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Cost of Company Formation in Dubai

Read the guide in order to assess how much it may cost if you have a plan to set up your business in the best city of the world.
cost of company formation in Dubai

Areas Discussed

Why Dubai is best place for company formation?

Dubai is a place of dreams. Dubai aims to become the business hub of Western Asia. It is also a main international transport hub for tourists and cargo

Everyone want to get job or start a business in Dubai due to available world class facilities such as security, transport, infrastructure, IT and many others. ,

You are already having a business in your home country or you are having a job and tend to start business in Dubai.

Dubai provides an amazing opportunity to everyone and such opportunities are not available to everyone living in other parts of the world.

Furthermore with the passage of time everyone prefer to start business rather than doing job.

If you are also thinking about starting a new company in Dubai like many other people who are successfully running their companies then then the next question that will come to you mind will be about how much it will cost you to start a company in Dubai.

This is really a great question as all the new investors want to find the answer of this question. Therefore I have compiled all the available information in order to give you the best estimate.

What are common forms of a Company in Dubai?

There are three types of business that you can operate in the UAE,

  • A limited liability company in the mainland

  • A sole proprietorship in a free zone

  • A offshore company that work outside Dubai

Each type of business has its own set of expenses, challenges, ownership rules and regulations and benefits.

However in this article we will focus that how much costs and time you will require to form a LLC company in Dubai.

What is LLC in Dubai?

LLC is an abbreviation for Limited Liability Company.

Limited Liability Company is most common type of business in Dubai. Limited Liability Company is established on the Dubai mainland.

For Limited Liability Company you will require a UAE national partner or local sponsor that will 51% shares in business and 49% will be among the foreign shareholders. .he or she will be your business partner.

A limited liability company can be established by a minimum of two and a maximum of fifty shareholders .The liability of the shareholders is limited to their shares in the company’s capital. An LLC company can trade anywhere in Dubai and GCC.  

Why LLC is a better form of a Company in Dubai?

However in Limited Liability Company you will get 49% legal ownership and maximum legal rights. Most likely the best advantage to create an LLC is protecting your personal assets by limiting the liability to the capitals of the business itself.

In most cases, the LLC will protect your personal assets from claims against the business.

You will also get low income- tax benefits in Limited Liability Company.

In LLC you can build your office anywhere in Dubai .LLC will allow you to apply for unlimited visa and you will easily sponsor your families (spouse, children, parents, or household helpers).

No any limits and restriction on the types of business activities .you can choose any business activity. You can easily open bank account without any restriction.

If your target customers are in the broader Dubai‘s local market, than starting a limited liability company on the mainland would be the best decision of your future.

Which license you will need to form a company;

Type of license depend on your business activity .if your business are about selling and purchasing tangible things than legally commercial license will be approve for your company .one the other hand if you want to offer certain skills or services in exchange of fee, than a professional license will be legally. And you will get industrial license for producing and manufacturing goods.

Commercial license:

 

Commercial license is a license which the Government issued to company to start any kind of trading activity.

Trade means you can buy and sell goods of any kind in Dubai.

For limited liability company formation you will be need a commercial license so for your facility here are lists of commercial activities that approved by the Department of Economic Development .and you can carry any business activity according to your choice.

Commercial license approved by the Department of Economic Development

  • Art production

  • Advertisement

  • Auto spare parts trading

  • Building Materials trading

  • Car rent and passenger transport

  • Bags ,packing materials and paper trading

  • Beauty and Baby care requisites

  • Broadcasting and communications

  • Chemicals trading

  • Cinema and theaters

  • Aircraft and train spare parts trading

  • Building maintenance and cleaning services

  • Commercial brokerage

  • Domestic gas distribution

  • Electronic group

  • Facility management

  • Flours mills

  • Flowers and plants

  • Fish trading

  • Foodstuff supply

  • Filing station

  • Jewelry trading

  • Leather trading

  • Fuel supply

  • Mechanical and Engineering Equipment Rental

  • Metals products trading

  • Office and Electronic Equipment rental

  • Packing

  • Pets nursery and trading

  • Poultry trading

  • Real estate

  • Supermarket

  • Tents and tarpaulin trading

  • Tobacco and smoking accessories trading

  • Perfumery

  • Stationary and books trading

  • Sports equipment trading

  • Used heavy equipment trading

  • Transport, shipping and storage

  • Readymade garments trading

  • Time sharing

How to setup LLC in Dubai

Company setup process is contain seven main steps.

