Cost of Opening a Commercial Register in Dubai
Dubai is a prime destination for entrepreneurs seeking to expand their businesses. However, understanding the cost of opening a commercial register in Dubai is essential before starting operations. This comprehensive guide covers all the expenses involved, from registration fees to additional costs.
What is a Commercial Register in Dubai?
A commercial register is an official record that lists businesses operating in Dubai. It ensures legal compliance and grants a company the authority to conduct commercial activities within the UAE. This process is mandatory for all businesses, whether in the mainland or free zones.
Factors Influencing the Cost of Opening a Commercial Register in Dubai
The cost of registering a business in Dubai depends on several factors, including:
- Business Structure: Costs vary depending on whether you set up a sole proprietorship, LLC, or a branch office.
- Location: Free zones and mainland companies have distinct registration fees.
- License Type: The nature of the business activity determines the type of license required, which impacts costs.
- Additional Approvals: Specific industries require government approvals that may add to the overall registration cost.
Breakdown of Commercial Registration Costs
Trade Name Registration
Choosing a trade name is one of the first steps in business registration. The cost varies based on the uniqueness and type of name selected.
- Standard name: AED 620
- Premium name: Costs can go up to AED 2000+
Initial Approval & Licensing Fees
Before obtaining a commercial license, businesses must secure initial approval from the Department of Economic Development (DED). The basic cost for initial approval is approximately AED 120.
License fees differ based on business activities, but an average estimate is:
- Commercial License: AED 10,000–AED 15,000
- Professional License: AED 7,000–AED 10,000
Local Sponsorship & Office Space
For mainland companies, a local sponsor is required, which incurs additional costs:
- Local Sponsor Fee: AED 10,000–AED 25,000 per year
- Office Space Rental: AED 15,000–AED 50,000 per year (depending on location and size)
Free Zone vs. Mainland: Cost Differences
If you’re deciding between a Dubai free zone company and a mainland business setup, consider the cost variations:
Free Zone Commercial Registration
- License Fee: AED 5,000–AED 15,000
- No need for a local sponsor
- Limited to conducting business within the free zone
Mainland Commercial Registration
- Higher costs due to required local sponsorship
- Business can operate anywhere in the UAE
- Additional compliance requirements
Additional Costs to Consider
Apart from business registration, entrepreneurs in Dubai should be aware of extra costs, such as:
- Visa Fees: Business owners and employees require residency visas, costing AED 3,000–AED 10,000 per visa.
- Government Attestation: Certain documents require attestation, adding to administrative costs.
- Marketing and Branding: Setting up a website, branding, and promotional campaigns all add to initial investments.
Steps to Register a Business in Dubai
Here’s a step-by-step guide to opening a commercial register in Dubai:
- Choose a legal structure and business activity.
- Register the business name with the DED.
- Secure initial approval and obtain necessary approvals.
- Rent an office space as required by Dubai business laws.
- Pay registration and licensing fees to obtain the trade license.
- Apply for visas and labor approvals if necessary.
- Open a corporate bank account and commence business operations.
Conclusion
Understanding the cost of opening a commercial register in Dubai is essential for successful business setup. While Dubai offers lucrative opportunities, careful financial planning ensures compliance and sustained success. If you’re interested in business registration, consider Best Free Zones in UAE for Business Setup for more insights.
For official details, visit the UAE Government Portal.
