Cost of Setting Up an LLC Company in Dubai: A Detailed Breakdown of Expenses
Planning a business setup UAE can be an exciting yet overwhelming experience, especially when it comes to understanding the various costs involved. Dubai, being a global business hub, offers lucrative opportunities for entrepreneurs — but it’s crucial to be financially prepared. In this article, we provide a comprehensive breakdown of the expenses involved in setting up a Limited Liability Company (LLC) in Dubai to help you make informed decisions.
Why Choose an LLC for Business Setup UAE?
In the context of business setup UAE, an LLC is one of the most popular legal structures due to its flexibility and legal advantages. It allows foreign investors to operate a business in the local UAE market while enjoying limited liability protection.
Some of the key advantages of an LLC include:
- No limit on the number of visas
- Access to the local UAE market
- Eligibility to rent office space in mainland Dubai
- Freedom to conduct a wide range of business activities
Key Factors Influencing the LLC Setup Cost in Dubai
The total expense of launching an LLC in Dubai depends on several variables such as business location, type of activity, and licensing requirements. Here’s a deep dive into the main components:
1. Trade Name Registration
Before launching a business in the UAE, you need to choose and register your business name with the Department of Economic Development (DED). The cost typically ranges between AED 620 to AED 720, depending on the name complexity and language used.
2. Initial Approval Fee
This approval certifies that the UAE government has no objection to you starting your business. The general cost is about AED 120 to AED 150. This is non-refundable and must be paid regardless of whether you proceed.
3. Memorandum of Association (MoA)
The MoA outlines the ownership structure and operational framework for the LLC. Notarizing and drafting the MoA can cost anywhere from AED 2,000 to AED 5,000, depending on legal consultation fees.
4. Trade License Fee
One of the most significant costs in any business setup UAE is the trade license. For LLCs in Dubai, this usually varies between AED 10,000 to AED 15,000. The cost can increase based on the number of business activities and the jurisdiction (mainland or free zone).
5. Office Rental and Ejari Registration
Every LLC must have a physical office space in Dubai. Rent costs vary depending on location and size but typically start from AED 15,000 annually. Moreover, you’ll need to register your lease with the Ejari system, which costs around AED 220.
6. Local Sponsor Fee (Mainland Only)
If you opt for a mainland setup, working with a local sponsor (UAE national) who holds 51% of shares is mandatory. Local sponsorship fees range from AED 10,000 to AED 25,000 per year, depending on the agreement.
7. Immigration and Labor Card Fees
Setting up an LLC company in Dubai requires you to register with the immigration and labor departments. These processes can cost AED 1,000 to AED 2,500.
8. Visa Costs
Visa-related costs vary based on how many visas are being applied for. On average, a UAE residence visa costs AED 3,000 to AED 7,000 per individual, including medicals and Emirates ID processing.
9. PRO Services and Other Administrative Costs
You may need public relation officer (PRO) services to manage government paperwork efficiently. These can cost around AED 5,000 to AED 8,000 annually depending on the volume of services required.
Total Estimated Cost to Start an LLC in Dubai
To make things easier, here’s a summary table of necessary setup costs:
| Expense | Approximate Cost (AED) |
|---|---|
| Trade Name Registration | 620 – 720 |
| Initial Approval | 120 – 150 |
| MoA Drafting & Notarization | 2,000 – 5,000 |
| Trade License | 10,000 – 15,000 |
| Office Rent & Ejari | 15,000+ |
| Local Sponsor Fee | 10,000 – 25,000 |
| Immigration & Labor Fees | 1,000 – 2,500 |
| Visa Per Person | 3,000 – 7,000 |
| PRO Services | 5,000 – 8,000 |
Estimated Total: AED 50,000 to AED 80,000+
These estimates may vary based on individual requirements and government policies. It’s always wise to get expert assistance for accurate cost estimation.
Cost-Saving Tips for Business Setup UAE
- Consider starting in a free zone where visa costs and office rental are often lower.
- Consult a business setup expert to avoid unnecessary expenses.
- Look for shared or flexi-desk office spaces during your initial phase.
Also, read our step-by-step guide to opening a company in Dubai for more insights on cost-effective setup practices.
Legal and Regulatory Considerations
To ensure compliance, you must adhere to UAE regulatory requirements, including timely license renewals, visa renewals, and service agent agreements.
Always verify with official channels like the UAE Government Portal to stay updated on fees and regulations.
Final Thoughts on Business Setup UAE
Understanding the cost of setting up an LLC company in Dubai is crucial for a successful business setup UAE. While startup costs can be substantial, the long-term benefits of accessing a thriving market and favorable tax environment far outweigh the initial expenses. With proper planning and the right guidance, your entrepreneurial venture in Dubai can achieve remarkable success.
If you’re ready to take the next step, consider consulting a reliable business setup company to help streamline the process and save on hidden costs.
