Partnering with experienced consultants can streamline the setup process and manage costs efficiently.
Cost of Opening a Company in Freezones
Setting up a business in the UAE offers cost-saving advantages like tax benefits, strategic locations, and a booming economy, making it an attractive option. The cost of a Freezone business license varies by location, with some examples being:
- Setting up a business in the UAE offers cost-saving advantages like tax benefits, strategic locations, and a booming economy, making it an attractive option. The cost of a Freezone business license varies by location, with some examples being:
| Sharjah Media City Freezone (SHAMS) | AED 5,500/- |
| Dubai Freezone – DUQE | AED 12,500/- |
| Dubai Freezone – IFZA | AED 12,500/- |
| Dubai Freezone – MEYDAN | AED 12,500/- |
| RAKEZ Freezone – Business License + 1 Lifetime Visa | AED 11,990/- |
There are nearly 45 freezones in UAE and Dubai that help you enjoy tax benefits on import and export and capital gain taxes.
Cost of Company Formation in Dubai Mainland
Like freezones, the cost of setting up a company in Dubai Mainland depends on various factors, including business operations, license type, and location. You can obtain a service license for AED 25,000 to AED 29,000. Additional expenses, such as obtaining a foreign trading name or securing regulatory approvals, can increase the overall cost.
Different Costs Involved in Starting a Business in Dubai
Here’s a breakdown of the costs involved in business setup in Dubai, UAE
Registration Fees
When setting up your company in Dubai, you’ll need to make a one-time payment for registration fees. These fees can vary based on factors like your company’s legal structure and the chosen freezone. Typically, registration costs around AED 10,000.
Office Rent
Renting office space in Dubai can cost between AED 15,000 and AED 20,000, depending on the location and type of desk.
Business License Payment
To operate legally in the UAE, you need a business license, which requires an annual renewal. The yearly cost for a business license in Dubai is about AED 12,000.
Memorandum of Association Fee
When registering a business in the UAE, you’ll need to pay fees for the Memorandum of Association. This includes AED 300 for each party’s signature attestation on a document valued up to AED 100,000. Signing at business centers costs AED 500, plus AED 100 for each member’s digital signature.
Trade Name Reservation Payment
The initial approval certificate costs around AED 250, and you have six months to complete the business setup process in Dubai. Trade name submission is AED 700, with an extra fee if you choose a foreign trading name.
Residence Visa Fees
As a business investor in Dubai, you can get a residential visa for up to 3 years, renewable after expiration. The cost for a residence visa is approximately AED 3,000.
In summary, the total cost of setting up a business in Dubai ranges from AED 25,000 to AED 40,000, depending on your business activity and location.
How to Keep Costs Down While Starting a Business in Dubai?
Although Dubai offers low operational and logistics costs, there are still some expenses involved in starting a business there.
Here are some tips to keep costs low:
Choose a Freezone: Setting up in a freezone can be the most cost-effective option. Match your business needs with the zone’s requirements to save on resources.
Use a Shared Workspace: Pay a monthly fee for access to facilities like broadband, desk space, and printing. This is cheaper than renting a full office.
Plan Staffing: Carefully plan your staffing needs and hire strategically to manage costs.
Consider Marketing Expenses: Allocate funds wisely for marketing and advertising to build brand visibility. Your costs will depend on whether you choose digital marketing, print media, or other platforms.
Work with an Expert: Collaborating with a local expert can help you avoid overspending and navigate the setup process efficiently.
Choose the Right Business: Research your business idea thoroughly to ensure it complies with regulations and avoids costly legal issues.
Benefits of Starting a Business in Dubai
Starting a business in Dubai comes with a host of benefits—think low taxes, a smooth business setup process, top-notch banking facilities, and a prime location for global expansion. If you’re aiming to take your business to the next level, Dubai is a must-consider.
1. Business-Friendly Policies
Dubai’s regulatory environment is supportive, promoting business growth and innovation.
2. Access to International Markets
Strategically located, Dubai offers easy access to markets in the Middle East, Asia, and Africa.
3. High-Quality Lifestyle
Entrepreneurs enjoy a high standard of living, with world-class infrastructure and modern amenities.
4. Low Tax Rate
Dubai has low corporate taxes and no personal income tax, easing financial burdens for businesses and individuals.
5. 100% Foreign Ownership
Foreign entrepreneurs can fully own their businesses, ensuring autonomy and control.
6. Versatile Economic Sector
Dubai’s diverse economy supports businesses across various industries, providing ample opportunities for growth and expansion.
Launch Your Dubai Business with Emifast
At Emifast, we’ve got years of experience and a diverse track record as the top business setup consultants in Dubai. We’ve helped countless entrepreneurs get their businesses off the ground here. Partner with us, and we’ll make your journey to launching a Dubai business as smooth and straightforward as possible.
F&Q
Yes, definitely! Dubai is open to foreign entrepreneurs, and many have already taken advantage of this opportunity. With a large expat community running their own businesses, Dubai offers benefits like tax breaks, simple processes, and a stable environment to attract foreign investors.
To keep costs low, working with experienced business setup consultants in Dubai like Emifast is key. They guide you through the process and offer various packages that fit your needs and budget.
Setting up a mainland company in Dubai typically costs between AED 15,000 and AED 25,000, depending on factors like the type of license, business size, and activity.
Starting a company in a Dubai freezone usually costs between AED 10,000 and AED 30,000. The exact cost depends on factors like the business size, type of license, and specific freezone.