Dubai is an attractive location for entrepreneurs and investors from all over the world. The city not only offers a strategically favorable location between Europe, Asia and Africa, but also a modern infrastructure, a dynamic economy and a business-friendly government. But before you take the plunge and set up a company in Dubai, there is one key question to ask: How much does it cost to set up a company in Dubai? In this article, we will answer this question comprehensively by highlighting the different types of costs involved in setting up a company in Dubai.
- Introduction to company formation in Dubai
Before we look at the specific costs, it is important to understand that Dubai offers different business structures and free zones, which have different requirements and costs. The most common corporate structures in Dubai are:
- Free Zone Companies - Onshore Companies (Mainland Companies) - Offshore Companies
Each of these structures has its own advantages, regulations and costs. In the following sections, we will go into detail about the costs for each of these types of company formation.
- Cost of setting up a free zone company in Dubai
Free Zones are specially designated areas in Dubai that offer entrepreneurs numerous benefits, including 100 % foreign ownership, tax advantages and simplified administrative processes. The cost of setting up a free zone company varies depending on the free zone and the type of business.
a) Lizenzkosten
The cost of the business license depends on the type of business and the free zone chosen. License fees can range from AED 10,000 to AED 50,000 per year. Some free zones offer special packages for startups that can reduce costs.
b) Büro- und Mietkosten
Each free zone has specific requirements in terms of physical office space. Rental costs vary depending on size and location. For a small office, costs can start at around AED 15,000 per year, while larger offices can be significantly more expensive.
c) Visagebühren
Entrepreneurs and employees require a visa to work in Dubai. The cost of a visa depends on the type and duration and can range from AED 3,000 to AED 7,000 per visa. The number of visas a company can apply for depends on the size of the office.
d) Bankkontoeröffnung
Opening a business account is another cost factor. Some banks charge a fee for opening an account and there may be minimum balance requirements, which can range from AED 10,000 to AED 500,000.
e) Other costs
Additional costs may be incurred for the translation and notarization of documents, the hiring of a local service provider or the use of consulting services. These costs vary depending on the specific requirements of the company.
- Costs for setting up an onshore company (mainland company) in Dubai
An onshore company in Dubai allows companies to operate directly in the domestic market. Unlike free zones, there are no restrictions on the scope of activities or geographical reach within the UAE.
a) Handelslizenz
The cost of a trading license depends on the type of business and the specific location. Fees start at around AED 15,000 and can go up to AED 40,000 per year. Again, there are differences depending on the type of business and its requirements.
b) Bürofläche
Onshore companies are required to have a physical presence in Dubai. The cost of renting an office in the city varies greatly depending on location and size. A small office in a less central location can cost from AED 20,000 per year, while office space in more central locations or larger buildings can be significantly more expensive.
c) Lokaler Sponsor
An onshore company in Dubai requires the participation of a local sponsor (an Emirati) who holds 51 % of the shares in the company. The sponsor usually receives an annual fee, which can range from AED 10,000 to AED 50,000 depending on the agreement. There are also models where the sponsor only has a symbolic stake, while the foreign entrepreneur retains control.
d) Visagebühren
As with free zone companies, visa fees also apply here. However, these are often higher, as onshore companies usually have larger workforces.
e) Zusätzliche Gebühren
Additional fees may apply for business registrations, chamber memberships and other official requirements. These may vary depending on the type and scope of the business.
- Costs for setting up an offshore company in Dubai
Offshore companies in Dubai are primarily designed for international businesses that do not need to operate within the UAE. These structures offer advantages such as tax optimization and low incorporation costs, but have restrictions on doing business in the UAE.
a) Gründungskosten
The formation costs for an offshore company are generally lower than for the other company forms. They start at around AED 12,000 and can increase depending on the specific requirements.
b) Jahresgebühren
Annual fees for maintaining the offshore company are usually between AED 10,000 and AED 20,000. These include license fees and other regulatory costs.
c) Kein physisches Büro erforderlich
In contrast to other types of companies, offshore companies generally do not require a physical office, which saves considerable costs.
d) Bankkontoeröffnung
Offshore companies also require a bank account, and the opening costs and minimum balance requirements vary similarly to the other forms of company.
- Ongoing costs and other considerations
In addition to incorporation costs, there are also ongoing costs that entrepreneurs should consider when setting up a company in Dubai:
• Buchhaltungs- und Auditkosten: Je nach Unternehmensgröße und -struktur können diese Kosten zwischen 5.000 AED und 30.000 AED pro Jahr liegen.
• Marketing und Werbung: Die Kosten für Marketing- und Werbemaßnahmen hängen stark von der gewählten Strategie ab und können von wenigen Tausend bis zu Hunderttausenden von AED reichen.
• Mitarbeitergehälter und Sozialleistungen: Die Kosten für Mitarbeiter variieren je nach Branche, Position und Qualifikation. In Dubai sind auch zusätzliche Sozialleistungen wie Krankenversicherung üblich.
- Was kostet eine Firma in Dubai?
The question "How much does it cost to set up a company in Dubai?" cannot be answered in a general way, as the costs depend on many factors, including the type of company, the chosen company structure, the business license and individual requirements. The cost of setting up a company in Dubai can vary from a few thousand to several hundred thousand AED.
However, Dubai offers a variety of opportunities and benefits that can justify the investment. By carefully planning and choosing the right business structure, you can ensure that your business is successful in Dubai while keeping costs in check.
If you are thinking about setting up a company in Dubai, you should carry out a comprehensive cost analysis and seek expert advice to make the best decisions for your business.
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