What is the cost of establishing a company in Dubai, as it represents a distinct strategic step for individuals and companies alike. Dubai is one of the most prominent global business destinations thanks to its dynamic and stable economic environment, advanced infrastructure, and business environment that encourages innovation and investment. Offering diverse opportunities in various sectors such as trade, technology, and financial services, Dubai provides a solid base for growth and prosperity. In this context, understanding the procedures, costs and requirements for establishing a company in Dubai becomes crucial, which helps investors and business owners make informed decisions and achieve their business goals efficiently. In this article, we will review the basic steps for establishing a company in Dubai , highlighting the factors that must be considered to achieve success in this distinguished market.
The cost of establishing a company in Dubai
The cost of establishing a company in Dubai depends on several factors, including the type of company, commercial activity, and the free zone or other areas in which the company will be established. Here are some points that affect the cost:
- Free Zone : Costs in free zones are usually lower compared to land areas. The setup cost includes licensing fees, rent, and additional utility costs.
- Type of company : There are different types of companies such as limited liability companies (LLC), sole proprietorships, and specific limited liability companies. Each type has different costs.
- Commercial activities : Some commercial activities require special licenses or additional permits, which may affect the cost.
- Additional facilities : such as rent, Internet services, and office facilities.
- Consulting Services : Costs for legal consulting and licensing assistance may be part of the total cost.
If you need an accurate estimate of costs based on company type, activity, and location, a legal advisor or a specialized company such as Itqan can help you provide accurate and comprehensive details.
Types of companies in the Emirates
Here is a table showing the types of companies in the UAE and the main characteristics of each type:
| Type of Company | Main characteristics |
|---|---|
| Limited Liability Company (LLC) | – Number of shareholders: 2-50. – Liability: Limited to the amount of shares – Requires a local partner (in some cases). |
| Public joint stock company | – Number of shareholders: not less than 10. – Shares: listed on the stock market. – Liability: limited to the amount of shares. |
| Private joint stock company | – Number of shareholders: 2-50. – Shares: not listed on the stock market – Liability: limited to the amount of shares. |
| Sole proprietorship | – Number of shareholders: one individual. – Liability: unlimited. – Easy to establish and comply with. |
| Branch of a foreign company | – Follows local laws and regulations. – The branch can be fully owned by the parent company. – No local partner required. |
| Free zone company | – Requires presence in a specific free zone. – Exemption from taxes. – It can be entirely owned by foreigners. |
| holding company | – Aims to own shares in other companies. The main goal is to control other companies. |
You can choose the most appropriate type based on your business needs and specific goals.
How to establish a company in the UAE
After learning about the cost of establishing a company in Dubai, we will discuss how to establish a company in Dubai:
To establish a company in the Emirates, you must obtain a business visa in the Emirates and establish a company in one of the free zones appropriate to the nature of the activity you wish to establish, such as the Jebel Ali region. Work visa fees range from about 2,500 to 16,000 dirhams, depending on the free zone.
You must also obtain a commercial license to operate, and business owners or investors in Dubai enjoy many privileges to enhance the investor experience.
If you need to know more about the cost of establishing a company in Dubai, you can contact us and one of our experts will assist you in all procedures without requiring you to make an effort or waste time.
Establishing a company in Dubai requires fulfilling a set of conditions and procedures, which may vary slightly depending on the type of company and the location in which it will be established. But, in general, basic conditions include:
- Specify the type of company (such as LLC, public joint stock company, sole proprietorship, branch of a foreign company, or free zone company).
- Determine the activity or activities that the company will undertake, and ensure that they are permitted according to local laws.
- Determine the location or region in which the company will be located (free zones, land areas, or other places).
- Obtaining the necessary approvals from the competent authorities, such as the Department of Economic Development in Dubai or other local authorities.
- For LLC and sole proprietorships : articles of incorporation, identity documents for partners, proof of address, signature of partners.
- For a public joint-stock company : registration form, company statute, articles of incorporation.
- For a branch of a foreign company : a letter from the parent company, proof of registration of the parent company, authorization from the parent company.
- For a free zone company : license application form, lease contract, approval of the local authority in the free zone.
- Apply for the appropriate business license based on the type of activity and company.
- Register the company in the commercial registry and obtain the registration number.
- Open a bank account for the company and submit the required documents to the bank.
- Obtaining the necessary work visas and licenses for employees (if there are employees).
- Comply with local tax requirements, including VAT registration if required. You can also use a consulting company such as Itqan to assist you with these procedures and ensure that all legal requirements are met.
