What are the costs of establishing a company in the Emirates? Many people are searching for what are the costs of establishing a company in the Emirates, as it has now become possible for any person in the Emirates, regardless of his financial ability and budget, to start any type of commercial activity that exists there, and this is due to the different living conditions there and the multiplicity of its requirements and expenses. It is also due to the different types and needs of investment between each emirate and another in the Emirates and their multiplicity.
We notice an increase in the proportion of population, an increase in the number of births, and an increase in the trend to the Emirates, which has led to the need for many diverse and different services necessary for life. This leads to a multiplicity of investments in Dubai, whether they are investors holding Emirati nationality who own capital or they are migrant workers, etc. It is considered one of the best countries in which you can start a new business or any new investment of any kind.
Types of companies available and their impact on costs
In the UAE, there are several types of companies that investors can choose to establish their business. These types differ in legal structure, liability, required capital, etc., and can directly affect costs. Here are some common types of businesses in the UAE and their potential impact on costs:
- Sole Proprietorship: Structure: Owned by only one person.
Impact on costs: The costs of setting up and operating this type of company are relatively lower due to the simplicity of its structure, but it can have financial risks to the owner’s personal finances. - Personal Company (Partnership): Structure: Owned by a group of partners.
Impact on costs: Establishing and managing it can require more documents and agreements, and costs are greater compared to a sole proprietorship. - Limited Liability Company – LLC: Structure: Owned by partners with limited liability.
Impact on costs: Generally, setting up a limited company has moderate costs, but there can be registration fees and capital contributions. - Public Joint Stock Company – PJSC: Structure: It is a complex structure that requires contributions from several individuals.
Impact on Costs: Establishing a public company is more expensive due to its stringent legal and financial requirements. - Private Joint Stock Company: Structure: Similar to a public company, but some differences in the number of shareholders and type of shares.
Impact on costs: Depends on several factors, but they are generally more expensive than other companies due to the complexities of their structure.
When choosing a company type, consider its impact on the costs, legal responsibilities, taxes and legislation of different types. It is always best to consult Etqan before making a final decision to ensure legal compatibility and compliance.
What are the costs of establishing a company in the Emirates?
Government fees for establishing companies in the UAE
The government fees required to establish companies in the UAE vary depending on the type of company, region, and business activities that the company will undertake. However, we can provide an overview of some of the common fees you could face when setting up companies in the UAE:
- Company registration fees: These fees include fees for registering the company name and fees for registering the company itself in government records.
- Business license fees: There may be fees for obtaining a license to practice certain commercial activities, and these fees vary according to the type of activity and region.
- Visa and residency fees: There may be fees for obtaining work visas and residency for employees and directors who work for the company.
- External company services fees: These fees can include attorney services, legal consulting, and accounting that the company needs.
- Commercial Registry Fees: There may be annual fees for renewing the commercial registration, licenses, and permits.
You should take into account that these fees are subject to change and vary from one emirate to another, and there may be additional fees or discounts that depend on the specific factors of each company and the type of business it does. It is important to consult Itqan before starting the company establishment process to accurately understand the expected fees and costs.
How to establish a company in the Emirates?
It is necessary to have and obtain a business visa in the Emirates in order to invest in the Emirates. You can establish a company in the Emirates , establish a company in Jeel Ali, or establish a company in the free zones in the event of a desire to obtain residency in the Emirates for investment, and this is for businesses related to professionals in the liberal professions. This matter requires obtaining a commercial license for the business, depending on the nature of the free zone in which investment and work take place in the Emirates.
As companies wishing to establish their businesses in the free zone or in Jebel Ali enjoy greater flexibility in choosing multiple commercial or service activities that are appropriate to the nature of their work. In addition to this, all that distinguishes these areas is comprehensive tax exemption, and this is considered one of the biggest factors that attract many new contractors. This contributes to revitalizing the experience of investors when convening or establishing companies in the free zone, establishing companies in Jebel Ali, or establishing a company in the Emirates and conducting its business.
What are the costs of establishing a company in the Emirates?
