Costs of setting up a company Dubai

Dubai is one of the most important global cities that attracts investors thanks to its thriving economic environment and flexible legislation that supports the establishment of business in all its forms. Establishing a company in Dubai represents a strategic step for international investors, as they enjoy many advantages and opportunities that contribute to business success and increased returns on investment. In this article, we will explore the costs of setting up a company in Dubai, one of the most prominent global destinations for business and investment. Setting up a company in Dubai requires a careful understanding of the basic expenses and costs related to licenses and legal services, along with other administrative costs. These costs include setting up the company, obtaining business and trade licenses, securing an office, as well as additional expenses such as labor and marketing costs. It also requires thinking about long-term fixed and variable costs, such as employee salaries and maintenance and operating costs. By understanding these details, investors can prepare an informed financial strategy that contributes to the success of their companies in this dynamic and growing economic environment.

Costs of setting up a company in Dubai

Establishing a company in Dubai

Establishing a company in Dubai is an important strategic step for investors looking for an advanced investment environment and diverse business opportunities. Dubai has a strong reputation as a global business destination, offering advanced infrastructure, a favorable legal system, and business-friendly government policies.

When planning to set up a company in Dubai, investors must choose the appropriate company type according to their business objectives and local laws. Companies can be established in autonomous free zones, allowing different tax and regulatory exemptions, or in local legal systems which entail different conditions and costs.

The basic steps include submitting the necessary documents and registering with the Department of Trade and Industry, securing an office space, opening a bank account, and obtaining the necessary licenses depending on the type of business activity chosen. It is also recommended to obtain specialized legal and financial advice to ensure the company’s compliance with local laws and regulations.

With easy access to regional and global markets, and advanced transportation and communications infrastructure, setting up a company in Dubai represents an attractive investment opportunity for investors seeking growth and expansion in a dynamic and evolving market.

Costs of setting up a company in Dubai

The costs of setting up a company in Dubai vary based on several factors such as the type of company, location, and planned business size. Here is an overview of the approximate costs of setting up a company in Dubai:

• Registration and licensing fees: These fees include the costs of registering the company with the Department of Trade and Industry, and the necessary work permits depending on the type of business activity. This fee varies based on the type of company and location.
• Legal and accounting consulting costs: It is recommended to obtain legal and accounting consulting to ensure compliance with local laws and to obtain professional advice in the necessary incorporation and management processes.
• Client and office costs: Establishing a company may require renting an office or work space, and securing the required labor depending on the size of the company and type of activity.
• Required capital: Some types of companies require basic financial capital that varies based on the type of activity, and may be determined by local regulators.
• Sponsorship and initial marketing costs: A new company may need to invest in initial marketing and sponsorship campaigns to build customers and business partners.

Steps to establish a company in Dubai

Here are basic steps for setting up a company in Dubai:

1. Determine the type of company: Before starting, you must determine the type of company you want to create, such as a limited liability company, a sole proprietorship, or a self-employed company, according to your business goals and the requirements of local law.
2. Choosing a company name: You must choose a unique name for the company and ensure its availability and compliance with local name rules. You can check the availability of the name through the Dubai Department of Economic Development website.
3. Determine location and business activity: Determine the location where you intend to operate the company, whether that is in a free zone or in local legal systems. You must also determine the type of business activity you want to practice.
4. Determine the capital and shareholders: You may need to determine the capital needed for the company based on its type, and determine the company’s shareholders and their shares.
5. Submitting documents and registration: Submit the required documents to the Department of Commerce and Industry in Dubai, for the official registration of the company. Documentation typically includes a registration application form, incorporation form, and a copy of the company contract.
6. Obtaining licenses and permits: A company’s business activities may require obtaining specific licenses and permits from local authorities, such as a work permit and business license.
7. Open a bank account for the company: Open a bank account in the company’s name to manage the company’s financial transactions and payments.
8. Securing a place for the office and employees, if necessary: ​​Choose the appropriate location for the company’s headquarters and secure it, and employ the necessary employees according to the company’s size and activity.
9. Local Taxes and Regulations Compliance: Ensure compliance with local taxes and regulations related to companies and business activities in Dubai.
10. Additional consultations and legal follow-up: It is recommended to obtain additional consultations from lawyers and financial advisors to ensure full compliance and success in establishing and managing the company in Dubai.

Documents required to establish a company in Dubai

To create a company in Dubai , the required papers vary slightly depending on the type of company and the place where you plan to establish it, whether it is in the free zone or outside it. However, here is a general list of basic documents that are usually required:

• Company registration application form: This form must be completed and submitted to the competent authority in the emirate.
• A copy of the company contract (Memorandum of Association – MOA): It is prepared and signed by the founders and sets out the basic goals, objectives and terms of the company.
• Articles of Association form: Specifies the rights and duties of members, procedures for company meetings, distribution of profits, and other administrative details.
• Identity certificates and passports for founders: Certified copies of passports for shareholders and directors and identity certificates for residents if they are part of the company.
• Lease or business license: If the company’s place of business is outside the free zone, you may need a lease or business license to confirm the company’s location.
• Bank Reference Letter: You may need a bank certificate proving your ability to manage the company financially.
• Power of Attorney: If you plan to appoint someone else to manage the day-to-day operations of the company, you may need a power of attorney.
• A copy of the Business Plan: Local authorities may ask you to submit a business plan that outlines the company’s financial and operational goals and strategies.

At the conclusion of our article on the costs of establishing a company in Dubai , we find that this city offers diverse and encouraging investment opportunities that attract entrepreneurs from different parts of the world. Dubai is considered one of the world’s leading destinations for establishing companies thanks to its advanced, efficient and transparent business environment. The costs of establishing a company in Dubai vary according to the type of company and location, with the possibility of choosing between local or free legal systems that provide different advantages in terms of taxes and regulations.

It is important to understand the factors that affect the costs of setting up a company in Dubai , such as government fees, costs of consulting and legal services, company establishment costs and office insurance. In addition, some businesses require core financial capital that varies depending on the type of activity and local laws.

The most frequently asked questions about setting up a company in Dubai