Dubai is one of the most prominent global cities that attracts investors and entrepreneurs from all over the world, thanks to its strategic location as a gateway between the East and the West, advanced infrastructure, and open economic policies. Dubai occupies a prominent position as an investment destination due to its innovative approach to facilitating business and providing an ideal environment for growth and prosperity. Knowing the costs of setting up a company in Dubai is not just an economic step, but rather a gateway to wide opportunities in a dynamic market characterized by diversity and progress.

With decision taken Establishing a company in DubaiInvestors begin to explore a range of factors that affect the costs of incorporation. These costs are not just numbers, but rather represent a set of commitments and actions that must be taken to ensure a successful and sustainable start-up of the business. These factors include obtaining the necessary licenses, choosing the appropriate legal structure for the company, official registration, and meeting legal and regulatory requirements.

One of the key elements in the costs of setting up a company is choosing the right location, whether it is in free zones that offer many advantages such as full foreign ownership and tax exemptions, or in local markets that require a local partner. In addition to this, the costs of renting offices or facilities, which vary depending on the location and the required area, play a major role in determining the initial budget of the company.

Other costs include consulting and legal fees required to set up the company, bank account opening costs, and obligations related to hiring workers and providing the necessary insurance. In addition, marketing and advertising costs are a vital element to ensure that the new company reaches a wide customer base in the shortest possible time.

Cost of setting up a company in Dubai

Dubai is one of the world’s most important business centers, making it an attractive destination for investors and entrepreneurs. Company formation in Dubai It requires a good understanding of construction costs, as these costs vary depending on the type of company, its location, and the type of business activity. In this topic, we will review the main elements that make up the costs Establishing a company in Dubai.

1. Select company type

The costs of setting up a company in Dubai vary depending on its type. Companies can be established in Dubai in different ways:

• Local companies: Local companies require an Emirati partner who owns 51% of the shares.
• Free Zone Companies: Free zones allow full foreign ownership without the need for a local partner.
• Branches and Representative Offices: Foreign companies can open branches or representative offices, which are usually less expensive than setting up an independent company.

2. License fees

Every business activity in Dubai requires a license. License fees vary depending on the type of activity and the free zone chosen. Types of licenses include:

• Commercial License: For commercial activities.
• Industrial License: For industrial activities.
• Professional license: for professional and service activities.

3. Office or commercial space costs

Office space or commercial space costs are a significant part of the costs of setting up a business in Dubai, with rents varying greatly depending on the location and size of the space required. Central areas such as Downtown Dubai and DIFC are the most expensive, while free zones offer rental packages that include services and utilities, making it easier for startups to start their operations.

4. register fees

These fees include registering the company in official records and obtaining the necessary certificates. Fees may vary depending on the free zone or the Department of Economic Development that the company deals with.

5. Legal and consulting costs

Establishing a company in Dubai requires consulting and legal services to ensure compliance with local laws. These services include:

• Preparing legal documents: such as articles of association and bylaws.
• Tax Registration: Register for Value Added Tax (VAT) if required.
• Financial Audit: Requires the preparation of audited financial accounts annually.

6. Visas and Residence Fees

Visas and accommodation fees form an essential part of the costs. Establishing a company in Dubai where investors and employees are required to obtain residence visas to operate their businesses. These costs include visa issuance fees and necessary medical tests. Dubai free zones offer comprehensive packages that include residence visas for a specific number of employees, making it easier for startups to meet these requirements efficiently.

7. Administrative and operational requirements

These costs include operational obligations such as:

• Furniture and equipment costs: Equipping the office with the necessary furniture and equipment.
• Salaries and Insurance: Payment of employee salaries and mandatory health insurance.
• Marketing and Advertising: The costs of marketing and advertising campaigns to launch the company and attract customers.

8. Compliance with environmental and regulatory standards

Compliance with environmental and regulatory standards in Dubai is an essential part of the costs of setting up a business, as businesses are required to adhere to local laws related to the environment, health and safety. Some businesses may require special environmental permits and measures to be implemented to preserve the environment. Compliance with these standards is not only a legal obligation, but also contributes to the company’s image as a responsible and sustainable entity.

Steps to establish a company in Dubai

Establishing a company in Dubai It is considered a smart strategic move given the economic advantages and the supportive environment for businesses. The process of establishing a company in Dubai involves several basic steps that must be followed to ensure compliance with all legal and regulatory requirements. Below are the main steps toEstablishing a company in Dubai:

1. Choose the type of business activity and determine the legal structure

The first step to setting up a company in Dubai is to determine the type of business activity the company will be conducting. The activity must be compliant with local laws and require the appropriate license. Next, the legal structure of the company must be determined, such as a limited liability company (LLC), a branch of a foreign company, or a free zone company. The legal structure determines the responsibilities of the owners and other legal requirements.

2. Choose the company name and obtain initial approval.

A suitable name for the company must be chosen that complies with government guidelines. Once the name is chosen, an application must be submitted to the Department of Economic Development or the Free Zone Authority to verify the availability and approval of the name. An application is then submitted for initial approval from the relevant government authorities, which involves submitting essential documents such as the partners’ passports and business details.

3. Preparing the company’s articles of association and memorandum of association.

Incorporating a company in Dubai requires the preparation of a Memorandum of Association and Articles of Association. These documents must be signed before a notary public and submitted to the relevant authorities. These documents specify the structure of the company, responsibilities of partners, ownership shares, and regulatory requirements.

