Cost of Opening a Commercial Register in Dubai: A Complete Guide
Starting a business in Dubai requires obtaining a commercial register, an essential step in the process. The cost of opening a commercial register in Dubai varies based on factors such as business type, location, and registration fees.
Why Registering a Business in Dubai is Essential
Dubai offers a strategic location, tax advantages, and a business-friendly environment. Registering a company legally ensures compliance, business credibility, and access to banking and government services.
Key Factors Affecting the Cost of a Commercial Register in Dubai
Several factors influence registration costs:
- Business activity and legal structure
- License type (commercial, professional, industrial)
- Location (Mainland or Free Zone)
- Government fees and service charges
Breakdown of the Cost of Opening a Commercial Register in Dubai
1. Trade Name Registration Fees
Choosing and registering a trade name costs between AED 600 to AED 2,000, depending on name uniqueness and category.
2. Initial Approval Fees
The Department of Economic Development (DED) charges around AED 120 for initial approval, allowing businesses to proceed with documentation.
3. Business License Fees
Fees depend on the license type:
- Commercial License: AED 10,000 – AED 15,000
- Professional License: AED 7,000 – AED 12,000
- Industrial License: AED 15,000 – AED 25,000
4. Office Space Requirements
Mainland companies require a physical office, increasing costs. A virtual office or flexi-desk can reduce expenses.
5. Visa and Immigration Costs
Business owners and employees require visas, costing between AED 3,000 to AED 7,000 per visa.
Choosing Between Free Zone and Mainland Registration
Free Zone Registration Costs
Free Zones offer businesses 100% ownership, no corporate taxes, and lower registration costs. Expect to pay between AED 12,000 to AED 50,000, depending on the Free Zone.
Mainland Company Registration Costs
Mainland companies require local sponsorship but offer unrestricted trade across the UAE. Costs range from AED 15,000 to AED 40,000.
Additional Costs Entrepreneur Should Consider
- Local Service Agent fees (if required)
- Bank account setup costs
- Marketing and branding expenses
Steps to Open a Commercial Register in Dubai
- Choose a trade name and business activity.
- Obtain initial approval from DED.
- Secure a business location.
- Submit documents and pay fees.
- Receive trade license and register for VAT if applicable.
Final Thoughts on the Cost of Opening a Commercial Register in Dubai
The cost of opening a commercial register in Dubai depends on multiple factors. Entrepreneurs should analyze expenses, choose the right location, and comply with legal requirements to ensure a smooth business setup.
For more information, visit UAE Government Portal. Also, check out Best Free Zones in UAE for Business Setup.
