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

Entering into business in the UAE is a good idea for most individuals. The nation boasts a robust economy, proper infrastructure, and a secure environment in which to work and reside. However, before one ventures, it is vital to know about the cost to register company in UAE. Knowing the expenses in advance makes you better prepared and reduces stress in the future. For instance, you should be prepared to pay license fees, visa fees, and rent for an office. 

All these are subject to variations based on your location and how you establish your business. First, you will need to opt for mainland, free zone, or offshore options. Next, you will need to obtain a business license, and that will also cost you. Then there are visa costs, as well as professional assistance costs if you need any. Thus, this guide will detail every cost stepwise so that you can make informed decisions and avoid additional surprise costs.

About Company Registration in UAE

The UAE is very business-friendly. People from all over the world establish businesses here. You have a choice of establishing it in the mainland, free zones, or offshore. Every one of these has its own establishment rules and costs.

Company registration is the first legal process to begin your business. Everything goes on smoothly if you take the proper steps. Whether you are starting a shop, consultancy, or online business, the UAE welcomes everyone.

Cost of Different Types of Company License

The business license you select will influence your overall cost to register company in UAE. Different types of permits cater to other business activities. Further, the rules and fees differ. Therefore, it is essential to choose the appropriate one. Furthermore, this decision influences renewals as well as future growth. Now, let’s see the primary types of licenses:

1. Commercial License

Fees begin at AED 10,000. It is for the business of trading goods or products. Also, it is suitable for import-export and retail operations.

2. Professional License

Began at AED 7,000 to AED 15,000. Suitable for consultants, freelancers, or service providers. Furthermore, it supports 100% ownership in most zones.

3. Industrial License

Begins at AED 15,000 and can escalate for manufacturing, production, or industrial operations. Additionally, it needs warehouse or factory space.

4. Tourism License

Priced at AED 15,000 or higher. Required for travel businesses, tour operators, or hotel services. Additionally, tourism authority approvals could be required.

These figures are approximate. The UAE business license cost depends on the zone and activity.

Cost to Register Company in UAE

The cost to register company in UAE may differ according to your options. For instance, your license type, visa requirements, and office size all influence the end price. Additionally, location also comes into play. So, here’s a brief overview of approximate costs:

1. Mainland LLC License

Prices range between AED 25,000 and AED 40,000. This costs license, registration, and office. Plus, the amount may increase according to visa numbers.

2. Free Zone License

Pay AED 12,000 to AED 20,000. It comes with a license, a flexi-desk, and registration. Also, a few zones have startup packages available at discounted rates.

3. Offshore Setup

The cheapest option. AED 10,000 to AED 15,000. But you cannot do business in the UAE market directly.

The UAE company formation cost also covers trade name registration, initial approval, and government charges. Your assistance in handling the matter will be easier if you are working with a PRO services company in UAE.

Required Documents for Company Registration UAE

You have to provide some simple documents to register your company. The following is what you require:

• Passport Copy: Valid for a minimum period of 6 months.
• Visa Copy: In case you are a resident, give your UAE visa page.
• Emirates ID: Not mandatory, but convenient for residents.
• Passport Photo: Recent picture on a white background.
• Business Name Options: Three preferred name options.
• Application Form: A Simple form with your personal and business information.

If you have a partner or a corporate shareholder, you will need additional documents. Your PRO service provider will advise you on this.

Process to Register a Company in UAE

Starting a business in the UAE is easier than many think. The steps are simple, but timing and accuracy are important. Moreover, each choice affects your budget. Also, rules may vary by zone. Therefore, planning is key. In addition, you’ll need the right documents. So, here’s the basic process to follow step by step:

1. Choose Your License Type

Determine if your company is industrial, professional, or commercial. Furthermore, this decision impacts legal requirements and license fees.

2. Choose Business Activity

Select from licensed business activities in the selected zone. Additionally, your activity should be compatible with the license and office.

3. Choose Legal Structure

Select LLC, sole proprietorship, or branch. For example, your legal structure affects liability and visa caps.

4. Reserve Trade Name

Choose a distinctive company name. Then, get it approved by the authority. It has to comply with UAE naming conventions.

5. Apply for Initial Approval

Seek permission from the authorities concerned. Also, this approval ensures your business activity is permissible.

6. Choose Office Space

Choose either office space or a flexi-desk. Moreover, your visa quota will depend on the space you opt for.

7. Submit Documents

Collect and submit all necessary forms and IDs. Hence, ensure nothing is incomplete to prevent delays.

8. Pay Fees

Pay setup fees, license fees, and admin fees. Additionally, prices differ depending on the zone and activity.

9. Collect Business License

After approval, obtain your trade license. Subsequently, you’re officially permitted to run and begin your business venture.

10. Apply for a Visa

Apply for employee and investor visas. Also, do medical and ID procedures to complete your installation.

It may take 1 to 4 weeks altogether. PRO services in Dubai may reduce the time.

The Four Biggest Fees Incurred with UAE Company Registration

When planning your business, knowing the high costs helps avoid surprises. These are the main expenses during company setup. Also, each fee depends on your choices. Moreover, some zones may offer discounts. So, let’s look at the four biggest costs:

1. Registration Fee

The Registration Fee is a one-time payment during setup. It usually ranges from AED 9,000 to AED 10,000. Also, the fee can change by zone or company type.

2. License Fee

You will pay this annually. It begins at AED 10,000 and can go up to AED 50,000. Also, it varies based on your business activity.

3. Office Rent

Flexi-desk arrangements start at AED 10,000 annually. However, complete offices are more expensive. Also, the size of your office determines how many visas you can sponsor.

4. Visa Fees

Visa fees are AED 3,000 to AED 5,000 per individual. Further, this also includes medical checks, Emirates ID, and other processing fees.

