Almost Actual cost to start a business in dubai

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Almost actual, yet approximate cost and Procedures to establish a new business in Dubai

When I speak about cost, I actually mean different elements of it

. Licensing /operational permit cost of a business

2. Cost of making physical office (rent, fit out, decoration)

3. Cost of manpower (how many employees to be hired)

4. Marketing cost to enter in local market.

Before providing you a cost estimate I would like to define all the procedures/steps for establishing new license

Procedures to establish a new business

Cost of making new license vary depending on the activity and legal form of the license to register. Detailed procedures/s

nd costs related to them to establish/register a new license is as under:

Trade Name

elect a name of your license; keep different options for the name as you cannot just keep any name of any new license.

ave to get it approved from department of economic development, department is the sole authority to give you approvaour decided business name. Name can be rejected due to following reasons:

Name already exist in the market under registration of department

Name is not sufficient to be allowed

Name does not match with the activity to be performed under it (a company in a business of trading products choose a n

ke products services is not appropriate and allowed. It must be something like products trading. Service means re

maintenance e.t.c and trading means buying and selling)

Documents required to reserve a trade name

assport copies of all the partners, their visa/residential status, emirates ids of resident partners, and some chosen names

ake all the papers and names list to tasheel or ontime office and they will register your trade name under DED (departme

conomic development) . You can also reserve a trade name online if you have an online eservices id of DED

nitial Approval

nitial yet very important step of registering a license, under which the capability to get in the license of all the partners is s

heir background checks if any, security checks if any, objections if any, NOCs if any. This also is the step where a sepa

ersonal identification number is been allotted to every partner, which in future represent them everywhere. This is the pro

where legal form of the license is been defined (LLC, Sole Establishment, Civil Company)

nitial approval can be rejected due to following reasons:

One of the partner including local UAE National partner (which is a must for every mainland license) having any issue

overnment, any fine, any objection

One of the partners having any criminal record any pending case



Documents required for an initial approval

icense Application typed and signed, Passport copies of all the partners, emirates ids if any, family book of local partner,

isa copy if one partner is on visit visa, NOC letter from the company in which any partner already working as employee, st

hat company don’t have any objection if its employee get in the license as investor/partner/owner

ake all these documents to tasheel or ontime office anywhere in dubai and get done with your initial approval. Initial app

an also be issued before selecting any trade name of the company

tamp

A company stamp can be made after trade name and initial approval, which is required at the time of issuing license and fu

n every transaction of license with departments. Copy of trade name, initial approval, and copy of local partner’s emirates

nough to get a stamp. Not every typing center issue stamp, you can get it urgently in 30 minutes, from presto offices in ta

enter, minutes shops in mirdif city center and deira city center malls. A P.O.Box number is also required on a stamp, which

an get from emirates post office by showing them copy of your initial approval paper and trade name

Court papers Typing

After trade name and initial approval, comes the step to make an agreement about the company, and between part

ccording to the legal form of the license to be register.

or LLC (Limited Liability Company) llc agreement is been made which defines all the information regarding company, de

bout the owners/partners/manager of company, profit and loss distribution in the license, ownership distribution of partne

ample llc agreement is attached in the photos for a better idea about it.

or Sole Establishment (company owned by a single person), if the company is to be registered under 100% owner ship of

National than there is not any agreement needed to be signed or made, if the company is to be registered under 1

wnership of expatriate partner (partner who is not UAE National) than a Service Agent Agreement is to be made defining

ocal partner is only a service agent of the company and for it he will be paid a fixed amount annually.

or Civil Company (company owned by more than one expatriate partners) two agreements are to get typed, one agreem

alled partnership agreement which define ownership and profit & loss among all the expatriate partners and second agree

service agent agreement between local partner and expatriate partners (same as under sole establishment case)

Documents for Agreement

Copy of trade name and initial approval, passport & id copies if any, take these papers to any of the typing centers in duba

hey will type and print it and furthermore will get it attest from a legal translator if the agreement is been typing in English

Arabic both. If agreement is only in Arabic language, it does not need to be attested from legal translators. Normally 4 se

ne agreement are made, as one original set is been kept by notary public department for records, one set is required for

epartment at the time of issuing license, one set is to be with local partner and one set with all other partners.

