How Much Does it Cost to Set Up a Company in the UAE?
Cost to Set Up a Company in the UAE
If you want to start a company in the UAE, you may be wondering how much it will cost you to get set up. While the process is relatively simple, there are a few costs that you should consider. One of these expenses is the company license. The license is required for you to start operating in the country. You will have to renew this license every year. This is essentially a hidden tax that you must pay if you want to stay in business.
You should also consider the location of your business. The Dubai Freezone and Mainland both have different rules and regulations, so the costs will vary. For example, if you decide to operate in the Dubai Mainland, your costs will be higher than in the Freezone.
The price of registering a limited liability company depends on several factors, including the type of business you want to run and the number of people who will be involved in the business. For instance, a limited liability company can be formed with just two or as many as fifty individuals. In this type of business, each member is limited to their share of the company’s capital. However, foreign partners cannot hold more than 49% of the company’s capital without the assistance of a local partner with a majority share. Usually, this kind of company requires AED 300,000 as the minimum capital.
How Much Does it Cost to Set Up a Company in the UAE?
Once you’ve decided on the structure and type of company, the next step is to acquire the business license. There are three main types of business licenses in the UAE – those for manufacturing, trading and services. Business licences are the most important cost component for setting up a company in the UAE. These licenses vary in price, but on average, business license fees range from AED 10,000 to AED 50,000 per year.
Another expense that may add up to the cost of setting up a company in the UAE is office space. An office is mandatory for mainland businesses in the UAE to be recognized by the government. You’ll need to rent a building to be legally recognized. This may cost between Dh2,500 and Dh5,000. Depending on the number of shareholders, you may have to pay an additional fee to get the name for your company.
how to setup your company in the UAE
The cost of setting up a company in the UAE varies by location. Free zones are generally located close to airports and seaports, which make them an ideal location for logistics companies. Alternatively, you can choose to register your company with the Department of Economic Development of one of the seven emirates. Until 2020, a minimum 51% ownership requirement still existed, but now, 100% foreign ownership is permitted.
In the Free Zone, companies must obtain UAE visas for their employees. Depending on your nationality and citizenship, the cost will vary. Additionally, you may have to pay for yearly renewal of visas. You may also have to pay fees for foreign employees as well as UAE employees. These fees are meant to encourage foreign investment and accommodate foreign employees. Other fees include the Registered Agent Fee and Bank Guarantee Cost.