If you are considering opening a company in Dubai, one of the first things you need to consider is the cost. The cost of starting a business in Dubai can vary depending on several factors, such as the type of business, location, and legal structure. In this article, we will discuss the different costs associated with opening a company in Dubai.
Legal Structure
The legal structure is one of the most significant factors that determine the cost of opening a company in Dubai. There are different types of business entities in Dubai that have varying setup costs. Here are some common legal structures:
Free Zone Company
A free zone company is a popular choice for foreign investors who want to set up their business in Dubai. Free zone companies offer 100% ownership to foreign investors, meaning they can own and operate their businesses without partnering with a UAE national. The cost of setting up a free zone company can range from AED 15,000 to AED 50,000.
Mainland Company
A mainland company requires you to have a UAE national partner who will hold at least 51% ownership in your business. The cost of setting up a mainland company can range from AED 25,000 to AED 50,000.
Business License
Another significant cost associated with starting a business in Dubai is getting a business license. Depending on the type of activity your business will undertake, there are different licenses you may need to obtain. Here are some common types of licenses:
Commercial License
A commercial license is required for businesses involved in trading activities like import/export or selling products/services within the UAE market. The cost for obtaining this license can range from AED 10,000 to AED 20,000.
Professional License
A professional license is required for businesses involved in professional services like consultancy, accounting, and legal services. The cost for obtaining this license can range from AED 10,000 to AED 15,000.
Office Space
Renting office space is another significant cost associated with starting a business in Dubai. The cost of office space can vary depending on the location and size of the office. However, many free zone companies offer flexible workspace solutions that can help you save on the cost of renting an office.
Visa Costs
If you plan to hire employees in Dubai or sponsor yourself as an employee, you will need to consider visa costs. The cost of obtaining a visa can vary depending on several factors such as nationality and type of visa.
Conclusion
In conclusion, the cost of opening a company in Dubai can vary significantly depending on several factors like legal structure, business license, office space, and visa costs. It’s essential to do thorough research and consider all the costs associated with starting a business before making any decisions. With proper planning and budgeting, you can start your dream business in Dubai without breaking the bank.