Cost Of Company Formation In Mainland Dubai
Dubai is known for its business-friendly environment, making it a popular destination for entrepreneurs and investors looking to set up a company in the region. Dubai offers different options for company formation, including mainland, free zone, and offshore company formation. In this article, we will discuss the mainland company set up Dubai cost.
Mainland company formation in Dubai is ideal for businesses that intend to trade within the UAE market. Companies registered in the mainland are free to operate anywhere in Dubai, and they can also do business with government entities and other mainland companies without any restrictions.
The cost of company formation in mainland Dubai varies depending on the type of business and the company structure. The following are the cost components involved in mainland company formation in Dubai:
Trade license fee:
The fee paid to the Department of Economic Development (DED) for obtaining a trade license. The fee depends on the nature of the business activity and the number of shareholders in the company. The trade license fee for a limited liability company (LLC) with two shareholders is approximately AED 15,000 ($4,085).
Company registration fee:
This is the fee paid to the DED for registering the company in Dubai. The registration fee for an LLC is approximately AED 10,000 ($2,725).
Office space rental:
All companies registered in mainland Dubai must have physical office space. The cost of office space rental varies depending on the location and size of the office. The cost of office space rental in Dubai can range from AED 50,000 ($13,620) to AED 150,000 ($40,860) per year.
Local sponsorship fee:
All mainland companies in Dubai must have a local sponsor who holds 51% of the company’s shares. The cost of local sponsorship varies depending on the sponsor and the type of business activity. The annual sponsorship fee can range from AED 10,000 ($2,725) to AED 30,000 ($8,170) per year.
Companies are required to obtain visas for their employees. The cost of visa fees depends on the number of employees and the type of visa required.
Businesses may also need to engage the services of a business setup consultant or a legal firm to assist with the company formation process. The professional fees these service providers charge vary depending on the services provided.