What is the Cost of Setting Up a Company in Dubai?

Establishing a new business in Dubai can be quite expensive, but that does not mean you cannot do it at all. If you plan to initiate a business in any of the Dubai as several free zones, keep in mind that each free zone has its own procedure and charges. Most free zones have a minimal requirement of initial capital investment which the individual entrepreneur must possess if they plan to set up the business in the freezone as against establishing a new branch in a commercial area in the commercial area. There are also some business ventures that are exempt from some or all charges. But, every venture that is covered by a charge is subjected to other terms and conditions that are specified by their operators.

What is the cost of setting up a company in Dubai? This is the initial cost that you need to incur for registration purposes and other related fees. These fees are normally applicable whether you want to open a limited liability company or an unlimited company. Other charges business setup cost includes:

The agent fee one-time fee is a fixed amount payable by the applicant for carrying out the process. It is also known as the registration fee. It can vary depending on the type of business and the type of zone company you want to set up. In case of an international transfer of assets, the processing time can be reduced drastically. For instance, in some cases the process can be finished within three months.

You may be required to obtain a local government license for trading or investment in Dubai. The only requirement for trading in Dubai is to register your name with the Dubai Stock Exchange (DSE). A stock transfer agent who is not registered with DSE is not entitled to transact or do business in Dubai. Similarly, an individual who does not have a license to trade in UAE is not entitled to buy or sell shares on the Dubai stock exchange. Such people can open a Dubai branch office but they are not allowed to deal in shares.

The registration fee and the first year tax payment is the essential charges. However, business owners in Dubai are allowed to set up an unlimited number of limited liability companies. The tax payment involved is less than two percent. A certificate of formation will be issued by the Dubai government along with relevant documents. Business owners can get their license in six months from the date of issue.

On the other hand, what is the cost of establishing a trading company in many freezones like Jumeirah, Emirates Hills, Dubai Gold Market, and Dubai Creek? In those areas, the registration process takes three to four months. There is no registration fee. However, due to the uncertain economic situation in these areas at the time of issue, the government imposes certain trade taxes on commercial activities carried out by the foreign members of the companies.

Another important issue is the commercial license fee. This is almost the same as the turnover tax paid by domestic residents. It is computed by multiplying the total revenue earned by the average number of commercial activities carried out in a year by the average commercial license fee charged by Dubai authorities. The rates are subject to change every year.

However, what is the cost of setting up a company in Dubai Mainland when it comes to the commercial license fee? The fees charged are higher in Dubai than any other emirate. However, you can get good information from the Internet or from the local newspapers regarding commercial activities in Dubai. You should also contact a few legal experts in Dubai and ask them for information and references regarding the same. There are also several well-reputed agencies available in Dubai, which offer services to corporate clients at affordable charges. You can find them on the World Wide Web.