For company formation you must have knowledge about these steps. However you can also complete all these steps easily with the help of company setup consultant.

Here are seven steps for company setup that is given below;

  • Choose your company activity
  • Reserve your company name
  • Apply for initial approval
  • Get MOA and LSA contract
  • Find your office space
  • Collect company trade license
  • Post LLC setup formalities

What is license cost of LLC formation in Dubai?

Business set up cost in Dubai

The below costs are based on best estimates at time of writing this piece of information.

Keeping in mind it will give you a general idea of costs and timeline for starting a LLC.

So here is the breakup of all the costs which you need to keep in mind for starting a LLC in Dubai you can also use these numbers if you are going to prepare a business plan before actually starting it.

One time cost of initial approval cost

 110 – 220 AED

Trade name approval cost

720  AED

  Office rent  

30 ,000 -50,000AED

80 per sq. Feet

Non –Arabic trade name cost

Max 3000 AED

Attestation of memorandum of association cost

400 -1800 AED

Registration from ministry of economy cost

3000 AED

Trade license fee

10,000 AED to 15,000 AED

Sponsor fees

8,000 -15,000 AED

Commercial license fee

700 AED

Drafting the LLC contract

600 AED

Improvement of commercial services fee

400 AED

Chamber of commerce fee

 1200 AED

Market fees: 5% of rent for your shop/office, 20% of rent for warehouses

1250 -2500 AED

Public waste related services fee

1000 AED

Therefore from above numbers you can easily conclude that it may take AED 50 thousand to AED 75 Thousand as the cost.

Mainly cost is directly related to cost of your office space.

If you want an office in the middle of Dubai then the cost will definitely be more as compared to an office space in cheaper area.

Thy type of office will be deciding factor for example if you are going to open a business where you need space to store goods under your own supervision than you will have to go storage space and the rates can be different from area to area.

The best idea about office space you can get from websites like www.dubbizille.com as you can filter the type of property which fits best to you, one you apply your filters then you will get the cost of available options.

You can also find many other websites in order to check rental rates in Dubai.

After establishing LLC in Dubai you will get owner visa and employee’s visa. Dubai owner visa is temporary residence visa for maximum of three years.

Estimated cost for owner visa and employee’s visa is given below;

  • If owner is inside Dubai his visa cost will be approximately AED 4,000

  • If he or she is outside of country his or her visa cost will be approximately AED 3,000

After owner visa you will need employees that will help you to run your business .

You can hire employees from any country as Dubai welcome talents from more than 180 countries who come with different skills. You can decide if you need people who has already experience in Dubai or you can adjust with fresher which mean employees who don’t have local experience yet.

So estimated cost for employee visa is given below;

  • Cost for one employee visa is approximately AED  3000

How many employees You can hire?

 

You can hire unlimited employees with one license. However numbers of employees are based on office or shop space.

Its rule that you need 80 per square feet per employee visa .because a normal shop is 250 to 300 square feet. So for this normal shop you can hire maximum 2 to 3 employees .but you can hire maximum sales man.

Documents required for LLC formation in Dubai;

  • Passport copy of partners or managers

  • 2 photographs with white background

  • Tenancy Contract Copy

  •   Location Map

  •   DEWA Bill

  •   Designation Details:-Higher Designation Requires Degree Certificate (Attested)

  •   Time Taken for Quota Approval (approximately 5-7 Days)

  •   Time Taken for Labour  Approval (approximately  3 working days

How much it takes to setup business in Dubai?

The average time required to form a llc in Dubai from starting to end takes around 3-5 weeks.

However there are options that you can use to speed up the process.

If you want to receive all your documents within 1-2 weeks and you are also ready to pay a fee.

This is the normal processing speed, of course, the standard option depends on the government you form your LLC.

Conclusion:

We walked you through from all the stages you will face while forming a company in Dubai.

This read will clear many questions in your mind and will also give rise to many other questions.

The good thing is that if you have a new question in your mind then you are much closer to find the answer as well.

If you have any confusion, do leave us a comment we will try to respond at our earliest.

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Company Formation in Dubai

First things first, this read will give you an overall idea what it takes to form a company in Dubai. What a consultant works on while working for your company formation in Dubai.
This read will enable you to plan better for your new company formation in Dubai.

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