How Much Does it Cost to Set up a Business in Dubai?

The cost to set up a business in Dubai ranges from AED 10,000 to AED 30,000*. The cost depends on factors like the type of licensing, office space, and visa requirements. Dubai has become a global hub for entrepreneurs and businesses, offering unmatched opportunities and a thriving economy. 

Services Included in the Cost of LLC Business Setup in Dubai, UAE

Various essential services are included as part of the overall cost when setting up a Limited Liability Company (LLC) in Dubai. Each service plays a critical role in ensuring your business complies with local regulations and operates smoothly. Here’s a detailed breakdown:

Trade Name Registration

Trade name registration ensures your business name is officially registered with Dubai’s Department of Economic Development (DED) or the free zone authority. The registration guarantees exclusivity for your trade name, preventing others from using it. 

Initial Approval

Initial approval is a mandatory step where the authorities confirm that your business activity aligns with Dubai’s laws and regulations. This approval is crucial for moving forward with other processes, such as obtaining a license or renting office space.

Drafting the Memorandum of Association (MOA)

The MOA outlines your company’s structure, ownership details, and operational rules. This document is legally required and must be submitted during the setup process. MOA drafting services are often included in the setup cost.

Ejari Registration (Office Tenancy)

Your LLC in Dubai can have a physical office address, and the lease agreement must be registered through the Ejari system. This process ensures your tenancy contract is valid and complies with Dubai’s real estate regulations. Ejari costs depend on the office size and location.

License Issuance

The business license grants you the legal right to operate your LLC in Dubai. It specifies your business activities and is valid for a specific time period.

Visa Processing

Setting up an LLC includes obtaining investor and employee visas. These visas are essential for you and your staff to legally reside and work in Dubai. Visa processing involves costs for medical tests, Emirates ID issuance, and visa stamping.

Government Liaison Services (PRO Services)

Professional services (PRO) cover all interactions with government entities, such as document clearance, attestation, and approvals. These services save you time and ensure your business setup complies with all legal requirements. PRO services are typically bundled into the setup costs.

Corporate Bank Account Assistance

Setting up a corporate bank account is a vital step in starting your business. Many service providers include assistance in choosing a bank, preparing documents, and completing the application process. This service simplifies the often complex process of opening a business account in Dubai.

These services collectively streamline the LLC setup process, providing a seamless path to launching your business in Dubai while ensuring compliance with local laws and regulations.

Services Included in the Cost of Free Zone Business Setup in Dubai

Setting up a business in one of Dubai’s free zones offers numerous advantages, such as tax benefits and full ownership for foreign investors. The cost of setting up a free zone business includes several essential services. Below is a detailed explanation of these services:

Business License Issuance

A free zone business license is the primary requirement for operating legally within the jurisdiction. It specifies your approved business activities, such as trading, consulting, or industrial work.

Free Zone Company Registration

This service involves officially registering your business with the chosen free zone authority. It includes submitting the necessary documentation, such as shareholder agreements and passport copies. 

Office Space Allocation

Free zones offer flexible office solutions, including shared desks, flexi-desks, or private offices. The costs depend on the size and location of the workspace. Many free zones offer free flexi-desks, while private offices may cost significantly more.

Visa Services

Free zone business setup packages often include visas. Visa services cover documentation, medical tests, Emirates ID issuance, and visa stamping. 

Corporate Bank Account Assistance

Business setup consultants in Dubai often facilitate corporate bank account opening for companies. This service includes guidance on selecting a suitable bank, preparing required documentation, and completing the application process. It simplifies the otherwise complex banking procedures.

Trade Name Registration

Your business name must be unique and registered with the respective free zone authority. This ensures your trade name is protected within the jurisdiction.

Legal Documentation and Attestation

Free zone authorities handle the preparation and attestation of legal documents required for company incorporation. These include the Memorandum of Association (MOA), lease agreements, and other official paperwork. Costs for these services are generally bundled into the setup fee.

Access to Free Zone Facilities

Free zone companies gain access to state-of-the-art facilities like meeting rooms, coworking spaces, and business lounges. These amenities are often included in the setup package or offered at subsidized rates, making it easier to conduct day-to-day business activities.

Services Included in the Costs of Offshore Business Setup in Dubai

Setting up an offshore business in Dubai offers several financial and operational benefits, including tax advantages and simplified processes. The costs associated with offshore business setup typically cover the following essential services:

Company Registration

This service involves registering your offshore company with the relevant offshore jurisdiction. It includes verifying documents, submitting applications, and obtaining the certificate of incorporation.

Registered Agent Services

Every offshore company in Dubai is required to appoint a registered agent who serves as a liaison between the company and the offshore authority. The agent handles documentation, compliance, and communication with government entities.

Registered Office Address

An offshore company must maintain a registered office address in Dubai. This service is included in the costs and provides a legal address for receiving official correspondence and notices.

Bank Account Setup Assistance

Offshore business setup packages often include assistance in opening a corporate bank account in Dubai. This service simplifies the complex process of navigating banking requirements and documentation.

Document Preparation and Attestation

The preparation, notarization, and attestation of legal documents such as Memorandum of Association (MOA), Articles of Association, and board resolutions are part of the setup costs.

Customizable Offshore Solutions

Many offshore company setup service providers offer tailored packages to suit specific business needs, such as additional licensing, intellectual property registration, or virtual office services.

By covering these essential services, offshore business setup packages in Dubai provide a seamless and cost-effective solution for entrepreneurs seeking global reach and tax advantages.

Factors Affecting Business Setup Costs

Several factors influence the total cost of setting up a business in Dubai. Understanding these elements is crucial for accurate budgeting and avoiding unexpected expenses. Here are the key factors that can impact your business setup costs:

Type of Business License

The type of license required for your business activities significantly affects the cost.

Free Zone vs. Mainland Setup

The choice between a free zone and mainland business setup impacts the overall expenses.

Office Space Requirements

Office rental costs vary widely based on the size, location, and type of office:

• Flexi-desk or shared office: More affordable and suitable for small businesses or startups.
• Private office: Higher costs but necessary for businesses requiring a physical presence.

Number of Visas

The number of visas required for investors and employees affects the cost. 

Business Activity and Scale

Certain business activities require additional approvals, inspections, or certifications, which can increase costs. For instance:

• Food and Beverage (F&B): Requires health and safety permits.
• Construction: Involves engineering certifications and regulatory compliance.

Legal Structure

The chosen legal structure, such as a Limited Liability Company (LLC), Sole Proprietorship, or Branch Office, determines setup requirements and associated fees.

Additional Services

Optional services such as trademark registration, branding, and PRO services for government liaison can add to the total costs but provide convenience and efficiency.

Type of Free Zone

Each free zone in Dubai has its own fee structure, benefits, and facilities, and this greatly influences the costs.

Additional Compliance Costs

Compliance with regulations such as VAT registration, insurance, and annual audits can also contribute to ongoing operational costs.

Start Your Business with Legal Inz’s Business Setup Services

Legal Inz is a trusted partner for entrepreneurs looking to establish their businesses in Dubai. With a focus on simplifying the process and offering tailored solutions, Legal Inz ensures your business setup is smooth, efficient, and compliant with local regulations. 

FAQs

Are there any hidden fees associated with setting up a business in Dubai?

No, if you work with a trusted business setup services provider, all costs are transparently communicated upfront. However, additional expenses may arise for optional services like extra visas or specific office upgrades.

How much does it cost to open an LLC in Dubai?

The cost to open an LLC in Dubai typically depends on factors like license type, office space, and visa requirements.