Costs of establishing a company in the UAE
The costs of establishing a company in the UAE vary based on several factors, including the type of company, economic sector, geographic location, and ancillary services that are used. However, general estimates can be provided of the costs that a company in the UAE may be exposed to:
- Licensing and registration costs: The process of establishing a company requires paying licensing and registration fees that vary according to the type of company. For example, the costs of establishing a limited liability company or limited partnership are higher than the costs of establishing a sole proprietorship.
- Office and space costs: The company must pay the costs of renting an office or space to operate the business. These costs may vary based on the location of the office and the amount of space required.
- Fees for legal advisors and accountants: Company incorporation may require the use of legal advisors and accountants to assist the company in incorporation procedures and compliance with local laws and regulations.
- Advisory and guidance services fees: The incorporation process can involve additional costs for obtaining advisory and guidance services from market and business experts.
- Bank Transaction Fees: The Company may be subject to bank transaction fees when opening a Company bank account and using banking services.
- Visa fees: If the company has foreign shareholders, there may be additional costs to obtain visas for them.
This list indicates some of the key factors that should be taken into consideration when calculating the costs of setting up a company in the UAE. You should be aware that these costs may vary significantly based on each company’s individual circumstances and needs. Therefore, it is always best to consult a local financial or legal advisor to get an accurate estimate of expected costs.
Residence and investment in the Emirates
The UAE is considered one of the best distinguished places in which one can invest, but investing in the UAE requires many conditions, and the most important of these conditions is residence there. We are now clarifying the relationship that links investment and residence in the UAE for migrant workers who have excellent investment ideas and capital while developing an investment plan. They want to know about residency in the Emirates and its relationship to investment.
We will clarify, pointing out the effect of residence on investment in the Emirates, how to reside there, the conditions of residence in the Emirates in general, what are the best places in which they can invest their money there, identifying the best locations, and the role of the Emirati government in activating and stimulating investment in the Emirates. These questions we will answer in this topic.
Residency and investment relationship in the Emirates
Residence and investment in the Emirates have a close relationship linked to each other in the multiplicity of commercial activities in Sharjah and the activation of the movement of the trade and investment market, making it one of the best countries in which one can invest through skilled migrant workers. Those with capital can establish several investment companies in order to invest their money in it, and this is in addition to… The UAE government provides services to facilitate the investment process in the Emirates. It also works to provide the needs for new projects in all ways and as quickly as possible. It works to facilitate all the facilities and services necessary to start any type of these investments and also works to provide housing there by reducing the percentage of real estate rents. Or buy it, which makes buying any property in the Emirates a real investor there and has the right to own it and invest in it, whatever its value.
Real estate residency in the Emirates is also considered what leads to real estate investment, and real estate investment in the Emirates consists of purchasing any building, any residential facility, any company, or purchasing a piece of land to establish an investment company on it, but with the availability of several conditions that are available and not restricted at all.
Steps to establish a company in the Emirates
Despite the facilities provided by the UAE government in establishing investment companies there for migrant workers, it has made clear and set several basic conditions that must be adhered to, which are as follows:
Determine the nature of the company’s activity
It is necessary to determine the nature of the activity of the company that you wish to establish in the Emirates, and the number of activities varies according to whether it is a commercial activity, a professional activity, or an industrial activity, and all of them are economic activities, and we all know that the number of economic activities in the Emirates is approximately twenty thousand multiple economic activities, and the Emirati government is working on Facilitating determining the type of this activity.
Determine the legal form of the company
It is also necessary to determine the legal form of the company so that the competent bodies know which type of companies your new company will adapt to. Companies are divided into five types according to their legal form, which are (solidarity company, limited liability company, public joint-stock company, private joint-stock company, and civil works company).
Trade name registration
The trade name when establishing a company in the Emirates is what distinguishes any license from another. It is also related to the form and activity of the company and is approved under several conditions that are stipulated and applied by the Department of Economic Development before approving it, namely that the trade name does not contain any inappropriate words in the country. The name must not contravene public taste and country specificity, and the company name (trade name) must reflect the commercial activity accurately and clearly.
Obtain initial approval
After determining the company’s commercial activity, determining its legal form, and knowing and registering its trade name, you must now obtain initial approval from the competent authorities and bodies for your economic activity for the company, and you must follow up in order to obtain the approval of the authorities related to the activity.
