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Cost of Setting up a Business in Dubai - DXB Setup

In this article, we are covering all the details about costs of Setting up a Business in Dubai?

Dubai is known as the first option of all those people who are looking to relocate for doing business. Dubai is known as the best business hub in the world and every day many people come here to set up new business.

New business and start-ups are always welcomed in Dubai with warm hugs and that’s what attracts more and more people to come and set up their business in this business hub here.

There is a well-designed plan here for the expenses here which you will have to incur to set up your business here in Dubai.

The best part about this plan is that the expenses vary according to the type and category of business you are willing to do here which is fair enough because your expense lies on your choice only.

So now you must be thinking that how much money is required to start a business in Dubai?

Well, we have answers to all your thoughts, questions and queries here in this article.

So all you have to do for now is just read this article till the end. We assure you that in the end, you will have all your doubts sorted for sure regarding the cost of setting up a business in Dubai.

The costs of opening a business in Dubai

Now as you have decided to set up a business in Dubai so with the help of this article lets understand everything in detail so that during the process of setting up business in Dubai you don’t stick anywhere.

When it comes to doing business in Dubai it is very much essential that you apply for a business visa for Dubai because it the most important thing.

This is the first step of setting up business in Dubai so you should take it seriously and apply for it well in advance. You will have to incur some fees to apply for business visa in Dubai and there is minimum share capital also required to set up a business in Dubai if you are not applying for limited liability partnership.

You can choose either the mainland for your business or the free zones. The choice is completely yours but it is completely clear that both places have their own advantages and disadvantages. So before choosing any one place make sure you look for the advantages and disadvantages of both places well in advance.

There are many differences between the mainland and a free trade zone. The mains factors which has a difference are ownership, extent of liability, the involvement of UAE nationals as partners or agents and the nature of trade and economic benefits that can be reaped. Below we will give you a briefing about both mainland and free zone so keep reading this article till the end.

Planning to set up a business on the mainland

In the mainland business set up process, there are certain things which are very much important and should be kept in mind.

Among all those things one is that you have to contact department of economic development to seek all the basic and initial approvals from them regarding your business and the trade name which you will register. Both things are very much important to begin setting up a business in Dubai.

You have two ways by which you can get these things done one is you can visit their office and do the formalities their physically or you can use their E-services portal to get the work done. After getting all the basic approvals only you will be able to proceed further will all the further approvals which are dependent upon the type of business.

Cost of setting up a business involves many things like raising capital investment, licenses fees and fees for employees visas and some other things. so basically, the cost of setting up a business in Dubai is dependent upon the nature of your business activity and the kind of licenses you required for running that business in Dubai. It also depends upon the fact that whether you will be doing business as a company, or a branch, or a branch of a company.

Capital requirements for a company on the mainland

Basically, the figure of capital requirement for setting up a business in Dubai totally varies according to the legal form of business.

For a PJSC, the minimum capital requirement is AED 30 million. For a PrJSCa it should not be less than AED 5 million which is to be paid in full. And for the other type of business, the UAE commercial companies law did not specify any minimum capital but it is said that the minimum capital should be mentioned in the memorandum of association and you must have sufficient capital at the beginning itself to completely achieve the purpose of the business incorporation.

If some foreign companies are willing to establish a limited liability company in the UAE it is very much necessary to seek guidance on the current practices going on regarding the relevant emirate minimum share capital. Now let a few points about the nationality of partners.

Nationality of partners

The nationality of partners is very much important to know what type of business they can actually set up on the mainland. Below we have mentioned certain types of companies which only UAE nationals can set up and nobody else.

  • Joint liability companies ( partners must be UAE  nationals)
  • Simple commandite companies
  • An industrial or commercial type solo proprietorship
  • License for a home-based business
  • SME license (in Dubai)

Companies types that require a UAE national partner

  • LLC companies
  • Public joint-stock companies (PJSC) – it must have at least 5 founding members who are UAE nationals, owing between 30 percent and 70 percent of the capital shares
  • PrJSC companies
  • A civil company with an engineering activity

Companies that require LSA

  • A professional type of sole establishment
  • A civil company with no engineering activity
  • Foreign company branch

Benefits of setting up a business on the mainland

There are many benefits of setting up a business on the mainland. Some of them are given in the below points.

  • Flexibility to do business in any part of the UAE
  • No limit on numbers of visas
  • More business activities available for licensing
  • No business or personal taxes

Benefits of setting up a company in a free zone

Some of the benefits of setting up a business in the free zone include:

  • 100 percent import and export tax exemptions
  • 100 percent repatriation of capital and profits
  • No corporate tax
  • No personal income tax
  • No import/ export tax
  • Easy start-up and licensing procedures

So we have mentioned all the required details of starting a business in Dubai. In short, everything depends upon the type of business you select so once you will select the type of business and initiate process you will get to know all about the expenses you will have to incur.

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DXBsetup.comHeadquarters
DXB Setup - Dubai Business Setup.
Office # 2903, Boulevard Plaza Tower 1,
Downtown, Dubai, UAE
OUR LOCATIONSWhere to find us?
Dubai UAE Map
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Let's connect socially to spread the word.

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