Calculate License Cost Online Before Registering a Company in Dubai
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How to Pay for the License Cost Before Registering a Company in Dubai?
If you plan to start a business in Dubai, one of your first questions is likely how much it costs to obtain a business license. The answer to this question is not the same for everyone; as the type of activity, number of partners, their nationality, the legal structure of the company, the location of the activity, and even the office rent can all affect the final amount.
Now, through the official Invest in Dubai platform, you can calculate your approximate license cost online and for free before starting the process of registering a company in Dubai. This platform belongs to the Dubai Department of Economy and Tourism (DET).
How to Calculate the License Cost?
First, visit the Invest in Dubai website and select the Cost Calculator option.
Next, you need to enter the type of activity you are interested in; for example, advertising services, restaurant, consulting, buying and selling goods, or any other activity you intend to register the company for. The system will display the licenses available based on the selected activity.
Then, you need to specify the number of partners, including yourself, and their nationality status. The available options include UAE citizens, citizens of GCC member countries, and foreign nationals.
After that, the appropriate legal structure of the company will be displayed; such as:
Limited Liability Company or LLC
Sole Establishment
Public Joint Stock Company
Other authorized structures based on the type of activity
The legal structure is not just an administrative title. This choice determines who owns the company, the extent of the partners' financial liability, and how the company is managed legally and financially.
After completing the information, select the Calculate Fees option to display the approximate license cost.
Office rent also affects the license cost.
If your selected activity requires a physical office, the system will ask you to enter the annual office rent amount as well. This is because five percent of the annual rent of the company location is considered in the license cost calculation.
However, if a virtual license can be obtained for that activity and a physical office is not required, this section does not apply to you.
For example, if the company's activity is "designing and producing advertisements," the owner is a foreign national, the company is registered as a sole establishment in mainland Dubai, and its annual office rent in Business Bay is around 140,000 AED, the approximate license cost will be calculated at about 15,000 AED.
Of course, this amount is just a preliminary estimate, and the final figure may vary based on the details of the case, type of activity, and company structure.
What is the Validity of the License?
The amount displayed in this calculator is the license cost for one year. The license must be renewed every year, and the renewal fee will be calculated based on the tariffs and regulations in effect at that time.
Is the Amount Displayed the Total Cost of Registering a Company?
No. The important point is that the calculator only shows the approximate cost of the business license, and the displayed amount should not be considered the total cost of setting up the company.
Depending on the business conditions, there may be other costs as well; including investor and employee visa costs, office rent, utility services, approvals related to certain activities, and other operational costs of the company.
Therefore, this tool is suitable for obtaining a preliminary estimate and budget planning; however, before the final registration of the company, it is better to separately review all ancillary costs of the intended activity.
Source: Gulf News