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Business Setup Company In Dubai

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How much does it cost for company registration in Dubai?

How much does it cost for company registration in Dubai?

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 a straightforward process, 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:

  1. 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.

  1. 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.

  1. 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 the specific requirements of each company. 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

The process of registering a company in Dubai involves several steps, and it’s essential to follow them carefully to avoid any delays or complications. Here are the basic steps involved in the company registration process:

  1. 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 will need to research the different business activities and legal forms available to determine which one is best suited for your business.

  1. Choose a Company Name and Reserve It : Once you’ve chosen a business activity and legal form, you will need to choose a company name and reserve it. The name should be unique and not already registered with the Dubai Department of Economic Development (DED).

3. Obtain Initial Approval

After reserving the company name, you will need to obtain initial approval from the DED. This involves submitting the necessary documents, such as passport copies, shareholder agreements, and the proposed business plan.

  1. 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. The MOA must be notarized by a public notary in Dubai.

  1. Obtain a Trade License

After signing the MOA, you will need to obtain a trade license from the DED. The trade license specifies the business activities the company is authorized to conduct.

  1. Open a Corporate Bank Account

Once you have obtained the trade license, you will need to open a corporate bank account in Dubai. This account will be used for all financial transactions related to the company.

  1. Register for Value Added Tax (VAT)

If your company’s annual revenue exceeds AED 375,000, you will need to 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%

  1. Hire Employees

If you plan to hire employees, you will need to obtain an employment visa for each employee. This requires a medical checkup, a residency visa, and a work permit. You will also need to provide health insurance and end-of-service benefits for your employees.

Conclusion

Company registration in Dubai is a straightforward process, and the costs associated with it 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.

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Fill in your details and we’ll get back to you in no time.

Which Business Activity are you looking for?
Select Jurisdiction
How Many Owners will be involved?
Will you require Visa(s)?
Do you require an office Space?
Contact Details