Dubai is the land of opportunities! And you can benefit from it by setting up your business here. Before starting the process of setting up your company, you need to choose the free zone for your office. Dubai has around 40 free zones so choosing one from such a huge number can be a little overwhelming.

While setting up a company in a free zone, people frequently think that how the company set up cost differs from one free zone to another. It is the key to determining which free zone is the best to set up a company. Further in this blog, you can get insight into how much it will cost for company formation in Dubai. We have provided a breakdown of expected expenditures before as well as after setting up the company. But before that let’s understand what free zones are.

What are free zones in Dubai?

These are economic areas in Dubia from where goods and services can be traded. They offer a 0% tax rate, preferred customs duty, and a 100% exemption of export and import tax. Free zones are popular among privacy-conscious entrepreneurs as there is 100% foreign ownership with no open directory of the company. This means sensitive details of a company are never disclosed to the public.

Four biggest expenses of company formation in Dubai

Company registration fee

It is a one-time payment that you need to make to the authority at the time of registering your company. The amount of the fee is determined by the legal structure of a company and the chosen free zone. The cost of registration in free zone Dubai is not exceptionally varied and it is around 13,000 AED.

License fee

One of the crucial steps of setting up a company in the Dubai free zone is choosing your business license. The three most popular types of business licenses in Dubai are trading, services, and industrial. Unlike the registration fee, it is a recurring cost. And the business license may cost you around AED 10,000 to 50,000 every year.

Office rent

Having an office space is a must to get a business license in Dubai. You can get a variety of office spaces in every free zone to meet your business needs. You can choose from service, smart, and Flexi desks and they might cost you around AED 15,000 to 20,000. These office spaces are well-equipped to allow you to operate as well as expand your business with time.

Share capital

The minimum share capital required differs from zone to zone. The share capital requirement can be as little as AED 1,000 and as much as AED 1,000,000 depending on the business activity and license.

So are you ready for your company formation in Dubai? Experts can make the process much easier for you! Get in touch with us right away to get more details about setting up business in Dubai.