How Much Does It Cost to Open a Commercial Register in Dubai?

21 Mar How Much Does It Cost to Open a Commercial Register in Dubai?

Post Content Hide

1 Why Open a Commercial Register in Dubai?

2 Key Steps to Opening a Commercial Register in Dubai

3 Cost of Opening a Commercial Register in Dubai

4 How Long Does It Take?

5 Conclusion

Opening a Commercial Register in Dubai

Dubai is a thriving business hub, attracting entrepreneurs from around the world. To legally operate a business in Dubai, you must complete the process of opening a commercial register in Dubai. This step ensures your company is officially recognized and compliant with UAE laws.

Why Open a Commercial Register in Dubai?

Registering your business in Dubai comes with numerous benefits, including:

100% Foreign Ownership: Free zones allow full foreign ownership without the need for a local sponsor.
Tax Benefits: The UAE offers tax-friendly policies, including zero corporate tax in free zones.
Strategic Location: Dubai provides easy access to Middle Eastern, Asian, and European markets.

Key Steps to Opening a Commercial Register in Dubai

To successfully open a commercial register, follow these steps:

1. Choose Your Business Activity

Selecting the right business activity is crucial since it determines licensing requirements. Dubai offers various industries, including trading, consultancy, real estate, and technology.

2. Select the Right Business Structure

Dubai provides different business structures, including:

Sole Proprietorship: Ideal for freelancers and individual entrepreneurs.
Limited Liability Company (LLC): A flexible business structure that allows multiple shareholders.
Free Zone Company: Offers tax advantages and 100% foreign ownership.

3. Register Your Trade Name

Your trade name must comply with the UAE’s naming regulations. Avoid using offensive or religious terms in your business name.

4. Obtain Initial Approvals

After selecting a business activity and trade name, you must obtain initial approval from the Dubai Department of Economic Development (DED) or relevant free zone authority.

5. Prepare Legal Documents

The legal documentation includes:

Memorandum of Association (MOA)
Articles of Incorporation
Passport copies of shareholders

6. Secure a Business License

Depending on your business activity, you will need one of the following licenses:

Commercial License: For trading businesses.
Service License: For professional and consultancy services.
Industrial License: For manufacturing and production companies.

7. Acquire an Office Space

Businesses in Dubai must have a physical office. You can choose between:

Flexi-desk: Suitable for startups and small businesses operating in free zones.
Dedicated Office: Required for larger businesses or LLCs.

8. Register for VAT (If Applicable)

Businesses exceeding the annual threshold of AED 375,000 must register for VAT with the Federal Tax Authority.

9. Open a Corporate Bank Account

To facilitate business transactions, open a corporate bank account in Dubai with a reputed bank.

Cost of Opening a Commercial Register in Dubai

The cost of registering a business in Dubai varies based on factors such as business activity and location. Generally, the expenses include:

Trade Name Registration: AED 620 – AED 2,000
Initial Approval Fees: AED 150 – AED 1,000
License Fees: AED 10,000 – AED 50,000

How Long Does It Take?

Setting up a business in Dubai can take 3 to 10 business days, depending on the type of company and the required documents.

Conclusion

Opening a commercial register in Dubai is an essential step in launching a successful business in the UAE. By following the necessary procedures and legal requirements, entrepreneurs can establish their companies efficiently. To learn more, visit the UAE Government Official Portal for accurate business setup guidelines.