Dubai is currently considered one of the best Arab and international destinations for starting investment businesses. The city allows you to practice various types of economic activities, and the steps for establishing a company there are fairly simple. In today’s article, we will talk about the cost of establishing a company in Dubai, in addition to the steps necessary for the establishment process. Continue reading with us to know more details.
The cost of establishing a company in Dubai
The cost of establishing a company in Dubai cannot be determined accurately, because this cost changes from one person to another and from another business. This cost generally relates to several different factors, the most important of which are the following:
- The type of company, i.e. the nature of the activity that this company will carry out in the city.
- The size of the company, is it a small or large company, and does it have branches in other cities or just one branch?
- The company’s staff, so the cost of establishing the company increases as the number of people working in it increases.
- The place of establishment of the company, according to the purchase and rental prices for each region.
- The number and type of the company’s work offices, in addition to the nature of the furniture in each office.
And various other factors.
Company registration fees
Registration fees for any company in Dubai are paid only once, when the company is established. These fees vary according to the type of legal form of the company, in addition to the region in which the company will be established. In general, company registration fees can range between 9 and 10 thousand AED.
Commercial license fees
No company can be established in Dubai without first obtaining a trade license. The process of obtaining a commercial license in Dubai requires fees and costs that are considered as costs for establishing the company. These fees can range between one thousand and fifty thousand UAE dirhams, and vary according to the nature of the company’s work in the first place, that is, according to the type of commercial license to be obtained.
The company’s capital
The primary and most important factor in the cost of establishing a company in Dubai is the capital of this company. As we mentioned to you previously, the cost of establishing companies in Dubai varies greatly from one person to another, and the biggest and most important difference is the company’s capital. In Dubai, you can establish a company for only a thousand UAE dirhams, while you can spend an amount of one million UAE dirhams to establish another company.
Market entry fees
There are some additional fees and costs that companies established in Dubai must pay in order to operate, which are market entry fees. So these fees can be divided as follows:
- Market entry costs subject to the local law system are 5% of the value of the company’s lease contract.
- Additional fees are determined by a committee affiliated with the competent authorities in Dubai for foreign investors.
- Residence fees for foreign investors in Dubai, which are estimated at approximately 5% of the value of the housing contract.
- In addition to waste-related fees, which are assessed by the Dubai Waste Committee.
Company office costs
We have mentioned this factor previously, which is considered one of the most important factors for the variation in the cost of establishing companies in Dubai and the UAE in general. The city of Dubai is working to provide library spaces designated for companies, equipped with almost everything they need. The price of these spaces ranges between 10 and 50 thousand UAE dirhams. However, some companies, depending on the nature of their work, require larger office spaces, or a greater number of office spaces, and for this reason they are forced to pay higher amounts than that. The main cost factor here is the nature of the company’s work and the number of people working in it.
Establishing a company in Dubai
The process of establishing a company in Dubai may require spending a lot of money, but Dubai as a city offers you many features and benefits that make it one of the most wonderful investment destinations ever. Among the most prominent of these features we mention the following:
- The UAE raises taxes on certain types of companies within it, such as natural resource extraction companies and others.
- The corporate tax for companies whose income does not exceed AED 375,000 is 0%. That is, these companies are also exempt from taxes.
- The tax rate within the UAE is low compared to other countries.
- The state provides many facilities during the process of establishing and establishing companies, such as legal facilities, in order to encourage foreign investors.
- Due to Dubai’s special strategic region, various investment businesses can be established.
- Dubai also thrives in that it allows foreigners to practice more than 2,000 different economic activities legally and with many facilities.
- In addition, it offers several different types of business licenses.
Tadabeer Company..your path to success
Tadabeer Company works to provide all the services necessary for you to establish your company and business in Dubai or the Emirates. Do not hesitate to contact us in order to join our clients, or for any question or inquiry about these topics.
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