How Much Does It Cost to Register a Company in the UAE?

It’s thrilling and full of potential to start a business in the UAE. But first, you need to know how much it will cost. The cost to register company in UAE can vary based on numerous factors. To start, you have to decide whether you are going to be in the mainland or the free zone. Both of them have different fee structures. 

Next, you need to select what type of business license you want. For example, a trading license may cost more than a service license. Also, think about office space. Some zones offer shared offices, while others need a full office setup. Moreover, you’ll need to pay for visa fees, government approvals, and insurance. 

All of these steps cost money. Therefore, planning your budget early helps avoid surprises. In short, the total cost depends on what kind of business you start and where you set it up. So, compare your options carefully before making any decisions.

About Company Registration in UAE

UAE provides you with three broad options to register your company. These are Mainland, Free Zone, and Offshore. Each has its regulations. And each has various costs and benefits associated with it. Let us brief you about them.

• Mainland: Suited for companies that wish to trade within the UAE region locally. You can do business anywhere. 100% foreign ownership in certain activities is now permitted.
• Free Zone: Suitable for firms conducting international business. You have 100% foreign ownership and tax advantages. You also have speedy setups.
• Offshore: Most suitable for firms conducting business outside the UAE. It’s used primarily for asset holding, not actual business.

Business setup in Dubai is well-liked in all three. However, prices differ according to your objectives, license form, and office space.

Cost of Different Types of Company License

It is important to understand UAE business license cost. Various licenses are priced differently. The following are the primary ones:

• Commercial License:  For purchasing and selling products. Price begins at AED 10,000.
• Professional License: For activities such as consulting, IT, or education. The setup cost in Dubai starts at AED 7,500.
• Industrial License: For manufacturing or industry. Pay AED 15,000 or more.
• Tourism License:  For hospitality and travel companies. The license fee starts from AED 12,000.
• Freelance License:  For sole proprietorship. The most affordable method to register a UAE company starts from AED 4,000.

Cost to Register Company in UAE

Let’s come to the point. The cost to register company in UAE begins at approximately AED 5,500 in low-cost areas. However, it can reach AED 30,000 or higher in luxury areas. Here’s how it goes down:

1. Free Zones

Free zone packages begin from AED 5,750. They usually consist of a business license, a flexible desk, and so on. Additionally, some packages also have visa options.

2. Mainland

Mainland setup fees start at AED 14,500. That’s your business license and registration. On top of that, certain packages include a visa as part of the package.

3. Offshore

Offshore registration takes approximately AED 10,000. You don’t require office space or visas. So, it’s a viable option for international companies with no UAE employees.

Include visa, insurance, and office rental in your budget. Business setup experts in Dubai advise budgeting AED 25,000 to AED 50,000 as an intelligent move for startups.

Eligibility Criteria for Company Registration UAE

Who can register a UAE company? Here’s the information you should know:

• Age: You should be at least 18 years old.
• Nationality: UAE residents or non-residents are eligible to register.
• Ownership: 100% foreign ownership is permitted in Free Zones and most Mainland activities.
• Business Activity: You have to select from the listed business types.
• Legal Structure: Determine whether it’s a sole proprietorship, LLC, or a branch.
• Office Space: Mainland requires it. Many Free Zones make it optional.
• Valid Passport: All shareholders require it.

Dubai company formation is free and open, particularly for expats and startups.

The Process to Register a Company in UAE

It is easy to start a company in the UAE if you adhere to every step. It is confusing initially. But with proper guidance, it becomes easy. Step-by-step planning is the secret. Besides, each phase is important. So, go through this process diligently in order to register your business effortlessly.

Step 1: Select Business Activity

First, decide what your company will do. Some activities need extra approvals. So, check the activity list. If it’s restricted, you’ll need permission. Therefore, always choose wisely and match the activity to your long-term goals.

Step 2: Select License Type

Next, select your license type. You may choose a trade, professional, industrial, or tourism license. Moreover, the license should correspond with your activity. The wrong one can cause delays in approval. So, be careful before choosing.

Step 3: Select Jurisdiction

Then, select Mainland, Free Zone, or Offshore. Each has a varying set of rules. For instance, free zones provide full ownership. But the mainland gives access to local markets. So, think about your business objectives prior to making a decision.

Step 4: Decide Legal Structure

Now, select a legal structure such as an LLC, sole proprietorship, or branch. Each structure has its legal organization. Moreover, it influences taxes and liability. So, it’s crucial to select the correct one.

Step 5: Reserve Trade Name

Next, choose three firm names. Get them approved. In addition, don’t use prohibited or nasty words. After approval, it’s yours exclusively for your firm. Therefore, choose a name that suits your brand.

Step 6: Apply for Initial Approval

Then, apply to the authority for starting approval. It shows you’re allowed to proceed. In many cases, this is a quick access. However, for some activities, it may take longer. So, prepare your documents early.

Step 7: Rent Office Space

Now rent a space — a flexi desk or full office. It depends on your license type. Also, some zones allow virtual offices. But for the mainland, physical space is usually required. So, choose what fits your budget.

Step 8: Submit Documents

Then, collect all the documents you require. Put your passport copy, photo, forms, and agreements. Ensure they are signed because even tiny mistakes hold up the process. So, double-check before submitting.

Step 9: Get License Issued

After approval, pay the fees. Then, you will receive your business license. This license is the legal document that enables you to operate. After that, you can lawfully operate your business within the UAE.

Step 10: Apply for a Visa

Lastly, apply for your visa. It is for the owner or staff. The number of visas varies with office size. So, organize your team in advance to prevent future delays.

Business setup consultants in Dubai can assist in making it easier and quicker.

