Many entrepreneurs and investors are attracted to Dubai for its favorable business environment and strategic location. One of the key decisions when setting up a business in Dubai is choosing between mainland company formation and free zone company setup. While both options have their advantages, mainland company formation allows for greater flexibility in terms of business activities and geographical scope.
When considering the total cost of mainland company formation in Dubai, it is important to understand the various expenses involved. Here is a comprehensive guide to help you navigate the costs associated with forming a mainland company in Dubai:
1. Trade Name Reservation: Before you can register your mainland company in Dubai, you will need to reserve a trade name. This typically costs around AED 660 and is valid for 12 months.
2. Initial Approval: Once you have chosen a trade name, you will need to obtain initial approval from the Department of Economic Development (DED). This approval typically costs around AED 810.
3. Memorandum of Association (MOA): The MOA is a legal document that outlines the company’s activities and structure. The cost of drafting and notarizing the MOA can range from AED 2,000 to AED 5,000, depending on the complexity of the company structure.
4. License Fees: The cost of the trade license will vary depending on the nature of your business activities. Trade license fees typically range from AED 10,000 to AED 50,000 per year.
5. Office Space: To setup a mainland company in Dubai, you will need a physical office space. The cost of office rent will depend on the location and size of the office, but can range from AED 30,000 to AED 200,000 per year.
6. Local Sponsor Fees: In order to setup a mainland company in Dubai, you will need to have a local sponsor who will own 51% of the company shares. The fees for a local sponsor can vary, but typically range from AED 10,000 to AED 15,000 per year.
7. PRO Services: Public Relations Officer (PRO) services are required for various government-related paperwork and processes. The cost of PRO services can range from AED 5,000 to AED 15,000 per year.
In conclusion, setting up a mainland company in Dubai can be a complex and costly process. It is essential to understand all the expenses involved and budget accordingly. If you need assistance with mainland company formation in Dubai, reach out to First Offshore Corporation for a free consultation. Email us at [email protected] to get started on your business journey in Dubai.
