Cost of Opening a Commercial Register in Dubai: Complete Guide
Starting a business in Dubai requires obtaining a commercial register, a crucial step to legally operate in the UAE. The cost of opening a commercial register in Dubai depends on various factors, including business activity, location, and government fees.
Why is a Commercial Register Important?
A commercial register in Dubai is necessary for businesses to operate legally. It serves as a legal record of a company’s details, including ownership structure, business activity, and compliance with regulations. Without a commercial register, businesses cannot obtain necessary licenses or conduct legal transactions.
Key Costs Involved in Opening a Commercial Register in Dubai
The overall cost of registering a company in Dubai varies based on the type of business and whether you choose to set up in the mainland or a free zone. Here are some of the key expenses to expect:
1. Trade Name Registration
A unique trade name is required for business registration. The cost of registering a trade name in Dubai ranges between AED 600 and AED 2,000, depending on the name type and category.
2. Initial Approval Fees
The Department of Economic Development (DED) in Dubai charges an initial approval fee, usually between AED 150 and AED 500.
3. Commercial License Fees
Obtaining a commercial license is crucial for operating legally. The cost of a commercial license starts from AED 10,000 and can go up to AED 50,000, depending on business activity and location.
4. Office Space and Ejari Fees
Having a physical office is mandatory for business registration in Dubai. The cost of renting office space varies, starting from AED 15,000 per year in lower-priced zones. In addition, you need to register the tenancy contract (Ejari), which costs around AED 200.
5. Notary and Legal Translation Fees
Official documents may require notarization and legal translation, adding between AED 500 to AED 2,000 to overall costs.
6. Visa Fees
If you require investor or employee visas, visa processing can cost between AED 3,000 and AED 6,000 per visa.
7. Additional Government Fees
Other government-related costs such as Chamber of Commerce registration, establishment cards, and other administrative expenses can add approximately AED 5,000 to AED 10,000.
Free Zone vs Mainland: Cost Differences
Setting up in free zones often comes with lower fees and eliminates the need for a local Emirati partner, whereas mainland companies require collaboration with a UAE national in certain cases. Free zone business setup packages generally start at AED 12,000, while mainland setups can cost AED 20,000 or more.
How to Reduce Costs When Setting Up a Business in Dubai
- Choose a free zone that offers competitive packages.
- Opt for shared workspaces instead of renting expensive offices.
- Use business consultants to streamline paperwork and avoid unnecessary expenses.
- Select a cost-effective trade name to avoid additional charges.
For official information, visit the UAE Government Portal. Also, explore our guide on Best Free Zones in UAE for Business Setup.
