Affordable Company Formation in Dubai: Costs & Setup Guide

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Dubai is a thriving business hub that attracts entrepreneurs from around the world. Setting up a company in Dubai involves several costs, which vary depending on the type of business, location, and required approvals. Understanding these expenses is crucial for business owners to plan their budgets effectively.

Key Factors Influencing Company Formation Costs

Business License Fees


Every company in Dubai must obtain a business license, which is issued by the relevant authorities. The cost of a license depends on the business activity, with options such as commercial, professional, or industrial licenses. License fees generally range from AED 10,000 to AED 50,000 per year, depending on the industry and jurisdiction.

Registration Charges


Companies must register with the appropriate regulatory bodies, such as the Department of Economic Development (DED) for mainland businesses or a free zone authority for companies operating in designated economic zones. Registration fees typically range from AED 5,000 to AED 30,000, varying by location and business type.

Office Space Requirements


Businesses in Dubai are usually required to have a physical office, which contributes to the overall setup cost. Renting office space in a prime location can be expensive, but there are cost-effective options like shared offices or flexi-desk solutions available in free zones. Office rental costs can range from AED 15,000 to AED 100,000 annually, depending on size and location.

Sponsorship and Visa Fees


For foreign entrepreneurs, obtaining residency visas for themselves and their employees is essential. The cost of an investor visa can range from AED 3,000 to AED 10,000 per person. Additionally, mainland businesses may require a local sponsor, who typically charges an annual fee starting from AED 10,000.

Government and Legal Fees


Various government approvals, notary attestations, and legal documents are required during company formation. These costs can vary but typically range between AED 2,000 and AED 10,000.

Additional Expenses


Other costs may include corporate bank account setup fees, insurance, and marketing expenses. These factors add to the overall budget and should be considered when planning a business setup in Dubai.

Conclusion

The cost of forming a company in Dubai depends on several factors, including the type of business, location, and additional requirements such as office space and visas. Entrepreneurs should carefully assess these expenses to make informed financial decisions. For expert assistance in navigating the company formation process, GSF Accounting provides tailored solutions to help businesses establish themselves efficiently in Dubai.


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