Your overall setup fee in Dubai is based on these core areas. Always double-check what’s included in your package.

Strategic Planning for Cost Management

Strategic planning assists you in managing the cost to register company in UAE. It keeps your expenditure in check. Additionally, you stay away from surprise bills. Further, a clever plan helps you to develop smoothly. Additionally, it lessens delays and mistakes. Therefore, study your choices thoroughly. Subsequently, adhere to these cost-saving tips:

1. Make a Budget

List all the initial startup expenses in detail. Add license, visa, office, and renewal charges. Also, budget extra for unexpected costs.

2. Consult Experts

Hire a reputable PRO services company in UAE. They explain everything clearly. In addition, they prevent expensive setup errors.

3. Start Small

Utilize a flexi-desk or shared office space. Thus, you save on rent. Also, you maintain overheads low in the initial stages.

4. Track Renewals

Renew your trade license and visas in time. Otherwise, you will be fined. Also, delays in renewal can hinder operations.

5. Bundle Services

Most of the zones have discounted packages. For instance, license + visa + desk at one price. Hence, this saves money and time.

Clever planning saves money and time.

Cheapest Way to Register Company in UAE

If you are budget-conscious, getting the lowest cost to register company in UAE is quite easy. Free zones have low-cost packages. Additionally, the package comes with vital services. Further, it is possible to start small and expand later. So, let’s consider some budget-friendly options:

• Sharjah Free Zone: The packages begin from AED 5,750. It comes with a business license and a flexi-desk. But no visa is included in this package.
• RAKEZ: You can buy it for AED 11,990. It offers a lifetime visa. Also, it takes care of the license and workspace setup.
• Dubai Free Zone: Prices start from AED 12,500. It comes with a license and a flexi-desk. In addition, it’s an excellent option for new businesspeople in Dubai.

These areas are ideal for freelancers, startups, or small business traders. They provide 100% ownership, minimal fees, and quick approvals. Make use of a business setup in Dubai expert to find the best deal.

Benefits of Company Registration UAE

It is a good idea to start a company in the UAE. It is full of business advantages and long-term value. Additionally, the nation is supportive of entrepreneurs. Furthermore, regulations are business-friendly. Additionally, taxes are minimized. Hence, here are the most important advantages of company formation in the UAE:

1. 100% Foreign Ownership

You have the option to own your company outright in free zones and a large number of mainland sectors. Moreover, there is no local sponsor required.

2. No Income Tax

There’s no capital gains tax or personal income tax. Furthermore, a lot of zones provide full corporate tax exemptions.

3. Rapid Setup

Most registrations are done within 5 to 10 days. Thus, you can start your company swiftly without unnecessary waits.

4. Global Connectivity

UAE bridges Asia, Europe, and Africa. Hence, it’s ideal for international trading and expansion.

5. Repatriation of Profits

You can repatriate 100% of your profits back home. What’s more, there are no currency controls.

6. Super Infrastructure

Relish fast-speed internet, good roads, ports, and contemporary offices. Additionally, world-class logistics support is available.

That is why most investors select the UAE as their business base.

PRO is Here to Help

Establishing a business in the UAE is complicated, particularly if it’s your first experience. That’s why PRO services in Dubai are so convenient. These specialists handle all the paperwork for you, saving you time and preventing errors. First, they assist you in reserving your trade name and ensuring it gets approved. Next, they process your license application and follow up until the license is issued. They also assist you in visa processing, such as medical checks and Emirates ID. Further, PROs handle document clearing, such as translations, stamping, and legal notary services. 

They also provide local guidance on laws, banks, and office leasing. Thus, rather than face lengthy steps and forms, you have time to concentrate on business development while they take care of the rest efficiently.

FAQs

Q1: What is the minimum cost to register a company in UAE?

The most affordable setup begins from AED 5,750 in free zones. Nevertheless, mainland arrangements start from AED 14,000 based on license, office, and visa options.

Q2: Is the trade license fee UAE part of the registration fee?

No, it is not. The trade license fee in the UAE is an independent annual fee. Additionally, it will rely on your business activity as well as the zone you choose.

Q3: Do I need to visit to open a business in UAE?

Yes, you can. Indeed, most areas enable remote registration. However, visa stamping or Emirates ID might still require your physical presence.

Q4: Do I need a local sponsor for my business?

Not necessarily. Free zones provide 100% ownership. In addition, several mainland activities now enable foreigners to own a company 100% without sponsors.

Q5: What is the setup cost in Dubai compared to other Emirates?

In general, Dubai is costlier. However, it has greater brand value. Sharjah and RAKEZ, on the other hand, provide lower-cost setups for small enterprises and startups.

Q6: How long does it take to register a company in the UAE?

Typically, 3 to 10 working days. Although some Free Zones complete setups sooner, particularly if you opt for standard packages and are prepared with documents.

Q7: Can I register a UAE company as a freelancer?

Yes, you can. For instance, some zones provide freelance packages starting from AED 4,000. And these usually come with a license and visa options as well.

Q8: Is there any hidden cost involved during the setup of companies?

Occasionally, yes. For example, additional charges are sometimes required for name approvals, external approvals, and PRO services. Therefore, always ensure that the final quote is made clear beforehand.

Conclusion

The cost to register company in UAE is complicated, but it can be managed with the proper assistance. Whether you choose to have a free zone or mainland, the UAE has versatile solutions for every type of business. Prioritize your requirements, budget wisely, and utilize the expertise of professionals.

Let your business dream materialize in the UAE. You’re never by yourself in the endeavor with solid backing from a reliable PRO services company in UAE. Begin today and shape your future in the country of opportunity.