Some investors wonder what the cost of establishing a company in Dubai is? Because Dubai is considered one of the most prominent global destinations for investment and establishing companies, as it offers a distinguished business environment and great opportunities for growth. With the increasing interest of investors in establishing their companies in this vibrant city, the most important question remains: What is the cost of establishing a company in Dubai? This question includes several aspects, starting from government fees and licenses, to rental costs and human resources. In this article, we will review the various factors that affect the cost of establishing a company in Dubai, which helps investors better plan their future projects.

What is the cost of establishing a company in Dubai

The cost of establishing a company in Dubai is affected by several factors, including:

Type of company: Costs vary depending on the type of company you want to establish, whether it is a limited liability company (LLC), a branch of a foreign company, or a company in a free zone.

Location: The area you choose to establish the company affects the costs, as rental fees in major commercial areas are usually higher compared to less popular areas.

Government licenses and fees: These include the costs of obtaining commercial licenses and government permits. These fees vary depending on the type of business activity.
Office costs: These include rent and basic utilities such as water, electricity, and internet.

Labor: The costs of establishing a company also depend on the number of employees and salary costs, which can vary based on skill level and experience.

Legal costs: These include fees for lawyers or legal consultants to assist you with legal procedures and licensing.

Additional fees: Such as insurance fees, banking fees, and license renewal fees.

Local partnerships: If you are establishing a non-free company, you may need a local partner, which may affect the overall cost. It is important to carefully consider all of these factors and plan well to estimate the final cost of establishing a company in Dubai.

How to establish a company in Dubai

Establishing a company in Dubai requires following specific steps, and the procedures vary depending on the type of company and location. Here are the general steps to establish a company in Dubai:

Determine the type of company: Determine the type of company you want to establish (a limited liability company, a branch of a foreign company, a sole proprietorship, or a company in a free zone).

Choose the business activity: Determine the business activity you want to practice, as this affects the type of license required.
Choosing a trade name: Choose a trade name that complies with Dubai laws and must not have been used before. You can check the availability of the name on the Department of Economic Development website.

Apply for a license: Apply for a trade license from the Department of Economic Development (DED) or the competent authority in the relevant free zone. You will need to provide the required documents, such as a copy of your passport, a personal photo, and a copy of the lease contract.

Opening a bank account: After obtaining the license, open a business bank account for your company. This may require submitting some documents, including the trade license and lease contract.

Registering the company: Register your company with the relevant government agencies, such as the Ministry of Economy, to obtain a commercial registration number.

Obtaining visas: If you plan to hire employees, you will need to apply for work visas.

Completing legal procedures: Prepare employment contracts, employee insurance, and comply with the requirements of the Ministry of Human Resources and Emiratisation.
Completing special licenses: Depending on your business activity, you may need to obtain additional licenses, such as health or environmental licenses.

Starting the company: After completing all the procedures, you can start operating your business.
It is useful to consult a legal advisor or a company specialized in establishing companies such as Atqan to ensure that all steps are in line with local laws.

Requirements for establishing a company in Dubai

Establishing a company in Dubai requires compliance with a number of conditions and requirements, which vary according to the type of company and the commercial field. Here are the most important basic conditions:

Determine the type of company: You must determine the type of company you wish to establish, such as a limited liability company (LLC), a branch of a foreign company, a sole proprietorship, and a company in a free zone

Trade name: You must choose a trade name that complies with local laws, provided that it has not been used before. The name must include the type of activity.

Licenses: Obtain a commercial license from the Department of Economic Development (DED) or the relevant authority in the free zone. You must submit the required documents and pay the fees.

Local partner: In the event of establishing a non-free company, you must have a local partner who owns 51% of the company’s shares.

Location: You must have an actual business address, which can be in a free zone or a commercial office.

Compliance with laws: Comply with applicable local laws and regulations, including those related to taxes and social insurance.
Opening a bank account: Open a business bank account in the company’s name after obtaining the license.

Visas: If you plan to hire employees, you must obtain work visas for them.

Insurance: You may need to secure the necessary insurances, such as professional liability insurance or employment insurance.

It is important to consult a legal advisor or a specialized company such as Atqan to ensure that all conditions and requirements are met correctly.