Notary Public (Normally knows as Court)

After the typing of agreements all the partners need to get this attested by Notary Public Dubai Courts commercial section

he partners are first required to personally get present in front of judge and sign the agreement, after sign the agreement

et stamped from notary public section by paying the fee of notary public which the judge write on while taking signs from

he partners.



jari / Tenancy Contract of office

artners can get an office space on rent after initial approval, going through court agreement is not necessary for gettin

ffice. After taking office space, make the tenancy contract under the name of company and register its ejari with

epartment dubai. Ejari is a must to register every tenancy contract in order to further use it in your license; normally

andlords or their agents assist in making tenancy contracts and get them register for ejari

icense

After trade name initial approval, court and ejari comes the step to get the license printed from Department of Econ

evelopment (DED). Take the application typed for initial approval, trade name, initial approval, one set of original notary pu

greement and ejari to tasheel, ontime or directly to Economic department office. They will check in the system all the pa

nd after on if no objection, will issue payment voucher for issuance of license. This voucher can be paid in bank, post o

asheel department and even online using a credit card. After paying the fee they will issue you license

All above mentioned steps were to get the license, after the license every new company/license is to be registered with

main departments, immigration and labor department. This registration is done through establishment cards (immigra

stablishment card & labor establishment card)

mmigration establishment card

his card is a registration of every new company with immigration department to issue visas (investor, employment) u

ponsorship of company.

Documents required for immigration establishment card

Application (available at every typing center), License copy, agreement copy, ejari copy, copy of passport, emirates id for al

artners who are to put their name in the card with their signs, so in future they can issue visas from immigration by signing

f the partner who are on the card, and location map (even a drawing by hand) of the company showing where your offi

ituated in dubai

Visit visa holders cannot add their name in immigration card; they first have to change their visa to investor/partner only t

heir name can be added to immigration card. This card is a must to get eligible to issue any visa from immigration on the lice

After typing of card application stamp it using company stamp, take signature of all the partners who are to be in card on

ack side of card under their names, local partner is to sign on both of the sides of application card (front with stamp, and

ide under his/her name). Take all mentioned documents to immigration department jafliya, go to establishments sectio

ection 2 of jafliya and they will issue your immigration card

f you need to get investor/partner visa of all or any partner you don’t have to go through labor establishment card (which

pen employment visas with labor department), after getting immigration card you can apply for partner visa (get entry pe

pplication typed from any typing center, seal it with company stamp and get the signature of any of the partners among t

who are in the immigration establishment card, attach license copy, immigration card copy, passport copy of partner who’ss to get, visit visa copy if the person is on visit visa, cancelation paper copy if the person canceled his old visa and transferrin

artner visa, court agreement copy)

abor Establishment Card

After being done with immigration card, comes the final step of company formation which is labor card to get your comp

egister with labor department so in future you can hire employees.

abor card in fact labor department is most critical element of every company established in dubai, there are many forma

nd procedures for it. It is not as simple as immigration card to add names of every partner on the card so every partner get

uthority to represent the company with labor department, every partner who wishes to add his name in labor establishm



ard also called labor file of company, needs to go through an undertaking from local UAE National partner in court,

ndertaking is called (iqrar tahood, taukeel iqrar) in English form 2 (a sample is attached for your reference in images)

