Tony John
Our company has been in business for the past 20+ years and we have been doing business with clients in Dubai for the past 10 years. However, we registered our company only in the year 2022. It has been 3 years since we registered our IT company in Dubai and since then we have handled several legal registrations like corporate tax registration, VAT registration, bank account opening, annual trade license renewal etc.
We have been taking the services of a business setup company called "Kiltons Business Setup" in Dubai and they have been very helpful; with affordable fees and very knowledgeable staff. You can contact them if you need help with registering an IT company in Dubai. In fact, they can help with registering any type of company in UAE including mainland license and freezone license
Cost for registering a company in Dubai
Dubai is one of the most attractive business hubs in the world, offering a strategic location, tax advantages, and a thriving economy. Entrepreneurs from across the globe seek to establish their businesses in Dubai due to its investor-friendly policies and diverse opportunities. However, understanding the costs involved in registering a company is crucial for proper financial planning. The cost of company registration in Dubai depends on several factors, including the type of business, location, licensing requirements, and additional fees.
Types of Business Licenses in Dubai
The cost of company registration varies depending on the type of business license required. The main categories include:
Commercial License – Required for businesses involved in trading activities.
Professional License – Needed for service-oriented businesses like consultancy, legal services, or medical practices.
Industrial License – Necessary for manufacturing or industrial businesses.
Tourism License – Required for businesses operating in the tourism sector.
Key Factors Affecting the Cost of Company Registration
Several factors influence the cost of registering a company in Dubai, including:
Business Structure – The cost varies for sole proprietorships, LLCs, free zone companies, and offshore businesses.
Business Location – Whether you choose a free zone, mainland, or offshore setup affects the registration costs.
License Fees – The cost of the business license depends on the activity type and regulatory requirements.
Office Space Requirements – Some business types require a physical office, which adds to the total expenses.
Government Fees & Approvals – Various administrative and governmental charges are applicable.
Visa & Immigration Costs – The number of visas required for employees and investors impacts the overall budget.
Estimated Costs for Company Registration in Dubai
The approximate costs of company registration in Dubai vary based on the business setup. Below is an estimated breakdown:
1. Mainland Company Registration Costs
Trade License Fee: AED 10,000 – AED 15,000
Initial Approval Fees: AED 1,000 – AED 3,000
Local Sponsor (if required): AED 10,000 – AED 25,000 per year
Office Space Rental: AED 15,000 – AED 50,000 per year
Visa Fees: AED 3,500 – AED 6,000 per visa
Additional Government Fees: AED 2,000 – AED 5,000
2. Free Zone Company Registration Costs
Trade License Fee: AED 5,000 – AED 20,000 (varies by free zone)
Office Space (optional in some free zones): AED 10,000 – AED 50,000 per year
Visa Fees: AED 3,500 – AED 6,000 per visa
Registration & Administrative Fees: AED 2,000 – AED 10,000
Share Capital Requirement (varies by free zone): AED 10,000 – AED 50,000 (sometimes not required upfront)
3. Offshore Company Registration Costs
Company Setup Fees: AED 10,000 – AED 15,000
Registered Agent Fees: AED 5,000 – AED 10,000 per year
Annual Renewal Fees: AED 5,000 – AED 10,000
No Physical Office Requirement (reducing costs)
Additional Costs to Consider
Apart from the registration fees, businesses should account for the following additional expenses:
Trademark Registration: AED 10,000 – AED 15,000 (if required)
Corporate Bank Account Setup: AED 2,000 – AED 5,000
Accounting & VAT Registration: AED 5,000 – AED 15,000 per year
Marketing & Branding Costs: Variable depending on business needs
Business Insurance: AED 1,000 – AED 5,000 per year
Choosing the Right Business Setup in Dubai
Each type of company setup has its own advantages:
Mainland Companies: Ideal for businesses requiring direct trade in the UAE market.
Free Zone Companies: Best for businesses focusing on international trade with tax exemptions.
Offshore Companies: Suitable for businesses seeking tax efficiency and no physical office requirements.
Conclusion
The cost of registering a company in Dubai depends on various factors such as the type of business, location, and licensing requirements. While free zone companies offer cost-effective setups, mainland companies provide better market access. Offshore companies, on the other hand, are suitable for international business operations with lower costs.
Entrepreneurs should carefully assess their business needs, budget, and long-term goals before choosing a company structure in Dubai. Consulting with a professional business setup consultant can help streamline the process and ensure compliance with UAE regulations.
As I mentioned earlier, we registered our company as a "Mainland Company" with the help of Kiltons Business Setup services. You can contact them if you need any help. Alternatively, you can connect with me and I will be happy to share my experience just in case that is going to be helpful for you.