Free Costs of Setting Up a Business in Dubai
If you’re considering opening your own company in Dubai, the cost is a major factor to consider. Here are fees you should keep in mind.
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For a Limited Liability Company (LLC)
A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company's capital. Foreign equity in the company cannot exceed 49%, meaning you will need a local partner who has a majority share in the company. Generally, the minimum capital is Dhs 300,000.
1. Initial approval or instant licence from DED
One-time cost
Approximately: Dhs 110
Approximately: Dhs 110
To open a business here, you can start by getting an instant licence from the Department of Economic Development (DED). It allows you to start business operations right away, with 120 days to complete all your other documentation.
2. Trade name approval
One-time cost
Approximately: Dhs 700-900 (Dhs 2,000 - 3,000 for non-Arabic names)
Approximately: Dhs 700-900 (Dhs 2,000 - 3,000 for non-Arabic names)
You’ll need to get approval for the name you have chosen for your company. The cost might change slightly based on the name. There are several fees to be paid for this, including reservation fees, commercial name fees, foreign company name fees, etc.
3. Office rent
It is mandatory to have an office space to set up your business. This is simply to ensure that it’s a legitimate business since it allows the authorities to do inspections, monitor operations and verify that immigration laws are followed.
4. Memorandum of Association (MOA) Attestation
One-time cost
Approximately: Dhs 400
Approximately: Dhs 400
This is done between the partners of the company. The attestation fee can be different depending on the share capital.
5. Drafting the contract and Court Agreement Attestation
One-time cost
Approximately: Dhs 1,000 - 2,000 for CAA + Dhs 300 for typing
Approximately: Dhs 1,000 - 2,000 for CAA + Dhs 300 for typing
The contract of an LLC is drafted with the mutual consent of the partners. The contract needs to be drafted in both Arabic and English so there might be an additional cost for the translation. All partners or their attorneys will need to go to sign the Court Agreement Attestation at the court.
SEE ALSO: Guide to setting up a business in Dubai
6. Ministry of Economy fee
One-time cost
Approximately: Dhs 3,000
Approximately: Dhs 3,000
You will be charged a fee to register your company.
7. Trade Licence
One-time cost plus renewal fees
Approximately: Dhs 15,000 + Dhs 3,000 renewal (For general trading licence)
Approximately: Dhs 15,000 + Dhs 3,000 renewal (For general trading licence)
Depending on the type of your business, the trade licence fee can vary. You might also be asked to show proof of a security deposit.
8. Commercial Licence fee (Tejari)
Yearly cost
Approximately: Dhs 700
Approximately: Dhs 700
This fee needs to be paid annually to be able to conduct commercial activities.
9. Chamber of Commerce fee
Yearly cost
Approximately: Dhs 1,200
Approximately: Dhs 1,200
The cost for a general trading company will differ from an industrial or manufacturing company.
10. Commercial services improvement fee
Yearly cost
Approximately: Dhs 400
Approximately: Dhs 400
This fee goes towards the improvement works that government departments do.
11. Administrative services fee and public waste municipality fee
One-time cost
Approximately: Dhs 50 + Dhs 1,000 for waste
Approximately: Dhs 50 + Dhs 1,000 for waste
Administrative fees are charged for the paperwork done by the department and the public waste fee
12. Market Fees
Yearly/Termly cost
Approximately: Dhs 1,250+ – Can vary a lot
Approximately: Dhs 1,250+ – Can vary a lot
This is a percentage paid to the government on the total amount of rent. An office or shop pays 5% while a warehouse pays 20%.
For a Free Zone Company
Setting up a company in a Free Zone has many benefits, including having 100% ownership and exemption from all import duties. There are many different Free Zones and the costs and benefits vary depending on the location and type of business.
Some of the major ones in the Dubai Emirate fall under the Dubai Creative Clusters Authority (DCCA) and the Dubai Multi Commodities Centre Authority (DMCC). There are also others such as Jebel Ali Free Zone, Dubai Airport Free Zone and Dubai Silicon Oasis Free Zone.
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