Are you interested in starting a business in Dubai? If so, you’re not alone. Dubai is one of the most popular destinations for entrepreneurs looking to establish their own company. However, it’s essential to understand the costs involved in business setup in Dubai freezone before getting into this opportunity.
The total cost of starting a business in Dubai depends on several factors, such as the type of business, location, legal structure, and the size of your operations. Below are some key cost components to consider when planning your business setup in Dubai freezone.
Company registration fees:
The cost of company registration in Dubai varies depending on the type of business and the free zone you choose. For example, setting up a small business in a free zone can cost anywhere between AED 10,000 to AED 30,000. These fees typically include the registration of your company name, business license, and documentation processing. Larger businesses or those in more specialized free zones may face higher registration costs.
License fees:
Every business in Dubai requires a trade license, which allows you to operate legally. For a free zone business, a license can range from AED 7,000 to AED 15,000 annually, depending on the zone and the nature of your business. In some cases, the license fee may include additional services, such as office space and utilities. It’s essential to factor in the cost of the license when planning your budget for starting a business.
Office space and infrastructure:
Office space is another key cost when setting up a business in Dubai. Free zones often provide flexible office options, including co-working spaces, virtual offices, and fully equipped offices. The cost of office space can range from AED 5,000 to AED 20,000 per year for small businesses in a free zone. Larger office spaces for bigger operations can cost significantly more. Many free zones offer discounted packages for first-time entrepreneurs, which can help reduce initial expenses.
Visa and immigration costs:
To legally operate in Dubai, you will need to obtain a residence visa for yourself and your employees. The cost of a visa depends on the number of employees and the type of business. Typically, the cost of an employment visa in a Dubai free zone ranges from AED 3,000 to AED 7,000 per person, including medical tests and visa stamping. Some free zones offer visa packages that include multiple visas, which can be more cost-effective for small businesses with several employees.