Preparing the articles of incorporation and choosing a location for your business
Concluding or preparing the contract designated for establishing a company in Jebel Ali, establishing a company in the free zone, or establishing a company in the Emirates, involves bringing the original contract of incorporation in agreement between you and the competent authorities in the Emirates or in the free zone. You must also choose a location to establish the company in Jebel Ali. Or establishing a company in the Emirates. To conduct your business, the established companies must have an existing physical address located in the United Arab Emirates.
Obtaining approvals from the authorities concerned with the facility’s activity
Some activities and projects that take place in the Emirates require obtaining additional approvals from regulating bodies specialized in those projects concerned with them, such as approval from the Ministry of Economy, the Ministry of Interior, the Ministry of Justice and Civil Defense.
Obtaining the license
After completing all the aforementioned procedures to prepare and establish an investment company in Jebel Ali or establish a company in the Emirates, you can now receive the license to practice the activity for which you want to establish the company after attaching many of the required documents and paying the commercial license fees for establishing companies, then after registering in the Chamber of Commerce. As a member.
How can we support you in establishing a company in the UAE?
“Itqan” company can provide you with many services and support in the process of establishing your company in the Emirates. Here are some ways Etqan can support you:
- Company Establishment Consultations: Itqan will provide comprehensive consultations on the company establishment process in the UAE, including the appropriate type of company for your business and legal and tax requirements.
- Legal and financial procedures: Itqan Company helps you complete the legal and financial procedures necessary to establish the company, such as registering the company, and obtaining the necessary licenses and permits.
- Guidance in choosing a location: Itqan Company will provide you with advice on the appropriate location for your company, whether inside or outside the free zones, based on your business needs and commercial strategy.
- Tax Registration and Audit: Itqan Company provides tax registration and tax audit services for new companies, which helps with tax compliance and reduces financial risks.
- Management and operation services: In addition, Itqan Company can provide management and operation services, such as managing accounts, salaries and contracts, to ease the burden on you as a new company owner.
- Ongoing advisory support: Itqan Company provides ongoing advisory support after the company is established, giving you access to the advice and information necessary for the success of your business in the Emirates.
Our role in establishing companies
The costs of establishing companies in the UAE are varied and depend on several factors such as the type of company, its location, and the services required. By cooperating with Itqan Company, those wishing to establish their businesses in the Emirates can benefit from the experience and support necessary to facilitate the establishment process and reduce additional costs.
Thanks to the specialized advisory team at Itqan Company, legal, financial and administrative services can be provided effectively, helping to achieve the company’s success in the dynamic business environment in the UAE.
If you are thinking about establishing a company in the UAE and need help with this matter, we are here to help you. Contact Itqan today for a free consultation and start your journey in the world of entrepreneurship in Dubai and the UAE
“Itqan Company combines experience and skill in the field of establishing companies in the Emirates, and is a reliable partner for those wishing to enter the Emirati business market. Through a deep understanding of the local business environment and legal procedures, Itqan helps its clients make the right decisions and achieve their goals efficiently.
Don’t let the costs of starting a company worry you. In the end, investing in establishing a successful company in the UAE can be the key to achieving success and sustainability in the local and global market.
Contact Itqan Company today to benefit from the expertise and support specialized in establishing companies in the Emirates. We are here to make your entrepreneurial journey easier and more successful.
Frequently asked questions about what are the costs of establishing a company in the UAE
What are the main steps to establish a company in the UAE?
Determine the appropriate type of company that matches your requirements. Choose the company name and ensure its availability. Identify shareholders and identify responsible partners. Obtaining a work license from the competent government authorities. Opening a bank account designated for the company. Securing the necessary approvals and permits from government agencies.
What types of companies can be established in the UAE?
A limited liability company. Public or private joint stock company. Sole proprietorship. Company in Free Zone (Free Zone).
What are the tax advantages of establishing a company in the UAE?
Reduced taxes or no taxes in some cases. Obtaining favorable treatment regarding taxes and fees.
What are the necessary conditions for establishing a company in Dubai in the free zones?
Determine the company’s activity. Preparing required documents such as contracts and licenses. Pay the required fees and submit the application to the competent authorities in the free zone.