4. Choosing the company location and obtaining the necessary licenses

An office or commercial space must be leased for the company, and a lease agreement must be submitted as part of the registration requirements. After determining the location, the final license must be applied for from the Department of Economic Development or the Free Zone Authority. This step may require obtaining additional permits depending on the type of business activity.

5. Open a bank account for the company

A bank account must be opened for the company to facilitate financial transactions. This requires submitting company documents, such as the articles of association and memorandum of association, to the chosen bank. Opening a bank account is an essential step in starting the day-to-day financial transactions of the company.

6. Obtaining residence visas and registering the company in the Chamber of Commerce

Once the company is registered and licensed, it is possible to apply for residency visas for investors and employees. This step includes undergoing medical tests and obtaining Emirates ID cards. After that, the company must be registered with the Chamber of Commerce to ensure official recognition and enable it to practice commercial activity.

Areas of establishing a company in Dubai

Dubai is one of the world’s leading destinations for investment and business formation, thanks to its dynamic economic environment, advanced infrastructure, and open economic policies. Dubai offers ample opportunities in many vital areas that can be attractive areas for establishing a new company. Here are the most prominent areas to consider when setting up a company in Dubai:

1. Trade and Retail
Trade and retail are among the most active sectors in Dubai. With its strategic geographical location as a gateway between East and West, Dubai is a major business hub that offers ample opportunities for companies involved in import, export and distribution.

2. Technology and Innovation
Dubai encourages innovation and technology through initiatives such as Dubai Internet City and Dubai Technology City. These areas are suitable for startups and companies specializing in information technology, software development, financial technology (FinTech), and artificial intelligence.

3. Tourism and Hospitality
Tourism is one of the economic pillars of Dubai, attracting millions of visitors annually. This sector provides opportunities for setting up businesses in the fields of hotels, restaurants, tourist resorts, entertainment services and travel.

4. Real Estate & Construction
The real estate and construction sector is one of the most flourishing sectors in Dubai. Investors can set up companies specializing in real estate development, real estate brokerage, property management, infrastructure and contracting.

5. Financial Services
Dubai is a global financial hub with financial free zones such as the Dubai International Financial Centre (DIFC). Financial companies can set up operations in Dubai to provide services such as banking, asset management, insurance, and other financial services.

6. health care
Dubai is investing heavily in the healthcare sector, providing opportunities to set up businesses in areas such as hospitals and clinics, medical technology, pharmacy, and specialized healthcare services.

Licenses and permits required to establish a company in Dubai

Setting up a company in Dubai requires obtaining the necessary licenses and permits from the relevant authorities to ensure compliance with all local laws and regulations. The types of licenses and permits vary depending on the type of business activity and the chosen location of the company, whether in the free zones or within the city. Here is a comprehensive overview of the basic licenses and permits you need to set up a company in Dubai:

1. Determine the type of business
Before starting the licensing process, the type of business activity the company will be conducting must be determined. The activity must be consistent with the list of activities approved by the Department of Economic Development or the chosen free zone authority.

2. Get initial approval
After determining the business activity, an application must be submitted for initial approval from the Department of Economic Development (DED) or the Free Zone Authority. This step involves providing details of the business activity and the legal structure of the company.

3. Choosing a company name
A suitable company name must be selected that complies with government guidelines and submitted for verification and approval. The name must reflect the nature of the business and not be similar to other company names.

4. Preparing the articles of association and bylaws
Establishing a company requires the preparation of a memorandum of association and articles of association, which must specify the structure of the company, the responsibilities of the partners, and the ownership shares. These documents must be signed before a notary public and submitted to the competent authorities.

5. Get a commercial license
Obtaining a commercial license requires submitting an application to the Department of Economic Development or the Free Zone Authority, depending on the type of business activity and location. Commercial licenses include:

• Commercial License: For commercial activities such as retail and wholesale.
• Industrial License: For industrial and manufacturing activities.
• Professional License: For professional activities such as legal and engineering consultancy.
• Tourist License: For activities related to tourism and hotels.

6. Additional Permits
Some businesses may require additional permits from relevant regulatory authorities. For example:

• Building Permits: For construction activities.
• Health and Safety Permits: For health and food related activities.
• Environmental permits: for activities that may affect the environment.

Our company’s role in establishing a company in Dubai

In conclusion, it can be said that Establishing a company in Dubai Partnering with Etqan Company represents a smart and calculated investment move. Despite the costs of setting up a company, the opportunities and advantages available in Dubai make it an ideal destination for businessmen and investors. Thanks to its advanced infrastructure, dynamic economic environment, and encouraging policies, Dubai provides an ideal environment for success and economic growth.

By working in partnership with Etqan, expert support and assistance can be provided in all aspects of company formation, from legal and regulatory advice, to obtaining the necessary licenses and permits. The partner company also provides expertise and a deep understanding of the local market, facilitating the process of integration and success in the Dubai business environment.

Therefore, it can be said that the costs of setting up a company in Dubai are worth the investment, especially when you benefit from the expertise and support of Itqan Company. If the investment is done correctly and the work is done seriously, the opportunities for success and growth in Dubai are limitless.

Frequently asked questions about the costs of setting up a company in Dubai