Dubai is a thriving city located in the United Arab Emirates (UAE), and it’s a popular destination for entrepreneurs looking to start their businesses. Company registration in Dubai is straightforward, and its costs are relatively low compared to other major cities worldwide. We will look closer at the cost of company registration in Dubai and the steps involved in the process.
TYPES OF COMPANIES IN DUBAI
Before diving into the costs, it’s essential to understand the types of companies that can be registered in Dubai. There are three primary types of companies:
Limited Liability Company (LLC): An LLC is Dubai’s most common type of company. It requires a minimum of two and a maximum of 50 shareholders, and each shareholder’s liability is limited to their share in the capital.
Free Zone Company (FZC): Free zones are designated areas in Dubai that offer 100% foreign ownership, tax exemptions, and no currency restrictions. FZCs are ideal for companies that want to import or export goods and services.
Branch Office: A branch office is a foreign company subsidiary with no legal identity separate from its parent company. It’s ideal for companies that want to establish a presence in Dubai but don’t want to set up a separate legal entity.
Cost of Company Registration in Dubai
The cost of company registration in Dubai depends on several factors, such as the type of company, the location, and the number of shareholders. Here’s a breakdown of the costs for each type of company:
Limited Liability Company (LLC)
The cost of setting up an LLC in Dubai ranges from AED 10,000 to AED 15,000. This cost includes the trade license, registration fee, and notary fees. In addition, there are ongoing costs such as annual renewal fees, office rent, and sponsorship fees.
Free Zone Company (FZC)
The cost of setting up an FZC in Dubai ranges from AED 15,000 to AED 35,000. This cost includes the trade license, registration fee, and notary fees. In addition, there are ongoing costs such as annual renewal fees, office rent, and visa fees.
Branch Office
The cost of setting up a branch office in Dubai ranges from AED 10,000 to AED 15,000. This cost includes the registration fee, notary fees, and the cost of obtaining a local sponsor. In addition, there are ongoing costs such as annual renewal fees, office rent, and visa fees.
The above costs are estimates and may vary depending on each company’s specific requirements. It’s essential to consult with a professional company registration service provider to get an accurate cost estimate.
Steps to Register a Company in Dubai
Registering a company in Dubai involves several steps, and it’s essential to follow them carefully to ensure timely and smooth sailing. Here are the basic steps involved in the company registration process:
Choose a Business Activity and Legal Form
The first step in registering a company in Dubai is to choose a business activity and legal form. You must research the different business activities and legal forms available to determine which is best suited for your business.
- Choose a Company Name and Reserve It: Once you’ve chosen a business activity and legal form, you must choose and reserve a company name. The name should be unique and not registered with the Dubai Department of Economic Development (DED).
3. Obtain Initial Approval
After reserving the company name, you must obtain initial approval from the DED. This involves submitting the necessary documents, such as passport copies, shareholder agreements, and the proposed business plan.
Prepare and Sign the Memorandum of Association (MOA)
The next step is to prepare and sign the Memorandum of Association (MOA), which outlines the company’s activities, share capital, and shareholders’ details. A public notary in Dubai must notarize the MOA.
Obtain a Trade License
After signing the MOA, you must obtain a trade license from the DED. The trade license specifies the business activities the company is authorized to conduct.
Open a Corporate Bank Account
Once you have obtained the trade license, you must open a corporate bank account in Dubai. This account will be used for all financial transactions related to the company.
Register for Value Added Tax (VAT)
If your company’s annual revenue exceeds AED 375,000, you must register for Value Added Tax (VAT). VAT is a tax on goods and services that is levied in the UAE at a rate of 5%
Hire Employees
If you plan to hire employees, you must obtain an employment visa for each employee. This requires a medical checkup, a residency visa, and a work permit. You must also provide your employees with health insurance and end-of-service benefits.
Conclusion
Company registration in Dubai is a straightforward process, and its costs are relatively low compared to other major cities worldwide. The cost of company registration in Dubai depends on several factors, such as the type of company, the location, and the number of shareholders. It’s essential to consult with a professional company registration service provider to get an accurate cost estimate and to ensure that all the necessary steps are followed carefully. Following the steps outlined in this blog post, you can register your company in Dubai and take advantage of the city’s thriving business environment.
