How much does it cost to set up a business in the UAE?

The cost of setting up a business in the UAE can vary significantly depending on several factors, including the type of business entity, the emirate where you plan to establish the company, the business activity, the size of the company, and various other requirements. Here are some of the common expenses involved in setting up a business in the UAE:

1. License Fees: The cost of obtaining a trade license will vary depending on the type of business activity and the jurisdiction (mainland or free zone). License fees can range from a few thousand UAE dirhams to tens of thousands of dirhams or more annually, depending on the nature of the business.

2. Share Capital: Some business entities, such as LLCs, may have minimum share capital requirements. The specific amount can vary depending on the emirate and the business activity. It's important to note that the share capital does not always need to be fully paid upfront.

3. Office Space: Renting or leasing office space is a significant expense. The cost will vary based on the location, size, and quality of the premises. Free zones often have specific requirements for office space, and their costs may differ from those in mainland areas.

4. Sponsorship or Local Partner: If your business activity requires a local partner or sponsor, there may be costs associated with their involvement, such as annual sponsorship fees or profit-sharing arrangements.

5. Government Fees: There are various government fees involved in the company registration process, including application fees, name reservation fees, registration fees, and visa-related fees. These fees can vary depending on the emirate and the specific services required.

6. Professional Services: Engaging the services of a local business consultant, lawyer, or PRO (Public Relations Officer) to assist with the company registration process can incur professional service fees. The cost will depend on the complexity of your business setup and the level of assistance required.

7. Visa and Employment Costs: If you plan to hire employees, you will need to consider the costs associated with visa processing, work permits, medical tests, and other related expenses.

It's important to note that the cost structure can differ between mainland companies and those established in free zones. Free zones often offer bundled packages that include license fees, office space, and other services, which can make the initial setup costs more transparent and predictable.

The overall cost of setting up a business in the UAE can range from several thousand UAE dirhams to hundreds of thousands or even millions of dirhams, depending on the factors mentioned above. It's advisable to consult with a local business advisor or a specialized company formation agency to get accurate and up-to-date information regarding the specific costs associated with your business setup requirements.