Setting up a company requires meticulous planning and financial consideration. In the United Arab Emirates (UAE), the process can vary depending on the type of license needed. Here, we’ll delve into the costs of obtaining a Professional License, which is essential for service-based businesses.

Understanding Business License Creation – Company Set Up in Dubai

One of the initial steps in establishing a company is obtaining a business license. Two options are available for those operating under a Professional License: Instant and Normal.

The Instant Option is ideal for entrepreneurs looking to test the market feasibility of their business plan. It offers the flexibility of not requiring an office space (Ejari) for the first year. However, this option may pose challenges when opening a company bank account without an Ejari. Nevertheless, with proper documentation such as residency Ejari and legitimate financial records, it’s possible to justify the source of income. The cost for this option typically ranges from AED 3,700 to 6,000 for one owner.

On the other hand, the Normal Option is for those who are confident in their business potential and wish to proceed with full commitment. This option necessitates having an office Ejari, which facilitates opening a company bank account. The cost for this option is similar to the Instant Option, ranging from AED 3,700 to 6,000, plus an additional 5% of Ejari. It includes initial approval and trade name reservation fees. Some business activities may require external ministry approval, including extra costs and documentation, such as educational qualifications and specific office locations.

Navigating Local Service Agent (LSA) Requirements

New business set up in Dubai

Incorporating a Local Service Agent (LSA) is mandatory for Professional License setups in the UAE. The LSA provides their Emirates ID to complete part of the company formation process, though they do not have any share in the business. The costs associated with an LSA depend on whether an office Ejari is required.

  • With Ejari: The cost ranges from AED 10,000 to 12,000, reflecting the additional requirement for a legitimate office space.
  • Without Ejari: The cost is relatively lower, ranging from AED 6,000 to 7,000, as it excludes the need for an office Ejari.

Essential Documentation and Permits – Company Set Up in Dubai

Several documents and permits are necessary to complete the company setup process in the UAE.

Company Stamp: AED 116

  • Immigration Card: This includes typing fees (AED 75), application fees (AED 520), and center admin costs (AED 575).
  • Visa Issuance Application: This involves entry permit fees (AED 1,170), change status fees (AED 660), and center admin costs (AED 575).
  • Medical Examination: Applicants can choose between VIP (AED 755) and Normal (AED 300) options, depending on the urgency of results.
  • Emirates ID Application: AED 375
  • Visa Issuance Stamping: Applicants can opt for Normal (AED 840) or Urgent (AED 928) stamping services, with the latter being highly recommended for immediate
  • processing.

External Approvals and Additional Costs

Certain business activities may require external approvals from relevant authorities, significantly impacting setup costs. Examples include:

  • Aviation Consultancy (DCAA): AED 6,900
  • IT (DED): The cost varies, and the focus is on providing educational qualifications and proof of hands-on experience.
  • Child Skill Development (KHDA): AED 15,000

Final Considerations

Navigating the costs associated with company setup in the UAE requires careful consideration and attention to detail. Entrepreneurs should be cautious of enticing offers promising quick and cheap licenses, especially for businesses categorized under General Trading, Consultancy, Free Zone, and E-Commerce, which may encounter challenges with banking procedures.

It’s crucial to scrutinize all costs associated with service providers, including Memorandum, Establishment card, Audit fee, Bank opening fee, Initial Inspection fee, and Transaction fee. By meticulously navigating these expenses and requirements, entrepreneurs can ensure a smooth and financially feasible company setup process in the UAE.

For expert guidance and seamless navigation through the complexities of company setup in the UAE, consider reaching out to Syed Aadil, an experienced company setup consultant. His expertise can help you understand the intricacies of licensing options, documentation requirements, and associated costs, ensuring a smooth and successful establishment of your business in Dubai.

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