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Many people want to establish their own companies in Dubai because it is currently considered one of the most successful cities in the world in terms of business and professionalism.
In order to be able to establish your own company in Dubai, there are many things that you must know first, and one of the most important of these things is the economic aspect. For this reason, in the lines of this article, we will talk about the cost of establishing a company in Dubai. Continue reading with us to learn more details.
The cost of establishing a company in Dubai
Before we start talking about the cost of establishing a company in Dubai, you must first know that the cost of establishing any company varies greatly based on several factors. The most prominent of these factors is the type and size of the company, as some types of companies require small amounts, while others require large amounts. In any case, there are some general amounts that must be paid when establishing a company in Dubai, and these amounts are:
1- Company registration cost
One of the most important fees for establishing a company in Dubai is the company registration fee. These fees are defined as fees that are paid only once, when establishing the company for the first time. In general, these fees change according to the area in which the company is established, in addition to the nature of the legal structure of the company as well. They can range between 9,000 and 10,000 dirhams in general.
2- Commercial license costs
In addition to the cost of registering the company, there are fees for obtaining a commercial license to operate as well. As is the case with the previous fees, these fees vary according to the area in which the company is established, and they also vary according to the nature of the company’s work. In general, we can say that the fees for obtaining a commercial license in Dubai range approximately between 1,000 and 50,000 dirhams. Note that you must pay additional fees annually in order to be able to renew this license.
3- Capital
Another of the most prominent fees for establishing a company in Dubai is capital. The value of capital varies greatly from one company to another, and this depends mainly on the nature of the company’s work and the nature of its economic activity. In addition, this amount can vary from one person to another. For this reason, the capital factor is considered one of the most prominent factors contributing to changing the value of the cost of establishing a company in Dubai, and it can range between 1,000 and 1,000,000 dirhams.
4- Costs of entering the labor market
There are some additional costs that the company must pay in order to be able to operate properly in the market, which are known as market entry fees or costs. These costs may include:
Market entry fees are subject to the local law system, which are approximately 5% of the value of the company’s lease contract.
Additional costs are determined by a committee affiliated with the competent authorities in Dubai for foreign investors.
The costs of foreign investor residence in Dubai, which are estimated at about 5% of the value of the housing contract.
Waste-related costs, which are estimated by the Dubai Waste Committee.
5- Office fees
In order for your company to operate properly in Dubai, you must also take into account the costs of the offices of this company.
The office spaces required by companies vary based on many different factors, such as the nature of the company’s work and its budget, in addition to the number of people working in it and the area in which it is located.
It is worth noting here that the city of Dubai provides office spaces suitable for most types of companies at prices that are also consistent with their income.
These spaces are generally equipped to complete all the work necessary for companies, and their prices range between 10,000 and 50,000 dirhams.
Due to the difference in prices here, the cost of establishing a company in Dubai varies from one person to another.
What are the advantages of establishing a company in Dubai?
Establishing a company in Dubai may seem like a somewhat expensive idea. But in reality, the budget required to establish companies in Dubai varies according to the company and the nature of its work in the first place. In addition, the city of Dubai offers you many legal and economic facilities that make this process a quick and profitable process. The most prominent of these facilities are:
- Lifting taxes on some types of specific companies, most notably natural resource extraction companies.
Reducing taxes, for example, the tax on companies whose income does not exceed 375 thousand dirhams is 0%. - That is, these companies are completely exempt from taxes.
- The tax rate within the UAE itself is low compared to other countries, especially economically developing countries such as Dubai.
- The UAE offers many facilities during the process of establishing companies, especially for foreigners. Such as legal facilities that encourage foreign investors to establish their own companies in Dubai.
Tdabeer Company is the closest to you
Tdabeer Company will meet all your aspirations and implement your steps completely from A to Z in establishing your own company in Dubai. Do not hesitate to contact us and join our list of clients.
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