The costs of setting up a company in Dubai are a crucial factor to consider when embarking on your entrepreneurial journey in this vibrant economic city. Dubai is considered one of the world’s leading economic and commercial centers, making it an attractive destination for investors and ambitious entrepreneurs seeking to establish their own companies.

Dubai is known for its diverse and well-regulated economic environment, which provides ample opportunities for success in various sectors and industries. However, those planning to establish a company in Dubai should be aware of the costs associated with this process, as establishment and operating costs can be a decisive factor in making business decisions, and through our article we will review many details about these costs related to establishing a company in Dubai. .

Establishing a company in Dubai

The costs of establishing a company in Dubai are not the same and vary according to several factors, including the chosen areas and the location in which the company will be established, and the location is also chosen according to the nature of the activity.

The costs are calculated after conducting a feasibility study for the project to be carried out, and according to the activity, the costs of establishing a company in Dubai are determined, as the costs differ if the activity is a shop, company, institution, or factory, and some areas have lower costs, such as free zones, and there is complete tax exemption there. In addition to trade name fees and commercial registry fees, the trade name must also be registered. The costs of establishing a company in Dubai vary based on several factors, including the type of company, its size, and business requirements. Here is an overview of some of the costs that may result from setting up a company in Dubai:

• License costs: include issuance and renewal fees for commercial licenses required for the company’s activity. There are several types of licenses in Dubai, such as general commercial licenses, industrial licenses, and professional licenses, and costs vary depending on the type of license.
• Registration and establishment fees: Includes company registration and establishment fees in the official Dubai commercial registry. These fees vary based on the type of company, whether it is a sole proprietorship, limited liability company, or joint stock company.
• Real estate costs: If you are planning to buy or rent a commercial property to host the company, you will have to pay real estate costs according to the prevailing prices in the Dubai real estate market. Costs may vary based on space size, location, duration and other factors.

Types of licenses in Dubai 

In Dubai, there are several types of business licenses that companies can obtain depending on their activity and requirements. Here are some common types of licenses in Dubai:

• General Commercial License : This license allows companies to conduct general business in various sectors such as retail, wholesale, and professional services.
• Industrial License: This license allows companies to carry out activities related to manufacturing, transformation and industrial production.
• Professional License: This license allows individuals to work as independent professionals in fields such as medicine, engineering, law, and consulting.
• Tourism License: This license allows companies to work in the tourism sector and provide tourism services such as tourist agencies, hotels, and restaurants.
• Real Estate License: This license allows companies to deal in the real estate sector, including buying, selling, leasing, and managing real estate.
• Financial License: This license allows companies to provide financial services such as banking, insurance, investment, and other financial services.
• These are some of the common types of licenses in Dubai, and investors and entrepreneurs should consult with the relevant authorities and specialists in the field to determine the appropriate license according to the activity of the proposed company.

Costs of establishing a company in the free zone

Each free zone has different costs than the other zone, and different fees, and they also differ from the costs of establishing in the free zones. This is because the free zones do not impose taxes on investors, and corporate and personal income taxes are completely exempted, and the investor has complete freedom to dispose of profits and capital.

If you need to know more about the costs of establishing a company in Dubai, you can contact the best company ever, which is Itqan Company, where one of our company’s experts helps you in all procedures without requiring you to make an effort or waste time.

 Administrative and financial costs of establishing a company in Dubai

The costs of establishing a company in Dubai require several thoughtful steps, and this is what the experts of Itqan Company help you with. These costs are divided into several points, which are as follows:

