What is the Cost of LLC Company Formation in Dubai?
The Department of Economic Development (DED) and the UAE Commercial Companies Law (CCL) are the two legal authorities that govern all the mainland as well as free zone businesses in Dubai. A Limited Liability Company (LLC) is a standard type of company in the mainland regions (onshore regions) of Dubai. Because of the low cost of LLC company formation in Dubai and its fast setup process has been attracting many investors from around the globe. Moreover, LLC formation in Dubai permits direct trade with the local markets.
So, if you’re looking forward to setting up your new business and are wondering which to choose amongst all the available onshore and offshore options, consider opening a Limited Liability Company (LLC) in the UAE. But before rushing into the process you must be aware of the cost of LLC company formation in Dubai.
Cost of LLC Company Formation in Dubai
The cost of LLC company formation in Dubai is approximately AED 24,000 to AED 27,000. A detailed breakdown of this cost is as follows:
1. Commercial License Registration Fees
A commercial license is provided by the Department of Economic Development (DED) in Dubai.
Owning a commercial license provides you authority to conduct business in Dubai. All the trading activities are considered legal only if you have a commercial license issued for your business. The cost of a commercial license is approx. AED 600.
2. General Trading Activity Fees
General trading activities include import-export, trading of goods or products like food, clothes, furniture, electronics, etc. To conduct the following activities, you need to pay the government. The cost of general trading activities in Dubai is around AED 9,000 to AED 15,000.
3. Trade Name Registration Fees
Trade name registration in Dubai is executed by the Economic Department of the UAE. You are free to choose the name of your company. However, it should follow all the terms and conditions stated by the DED authority of the UAE. The trade name registration fee can be anywhere near AED 2,000 – AED 3,000.
4. Residency and Employment Visa Fees
Foreigners who want to live and work in the UAE are expected to have a residency visa and an employment visa with them. As the name suggests a residency visa provides legal rights to live in the UAE and an employment visa provides the legal right to work in any company or conduct business within the UAE. The Residency visa fee in UAE for one year is AED 100. An employment visa with 2 years validity will cost AED 5000.
5. Chamber of Commerce Fees
Dubai Chamber of Commerce and Industry is a public organization that works towards the growth and expansion of the business community in Dubai. It is compulsory to register with DCCI to form an LLC in Dubai. The price of membership at the chamber of commerce is between AED 1200 – AED 2200.
6. Ministry of Economy Registration fees.
The Ministry of Economy manages the flow of money. It is responsible for tracking and tackling all the illegal attempts against the United Arab Emirate’s economical and commercial balance.
Registering your company’s name under the Ministry of Economy is a mandatory procedure. The cost of name registration can be around AED 2500.
7. Market fees
You need to pay a market fee, which is 5% of the rent of your shop/office space. This depends on the size of your office or shop. The bigger the office the more the rent.
8. 1 Year Tenancy Fees
Ejari is an official online registration platform by RERA to keep a record of all the rental or lease contracts. It is compulsory to register with Ejari online and get your tenancy contract. You will be charged a fee of approximately AED 10,000 for a 1-year tenancy contract.
Documents Required for LLC Company Formation in Dubai
Several documents are required for the formation of an LLC company in Dubai. To cut the tension for you, a list of all the necessary documents required for the formation of an LLC company in Dubai is as follows:
- Application form from DED Dubai.
- Passport size photos of all the shareholders of the company.
- Passport size photo of the local sponsor.
- No Objection Certificate (NOC) papers issued by the local sponsor under your name.
- Photocopy of Memorandum of Association (MOA) attested by the DED Dubai.
- Proof of registration of your company name.
- DED Approved the application of tenancy and unique Ejari code.
- Reference letter of each shareholder from a legal bank in Dubai.
- Valid company incorporation certificate.
- Proof of valid Residency Visa.
- Proof of Employment Visa.
- Photocopy of your LLC company formation approval papers.
- Proof of payment through a payment receipt photocopy.
Cost of Renewal of LLC Company License in Dubai
Getting your LLC company license is not the end of your payment journey. The cost of renewal of an LLC company license is also a necessary aspect to be aware of while planning to open your company in Dubai. A yearly renewal fee for your trade license in Dubai is AED 5000 for a general trading company. Whereas the cost of renewal for a contract-based company is AED 3000.
Connect With Shuraa
LLC company formation in Dubai is one of the most preferred business entities by investors from across the globe. It’s easy to set up procedures and low start-up costs are the major factors for the same. Moreover, with help of an LLC company formation expert can make the process seamless. It is advised to seek help from an experienced business consultant for planning, registration, paperwork, and to acquire a license. Business consultants at Shuraa Business Setup can help throughout the whole process of LLC company formation in Dubai.
