Planning For A Company Formation In The UAE: Learn About Its Costs And Benefits


Company formation in Dubai comes with many benefits that entrepreneurs stand to gain during the company formation process. Therefore, it is only wise that you first start by inquiring about the advantages that both you and your company will get while doing business in Dubai.

First, it is important to note how interesting the Dubai market remained over the years, primarily because most of the economic policies of non-alignment. Therefore, it continues to invite traders from all over the world, especially India, Africa, and Europe, and these are the countries dominating its foreign-owned company list.

Why Foreign Companies Are Planning For Company formation In Dubai?

Foreign companies who are thinking about opening a business in Dubai will find several benefits. Necessary step to follow while starting a new location in Dubai is to determine whether they wish to register mainland or a non-Freezone company, which is easy to operate from any place in Dubai and other emirates.

Free zones are the most likely areas to start a business because they can offer international companies some advantages. The creation of free zones is something that will attract foreign companies.

But what made the Dubai business market so attractive that it is inviting foreign companies and professionals from all around the world for business formation.

First, because of their economic standing most of the non-alignment, almost all countries are curious to trade with Dubai company without fear of admonition from their financial partners. The companies in Dubai are also open to the broad market source for their products as they vary from large populations both in Dubai and throughout the Saudi Arabia Emirates. Also, Dubai has some of the most straight-forward laws globally when it comes to its registration.

It has also offered foreign investors more incentive than most other countries, both policy, administration, and a flexible income, including visas for the workers here too and free of taxes and exemptions. It forms part of many factors to attract foreign companies to invest directly in the country on behalf of Dubai’s company formation. After learning of the benefits they stand to gain by opening a Dubai company, business professionals now have to learn about the different types of licenses. They can open a company here and the complexities involved.

What are the Advantages of Company Formation in Dubai, UAE ?

  • 100 Percent foreign Ownership
  • No Charges for Foreign currency Registration
  • The setup cost is low compared to other onshore companies
  • the UAE law guarantees the banking confidentiality
  • The complete reputation of company profits and the capital
  • full exemption from income tax and corporate taxes.
  • The presence of a physical office is not mandatory, which can save the cost.
  • An offshore company can perform like a holding company
  • Low company formation cost
  • there is no requirement for the public registry

What is the Cost Involved in Company Formation in Dubai, UAE?

If you have the hint about the cost included in setting up a business in Dubai, the process will look hassle-free and straightforward.

Here we have shared the places that will include the cost in the company formation process.

The cost of your business mainly depends on the area you have chosen to work your operation i.e., Mainland Dubai or Dubai FreeZone. For the formation of the land, free zone, and offshore companies, we have created a list of the cost involved in Dubai’s company setup.

  • Approval fees at initial Stage

    The Department of Economic Development provides initial approval to incorporate business operations. A low fee is charged here to let you start your business process for six months max. Till the time you submit the requirements. It is a onetime fee included with business setup in Dubai.

  • Cost Involved in Trade Name Approval

    In the UAE, there is a chance that the cost of a trading name can fluctuate based on the name you require. They will ask you to pay the trade name reservation fees, and the price of a commercial character, the cost of a foreign company’s name.

  • Cost Involved in office Rent

    Renting an office space to set up the mainland business in Dubai is a mandate to help the government make sure the company is legitimate. The office also allows officials to conduct inspections, monitor operations, and ensure immigration laws are followed. Office space for lease to the annual fee.

  • Fees involved in the attestation of a memorandum of association 

    This is a one time cost involved in the company formation process, but it may differ depending on the amount of share capital.

  • Cost Involved in the License and other permits

    Standard business document processing, including a trade permit for registration companies, charges differently depending on the type of documentation and business operations, etc. Commercial license fee, also known as tejari fee, needs to be paid every year to engage in commercial activities. Note that the business license requires a license to be renewed once every year, the additional cost should be considered.

Is it the mainland or the free zone? The amount of money involved in setting up a business in Dubai is a complicated and convoluted process? We recommend you to hire a business setup consultant so that this process becomes a simple, hassle-free, and low-cost setup.

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