Setting up a business in Dubai requires obtaining a mainland trade license, which is essential for companies operating within the local market. The cost of acquiring and maintaining a mainland license can vary depending on several factors, such as the type of business, the size of the company, and the specific legal requirements. Understanding the costs involved is important for entrepreneurs and business owners looking to establish a business in Dubai.
License fees:
The most significant cost associated with obtaining a mainland trade license is the license fee itself. The fee varies depending on the nature of the business and the license type. For instance, a commercial license may cost differently than a professional or industrial license. On average, the license fee ranges from AED 10,000 to AED 20,000 per year, but this can fluctuate based on the specific activities of the business.
Office space costs:
Another key cost to consider is securing a physical office space. Dubai mandates that businesses operating under a mainland trade license must have a physical office in the emirate. The cost of renting office space depends on the location, size, and type of property. Prices can range significantly, with offices in prime locations like Downtown Dubai or Business Bay being more expensive. Rent can cost anywhere from AED 15,000 to AED 100,000 annually, depending on the office size and location.
Visas and immigration fees:
For companies that wish to hire employees or owners who wish to sponsor their visas, there are additional visa-related costs. The cost of an employee visa typically ranges from AED 3,000 to AED 8,000, depending on the type of visa and the duration of stay. Entrepreneurs must also account for immigration fees, which may include additional costs for medical tests, Emirates ID processing, and residency permits.
Additional approvals and permits:
Certain business activities require additional permits or approvals from government entities before the mainland trade license can be issued. For example, businesses in the healthcare, education, or food sectors may need additional certifications or regulatory approvals, which come with extra costs. These fees can vary based on the complexity of the business and the type of additional permits required.
Accounting and legal fees:
To ensure compliance with local regulations and avoid penalties, many businesses hire legal or accounting services. The cost of professional services such as legal consultations, drafting contracts, and maintaining financial records should be factored into the overall cost of running a business. Legal and accounting fees can range from AED 5,000 to AED 15,000 annually, depending on the level of service required.