One of the key considerations for entrepreneurs looking to set up an offshore business in Dubai is the cost involved. The costs associated with establishing an offshore business can vary depending on different factors. Careful budgeting ensures a smooth process for those pursuing offshore business setup Dubai.
Company registration fees:
The first major expense is the company registration fee, which covers the cost of legally incorporating your offshore business. The fee depends on the chosen offshore jurisdiction, such as Jebel Ali Free Zone (JAFZA), Ras Al Khaimah International Corporate Centre (RAK ICC), or Ajman Offshore. On average, this can range between AED 10,000 to AED 15,000.
Licensing and renewal costs:
Offshore companies in Dubai require a business licence, and the cost of obtaining and renewing this licence depends on the jurisdiction. Licensing fees generally range from AED 5,000 to AED 10,000 per year. Renewal costs are similar and must be paid annually to maintain the company’s legal status.
Office and virtual address services:
Offshore businesses do not require a physical office in Dubai, but they must have a registered address. Many offshore jurisdictions provide virtual office services, which cost around AED 3,000 to AED 7,000 per year. These services include mail handling and communication support.
Banking and financial expenses:
Setting up a corporate bank account is another cost to consider. While most banks require an initial deposit of AED 10,000 to AED 50,000, some banks may charge additional fees for account maintenance and transaction processing.
Professional and administrative fees:
Engaging a registered agent is mandatory for offshore business setup, and their fees typically range from AED 5,000 to AED 8,000 per year. Additionally, administrative expenses, such as documentation and attestation, may add AED 2,000 to AED 5,000 to the overall cost.
Miscellaneous costs:
Other expenses may include legal consultation, notary services, and compliance requirements, which can vary based on the business structure. Entrepreneurs should also consider any additional costs related to their specific industry.
The total cost of an offshore business setup in Dubai generally falls between AED 20,000 to AED 50,000, depending on various factors. Proper budgeting and professional guidance can help streamline the process and ensure compliance with regulations.