Launching a business in Dubai, UAE, offers numerous opportunities due to its strategic location, favorable tax environment, and robust economic land. However, understanding the costs associated with company formation is essential for budgeting and planning. This article breaks down the various expenses involved in company formation in Dubai UAE to help prospective entrepreneurs make informed decisions.

Business license fees:

The primary cost associated with company formation is the business license fee. This fee varies depending on the type of business activity and the chosen jurisdiction (mainland or free zone). For instance, a general trading license in a free zone might cost between AED 10,000 to AED 15,000, whereas in mainland Dubai, it could range from AED 7,000 to AED 15,000. The cost generally covers registration, administrative processing, and issuance of the license.

Office space rental:

Securing office space is a significant expense. In free zones, you can often find options ranging from shared workspaces to dedicated offices. Costs vary based on the size and location of the office. Typically, free zone offices might cost between AED 10,000 and AED 25,000 annually. Mainland office rentals can be higher, depending on the area, ranging from AED 20,000 to AED 50,000 or more annually.

Local sponsor or service agent fees:

For mainland company setups, a local sponsor or service agent is required, particularly for LLCs. The sponsor or agent’s fees can vary widely, generally ranging from AED 10,000 to AED 30,000 per year. This fee is for their support and services in facilitating the business operations in compliance with UAE regulations.

Visa costs:

Obtaining residency visas for shareholders, directors, and employees is another key expense. The cost of a UAE residence visa typically ranges from AED 3,000 to AED 7,000 per person, depending on the duration and type of visa. Additional costs include medical check-ups, Emirates ID processing, and insurance, which can add up to AED 1,000 to AED 2,500 per person.

Document preparation and notarization:

The process of setting up a company involves preparing and notarising various documents, including the Memorandum of Association (MOA) and Articles of Association. The costs for document preparation and notarisation typically range from AED 1,000 to AED 2,500, depending on the complexity and number of documents.