Due to the diversity of investment opportunities in the UAE, many people want to establish companies there. Especially in the Emirate of Dubai, which has more additional features, such as free industrial zones and others. For this reason, we will talk in the lines of this article about the cost of establishing a company in Dubai, and some important information in this field. Continue reading with us to know more details..
Cost factors for establishing a company in Dubai
Arab and foreign investors can establish their own companies in Dubai. In addition, there are several different types of companies that can be established, and several different activities that these companies can engage in. For this reason, the cost required to establish any company in Dubai can vary depending on several factors. Among the most prominent of these factors we mention the following:
1- Company registration
This fee is paid only once, when the company is established. These fees themselves relate to several different factors and are determined by the designated authorities. We can say that these fees range between approximately 9,000 and 10,000 UAE dirhams.
2- Obtaining a commercial license
A trade license is considered one of the most important steps necessary to establish any company in the UAE. Knowing that the UAE offers different types of these licences. The commercial license depends mainly on the type of business of the company. For this reason, the cost of obtaining this license varies from one person to another and from one company to another. The costs of obtaining a business license in Dubai can range between 1,000 and 50,000 AED. Knowing that the investor must renew this license annually.
3- Cost of capital
The basic cost of capital for each company relates to too many factors that cannot be discussed in one article. Essentially, this cost is related to the business owner and the type of company he aspires to reach. In Dubai, companies can be established with a capital between 1,000 and 1,000,000 UAE dirhams, which makes this step one of the most important factors that create economic disparity in the process of establishing companies in Dubai.
4- Entering the market
The fees required to enter the market can be summarized in the following points:
- Market entry costs subject to the local law system are 5% of the value of the company’s lease contract.
- Additional fees are determined by a committee affiliated with the competent authorities in Dubai for foreign investors.
- Residence fees for foreign investors in Dubai, which are estimated at approximately 5% of the value of the housing contract.
- In addition to waste-related fees, which are assessed by the Dubai Waste Committee.
5- Office spaces
No company can operate in Dubai without its own office space. The process of selecting the appropriate office space for each company is very complex and difficult. These spaces depend on the size of the company, the staff in it, the location of the company, the nature of the work in it, in addition to the nature of the activity it carries out. The cost of space provided by Dubai City to companies often ranges between approximately 10,000 and 50,000 UAE dirhams.
The best area for investment in Dubai
As we mentioned to you in the previous paragraphs, the cost necessary to establish companies in Dubai can vary greatly depending on the previous factors. But if you want to establish your own company in Dubai at lower costs, we recommend establishing this company within the industrial free zones. These areas offer you some additional advantages, such as the ability to own 100% of the company without an Emirati partner, in addition to complete tax exemption. Which can save you a lot of costs and fees.
Tadabeer Company..with you step by step
The team at Tadabeer Company can help you determine the cost necessary to establish your own company. It will also help you take all the necessary steps to establish this company, from obtaining the commercial license and opening the commercial account, all the way to opening the bank account. Contact us through the following links to benefit from our services or for any question or inquiry regarding the topic of today’s article.
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