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Business Registration Cost in UAE: Benefits, Components & Costs

Business registration cost in UAE is one of the most crucial considerations for starting a business in Dubai. UAE is one of the most attractive destinations due to the various benefits of establishing an enterprise in the nation.

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Business Registration Cost in UAE

UAE is one of the most attractive destinations due to the various benefits of establishing an enterprise in the nation. Due to its business-friendly policies, global connections, tax advantages, and high-quality infrastructure facilities, Dubai is favored by many entrepreneurs.

business registration cost in UAE

Hence, starting a business in Dubai may be quite profitable for the entrepreneur. However, when establishing a business in the UAE, one of the most crucial considerations is the business registration cost in UAE.

Components of business registration cost in UAE

components of business registration cost in UAE

The business registration cost in UAE is influenced by numerous variables. Among these are things like the company’s jurisdiction, commercial operations performed by the firm, the kind of license required, and other relevant aspects. 

The components for the business registration cost in UAE for establishing various kinds of companies would include the following:

1. Costs incurred for registering a firm- The business registration cost in the UAE is determined by shareholder participation, economic activity, and visa applications. 

In order for the business to operate in the province, a small registration fee is required. However, any further improvement will result in a cost increase.

The business registration cost in UAE to set up a Limited Liability Corporation can be between AED 22,000 and AED 24,000. 

Similarly, the business registration cost in UAE to register a firm in the free zones starts is approximately AED 15,000.

2. Licensing fee for the business- All legally recognized businesses in the UAE are required to acquire a relevant license in order to conduct business operations in the nation. 

Hence, another important business registration cost in UAE is obtaining a license to conduct business operations in the UAE.  

Additionally, obtaining a license protects business owners from any possible compliance issues as well. 

Any license is authorized only when a corporation complies with all business laws and regulations. These permits must be renewed annually.

In order to conduct business in the UAE, the following licenses may be issued based on the form of business:

  • Commercial License– Acquiring a commercial license enables the trading of particular categories of commodities
  • Service License– A service license enables an individual to offer services to different sectors.
  • Industrial License– Acquiring an industrial license enables an individual to produce products in the UAE.
  • Other forms of the license may include Tourism License, Agriculture License, etc. 

3. The Costs incurred for Renting an Office– A precise business office location or address is essential in order to conduct commercial operations. As such, one of the most important business registration cost in UAE is that of renting an office space. 

In order to rent an office for business purposes it is important to pick an appropriate location since the designated place will receive all relevant correspondence and notices. It costs between AED 15000 to AED 20000.

4. Expenses incurred for reservation of Trade Names– The Economic Administration of the region where the firm, as well as the trade name, would be registered will determine the registration costs for trade names in the UAE. 

The lowest prices that will be levied by the Dubai Economic Department are:

  •  The business registration cost in UAE for the reservation of trade name is AED 620. 
  • However, the registration amount for registering a foreign name is AED 2000.

5. Visa expenses– Dubai encourages commercial establishments from individuals from all over the world. These customers need a residence permit in order to live and do business. 

Even though they need a visa to work, large corporations are allowed to bring in workers from other nations.

6. Memorandum of Association fee– The Memorandum of Association fee for business registration cost in UAE includes the following-

  • For attestation of the signings on a record with a valuation of no more than 100,000 Dirhams, each party to the agreement must sign for a fee of AED 300. 
  • If the companions sign the agreement at various business centers, it will cost AED 500. 
  • AED 100 will be charged for every member’s digital signature.

Cost breakup for business registration cost in UAE

The cost breakup for business registration cost in UAE is shown in the table below:

 

Descriptions

Cost Involved

Application for an initial approval certificate

AED 120

License registration fee 

AED 600

Trade Name Reservation

AED 620

Foreign Trade Name Reservation

From AED 1000 to AED 3000

DED Trader License

AED 1,070 + AED 300 Dubai Chamber fees

Intelaq License

AED 1,070

Business center fees

AED 25,000

Benefits of incorporating a business in the UAE

Registering a firm in the UAE provides the entrepreneur with the following benefits:

  1. By forming a business in a free zone, the entrepreneur can acquire 100% international ownership.
  2. A single director from any country is all that is necessary for an offshore firm to be 100% foreign-owned.
  3. The two largest financial hubs, Dubai and Abu Dhabi, both have offshore amenities that draw a significant amount of international investment.

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Conclusion

Business registration cost in UAE is one of the most important things to consider whenever an entrepreneur thinks of establishing a firm in the UAE. However, business registration cost in UAE is based on the various forms of legal entities in the UAE.

For more queries on the related topic, you can consult our experts at Odint Consultancy. We will be delighted to aid you to solve your queries.

FAQ’s

  • Entrepreneurs can acquire 100% international ownership.
  • There are various tax incentives.
  • The two largest financial hubs, Dubai and Abu Dhabi, both have offshore amenities that draw a significant amount of international investment.
  • Commercial License
  • Service License
  • Industrial License
  • Tourism License
  • Agriculture License
  • Costs incurred for registering a firm
  • Licensing fee for the business
  • The Costs incurred for Renting an Office
  • Expenses incurred for reservation of Trade Names
  • Visa expenses
  • Memorandum of Association fee

The business registration cost in UAE to set up a Limited Liability Corporation is between AED 22,000 and AED 24,000. 

The business registration cost in UAE to register a firm in the free zones starts is approximately AED 15,000.

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