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Breaking Down the Cost of Starting a Company in Dubai

Dubai stands out as one of the leading global destinations for setting up companies and launching businesses. With its thriving economy, world-class infrastructure, and entrepreneur-friendly regulations, Dubai is a top choice for business owners and investors. But how much does starting a company in Dubai really cost? In this article, we’ll explore all the expenses you need to consider when setting up your company.

1. Types of Business Licenses in Dubai

To establish a company, your first step is selecting the right business license for your activity. The main types of licenses include:

• Trade License: Ideal for commercial activities like general trading, or the import and export of products.
• Industrial License: Suited for manufacturing and industrial production.
• Professional License: Designed for individuals offering specialized services, such as consultancy or design.
• Tourism License: Targeted at businesses managing hotels and tourist activities.

The cost varies depending on the type of license, ranging from AED 10,000 to AED 50,000, depending on the nature and scope of the business.

2. Business License Fees

One of the key expenses to account for is the business license fee. These fees can differ significantly based on the license type and chosen office location. For the latest pricing updates, you can visit Tasheel Enjaz.

3. Office Space and Location

Office space is one of the largest costs for starting a company in Dubai. According to UAE regulations, businesses are required to have registered lease agreements. A basic office in Dubai may cost between AED 15,000 and AED 50,000 annually, while premium office spaces can reach hundreds of thousands.

For foreign investors, free zones offer attractive benefits like full foreign ownership. Learn more about the advantages of free zones here.

4. Local Sponsorship

If you plan to establish your business outside Dubai’s free zones, you’ll need a local sponsor or Emirati partner holding 51% of the shares. The cost for local sponsorship depends on the business type and employee count, typically ranging from AED 10,000 to AED 50,000 annually.

5. Trade Name and Registration Fees

Trade name registration and obtaining a trade license are essential steps. Registration fees include approving the trade name, notarizing agreements, and issuing an establishment certificate. These costs can add up to around AED 7,000 or more, depending on the involved authorities.

6. Labor Costs and Hiring Expenses

Once your company is established, you’ll need employees to help it grow. Labor expenses in Dubai vary by industry, but you’ll also need to account for work visa costs and employee health insurance. A work visa can cost anywhere between AED 5,000 and AED 10,000.

7. Additional Costs to Consider

Other costs you might encounter include:

• Legal consultation fees.
• Business bank account setup charges.
• Document preparation costs, including business plans.
• Website development and branding expenses.

Allocate a budget for unforeseen costs, as these can arise unexpectedly and impact your overall expenses.

8. Free Zones: A Cost-Effective Alternative

Dubai’s free zones are an economical option for foreign investors, allowing 100% foreign ownership without needing a local partner. The cost for setting up in a free zone depends on the specific authority overseeing that zone. For detailed information, visit Tasheel Enjaz.

9. Tips to Reduce Expenses

Here are some tips to help you minimize costs when starting your company:

• Choose a free zone aligned with your business activities to avoid local sponsorship requirements.
• Begin with a small and efficient office space to reduce rental costs.
• Hire a professional business setup consultant to avoid costly mistakes.
• Explore government initiatives offering financial support for startups.

Conclusion

The cost of starting a company in Dubai varies widely based on factors such as business type, location, and office space. However, with smart planning and by selecting the right options, you can set up your venture efficiently and within budget. If you’re looking for more details or want to consult an expert team, visit Tasheel Enjaz.
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