Setting up a business in Dubai is an exciting opportunity, especially with the advantages the city offers to entrepreneurs. Among the different types of business setups, a Dubai mainland company is a popular choice because it allows business owners to operate anywhere in the UAE without restrictions. However, before making a decision, understanding the cost of forming a mainland company is crucial.
What is a Dubai Mainland Company?
A Dubai mainland company is a business licensed by the Department of Economic Development (DED). Unlike free zone companies, mainland businesses can trade across the UAE and internationally, bid for government contracts, and open offices anywhere in the country.
Factors Affecting Dubai Mainland Company Formation Cost
The cost of setting up a mainland company in Dubai depends on several factors, including:
Business Activity & License Type
A professional, commercial, or industrial license is required based on the type of business.
License costs typically range between AED 10,000 to AED 30,000.
Office Space Requirement
A physical office is mandatory for a mainland company, with rental costs varying based on location and size.
A small office can cost around AED 15,000 per year, while premium locations may exceed AED 100,000 annually.
Government Approvals & Fees
Registration with the DED and approvals from other authorities may incur additional costs.
Initial approvals and trade name registration fees range from AED 3,000 to AED 5,000.
Sponsorship & Local Service Agent Fees
If a business requires a UAE national sponsor (for commercial businesses), their annual fee can range from AED 10,000 to AED 50,000.
Professional companies can appoint a local service agent, usually costing between AED 5,000 to AED 15,000 per year.
Visa & Immigration Costs
Business owners and employees will need visas, which include medical tests and Emirates ID fees.
The cost per visa can range from AED 3,500 to AED 7,000.
Other Miscellaneous Expenses:
Additional costs such as insurance, accounting services, and legal documentation can add to the overall setup cost.
Estimated Total Cost
The total cost for Dubai mainland company formation can range from AED 20,000 to AED 100,000 or more, depending on business size, office location, and additional services required.
Conclusion
Setting up a Dubai mainland company requires careful planning and budgeting. While costs may vary, the investment provides significant benefits such as unlimited business opportunities, credibility, and access to a wider market. For expert guidance on setting up your mainland business in Dubai efficiently, GSF Accounting can help streamline the process and provide cost-effective solutions.