The Cost Of Business Setup In Dubai

The cost of establishing a business in Dubai is influenced by several factors, including the type of activity, jurisdiction, licensing requirements, and operational requirements. Expenses vary depending on whether the company is registered in the mainland, a free zone, or an offshore jurisdiction. Careful planning and clear budgeting are essential for business setup in Dubai.

Licensing fees:

Licensing fees form a significant part of the setup cost. The amount varies based on the nature of the business activity and the issuing authority. Some activities may involve special permits, which add to the licensing expenses. These fees are generally paid annually to maintain the validity of the business licence.

Registration charges:

Business registration fees are paid to the relevant government department at the time of formation. The charges differ between jurisdictions and are influenced by the chosen legal structure. This cost is a one-time payment during the initial setup process.

Office space expenses:

For most businesses, having an office is a mandatory condition. Costs vary according to location, size, and facilities offered. In the mainland, office space is leased and registered with the Ejari system, while free zones may provide flexible workspace packages that are priced differently.

Visa processing costs:

Entrepreneurs, shareholders, and employees entail visas to reside and work in Dubai. Visa costs include application fees, medical testing, Emirates ID issuance, and, in some cases, deposits. The total expense depends on the number and category of visas applied for.

Document preparation and attestation:

Certain documents, such as the Memorandum of Association, require drafting, notarisation, or attestation. Fees for these services vary and may also include translation charges if documents are in a language other than Arabic.

Bank account opening and maintenance:

While opening a corporate bank account does not always carry a high initial fee, maintaining a minimum balance is often mandatory. Some banks may also charge account setup fees, which should be factored into the budget.

Special approvals:

Businesses operating in regulated sectors such as healthcare, education, or transport may want approvals from additional government bodies. These approvals carry their own charges and processing fees, which contribute to the total cost. Although not part of the initial setup, annual renewals for licences, visas, and other permits are recurring expenses that should be considered from the outset to maintain compliance with regulations.