The cost of starting and running a business in Dubai depends on the visa eligibilities and the Freezone itself. There are significant price differences from Freezone to Freezone. There are currently almost 50 Freezones in the UAE, most of which share the same list of activities and offer similar packages. It is therefore difficult for potential owners to determine the right free zone.
Another factor that should not be underestimated is opening a company bank account. If you set up the company in one of the cheap free zones, problems are usually inevitable. It is very difficult or almost impossible to open a company bank account if you own a company in emirates like Umm Al Quwain, Ras Al Khaimah, Fujairah or Sharjah.
If you form the company with us, you benefit from our many years of experience. We know how things work around a successful company setup. We make sure that you receive a company bank account by choosing the right Freezone and activity.
DUBAI FREEZONE NOW CHEAPER
Until recently, the company set-up costs in the Freezones in Dubai were more expensive compared to other Emirates. In order to save costs, one had to switch to the Emirates of Fujairah, Ras Al Khaimah, Sharjah or Umm Al Quwain.
Most customers, however, still preferred a company address in Dubai as it is more prestigious and also the banking problem mentioned above, should not be underestimated.
Nowadays some of the Dubai Freezones have adjusted their prices and fees accordingly to be more competitive. This means that it is now possible to set up a company in Dubai at very comparable prices.
Our recommendation clearly goes into opening your company in a Freezone in Dubai, because the advantages are obvious. In addition to faster and easier processing of visa applications, opening a company bank account is easier in Dubai. The price differences between Dubai Freezones and a cheaper Emirate like Umm Al Quwain for example, are only marginal, but the advantages of a Dubai Freezone company are definitely given.
DUBAI FREEZONE - WHAT'S INCLUDED?
The prices always include the license (business license), office rental contract (flexi desk - cannot be used), establishment card, residence visa and our service costs.
The emirate in which you open your company generally has no influence on your future place of residence, since the visa is always valid for the entire emirate so if you open your company in Dubai, you can live in Abu Dhabi for example.
CAN I GET A BANK ACCOUNT WITH A FREEZONE COMPANY?
Although at the beginning of 2022 the requirements for opening a corporate bank account were tightened across the Emirates, it is still possible to do so, even with a Freezone company. Thanks to our excellent contacts and large network, we can ensure that you will get a company account. Our banking packages even come with a money-back guarantee.
However, the coveted account can only be obtained if one of the partners has a valid residence visa for the United Arab Emirates. Also the activity of the company has to be considered (we will advise you accordingly) and the nationality of the shareholder plays a role too. We will recommend a bank package to you, taking all this into consideration.
WHAT EXACTLY IS A RESIDENCE VISA?
If you want to live in the Emirates permanently or need a company bank account, then you need a so-called residence visa. This is a 2-year residency permit for the UAE. In the course of setting up the company, you acquire the corresponding eligibilities for a specified number of residence visas. Each visa eligibility costs around EUR 500 and includes the authorization to apply for a 2-year visa. In addition, the fees of the authorities have to be paid, which add up to around EUR 960.Service fee is not yet included.
The residence visa is valid for the entire Emirates and you also receive the so-called Emirates ID, comparable to an identity card from any other country worldwide. This allows you to live anywhere in the United Arab Emirates and is not limited to just one emirate. The bank account can also be opened at selected banks in the United Arab Emirates and is not limited to the emirate where your company is located.
DO I ACTUALLY HAVE TO LIVE IN DUBAI?
No, with this visa you are not obliged to live in the Emirates. It is sufficient if you enter the country every 6 months (employee Visa) or once a year (Investor Visa) so that the visa remains valid. There is also no obligation to register your place of UAE residence.
100% TAX FREE?
Dubai is a city of superlatives and offers another priceless advantage for private individuals: 100% tax exemption - there are currently no income taxes in Dubai. Only in August 2023 a low corporate tax of 9% was incorporated. However, it will not affect most of the small and medium sized businesses as there is a tolerance threshold of AED375,000 profit per year. If you stay below, you are exempt from this tax. You can also pay out employee salaries and shareholders dividends almost as you like. The corporate tax was implemented due to pressure from outside and the government is seeing this very relaxed. So it cannot be compared to the strictness of tax laws in other parts of the world! Most companies will still enjoy the freedom of not paying taxes.
VAT
There is also the value-added tax (VAT) for mainland companies, which is only 5% and is of course only a pass-through item for local companies. Companies in the free zone are not affected by the VAT unless their income generated with UAE clients exceeds AED375,000 per year.
Is a residence visa in Dubai necessary?
No, it is not mandatory to be a resident in the UAE to set up a company in Dubai. Depending on the type of company form and the respective license, there are different provisions. In principle, however, one person in the company needs residency and Emirates ID to set up a company corporate account.
Cost of starting a company?
The costs for company formation depends on the respective activity, the free zone and last but not least on the required visa authorizations. Currently, the prices for founding a Dubai company with 1 visa entitlement starts at around $5500 including all costs for the first year.
How long does it take to set up a company?
Once all the required documents and information has been collected, founding a company usually only takes 3 to 5 working days. You don't have to be physically present during the setup procedure. We are an official Freezone partner and can set up the company with your digital signature.
How long does the visa process take?
The visa process is started after the company is incorporated and the immigration card and e-permit are received and takes about 5 business days. For the issuance of the (digital) Emirates ID, you have to reckon with around 5-12 working days. After that a corporate bank account in the UAE can be opened.
