Cost of Opening a Commercial Register in Dubai: Everything You Need to Know

Setting up a business in Dubai requires obtaining a commercial register, which is a crucial step in the company formation process. The cost of opening a commercial register in Dubai varies based on the business type, location, and required licenses. In this guide, we’ll discuss the key costs involved and help you plan your budget accordingly.

What Is a Commercial Register in Dubai?

A commercial register is an official record that legalizes business operations in Dubai. Registering a business ensures compliance with UAE regulations and grants the company legal recognition. Entrepreneurs looking to start a business in Dubai must obtain this registration before commencing operations.

Key Costs for Registering a Business in Dubai

The total cost of opening a commercial register in Dubai depends on several factors, including location, industry, and business structure. Common costs include:

1. Trade Name Registration

Registering a unique trade name is mandatory for businesses. The cost ranges between AED 620 and AED 2,000, depending on the type of name (standard or premium).

2. Initial Approval Fees

Entrepreneurs must obtain initial approval from the Department of Economic Development (DED), which may cost approximately AED 120.

3. Commercial License Fees

The license fee depends on the business activity and jurisdiction. On average, fees range from AED 10,000 to AED 30,000.

4. Office Rent and Ejari Registration

Having a business address is mandatory. Dubai office rents vary, with co-working spaces starting at AED 15,000 per year, while dedicated offices are more expensive. Ejari registration costs around AED 220.

5. Visa and Immigration Costs

Entrepreneurs and employees require visas, which range in cost from AED 3,000 to AED 7,000 per visa.

6. Other Charges

• Notarization and legal fees: AED 500 – AED 1,500
• Bank guarantee (if required): AED 3,000 – AED 5,000
• Sponsorship fees (if applicable)

Mainland vs. Free Zone Costs

The business setup cost differs between Dubai Mainland and Free Zones.

Dubai Mainland

Setting up a business in Dubai Mainland requires a local service agent (for some activities) and obtaining approvals from multiple authorities. Costs are generally higher due to additional government fees.

Dubai Free Zone

Free Zones offer cost-effective solutions with benefits such as 100% foreign ownership and tax exemptions. License packages can start as low as AED 11,000 in some zones.

How to Reduce Business Setup Costs in Dubai

To optimize costs, consider:

• Choosing a Free Zone with low licensing fees
• Opting for a virtual office instead of physical premises
• Selecting a cost-effective trade license package

Conclusion

The cost of opening a commercial register in Dubai varies based on multiple factors, including the chosen jurisdiction, business activity, and office requirements. Entrepreneurs should carefully plan their budget to ensure a seamless business setup process.

For more details on business registration, visit the UAE Government Portal.

Also, check out our guide on Best Free Zones in UAE for Business Setup.