Documents required getting labor establishment card

Application card typed from any typing center, license copy, passport copies, emirates id copies of all the partners who are t

n the card (form 2 from court is must for every expatriate partner to have authority to sign in labor department if only lo

ame is to be in the labor card than there is not any need to go through the undertaking), agreement copy, location map iss

y department of municipality (check the landlord or agent from whom you have taken office for a location map) or you

ubmit a hand drawn copy of location map, immigration establishment card copy, sign and stamp of company

ake all the documents to tasheel center, buy an e dirham card (in tasheel department almost every transaction of labor

eed an e dirham card) deposit some money in it, go to any counter with token submit all the papers. Tasheel department

ut your transaction by issuing personal number of local sponsor and all other partners who are in labor card, you will then

o take all these papers to labor main office in AL Qusais for the activation of your new labor file. Labor department will al

umber to your company which will represent you for all your transactions with labor.

hese are almost all the basic procedures every new license goes through, obviously there are other complications as

ccording to the chosen activity of any license to start, there are some specific approvals required for specific businesses w

we will clear in other posts. And I definitely cannot post all the concerned details in only one post, is why consider this a b

ut detailed procedures summary to establish a new license in dubai U.A.E

Almost actual, yet approximate cost to establish a new business in Dubai

When I speak about cost, I actually mean different elements of it

. Licensing /operational permit cost of a business

2. Cost of making physical office (rent, fit out, decoration)

3. Cost of manpower (how many employees to be hired)

4. Marketing cost to enter in local market.

Cost of License (in UAE DIRHAM)

rade Name 610

nitial Approval 110

Court Agreement Typing 500 approximate

Notary Public Fee 1000 to 2200

icense fee Professional 7000 approximate

icense fee Commercial 15000 approximate

icense fee General Trading 27000 approximate

ee of local sponsor 8 to 10000 approximate

mmigration estab Card 900

abor est Card (labor file) 2100



Tenancy contract, depending upon the office size and area (minimum rent is around 40,000 to 50,000 annually in 4 payment

Office fit outs (decoration, office furniture, and all other expenses to start a new office including approvals if any) costs arou

5 to 50,000 for a normal office. If office is big in size than this cost may vary from 70,000 to 100,000

here Is also an option to take a furnished office in some business center, but not all the licenses can be started in any busin

enter.

jari for registering tenancy contract with land department costs 195 AED, but for ejari companies first have to get register w

ewa (dubai electricity and water authority) by paying a security deposit of 2000.

Most investors who on a very small scale just for their survival do establish their license without any physical office, by acqui

virtual office (office just in papers) which cost them from 5000 to 10,000

A professional license (saloons, IT Services, e.t.c) can be completed in around 20,000 to 25,000 which include local fee, licens

ee, and immigration & labor cards. Cost of office/tenancy/ejari is not included in it.

A commercial license (trading e.t.c) can be completed in around 25 to 30,000. Some specific license/activities cost more with

omplexity of taking approvals with other authorities as well

Cost to hire new employee (per person)

o hire employees on company cost break up is as follows

Quota approvals, which costs 250 approximate per quota approved, after when your quota is approved with labor departm

ou put details of your employee (take passport copy of employee and one picture to tasheel department) they will charge

with a fee of 3000 per person to hire as bank guarantee, 2000 for labor card fee depending on the category of company. A

aying this fee to tasheel labor department link the status of employee with immigration and you must than visit immigra

epartment to take visa. Typing of visa is needed at this stage which costs 410 if employee is outside UAE and 1060 if emplo

s already inside UAE. After visa status change + emirates id + medical is required costing around 1000 to 1500. After emirate

medical last and final step is pasting of visa on passport, for which a typing cost of 550 would be paid.

n short a cost of around 7000 per employee is to be paid after completion of license.

Marketing Cost

Advertisement is way expensive in Dubai if using proper channels (newspapers, tv e.t.c), and I believe is not that effective

ew business, the best marketing way for UAE is “words of Mouth”. More you have links and contacts with key com

ersons and more you are part of professional gatherings, more business you can generate.

Almost Actual cost to start a business in dubai

Documents

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