Dubai is one of the most sought-after destinations for entrepreneurs looking to establish their businesses.
With its strategic location, business-friendly environment, and access to global markets, setting up a mainland company in Dubai is a gainful choice.
However, understanding the cost structure is crucial to planning your investment effectively.
In this guide, we will break down the essential costs associated with business setup in Dubai and what you need to consider before making a decision.
1. Business License Cost
A business license is mandatory to operate legally in Dubai. The cost varies based on the type of business activity you choose:
- Commercial License: AED 10,000 – AED 15,000
- Professional License: AED 8,000 – AED 12,000
- Industrial License: AED 15,000 – AED 25,000
2. Trade Name Registration
Choosing a trade name for your business is an important step. The cost depends on the uniqueness and type of name:
- Standard trade name: AED 620 – AED 1,200
- Foreign name: AED 2,000 – AED 3,000
3. Initial Approval from DED
Before proceeding with company formation, you need approval from the Department of Economy and Tourism (DET). This can cost between AED 150 – AED 500.
4. Office Space Rental
A mainland company in Dubai requires a physical office space. Costs vary based on location and office size:
- Virtual office: AED 15,000 – AED 20,000 per year
- Small office space: AED 25,000 – AED 50,000 per year
- Prime business district office: AED 80,000 – AED 150,000 per year
5. Local Sponsor Fees
For certain business activities, foreign entrepreneurs need a local sponsor (UAE national) who holds 51% of the shares. The sponsorship fee can range from AED 10,000 – AED 50,000 annually, depending on the agreement.
6. Visa and Immigration Costs
If you plan to reside and work in Dubai, you will need a residency visa. Costs include:
- Investor Visa: AED 3,500 – AED 5,500
- Employee Visa: AED 4,000 – AED 6,000 per person
- Dependents Visa: AED 3,000 – AED 5,000 per person
7. Government and Registration Fees
Additional government charges may apply, such as:
- Memorandum of Association (MOA) notarization: AED 1,500 – AED 3,000
- Ejari registration (office lease approval): AED 215
- Dubai Chamber of Commerce membership: AED 1,200 – AED 3,000
8. Bank Account Opening & Capital Requirements
While opening a business bank account is relatively straightforward, some banks may require a minimum balance of AED 50,000 – AED 500,000, depending on the business activity.
9. Additional Costs
- Business setup consultancy fees: AED 5,000 – AED 15,000
- Insurance and legal documentation: AED 2,000 – AED 5,000
- Marketing and branding expenses: AED 5,000 – AED 20,000
Note: It’s important to note that these are industry costs and are subject to change based on government regulations and market trends.
Conclusion
The cost of mainland company formation in Dubai depends on various factors, including business type, office location, and licensing requirements.
While the initial setup cost can range between AED 30,000 – and AED 100,000, the investment is worthwhile given Dubai’s vast business opportunities and global connectivity.
If you’re looking for expert assistance in business setup in Dubai, consulting a professional business setup service like QuickPlus can simplify the process, ensuring compliance and efficiency.
Get in touch today to start your business journey in the UAE!