Cost of setting up a business in Dubai

Cost of setting up a business in Dubai

Dubai is quickly rising to the top of the list of cities for business expansion and startups. Dubai is a well-liked travel location. Visitors come to the town from around the world to enjoy its opulence and magnificence. In addition to visitors, many individuals go to the city for professional and corporate events. For international investors, Dubai offers the best amenities and commercial prospects. The town provides connectivity to the world and has commercial rules that are helpful to business. In Dubai, starting a business does not come at a hefty expense. In Dubai, one can establish a successful business with the appropriate strategy.

Several factors affect how much it costs to start a business in Dubai. Among these are your company’s operations, license type, location, and other factors. A Service license can also be purchased for as little as AED 20,000. As a result, any value between 20,000 and 30,000 AED is a realistic guess. It’s crucial to keep in mind that if you require particular privileges, the cost of starting a company in Dubai rises. Examples of regulations that raise the overall cost include having a foreign trading name or receiving clearance from a governing authority. 

To begin with, it’s essential to understand the cost for setting up a business in Dubai/ UAE if you’re considering doing so. The following sections provide answers to some frequently asked questions about starting a business in Dubai:

A. How Much Does It Cost to set up a business in the United Arab Emirates?

  1. Business Registration Fee

The number of shareholders, the volume of business, and the number of visa applications all affect how much it costs to register a company in Dubai.

  1. Paying for a business license

All legal entities in the United Arab Emirates must possess a current trade license to conduct risk-free business in Dubai without raising compliance issues. To start your ideal business in the Emirates, you can apply for the following licenses:

  •   Professional License 
  •   Commercial License
  •   Industrial Permit
  •   Tourism Permit

Depending on your chosen jurisdiction and business operations, a business license in Dubai will cost you a certain amount.

  1. The price of leasing office space

Establishing a presence in Dubai is essential. This is so that all legal documents and communication can be forwarded to your official address, which is the only one to which they can be sent.

  1. Reservation of a Trade Name: Initial Approval and Payment

You have six months to finish the business registration process in Dubai, and the initial permission certificate costs about AED 150. Additionally, it is a one-time government fee, comparable to the AED 620 fee for reserving a brand name. However, you will need to pay more money to the appropriate authority if you wish to use a foreign trading name.

  1. The LSA’s Annual Fee

You can enjoy 100% ownership of your company even though it is located on the mainland if your commercial operations meet the prerequisites. You need a local service agent to help you with the many legal processes in this circumstance.

He or she won’t, however, be the legal owner of your business. The LSA will charge a tiny annual fee to serve as your business setup administrator. As a result, you won’t have to worry about the costs or compliance associated with opening a business in Dubai.

B. Where Should I Start My Business in Dubai?

The finest places on the mainland to open a business are Sheikh Zayed Road, Business Bay, Deira, Al Qusais, and Al Quoz. Al Qusais has a lot of reasonably priced apartments and is located close to the airport and Sharjah. In Sharjah, the initial setup fee for a firm is AED 25,000. The cost of establishing a mainland corporation in Dubai is AED 23,000

There are benefits and limitations to establishing a business in a free zone. Dubai Airport Free Zone, Dubai Silicon Oasis, Dubai International Financial Centre, and Dubai Healthcare City are a few of the city’s well-known business-free zones. Freezone business startup charges in Dubai begin at AED 50,000.

  • Cost of forming a free zone corporation

The procedures and costs for forming a corporation vary because each free zone in the UAE is subject to its own set of laws and restrictions. While certain factors, like having a local sponsor and rental expenses, are comparable, other factors, including smart desks, office units, warehouses, license fees, registration fees, shared capital requirements, visa fees, and bank guarantees, may vary depending on where you choose to live.

Calculating the Cost of Starting a Business in the United Arab Emirates

The price to start a business in Dubai or the United Arab Emirates varies on several factors. Getting a firm off the ground depends on the kind of enterprise, the legal system, and the licenses and permissions required. Additionally, it differs for offshore, mainland, and free zone regions. 

More than 30 low-cost free zones are available in the UAE for business establishment. Each zone has its own rules, and thus one must select a zone based on the demands and type of the business. Trade licenses at Dubai Silicon Oasis start at just AED 12,000, making it the least expensive free zone. You can check out freezone business setup in dubai for more information.

In Dubai, the cost to establish a general trading business ranges from AED 15,000 to AED 50,000, depending on the license and jurisdiction.

To conclude, the UAE offers a wealth of chances for foreign investors and business owners looking to expand their enterprises in the Middle East. 


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