Cost of Opening a Commercial Register in Dubai: Everything You Need to Know
Dubai is a global business hub attracting entrepreneurs worldwide. Understanding the cost of opening a commercial register in Dubai is crucial for entrepreneurs planning to set up a company in the UAE. This guide covers the expenses, processes, and key factors to consider.
Why Dubai is an Ideal Business Destination
Dubai offers a tax-friendly environment, strategic location, and cutting-edge infrastructure, making it an ideal destination for business setup. Entrepreneurs benefit from 100% foreign ownership in free zones, minimal bureaucracy, and access to international markets.
What is a Commercial Register?
A commercial register is a legal requirement for businesses in Dubai. It includes official records detailing a company’s name, ownership, and business activities, ensuring legal recognition.
Cost of Opening a Commercial Register in Dubai
The cost of obtaining a commercial registration varies depending on several factors. Below is a breakdown of potential costs:
1. Trade Name Registration
Choosing and registering a trade name is the first step. The cost varies based on the category:
- Standard trade name: AED 620
- Special trade name with foreign words: AED 2,000+
2. Initial Approval Fees
Before obtaining a business license, companies must get initial approval from the Department of Economic Development (DED). This costs around AED 100–300.
3. Licensing Fees
The business license cost depends on the type of activity and jurisdiction:
- Mainland Trade License: AED 10,000 – AED 15,000 annually
- Free Zone License: AED 3,000 – AED 50,000+ depending on the zone
4. Memorandum of Association (MOA) Notarization
If incorporating as an LLC, you must notarize your MOA. Charges start from AED 1,500.
5. Office Space & Lease Agreement
Physical office space is mandatory for mainland businesses:
- Ejari (Tenancy Contract) Registration: AED 220
- Office Rental: AED 30,000 – AED 100,000+ per year
6. Commercial Registration Renewal Costs
Annual renewal costs include:
- Trade License Renewal: AED 8,000 – AED 15,000
- Visa Renewal Fees (per employee): AED 3,000 – AED 4,000
Documents Required for Commercial Registration
- Passport copies of owners
- UAE residency visa copy
- Trade name approval certificate
- MOA (for LLCs)
- Lease agreement (Ejari) copy
Steps to Open a Commercial Register in Dubai
1. Select a Business Activity
Determine the nature of your trade based on DED’s list of permitted activities.
2. Choose a Legal Structure
Decide between a sole proprietorship, LLC, or a free zone company.
3. Register a Trade Name
Apply for a trade name with DED and pay applicable fees.
4. Obtain Initial Approval
Secure preliminary approval from the authorities to proceed with registration.
5. Rent an Office Space
Obtain Ejari registration and a tenancy contract.
6. Submit Your Application
Submit required documents and pay the registration and licensing fees.
7. Receive Your Business License
Upon approval, receive your commercial license and commence operations.
Free Zone vs Mainland Business Setup: Which is Better?
Entrepreneurs must decide whether to set up a business in a free zone or mainland. Here’s a comparison:
| Feature | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% Foreign Ownership | UAE National Partner (for some businesses) |
| Trade Restrictions | Limited to Free Zones | Trade within UAE and globally |
| Cost | More affordable | Higher licensing fees |
| Office Requirement | Optional | Mandatory |
Key Benefits of Commercial Registration in Dubai
- Legal recognition and compliance
- Access to banking services
- Visa eligibility for employees
- Ability to sign contracts and trade legally
How to Reduce the Cost of Business Registration in Dubai?
- Opt for free zone businesses to save costs
- Choose a co-working space for lower Ejari fees
- Avail government incentives for startups
Opening a commercial register in Dubai is a strategic step for entrepreneurs. With proper planning and cost estimation, business setup can be smooth and affordable. To learn more, visit the UAE Government Portal or check out our Best Free Zones in UAE for Business Setup.
