- August 12, 2020
- Posted by: DBS Editorial Team
- Category: Cost of Business Setup in Dubai
The cost of LLC set up in Dubai or anywhere across the UAE involves a lot of government fees. The cost to form an LLC company can turn extremely expensive if you lack procedural knowledge. Understanding each cost is crucial – as you may end up spending on things you probably would not require. The affordable way to start an LLC company in Dubai is by taking the assistance of a business setup service provider.
A business setup service provider alerts you right from the beginning about the bound expenses so that you can save on unwanted disbursements. Business setup consultants help you know what to do and when you must do it! This way you can concentrate more on your business, rather than juggling with the government procedures. However, it is good to have a general idea about the cost of LLC set up in Dubai.
Here are the various government costs of LLC set up in Dubai:
Initial approval or Instant license from DED
The Department of Economic Development (DED) provides an instant license or an initial approval for businesses to start their operations. A nominal fee is charged at this stage that lets you start your operations for maximum 120 days in case of initial approval. However, if you apply for an instant license you can run your business for up to a year before to rent an office space and fulfil other pending legalities. This is a onetime cost.
Approving the Trade name
Your preferred trade name must be approved by the Department of Economic Development. Trade Name Reservation fees and government cultural fees is charged by the DED. Commercial name fee is charged at AED 1000, while foreign company names are charged AED 2000. The fees for trademark name are an extra AED 1000. This price may fluctuate with time, standards and your preferences. Trade name reservation is a onetime cost.
Attestation Memorandum of Association MOA
Attestation of the Limited Liability Company’s Memorandum of Association is done between the partners or the shareholders of the company. The attestation cost may further vary depending on share capital. Nevertheless, this is also a onetime cost.
Drafting the LLC Contract
The contract of a limited liability company contract is typed under the mutual consent of the partners. It is mandatory that the limited liability contract is drafted in English and Arabic. This is done for the better understating on the contract between all the shareholders. The contract needs to be drafted as per the guidelines drawn by the DED and the commercial laws. The translation cost may also incur apart from drafting of the contract. This again is a onetime cost.
Ministry of Economy Fee
The ministry of economy charges a nominal fee of AED 3000 to register the limited liability company. This also a onetime fee included in the cost of LLC set up in Dubai.
Trade License Fee
Obtaining a trade license is a onetime expense, but validity of the trade license must be renewed every year. The trade license fee may vary depending on the business activity. For some business activities a security deposited needs to displayed, while making the payment for the license.
Advertising the Trade name
Depending on the company’s requirement a trade name can be advertised. This is a yearly expense that you must consider while analysing the cost of LLC set up in Dubai.
Commercial License Fee
Commercial license fee is also called as a Tejari fees. This is a cost of LLC set up in Dubai that needs to be paid every year for the commercial activities conducted.
Chamber of Commerce Fees
The chamber of commerce needs to be paid every year. The amount mention is for a general trading company. For an industrial or manufacturing company it may vary from AED 2000 or above.
Municipality Fees for Waste Management
This is yet again a yearly fee to be paid to the municipality. For a general trading company this fee may cost AED 1000, in case of an industrial firm the cost will go up to AED 2000.
Commercial Services Improvement Fees
Commercial services improvement fees are a yearly fee paid for the development work done by the governmental departments to uplift the business.
Administrative Services Fee
The administrative service fee is a payment done for all the documentation work carried out by government departments. However, this is just a onetime expense.
Other important expense noted are –
- General trading company formations one-time fees of AED 15,000 is required.
- Contracting License one-time fees of AED 10,000 is charged.
- Real Estate Brokers Company fees for Economic Department is AED 5,000.
- Government charges around 5% of amount premises rent.
- Supplementary fees may be added or may vary as per the business activity and the location of the setup.
Please note that the cost specified only includes governmental charges. This may vary from time to time or agency to agency.
Get It Touch
Speak to a business setup service provider to determine the most cost-effective ways to start your LLC company in Dubai or anywhere across the UAE. Get the exact cost of setting up an LLC company in Dubai, find the perfect UAE local partner for your LLC setup and bespoke solutions with DBS Business Setup!
DBS Business Setup is the leading business setup service providers in Dubai. We have years of experience in company formation and documentation across the UAE. We at DBS Business Setup offer you the most inexpensive ways of setting up an LLC business and also help you deal with other PRO services required while setting up the company.
Book a free consultation with our experts! Speak to our business setup consultant for FREE at DBS Business Setup. Contact us on +97145667485 or WhatsApp +971555813673 to request a call back.
For more information send us your enquiry here https://www.dubaibusinessservices.com/contact-us/