Setting up a business in Dubai can be an exciting venture, but it’s essential to understand the costs involved. Whether you’re planning to start a small company or establish a large corporation, there are several factors to consider when calculating the expenses.
Company Formation Costs
When it comes to company formation costs in Dubai, there are various options available. The type of business structure you choose will determine the expenses involved.
1. Mainland Company
If you decide to set up your business in the mainland, you’ll need to consider the following costs:
- Licenses and Permits: Depending on your business activity, licenses and permits can range from AED 10,000 to AED 50,000.
- Office Space Rental: Renting an office space in Dubai can cost anywhere from AED 25,000 to AED 200,000 per year.
- Sponsorship Fees: You’ll need a local sponsor or service agent who will typically charge an annual fee ranging from AED 5,000 to AED 25,000.
2. Free Zone Company
If you opt for setting up your business in one of Dubai’s many free zones, here are some associated costs:
- Licenses and Permits: Licensing fees for free zone companies can range from AED 10,000 to AED 35,000.
- Office Space Rental: Free zone office rentals start at around AED 15,000 per year for small offices and can go up to several hundred thousand dirhams for larger spaces.
- Incorporation and Registration: This can cost around AED 15,000 to AED 20,000, depending on the free zone.
Additional Costs
Aside from the company formation costs mentioned above, there are other expenses to consider:
- Visa Fees: Each employee will require a visa, and the fees can range from AED 4,000 to AED 7,000 per person.
- Employee Sponsorship: If you choose to sponsor your employees’ visas yourself, you’ll need to pay additional fees.
- Renewal Fees: Licenses and permits need to be renewed annually, with costs varying depending on the type of business and location.
In Conclusion
Setting up a business in Dubai involves various costs that need to be carefully considered. Whether you choose a mainland or free zone company structure, it’s crucial to research and plan your budget accordingly. Remember that these costs are subject to change and can vary based on several factors such as business activity and location.
If you’re unsure about the specific costs involved in setting up your business in Dubai, it’s always advisable to consult with a professional who can provide personalized guidance based on your requirements.