Setting up a mainland company in Dubai involves various costs, including government fees, license fees, office rental expenses, and professional service charges. Understanding the breakdown of these costs is crucial for budgeting and planning your company setup effectively.
License fees
The cost of mainland company setup Dubai depends on factors such as the nature of the business activity, legal structure, and the number of shareholders. License fees typically range from AED 10,000 to AED 20,000 or more, depending on the specific requirements of the Department of Economic Development (DED) and the chosen business activity.
Share capital
Mainland companies in Dubai are required to have a minimum share capital as per DED regulations. While the exact amount varies depending on the legal structure and business activity, it typically ranges from AED 50,000 to AED 300,000 or more. The share capital must be deposited in a UAE bank and can be utilized for business operations after obtaining the trade license.
Office rental expenses
Renting office space is a significant expense for mainland companies in Dubai. The cost of office rental depends on factors such as location, size, amenities, and the duration of the lease. Prime locations in central business districts command higher rental rates, while more affordable options are available in suburban areas. Office rental expenses can range from AED 30,000 to AED 200,000 or more per year, depending on the factors mentioned above.
Sponsorship fees
Mainland companies in Dubai are required to have a local sponsor, who is a UAE national or a company wholly owned by UAE nationals. The sponsorship arrangement involves an annual fee paid to the local sponsor in exchange for their sponsorship services. Sponsorship fees vary depending on the agreement between the parties and can range from AED 10,000 to AED 50,000 or more per year.
Professional service charges
Engaging professional services such as business consultants, legal advisors, PRO (Public Relations Officer) services, and company formation agents incurs additional costs. These professionals assist with various aspects of the company setup process, including documentation, government approvals, visa processing, and compliance with regulatory requirements. Service charges vary depending on the scope of services required and the complexity of the setup process.
Miscellaneous expenses
Other miscellaneous expenses associated with mainland company setup in Dubai include visa fees, bank charges, notary fees, document attestation fees, and utility deposits. These expenses can add up depending on the specific requirements of the setup process and should be factored into the overall budget.