If in other countries the taxes almost choke their own residents and discourage the opening of new companies, in the UAE things are really different.
Zero corporate taxes, zero income taxes, full repatriation of capital and profits and, in the UAE free zones, there is also exemption from import and export taxes.
There is also a relevant difference from other countries in terms of bureaucratic and administrative procedures. In the UAE it is possible to obtain a company license just in two working days and the majority of bureaucratic services has been subject to an operation of digitization, making the procedures easier, more efficient and faster.
But what are the real costs of setting up a company in the UAE?
The prices vary according to the type of company, to the activities intended to carry out, to the Emirate where the company will be based and to the rent of an eventual commercial facility.
In the free zones, for example, prices range from 11,000 AED to 50,000 AED for the first year for a company that operates with or without a desk. If you want to rent an office or a warehouse, the costs would be in an annual average of 150/200 AED per square foot, plus the cost of the license and other incorporation fees. The cost for each subsequent year will be slightly cheaper than the first, as the registration fees have to be paid only at the initial stage.
For opening a company in the mainland of Dubai or another Emirate, the cost will be above 20,000 AED plus the cost for the rent of an office or another facility that, differently from the free zone company that can rent only within the free zone area, can be chosen in any area of the Emirate to which the license is related, making the prices much more competitive.
The costs to open an offshore company in the UAE are cheap with a slight variation of prices depending on whether the company is set up in Dubai, Ajman or Ras Al Khaimah. The downside is that it is required to have a monthly average balance of 500,000 AED in the bank if you want to open an UAE company bank account, as the offshore company doesn’t give eligibility for the UAE residence visa.
If you have the UAE residence visa, instead, the company bank account in the UAE can be opened with a monthly average balance that can go from an average of 5,000 AED to 50,000 AED, subject to the bank.
In order to have more information to open a company in the UAE and on the presence of eventual discounts for company incorporation, write to firstname.lastname@example.org or fill up the form below. We will contact you at earliest.