As a budding entrepreneur, I have realized that the cost of starting a business in Dubai take a lot of attention in the entire process. When I thought of starting my company in Dubai, I had decided on a certain budget. I did a thorough research on the things I will have to spend on while setting up my company. On a daily basis, I visited the business setup websites and the governmental portals to understand the procedures and the costs involved in setting up a company in Dubai.
There are several things that must be taken under consideration. From analyzing the business activity and the cost of permissions required for the same to dealings with the government bodies and making timely payments. Managing the costs of business setup in Dubai mainland can be tedious without proper assistance.
Thus, I felt that the best way to setup up a business in Dubai would be by taking to an expert advice though a business setup consultant. I contacted a leading business service provider named Shuraa Business Setup. As they are in the market since 2001 and have over 18 years of experience in business setups across the UAE, I found them extremely reassuring. They are also connected with the Department of Economic Development (DED in Dubai) and every governmental authority which made my entire process cost effective and I could save a lot.
The business setup consultant alerted me on every detail right from the beginning about the bound expenses. Because of this I was always prepared and understood the payable amounts. It saved me from unwanted expenditures and as I made every payment before the time, I did not incur any late payment fees.
To give you an idea about the costs of business setup in a Dubai mainland, I have listed the various expenses that may incur in the process:
- Initial approval from DED
The department of economic department DED provides an initial approval to start the business operations right away. A nominal fee lets you start your operations for maximum 120 days, until then you can complete your other documentation as well. This is a onetime cost.
- Approving the Trade name
Trade name is basically the name under which you will be managing your company. In some instance there are possibilities that the price may fluctuate on the basis of the name you demand. Approving a Trade name is also a onetime cost.
- Attestation Memorandum of Association MOA
Attestation of the Limited Liability Company’s Memorandum of Association is done between the partners or the shareholders of the company. The attestation cost may further vary depending on share capital although it is just a onetime cost.
- Drafting the contract of LLC in Arabic and English
The contract of a limited liability company contract is typed under the mutual consent of the partners. It is essential that the contract is drafted in Arabic as well as in English for better understating between all the shareholders. The translation cost may be incurred apart from drafting of the contract. This again is a onetime cost.
- Ministry of Economy Fee
The ministry of economy charges a nominal fee to register the limited liability company in Dubai. This also a onetime fee.
- Trade License Fee
Acquiring a trade license is an annual expense, as the trade license needs to be renewed every year. Depending on the business activity the trade license fee may vary. Sometimes you may also need to show a security deposit apart from the Trade License Fee.
- Advertising the Trade name
Depending on the company’s requirement a trade name can be advertised. This is a yearly expense.
- Chamber of Commerce Fees
The chamber of commerce needs to be paid every year. The amount mention is for a general trading company. For an industrial or manufacturing company it may vary from 2000AED or above.
- Municipality fees for Waste Management
Yet again a yearly fee to be paid to the municipality, for a general trading company in case of an industrial firm the cost will go up to 2000AED.
- Commercial Services Improvement Fees
A yearly fee paid towards the improvement works done by the governmental departments.
- Administrative Services Fee
There is also an administrative fee charged for all the paperwork by the department however it is a onetime expense.
- Other important expense noted are –
- General trading company formations one-time fees of AED 15,000 is required.
- Contracting License one-time fees of AED 10,000 is charged.
- Real Estate Brokers Company fees for Economic Department is AED 5,000.
- Government charges around 5% of amount premises rent.
- Further additional charges may vary depending on the nature of the business setup.
Please note that the business setup costs specified by me are a work of my study and only includes governmental charges.
This may vary from time to time and agency to agency that you opt. Business setup consultants and providers chargea nominal amount for the service provided by them. But it is worth, when save a lot of time, effort and most importantly money!
To get the right costs please speak to a business setup consultant for FREE! Call us on +97144081900 or WhatsApp on +971507775554 to request a call back. You may also email us on firstname.lastname@example.org or log on to https://www.shuraa.com/ to learn more on starting a business in Dubai and across the UAE.