Business establishment costs

In the Middle East, especially in the UAE and Dubai, the cost of setting up a business varies depending on the type of company and where it is registered. Here are the common types of companies in the UAE and Dubai and their costs to set up:

1. Free Zone Company

Free zone companies are a common choice for foreign investors to set up businesses in the UAE, allowing 100% foreign ownership and tax exemption. The fees vary from free zone to free zone, and here are the costs of setting up some of the major free zones:

Registration fee: about 15,000 to 50,000 AED (UAE Dirhams).

License fee: about 10,000 to 30,000 AED, depending on the type of business.

Office space rental: Free zones usually require renting office space, and the cost ranges from 10,000 AED (virtual office) to 50,000 AED or more (physical office).

Visa fees: The cost of each employee visa is about 3,000 to 5,000 AED.

2. Mainland companies

Mainland companies are allowed to do business in the UAE and now also allow 100% foreign ownership, but in some industries they still need to form a joint venture with a local partner (the local partner holds 51% of the shares). The establishment costs include:

Registration fee: about 10,000 to 30,000 AED.

License fee: about 10,000 to 20,000 AED, depending on the type of business.

Office space rental: actual office space needs to be rented, and the cost varies depending on location and area.

Local partner fees: need to be negotiated with the local partner, usually involving annual dividends or fixed fees.

3. Offshore companies

Offshore companies are usually used for international business and asset management, and are not allowed to do business in the UAE. The establishment costs are relatively low:

Registration fee: about 10,000 to 20,000 AED.

Annual fees: about 5,000 to 15,000 AED.

Registered address fee: about 2,000 to 5,000 AED.

Other fees

Legal and consulting fees: about 5,000 to 20,000 AED, depending on the service and complexity.

Bank account opening fee: about 2,000 to 5,000 AED.

Summary

Free zone company: The establishment cost is about 30,000 to 100,000 AED, suitable for foreign investors who want to hold 100% of the shares.

Mainland company: The establishment cost is about 20,000 to 50,000 AED, suitable for companies that want to do business in the UAE.

Offshore company: The establishment cost is about 15,000 to 30,000 AED, suitable for international business and asset management.

The specific fees may vary depending on the free zone, business type and service provider. It is recommended to consult a professional consultant to obtain an accurate quote before setting up a company.