The Four Biggest Fees Incurred with UAE Company Registration

Starting up in the UAE involves budget planning. You must have the primary expenses in mind beforehand. They differ according to location and type of business. They typically comprise the following four significant areas.

1. Company Registration Fee

It is a one-time payment made at the beginning. It typically costs between AED 9,000 and AED 12,000. Further, the amount is also based on your selection of the zone.

2. Trade License Fee

Trade License Fee is an annual fee that you need to pay. It ranges from AED 7,500 to AED 50,000. Additionally, the cost varies with your business activity.

3. Office Rental

Office fee varies with size and location. Flexi-desks range from AED 6,000 per annum. Thus, choose that which suits your budget and license regulations.

4. Visa Charges

Each visa costs between AED 3,500 and AED 7,000. This cost includes medical tests and the Emirates ID. In addition, more visas mean higher total costs.

UAE company formation costs add up. Budget wisely with help from experts.

Strategic Planning for Cost Management

Want to save money? Here’s how to plan better:

• Choose the Right Free Zone: Some zones offer cheap startup packages, like Sharjah and RAKEZ.
• Negotiate Office Rent: Attempt to obtain offers on flexi-desks. They are inexpensive and sufficient.
• Utilize Business Setup Experts: They can package services and obtain discounts for you.
• Avoid Additional Visas: Only request visas when necessary.
• Plan Renewals License, visa, and office contracts renew annually. Include that in your budget.

Business setup in Dubai doesn’t have to be pricey. Clever decisions save money.

Cheapest Way to Register Company in UAE

On the lookout for the lowest price? Here are alternatives:

• Freelance License Beginning at AED 4,000. No office is required. Perfect for individual workers.
• Sharjah Free Zone Packages begin at AED 5,750. Suitable for small companies.
• RAKEZ Free Zone Beginning at AED 11,990. 1-lifetime visa included.
• Virtual Company Setup is Available in select zones. No UAE residence requirement.
• No Staff, No Big Office. Begin lean. Grow when you expand.

It is the cheapest way to register company in UAE and remain legal.

Benefits of Company Registration UAE

It’s highly beneficial to register your company in the UAE. It’s a tax-friendly and low-tax environment with excellent global connections. Additionally, regulations are straightforward. Hence, numerous investors prefer the UAE to expand their companies efficiently and securely.

1. 100% Foreign Ownership

Foreign investors can now own 100% of their company. It is permitted in free zones and most mainland sectors. So, you don’t necessarily require a local partner anymore.

2. Tax-Free Income

The UAE provides zero personal income tax. Additionally, most companies do not pay corporate tax. Thus, you get to keep more of your profits and expand faster.

3. Global Market Access

Dubai links East and West. Indeed, you can directly connect to Asia, Europe, and Africa. Thus, it’s ideal for import and export businesses as well as global trade.

4. Fast Setup

Most free zones provide quick company registration. At times, it is as fast as a few days. Hence, you can start your business swiftly without any waste of time.

5. Flexible Packages

Whether you are a big firm or a startup, the UAE has something for everyone. There are numerous possibilities in free zones. So, you can choose one that fits your pocket and needs.

6. Repatriation of Profits

There is no restriction on taking your profits back home. Also, the capital can be transferred freely. Thus, you remain in full control of your earnings with no limitations.

These are some of the benefits of UAE company setup, which make it worthwhile.

Get help from Us

Forming a company in the UAE can seem complex, even if it is your first time doing it. Don’t worry, though—we’re here to assist you every step of the way. Our business setup consultants in Dubai make it easy and stress-free. To begin with, we hear your business concept and assist you in deciding on the most appropriate license, site, and organization. We then handle all documents for you, so you don’t need to worry about filling out forms or getting government approvals. 

We also assist with visa applications, opening a bank account, and leasing office premises. By doing so, you can concentrate solely on your business objectives while we do the setup work. Above all, dealing with our business setup experts in Dubai saves you time, effort, and money. Allow us to take you through a hassle-free, quick, and affordable business start in the UAE.

FAQs

Q1. What is the cost to register company in UAE?

It normally starts at AED 5,500. The price varies depending on your business area, license, and office. So, plan accordingly.

Q2. Is 100% ownership allowed for a UAE company for a foreigner?

Yes, foreigners are now allowed 100% ownership in Free Zones. Plus, most Mainland industries also permit full ownership without requiring a local partner.

Q3. What is the trade license fee UAE?

The cost of the trade license starts from AED 7,500. However, it may extend to AED 50,000 based on your business activity and place of operation.

Q4. How long does the process of registering a company take?

It normally takes 2 to 10 working days. But if you have documents prepared and ready, then the process goes faster with less delay.

Q5. Do I require an office in the UAE?

Yes, for Mainland registration. Conversely, Free Zones usually allow you to utilize more affordable flexi-desks or virtual office facilities to save costs.

Q6. Is a freelance license a good option?

Yes, absolutely. It’s the most affordable means of registering a company in the UAE. Moreover, it’s perfect if you have one person who doesn’t require the full office space.

Q7. Which Free Zone is most affordable for company setup?

For instance, Sharjah and RAKEZ Free Zones provide economical packages. As a result, most startups and freelancers prefer these zones to maintain low expenditure.

Q8. Can I register a company remotely?

Yes, in most of the Free Zones, you can. Additionally, most of them provide online registration, so you don’t need to travel to Dubai either.

Conclusion

The cost to register company in UAE varies based on your decision. Select the appropriate zone, license, and office area. Plan always. From trade license fee UAE to office rent, every move counts. Utilize the company formation in Dubai consultants to simplify it.

Begin small if necessary. UAE accommodates growth at all levels. Ready to begin? Let’s create your business today.