The costs of establishing a company in Dubai vary from one region to another and include a set of costs and fees, such as: the costs of obtaining a commercial license, the costs of opening a commercial register, the costs of residence visas for expatriate employees, and other costs such as the costs of renting or purchasing a workplace and tax costs. In this article, we will discuss the costs of establishing a company. In Dubai for taxes.
Costs of setting up a company in Dubai related to taxes
Taxes are one of the costs of establishing a company in Dubai , which concerns investors in determining the tax status in the country. If the tax rate is high, the investor may hesitate to establish a business in the country. However, in the case of tax exemptions, they are a strong motivation for planning to establish a business in the country, in the case of free zones in Dubai, which It enjoys full corporate and personal income tax exemptions for individuals. The factors that affect the costs of setting up a company in Dubai in relation to taxes include several aspects that must be taken into consideration to ensure a comprehensive understanding of the expected costs. These factors include:
Type of business activity
The type of activity the company will undertake affects fees and taxes. Some activities require higher licensing fees or need additional approvals from relevant authorities. The location of free zones in Dubai offers tax benefits such as exemption from value-added tax and customs, while companies registered within mainland Dubai are subject to different tax rules. Rental and service costs may vary between main Dubai free zones.
Company size and capital
Company size and registered capital can affect licensing fees and administrative costs. Companies with large capital may need to pay higher registration and licensing fees. The type of company (e.g. limited liability company, branch of a foreign company, public or private joint stock company) affects the costs. Each legal structure has different requirements and fees.
Sectoral taxes
Some sectors such as banks and oil companies may be subject to special taxes. Companies in these sectors need to review their tax requirements. Registration of a company for VAT requires a periodic obligation to file tax returns and pay VAT on sales. The costs of hiring an accountant or tax consultant to manage tax matters must also be taken into consideration.
Consulting and professional services fees
Costs of contracting with legal and financial consulting companies to assist in establishing the company and preparing the required documents. These services include tax consulting to ensure compliance with local laws. Also, tax laws and regulations may change over time, affecting current and future costs. You must also follow up on periodic updates in tax legislation. Obtaining exemptions and discounts as some free zones offer tax incentives and exemptions to attract investments, which can reduce costs significantly. Some economic sectors also provide tax breaks as part of certain stimulus plans.
How do we help you determine the costs of setting up a company in Dubai?
We help you determine the costs of setting up a company in Dubai by providing specialized and accurate advice based on the nature of your business and your specific needs. Our team of legal experts and consultants with extensive experience in the field of establishing companies in Dubai will help you understand all expected fees and expenses, including licensing costs, rents, and administrative processes. When you contact us at Itqan Company, we will prepare a detailed plan that shows you all the expected costs and ensure that you follow all legal and administrative procedures, from A to Z, to achieve the best possible start for your project in Dubai.
How to create a company in Dubai
Setting up a company in Dubai requires following several important steps to ensure compliance with local laws and regulations. Here are the steps to establish a company in Dubai :
- Determine the type of business: Choose the type of business you want to do. Make sure the activity complies with local laws and obtain the necessary approvals if required.
- Choosing the legal form of the company: Choose the most appropriate legal form for your company, such as a limited liability company (LLC), sole proprietorship, joint stock company, branch of a foreign company, and others.
- Trade name registration: Choose a suitable trade name that complies with trade name laws in Dubai. Make sure that the name is not reserved or used by other companies. The trade name was registered with the Department of Economic Development (DED).
- Obtaining initial approvals: Submit a request to obtain initial approvals from the Department of Economic Development. You may need additional approvals from other government agencies depending on the type of business activity.
- Preparing the articles of association and partnership agreement: Preparing the articles of association and partnership agreement (if the company includes partners). The documents must be notarized by a notary.
- Locate a business: Rent an office or business location that matches your business. And obtain a lease contract authenticated by the Real Estate Regulatory Authority (RERA).
- Submitting documents and obtaining a license: Submit all required documents to the Department of Economic Development. And pay the fees required to obtain a commercial license.
- Obtaining final approvals and licenses: After submitting all documents and paying fees, wait for final approvals from the relevant authorities. Upon receipt of the commercial license and officially begin practicing commercial activity.
- Registration with other government agencies: Register your company with the Ministry of Human Resources and Emiratisation to obtain an establishment card. Register with the Employees’ Social Insurance Authority. And open a bank account for the company.
- Obtaining Employee Visas: Submit applications for work visas for employees as needed. With a record of the company in the local tax system (such as VAT if required).
How to create a company in Dubai
Advantages of establishing a company in Dubai
Establishing a company in Dubai offers many attractive advantages for businessmen and investors. Here are some of the most notable advantages:
- Favorable business environment: Dubai is considered a global business center thanks to its advanced infrastructure and modern facilities that support diverse business activities.
- Tax exemption: Many free zones in Dubai offer tax exemptions on business income and profits, which encourages investment.
- Foreign ownership of companies: In many free zones, foreign investors can own companies 100% without the need for a local partner.
- Diversified economy: Dubai has a diversified economy that does not depend only on oil, but includes sectors such as tourism, trade, finance, and real estate, which provides broad opportunities for growth and investment.
- Ease of establishing a business: The procedures related to establishing companies in Dubai are simple and quick, with the availability of many electronic services to facilitate the registration and licensing process.
- Strategic location: Dubai enjoys a strategic geographical location linking Asia, Europe, and Africa, making it a gateway to global trade.
- Excellent Infrastructure: Dubai provides advanced infrastructure that includes world-class airports, sea ports, and advanced road networks, facilitating transportation and distribution operations.
- Quality of life: Dubai provides a high level of quality of life, with advanced health and educational facilities, and a modern lifestyle, which attracts talent from all over the world.
- Political and security stability: Dubai enjoys a high level of political and security stability, which provides a safe environment for investment and commercial growth.
- Government support: The government in Dubai provides strong support to investors through financial incentives and legislation that facilitates doing business.
In short, Dubai offers a unique combination of economic opportunities, advanced infrastructure and competitive advantages that make it an ideal destination for business establishment and investment.
In conclusion, understanding the costs of setting up a company in Dubai is a crucial step for the success of any business venture. Whether you are an ambitious entrepreneur or a large company looking to expand into a new market, accurately estimating costs and knowing the legal and administrative requirements can help you make informed decisions and avoid financial surprises. Dubai offers an ideal environment for business thanks to its advanced infrastructure and supportive investment policy. We are here to provide you with comprehensive support and specialized guidance to ensure that your company is established easily and smoothly. Contact us for a personalized consultation and start achieving your business goals in Dubai with confidence and success.
Frequently asked questions about the costs of establishing a company in Dubai
What are the basic costs of setting up a company in Dubai?
Basic costs include business license fees, office rental costs, and required capital depending on the type of company.
What types of companies can I establish in Dubai?
You can establish a sole proprietorship, a limited liability company (LLC), a joint stock company, or a sole proprietorship with limited liability.
What other government fees must be paid?
Government fees include company registration fees, license renewal fees, and fees for legal services if necessary.
Are there taxes on profits for companies in Dubai?
In Dubai, there are no taxes on profits for most companies, except for some specific sectors such as banks and real estate companies.
How long does it take to set up a company in Dubai?
This can vary depending on the type of company and the efficiency of completing the necessary procedures, and usually takes from two weeks to two months.
