Cost of Opening a Commercial Register in Dubai: A Complete Guide
Starting a business in Dubai requires entrepreneurs to register their company with the relevant authorities. One of the essential steps is obtaining a commercial register, which serves as an official license to operate legally. Understanding the cost of opening a commercial register in Dubai is crucial for budgeting and planning a smooth business setup.
What is a Commercial Register in Dubai?
A commercial register in Dubai is an official record that documents businesses operating in the emirate. It includes key details such as the company’s name, legal structure, ownership, and commercial activities. This registration is a prerequisite for obtaining a business license from the Department of Economic Development (DED) or relevant free zone authorities.
Key Factors Affecting the Cost of a Commercial Register
The cost of opening a commercial register in Dubai depends on several factors, including:
- Business Type: Whether you are setting up a mainland company, free zone entity, or offshore business significantly impacts fees.
- License Type: Commercial, industrial, or professional licenses have different cost structures.
- Business Location: Choosing between operating in Dubai Mainland or a free zone affects the overall setup expenses.
- Visa Requirements: The number of visas required for employees and investors influences total costs.
- Office Space: Some business activities require physical office spaces, which adds to registration expenses.
Breakdown of the Cost of Commercial Registration in Dubai
When setting up a business in Dubai, entrepreneurs should be aware of the key costs involved in commercial registration:
1. Initial Trade Name Registration
Before proceeding with commercial registration, businesses must reserve a unique trade name. The cost varies depending on the name type:
- Regular trade name: AED 620
- Foreign company name: AED 2,000 – AED 3,000
2. Business License Fees
The cost of obtaining a business license depends on the type of business activity:
- Commercial License: AED 10,000 – AED 15,000
- Professional License: AED 7,000 – AED 10,000
- Industrial License: AED 15,000 – AED 25,000
3. Ejari and Office Space Costs
A physical office or co-working space is required for many business types:
- Ejari (rental registration): AED 2,000 – AED 5,000
- Office rental: AED 15,000 – AED 50,000 per annum (varies based on location)
4. Government Fees and Approvals
Various government fees apply based on business structure and activity:
- DED Fee: AED 3,000 – AED 5,000
- Notary Public and Legal Fees: AED 1,000 – AED 3,000
5. Visa Costs
If you plan to apply for visas for investors and employees, the following fees apply:
- Investor Visa: AED 4,000 – AED 5,500
- Employment Visa: AED 3,000 – AED 4,500
- Medical and Emirates ID: AED 1,500 – AED 2,000 per applicant
6. Additional Costs
Other costs to consider include:
- Corporate bank account setup: AED 2,000 – AED 5,000
- Auditor Fees (mandatory in some sectors): AED 5,000 – AED 10,000 per year
Choosing Between Mainland and Free Zone Registration
Entrepreneurs can opt for mainland or free zone company registration based on their business needs:
Mainland Business Setup
Mainland companies allow businesses to operate anywhere in Dubai without restrictions. However, setup costs are usually higher due to licensing fees and office rental obligations.
Free Zone Business Setup
Free zones offer tax benefits, 100% foreign ownership, and streamlined registration processes. However, operations are restricted to within the free zone unless a local distributor is appointed.
Steps to Register a Business in Dubai
To successfully open a commercial register in Dubai, follow these key steps:
- Choose a Business Activity: Select the type of business to determine legal and financial requirements.
- Reserve a Trade Name: Apply for a trade name through DED or free zone authorities.
- Obtain Initial Approvals: Secure preliminary business approvals from relevant government entities.
- Draft Legal Documents: Prepare and notarize the Memorandum of Association (MOA) and Articles of Association (AOA) if applicable.
- Lease Office Space: Obtain an Ejari-attested lease agreement if required.
- Apply for a Business License: Submit documents and pay license fees to receive final approval.
- Register for VAT (if applicable): If business revenue exceeds AED 375,000 annually, VAT registration is mandatory.
- Open a Corporate Bank Account: Select a bank to facilitate financial transactions.
Final Thoughts
The cost of opening a commercial register in Dubai varies based on business type, location, and setup requirements. Entrepreneurs should carefully assess their business needs and budget accordingly to ensure a smooth registration process. Working with a professional business consultant can help navigate legal formalities and optimize initial investment costs.
For official guidelines, visit the UAE Government Portal. Also, check out our detailed guide on Best Free Zones in UAE for Business Setup for insights on free zone business registration.
