Dubai Mainland Company Formation Cost

Do you intend to set up a company on Dubai’s Mainland? The first thing you need to understand is the company setup procedure, and the second important thing is to figure out how much it costs to set up a company in Mainland Dubai. Therefore, Prospr is here today to offer you a comprehensive picture of the anticipated cost of setting up a business in the Dubai Mainland region. Start now.

LLC Formation of a mainland company in the United Arab Emirates

The most popular company structure in Mainland Dubai for individuals looking to start a business in the United Arab Emirates is an LLC. For individuals looking for low-cost company formation alternatives and just starting a business with shareholders, this legal structure is a great option. 

Acquiring a licence is the first step in the formation of a company in the United Arab Emirates. The cost of a licence depends on the type of licence you need and the sector in which you want to conduct business in the UAE. 

A Memorandum of Association (MoA) must be signed by all the company’s partners in order to set up an LLC in Dubai. The next step after signing a Memorandum of Agreement is to write a contract and have the UAE’s legal authorities sign it. Both Arabic and English are acceptable languages for MoA drafting. A tax identification number must be acquired, and a bank account must be opened to set up an LLC company in Dubai. 

The cost to set up a company in the mainland ranges from AED 15,000 to AED 28,000. If you need to pay for more visas, permits, or other government costs, it can increase from this range.

The factors that affect the setup costs of a company on Dubai’s Mainland

The cost of setting up a company on the mainland depends on several factors. Based on the type of your business, the price will increase or reduce. You must pay government fees for business licences, registration, and notaries. There are going to be one-time and recurring fees associated with these. If you acquire a trade licence, for instance, you will need to pay its renewal fees every three years. 

The rent for your business site is another significant cost-contributing aspect. For setting up a company in Dubai, you must have a physical business location. You will be able to rent the premises because it is a necessity. Rent is another recurring cost when operating a business in Mainland Dubai.

The investor visa fee is an additional required and recurring fee. You must acquire a visa and pay the visa renewal fee every three years if you are a foreign national opening a company in Dubai Mainland. Annual sponsorship payments, one-time legal fees, and commercial property fees are all payable. 

When you start a business, you need approval from the DED, and you will have to pay a fee the first time you apply for approval. The registration of a trade name is an additional cost associated with setting up an LLC company in Dubai, and yes, you will be responsible for this one time. 

You need to include the cost of opening a bank account when discussing other fee factors. Choose a bank that is appropriate for your business from among the several rent possibilities available. 

An analysis of the costs associated with setting up a company in Dubai’s Mainland 

The cost of forming a limited company depends on several factors, including the type of business you plan to operate, the quantity of visas you need, and the rent. Be prepared to spend AED 15,000 to AED 35,000 on a company formation in the mainland if you need a prompt cost estimate. 

This is a breakdown of the estimated costs:

• You will need to pay AED 235 (one-time cost) to the DED for business approval.
• Dubai Trade Name Approval Cost Mainland costs AED 735; this is a one-time expense.
• Rent for an office space depends on its size and location. Let’s say it’s AED 40 or more per square foot fee every year.
• Attestation of the Memorandum of Association is included in the cost of setting up a limited company on the mainland. This is a one-time payment fee.
• The typing fee for court agreements and contract drafts is AED 500. Signing the court agreement attestation by all the partners or their legal representatives is crucial. 
• When you register your company with the Ministry of Economy, you will need to pay a one-time cost. 
• Trade Licence Fee: AED 1000; this licence also needs to be renewed.
• In addition, you will have to pay the government five percent of the shop’s rent or twenty percent of the warehouse rental fee.

Conclude

The cost of setting up a limited company in Dubai Mainland is now something you understand. You may pay less or more than the projected cost because several factors go into the total cost. 

Do you wish to save money while establishing a company in Dubai? The business consultants at Prospr are available to help in that situation. We relieve you of the burden of opening a company and offer all the help you require. In the UAE and elsewhere, our business advisors have years of experience assisting investors and entrepreneurs in starting profitable businesses. We are available to assist you with any legal situation or documentation needs. Schedule a consultation right now!