Cost of Opening a Commercial Register in Dubai: Everything You Need to Know
Starting a business in Dubai requires securing a commercial register, which is a crucial step in the business setup process. Entrepreneurs looking to establish a company in Dubai must understand the costs involved to plan their investments efficiently. In this guide, we will break down the key costs, types of licenses, and steps required to register your business in Dubai.
Why Register a Business in Dubai?
Dubai is one of the world’s most attractive business hubs, offering a tax-friendly environment, strategic location, and streamlined regulatory framework. Registering a business in Dubai allows entrepreneurs to operate legally and gain access to numerous business opportunities.
Key Costs of Opening a Commercial Register in Dubai
The cost of opening a commercial register in Dubai varies based on various factors, including the type of business activity, license type, and location. Below are some of the common expenses:
1. Business License Fees
Every business in Dubai must obtain a trade license. The cost of a trade license typically ranges between AED 10,000 and AED 50,000, depending on the nature of the business. The primary types of trade licenses include:
- Commercial License: Required for businesses engaging in trading activities.
- Professional License: Suitable for services, consultancy, and freelance businesses.
- Industrial License: Needed for businesses involved in manufacturing and production.
2. Initial Approval and Trade Name Registration
Entrepreneurs must secure initial approval from the Department of Economic Development (DED) in Dubai. The trade name reservation fee typically ranges from AED 620 to AED 2,000, depending on the name’s uniqueness and category.
3. Office Space Costs
Establishing a physical presence is often required for company registration. The cost of renting office space varies significantly:
- Virtual Office: AED 10,000 – AED 20,000 per year
- Shared Office Space: AED 20,000 – AED 50,000 per year
- Private Office Space: AED 50,000+ per year
4. Visa and Immigration Costs
Business owners and employees need visas to legally operate in Dubai. The cost per visa varies between AED 3,000 and AED 7,000, including medical tests and Emirates ID issuance.
5. Other Government Fees
Additional government costs to consider include:
- Memorandum of Association (MOA) Notarization: AED 1,500 – AED 3,000
- Ejari (Tenancy Contract Registration): AED 200 – AED 400
- Chamber of Commerce Registration: AED 1,200 – AED 3,000
Steps to Obtain a Commercial Register in Dubai
- Choose a Business Activity: Select the most suitable activity for your business.
- Decide on a Company Name: Ensure the name is unique and follows DED guidelines.
- Obtain Initial Approval: Get approval to proceed with company registration.
- Secure Office Space: Lease a physical or virtual office as required.
- Submit Legal Documents: Complete Memorandum of Association and related paperwork.
- Pay Licensing Fees: Cover all registration and government charges.
- Receive Business License: Officially start operating your business in Dubai.
Conclusion
The cost of opening a commercial register in Dubai varies based on business type, location, and legal requirements. It is essential to plan ahead, consider various costs, and seek professional guidance for a smooth business setup. Dubai is a business-friendly city with ample opportunities, making it an ideal destination for entrepreneurs looking to expand internationally.
For more detailed regulations on business setup, visit the UAE Government Portal. If you’re considering a Free Zone setup, check out our guide on Best Free Zones in UAE for Business Setup.