Cost of Opening a Commercial Register in Dubai
Dubai is a top business hub, attracting entrepreneurs worldwide. If you are planning to establish a business in Dubai, understanding the cost of opening a commercial register is crucial. It involves various procedures, fees, and regulatory requirements.
What is a Commercial Register in Dubai?
A commercial register is an official record maintained by the Dubai Economic Department (DED) for businesses operating in the emirate. It serves as legal documentation that allows companies to conduct commercial activities in Dubai.
Key Costs Involved in Business Registration
The cost of opening a commercial register in Dubai depends on various factors such as location, business activity, and license type. Below are some cost components:
1. Trade Name Reservation Fee
Choosing a legal trade name is the first step. The cost typically ranges from AED 620 to AED 2000, depending on the chosen name type and category.
2. Initial Approval Fee
Businesses must obtain an initial approval to proceed with registration. The application fees are approximately AED 120 to AED 600.
3. Business License Fee
The business license is mandatory and costs between AED 10,000 to AED 50,000 annually, depending on the business activity and jurisdiction.
4. Office Space and Rental Costs
To open a commercial register, businesses must have a physical office. Rental fees vary based on the location (Mainland or Free Zone). Costs range from AED 15,000 to over AED 100,000 annually.
5. Chamber of Commerce Registration
Businesses must register with the Dubai Chamber of Commerce, with fees ranging from AED 1,200 to AED 5,000.
Free Zone vs Mainland Registration: Cost Differences
Choosing between a Free Zone or Mainland impacts cost:
- Free Zone Business: Typically more cost-effective, starting from AED 15,000.
- Mainland Business: Higher costs due to regulatory requirements, ranging from AED 30,000 to AED 100,000.
Additional Costs to Consider
Other costs involved in business registration include:
- Visa Fees: Employee visas cost between AED 3,500 and AED 6,000 per person.
- Sponsorship Fees: Mandatory for businesses with UAE-based sponsorship.
- Legal Translations & Approvals: Costs vary depending on documentation needs.
Conclusion
The cost of opening a commercial register in Dubai varies depending on business requirements and location. Entrepreneurs should consider the initial and recurring costs before finalizing their registration process.
For further information, visit the UAE Government Portal.
Also, check out our guide on Business Setup Cost in Dubai for in-depth details.