Documents required to establish a company in Dubai

To establish a company in Dubai, you will need to submit a set of required documents. Documents vary depending on the type of company, but here is a list of the basic documents you may need:

Passport copy: Partners and investors must have valid passports.
Personal photographs: Recent personal photographs of each partner or investor.
Registration application form: This can be obtained from the Department of Economic Development (DED) or the relevant authority in the free zone.
Choosing a trade name: A form must be submitted that includes the proposed trade name, ensuring that it has not been used previously.
Lease contract: A lease contract for the workplace, which must be dated and signed by the landlord.
Certificate of approval: If additional approvals are required, such as approvals from government agencies related to the activity.
Power of attorney: If you are using a legal agent, you will need an official power of attorney from them.
Partner documents: You may need to submit additional documents such as CVs or academic certificates for your partners.
Company incorporation document: If establishing a branch of a foreign company, you will need to provide documents proving the establishment of the parent company.
Insurance: Required insurance documents, such as professional liability insurance if appropriate.
Business Plan: In some cases, the relevant authority may require you to submit a business plan that outlines the company’s activities and objectives.

Be sure to review the requirements of the Department of Economic Development or the relevant authority in the free zone you choose, as requirements may vary depending on the type of company and business activity. It is also useful to consult a legal advisor or a specialized firm such as Atqan to ensure that all documents are completed correctly.

Etqan Company’s skills in establishing companies in Dubai

Etqan Company is one of the leading companies in the field of establishing companies in Dubai, providing a comprehensive range of services that facilitate investors to launch their business projects efficiently. Etqan has extensive experience in understanding the requirements of the local market, which enables it to provide customized advice that suits the needs of clients. The company is distinguished by a professional team consisting of experienced legal and financial advisors, ensuring that all legal and administrative aspects of establishing companies are met. Etqan provides comprehensive support in choosing the appropriate business activities, registering trade names, and obtaining the required licenses from the relevant authorities, such as the Department of Economic Development.

The company also helps clients open business bank accounts, making it easier for them to manage their money effectively. Itqan also provides distinguished services in issuing visas for employees, saving clients time and effort. Through its commitment to providing high-quality services and attention to business details, Itqan contributes to enhancing the chances of success of new companies in Dubai. The company is a trusted partner for investors seeking to establish their companies in one of the most dynamic markets in the world, reflecting dedication and creativity in providing optimal solutions for each client.

Advantages of establishing companies in Dubai

Establishing companies in Dubai comes with a set of advantages that make it an attractive option for investors and businessmen. Here are some of these advantages:

A suitable business environment: Dubai provides an advanced business environment full of opportunities, as the government supports innovation and investment.

Tax exemptions: Many free zones in Dubai offer full tax exemptions for companies, reducing the tax burden on investors.

Full ownership: Foreign investors can own 100% of companies in free zones, giving them complete control over their business.
Ease of procedures: Advanced digital systems contribute to accelerating the process of registering companies and obtaining licenses, saving time and effort for investors.
Diversity of Business Activities: Dubai offers a wide range of diverse business activities, allowing investors to choose the activity that best suits their needs.
Advanced Infrastructure: Dubai has a world-class infrastructure, including commercial facilities, transportation, and communications, which facilitates business operations.
Ease of Access to Markets: Dubai is a business hub that connects the East and the West, facilitating access to global markets and business opportunities.
Intellectual Property Rights Protection: Dubai provides a strong legal framework to protect intellectual property rights, which encourages innovation and investment.
Partnership and Collaboration Opportunities: Investors can benefit from partnerships with local and international companies to enhance the growth and expansion of their businesses.
Attractiveness of Life: Dubai offers a distinctive lifestyle that attracts talent from all over the world, which facilitates the attraction of talent and investors.
These features contribute to making Dubai one of the most attractive destinations for establishing companies and investing, which enhances the chances of success and growth in the market.

In conclusion, the cost of establishing a company in Dubai is a subject that requires careful study and a deep understanding of the multiple factors that affect it. From the type of company and location to government fees and rents, costs vary based on the options that the investor chooses. Although the costs may seem high at first, the significant advantages that Dubai offers, such as a favorable business environment and low taxes, make it an attractive investment destination in the long run. Therefore, investors are advised to conduct a comprehensive feasibility study and determine the appropriate budget before starting the incorporation procedures. It is also preferable to seek the help of specialized companies such as Itqan, which provide the necessary support and expertise to facilitate this process and ensure success. By investing time and effort in good planning, investors can turn their business ideas into a successful reality in one of the most dynamic cities in the world.

Frequently Asked Questions about How much does it cost to set up a company in Dubai

What are the basic costs of setting up a company in Dubai?
The basic costs include registration fees, licensing fees, rent, legal costs, and bank fees. These costs can vary depending on the type of company and business activity.

What are the fees associated with obtaining a trade license?
License fees vary depending on the type of business and location. They typically range from several thousand to tens of thousands of dirhams.

Do I need a local partner to set up a company in Dubai?
If you are setting up a company outside of the free zones, you will typically need a local partner who owns 51% of the shares. In the free zones, you can own 100% of the company.