Types of Costs Involved in Obtaining a Trade License in Dubai Mainland
Setting up a company in Dubai offers the foreign investors a plethora of advantages including the zero personal taxes, zero corporate tax, double taxation avoidance treaties, the ease of doing business, and the easy setup procedures. The minimal administrative and bureaucratic works have made the process of business setup in Dubai much easier compared to other major economies in the world. Out of 190 countries, UAE is ranked on 16th by the world bank for ease of doing business. The multiple options of low-cost business setup in Dubai have been a major draw for the foreign investors yet the real cost of obtaining a mainland business is a pertinent question that the entrepreneurs are always curious to know about.
The cost of obtaining a business license in Dubai mainland may vary depending upon a slew of reasons such as the nature of the business and the office spaces you are renting. However, a better way to address the costs involved in the process of business setup in Dubai is to discuss the various government procedures that require you to incur expenses. Most of the costs involved in the process of getting a trade license in Dubai come in the form of yearly fee that you should pay to the Dubai Department of Economic Development (DED). To obtain a DED trade license at affordable costs, consult the best business setup consultants in Dubai.
1. Initial Approval from DED
The DED is the competent authority in Dubai that issues the trade license for your business activity. Getting an initial approval certificate from the DED is a mandatory step in obtaining a trade license in Dubai. While applying for initial approval, you have to remit the official fee along with the required documents. This is a nominal one-time fee that enables you to commence the business operations after the submission. Following is the type of cost involved in obtaining a trade license in Dubai mainland:
2. Trade Name Fee
Reserving a trade name for your company is a mandatory requirement to initiate the process of business setup in Dubai. You need to submit a few business names to the DED to make the trade name reservation application. The DED will review the trade name to verify whether it is complying with the guidelines. The trade name costs include fees such as reservation fees, commercial name fees, and foreign company name fees, etc.
3. Renting an Office Space in Dubai
If you are setting up a Limited Liability Company (LLC) or any other company in Dubai, you must rent an office space. The DED mandates that every business in the mainland should have a valid physical address to get a trade license in Dubai. The cost of the office space will vary depending upon the rental structure of the building or business centre in Dubai. The costs of renting an office space in Dubai could be incurred yearly or termly depending on the demands of the business centre in Dubai.
4. Legal Translation and Notary of MoA
For an LLC company set up in Dubai, it is mandatory to draft the Memorandum of Association (MoA), legal translation in Arabic and get it Notarised from Notary Public. For an LLC, the MoA is facilitated between the partners and shareholders of the company. The MoA attestation fee in Dubai is a one-time cost and it may vary depending on the share capital involved.
5. Drafting Contract for LLC
The LLC business setup in Dubai involves the requirement of drafting a contract under the mutual consent of all the partners. The contract is drafted in English as well as Arabic for the sake of all the shareholders in the company. It must be remembered that the LLC company formation in Dubai mainland requires the local sponsorship of a UAE national who holds at least 51% shares in the company. The contract involves a one-time cost for drafting as well as translation costs.
6. DED Registration Fee & Mainland Trade License Fee
The DED will charge a nominal fee for registering an LLC in Dubai, which is a one-time cost. Also, you have to incur costs under the mainland trade license fee which may vary depending upon the business activity. For some regulated business activities such as legal, auditing, etc, external approvals are required to form the concerned ministries which would lead to additional costs.
7. Commercial License Fee
While setting up a business in Dubai you are required to pay a commercial license fee or Tejari fee for carrying out commercial activities. The commercial license fee needs to be paid every year for conducting commercial activities.
8. Other Important Costs
There are some other costs you are mandatorily required to incur while undertaking company formation in Dubai, which are:
- Chamber of Commerce Fee
- Commercial Services Improvement Fee
- Administrative Fee
Seek Help From Us
Dubai has over the years become a paradise for foreign investors due to the affordable option of business setup in the emirate. The cost of business setup in Dubai mainland is highly affordable for the investors while comparing to other big economies in the world. However, you need to understand the government services and mandatory procedures that will incur a cost while applying for a trade license in Dubai. To have a better understanding of the fee involved with each step of the mainland licensing procedure, the investors are advised to consult the best business setup consultants in Dubai such as Jitendra Business Consultants.
JBC is one of the most reputed consultants that has helped thousands of companies for company formation in Dubai. JBC has a qualified team of business setup consultants in Dubai who are well-versed in the labour laws and immigration laws and are also experienced in dealing with the government authorities. JBC’s business setup consultants in Dubai assist you in providing adequate information on the costs and procedures of obtaining a license. JBC stands with you in all the process of company formation in Dubai right from obtaining a license to incorporation. JBC offers services including drafting of MoA, visa processing, sponsoring of dependents, etc.