Cost of Company Setup in Dubai, UAE (Money Saving Tips)

Summary

In this video, Karen B, an expert in helping Indian entrepreneurs expand to the UAE, breaks down the actual costs involved in setting up a company in Dubai and other Emirates. The video covers essential expenses like company licenses, office addresses, residence visas, and miscellaneous fees such as medical checks and biometrics. Karen explains how the cost varies depending on the location and type of setup, from affordable options in free zones to more expensive setups in Mainland Dubai. She also provides practical advice on minimizing costs and navigating the process efficiently.

Takeaways

• 😀 Setting up a company in the UAE involves several costs, including government fees for a company license, visa, and other mandatory expenses.
• 😀 The cost of setting up a company in Dubai can range from AED 6,000 to AED 25,000, depending on the chosen free zone or mainland location.
• 😀 The cheapest company setup fees in Dubai start at around AED 12,500 for a free zone license and office address.
• 😀 To open a bank account for your company in the UAE, at least one person must hold a UAE residence visa.
• 😀 Converting a tourist visa to a residence visa is costly (AED 1,500) and can be avoided by starting the process from your home country.
• 😀 It is more economical to travel back to India for visa processing rather than paying the high fees for status change in the UAE.
• 😀 Companies also need an immigration card (establishment card) to begin issuing visas for employees.
• 😀 Additional costs for medical checkups and biometric services are necessary when applying for a visa in the UAE.
• 😀 Free zones outside Dubai, such as Shams and Raak, offer cheaper setups starting at around AED 6,000 but are farther away from the city.
• 😀 Premium free zones like DMCC, JLT, and DAFZA tend to have higher setup costs starting from AED 25,000, reflecting their more prestigious locations.
• 😀 Consulting a professional to choose the best free zone based on your business needs can save time and money during the company setup process.

Q & A

What factors contribute to the varying cost of setting up a company in the UAE?

The cost of setting up a company in the UAE varies depending on factors like the type of company, the Emirate, the free zone, the office address, and the visa requirements. Additionally, miscellaneous expenses such as medical checkups and biometrics may add to the total cost.

What is the cheapest option for setting up a company in the UAE?

The cheapest company setup in the UAE can be found in certain free zones outside Dubai, like Shams or Raak, where the cost of the license and office address can be as low as 6,000 AED.

Why is a residence visa necessary for setting up a company in the UAE?

A residence visa is necessary for opening a bank account in the UAE. Without a residence visa for at least one person in the company, the bank will not open an account for the company.

What is the cost of converting a tourist visa to a residence visa in the UAE?

The cost of converting a tourist visa to a residence visa is approximately 1,500 AED (about 34,000 INR). This process, known as 'status change', is typically more expensive than completing the process from your home country.

How does the cost of company setup in premium free zones differ from other areas?

The cost of setting up a company in premium free zones such as DMCC, JAFZA, or Dubai International City is significantly higher. For example, the cost can start from around 25,000 AED, compared to lower-cost options in other free zones.

What are the common miscellaneous costs associated with setting up a company in the UAE?

Miscellaneous costs include medical checkups, biometrics, and other administrative fees related to the visa process for the company’s employees or founders.

What is the role of the establishment card in the company setup process?

The establishment card, also known as the immigration card, is required to start issuing visas for the company's employees and is a mandatory part of the company setup process.

Why is it recommended to start the company setup process from your home country?

It is recommended to initiate the company setup and residence visa process from your home country to avoid extra costs, such as the expensive status change fee when converting a tourist visa to a residence visa in the UAE.

Can the company setup process be started while on a tourist visa in the UAE?

While it is possible to start the company setup on a tourist visa, it is not recommended. Converting a tourist visa to a residence visa can be costly and is generally more expensive than starting the process from your home country.

What are the benefits of setting up a company in Dubai for Indian entrepreneurs?

Setting up a company in Dubai offers benefits such as tax advantages, access to global markets, modern infrastructure, and a business-friendly environment. Dubai also serves as a strategic gateway for trade between the East and West.