How Much Does it Cost to Register a Company in Dubai in 2023?
When considering starting a business in Dubai, one of the primary factors to address is the cost of company registration. Dubai’s strategic location, thriving economy, and business-friendly environment make it a popular choice for entrepreneurs. However, understanding the costs involved is crucial for effective financial planning. In this article, we’ll provide a concise breakdown of the expenses associated with company registration in Dubai.
1. Initial Registration Fees
Trade Name Reservation
- Before registering your company, you must reserve a unique trade name. This process incurs a fee, typically ranging from AED 660 to AED 2,000 (approximately $180 to $545).
Initial Approval Fees
- To initiate the company registration process, you’ll need to pay initial approval fees, which can range from AED 200 to AED 300 (approximately $54 to $82).
Memorandum of Association (MOA)
- Drafting the MOA for your company is a mandatory step. Costs for drafting and notarizing the MOA vary but can start from AED 2,000 (approximately $545).
2. Trade License Fees
Trade License Application
- Depending on your chosen business activity and the jurisdiction (mainland or free zone), trade license application fees can range from AED 15,000 to AED 30,000 (approximately $4,090 to $8,180).
Free Zone License
- If you opt for a free zone license, additional fees may apply, including annual licensing fees, which can vary widely between different free zones.
3. Office Space and Lease Costs
Office Space Rental
- Renting office space in Dubai can be a significant expense. Costs depend on factors like location and size, but you can expect to pay anywhere from AED 20,000 to AED 200,000 (approximately $5,450 to $54,500) annually.
4. Local Partner or Sponsorship Fees
Local Sponsorship
- If your business requires a local partner or sponsor, you’ll need to negotiate sponsorship fees. These fees vary and are typically paid annually.
5. Visa and Immigration Costs
Employee Visa
- If you plan to employ staff, you must budget for employee visa costs, which can range from AED 5,000 to AED 10,000 (approximately $1,360 to $2,720) per visa.
6. Additional Costs
Legal and Consultancy Fees
- Seeking legal and consultancy services to navigate the registration process can incur additional costs, but they are often invaluable in ensuring compliance.
Miscellaneous Costs
- Depending on your business activity, additional permits, clearances, or inspections may be required, incurring further expenses.
Factors that affect the cost of company registration in Dubai
The following are some of the factors that affect the cost of company registration in Dubai:
- The type of company: The type of company you register will affect the cost of registration. For example, the cost of registering a free zone company is lower than the cost of registering a mainland company.
- The location of the company: The location of your company will also affect the cost of registration. For example, the cost of registering a company in Dubai International Financial Centre (DIFC) is higher than the cost of registering a company in other free zones.
- The services required: The services you require will also affect the cost of registration. For example, if you require help with drafting the company’s Memorandum and Articles of Association, the cost of registration will be higher.
How to reduce the cost of company registration in Dubai
There are a few ways to reduce the cost of company registration in Dubai:
- Register a free zone company: The cost of registering a free zone company is lower than the cost of registering a mainland company.
- Do it yourself: You can reduce the cost of registration by doing it yourself. However, it is important to note that this is not recommended if you are not familiar with the process.
- Use a business setup service: A business setup service can help you register your company and reduce the cost of registration.
What are the different costs associated with registering a company in Dubai?
- Government fees: The government fees for registering a company in Dubai are AED 5,000.
- Agent fees: The fees charged by a business setup agent can vary depending on the services required.
- Legal fees: The fees charged by a lawyer to draft the company’s Memorandum and Articles of Association can vary depending on the complexity of the company.
- Other costs: Other costs associated with registering a company in Dubai may include the cost of registering a trade name, the cost of obtaining a business license, and the cost of renting office space.
What are the documents required to register a company in Dubai?
- Passport copies of the shareholders and directors
- Proof of address of the shareholders and directors
- Trade name registration
- Memorandum and Articles of Association
