Cost of Dubai mainland company setup

Are you planning to set up a company in Mainland Dubai? The very first thing you need to understand is the company setup process and the next big thing is to understand what  is cost of Dubai mainland company setup. So, today Prospr is here to offer you a clear picture of the estimated cost of setting up a business in the Dubai Mainland area. Let’s get started.

LLC Mainland company formation in UAE

If you have a plan to start a business in the UAE, then the most common company structure in Mainland Dubai is to create an LLC company. This legal structure is an ideal choice for those people who are just starting business with shareholders and are seeking low-cost company formation opportunities.

The first step of company formation in Mainland UAE is to acquire a license. The cost of license depends on the type of license and type of industry you wish to run your business operation in UAE.

Read bout 15 success online business ideas in UAE

The requisite of setting up a LLC in Dubai is to have a Memorandum of Association, this MoA needs to be signed by a;l the partners of the company. After signing an MoA, the next step is to draft a contract and get this agreement signed by legal authorities in UAE. You can draft MoA in both English and Arabic language. Other requirements to set up an LLC company in Dubai is to acquire a tax identification number and open a bank account.

The mainland company setup Dubai cost ranges from AED 15,000 to 28,000. It might increase from this range when you need to pay for additional visas, permits or other government fees.

Also learn about how to setup a textile business in Dubai

Factors contributing to cost of Dubai mainland company setup

When you make an estimate of cost for setting up a company in Mainland, it depends on many different factors. The cost will increase and decrease based on your business nature. You will pay government fees for notary, registration and business license. Some of these costs will be one-time while others will be recurring. For example, if you acquire a trade license, you need to pay its renewal fees years after years.

Learn about how to start a pharmacy business in Dubai?

Another big cost contributing factor is your business location’s rent. You must have a physical business location for setting up a company in Dubai. It’s a mandatory requirement and that means you will get a premises on rent. This rent is also a recurring cost to run business in Mainland Dubai.

Understand if a non citizen can start a business in Dubai

Another fee that is mandatory and recurring in nature is the investor visa fee. If you are a foreigner opening a company in Dubai Mainland, you will acquire a visa and pay the visa renewal fee after every three years. You will pay annual sponsorship fee, one-time legal fee and also commercial property fees.

When you start a business you need approval of this business from the DED and you will pay one time fee for getting initial approval. Another cost of setting up an LLC company in Dubai is to register a trade name and yes you will bear this cost only one time.

If we talk about other fee factors, you need to count the fee of opening a bank account. You have different bank options, choose one that is suitable for your business.

Cost breakdown of setting up a company in Dubai Mainland

Setting up a limited company cost depends on many different factors such as kinds of business you are going to conduct, numbers of visas, premises. If you need a quick cost estimate then be ready to spend AED 15,000 to AED 35,000 for a company formation in Mainland.

Understand about how to set up an offshore bank account in Dubai

Here is a breakdown of this cost estimate:

• You need approval of your business from DED and it will require you to pay AED 235 (one-time cost)
• Trade name approval cost in Dubai Mainland is AED 735; again it’s one time cost
• Office rent – it depends on the size and area of your office. Let’s estimate it to be AED 40 and above per sq.feet/ year.
• The cost of setting up a limited company in Mainland also includes attestation of MoA (Memorandum of Association). You pay this fee one time.
• Contract draft and court agreement attestation fee is AED 500 for typing. It’s important that all the partners or their attorney will sign the court agreement attestation.
• You need to pay a one-time cost while registering your company with the Ministry of Economy.
• Trade License Fee-AED 1000 – you need to renew this license as well.
• Other fees, you will pay 5 percent to the government for the rent of the shop or 20 percent for renting a warehouse.

Learn about choosing the best business consultant in Dubai

Wrap up

Finally, you understand the cost for Dubai mainland company setup. There are tons of factors contributing to overall cost, so you may pay less or more than estimated cost.

Read about how to start a day care center in Dubai?

Do you want to save money while setting up a company in Dubai? Well, in that case Prospr’s business consultants are there to offer you a helping hand. We take the hassle of opening a company away from you and offer you all the guidance. Our business consultants have years of experience helping entrepreneurs and investors start a successful business all over the UAE. Whether you need help for documentation or any legal matter, we are here to help. Book a consultation now!