• Company establishment costs:  Fees for registering and establishing the company with government agencies. There are also consulting costs to assist in preparing the legal and financial documents necessary to establish the company.
• Capital: The amount that must be provided as basic capital to establish the company in accordance with local laws, in addition to the costs of transferring funds and foreign currency transfers if there is a need for this.
• Accounts and financial audit costs: Hiring an accountant or financial team to manage the company’s accounts and ensure compliance with local and international accounting legislation. There are also costs of hiring financial audit services to provide accurate financial reports.
• Legal fees and insurances: Annual registration fees and updates necessary to operate the company legally, in addition to the insurance costs necessary to protect the company and its employees from potential risks.
• Banking costs: Banking costs are the fees for opening a commercial bank account for the company, and the costs of banking services and financial transactions are determined on a daily basis.
• Recruitment and human resources costs: These are the salaries and benefits of administrative and financial employees, as well as the costs of medical insurance, retirement, and vacations.
• Rent and office costs: These are the costs of renting the office or commercial space needed to operate the company, and there are also the costs of general services and maintenance costs.

Government licensing fees to establish a company in Dubai 

The cost of government licenses is an important part of the costs that any business has to bear when setting up in Dubai. These fees vary based on the type of business, company size, and location, and may include several points related to government licenses, including:

• Company registration fees: These fees include registering the company name and confirming it with the competent authorities in Dubai.
• General license fees: This can include a general business license that allows the practice of general commercial activities.
• Special license fees: In the case of companies with special activities or specific services, there may be special licenses that require additional fees.
• Annual Renewal Fee: Some licenses require renewal annually and the appropriate renewal fee must be paid.
• Legal consulting fees: In some cases, a company may need legal advice to obtain licenses or to assist it in construction processes, which entails paying a consulting fee.

Investors wishing to establish a company in Dubai must carefully research the licenses required for their proposed activity and ensure that they understand all fees and costs associated with them before starting the establishment process. You can rely on Itqan Company and consult our company’s experts.

Advantages of establishing a company in Dubai

Establishing a company in Dubai has several advantages that make it a preferred destination for entrepreneurship and investments. Here are some of these features:

• Strategic location: Dubai is located in the heart of the Middle East and is considered a major gateway for trade and investment in the region. This strategic location facilitates access to emerging markets in the Gulf region, Asia and Africa.
• Advanced investment environment: Dubai provides advanced infrastructure and a suitable business environment that encourages innovation and economic growth. The government also provides support and encouragement to emerging and medium-sized companies.
• Diversified Economy: Dubai’s economy has great diversity in different sectors such as real estate, tourism, trade, logistics and technology, which provides diverse investment opportunities for new projects.
• Ease of establishment: The procedures for establishing a company in Dubai are simplified and facilitated, allowing the business to start relatively quickly compared to some other countries.
• Liberal business climate: Dubai is characterized by liberal economic policies and flexible investment laws that allow freedom of trade and investment and protect the rights of investors.
• Advanced infrastructure: Dubai has an advanced infrastructure that includes modern transportation, communications and technology facilities, which facilitates shipping and distribution operations and increases business efficiency.
• High standard of living: Dubai provides a high standard of living that includes a wide range of health, educational, recreational and cultural services for residents and investors.
• Linguistic presence: Dubai residents have multiple language skills, with many of them speaking English fluently, making it easier to communicate and conduct business effectively with international companies and investors.

Registration fees for setting up a company in Dubai

Registration and annual update fees for establishing a company in Dubai may vary based on the type of company and the economic activity it carries out. Here’s an overview of the approximate fees:

• Initial registration fees: These fees range from several thousand UAE dirhams to several thousand US dollars, depending on the type of company and its legal arrangements.

• Annual Update Fee: This fee includes annual company registration renewal and updates necessary to maintain active company status. These fees may vary based on the size of the company, type of activity and local legal legislation.

• Additional services fees: There may be additional fees for services such as submitting annual financial reports or additional consulting services. However, if the annual registration is not renewed on time, additional late fines may be imposed.

In conclusion of this article, we realize that the costs of setting up a company in Dubai are a crucial factor to consider when embarking on your entrepreneurial journey in this vibrant economic city. Dubai is known for its diverse and regulated economic environment, and is an interesting destination for investors and entrepreneurs seeking to establish their own companies.

The most frequently asked questions about the costs of establishing a company in Dubai