Cost of Opening a Commercial Register in Dubai: Everything You Need to Know

Starting a business in Dubai requires an official commercial register, which is an essential step in the business setup process. This legal registration ensures your business operates compliantly within the UAE’s regulations. Understanding the associated costs of opening a commercial register in Dubai is crucial for entrepreneurs aiming to establish their presence in the region.

What Is a Commercial Register in Dubai?

A commercial register is an official database that holds records of businesses operating in Dubai. It is essential for companies to register their operations to comply with UAE business laws and secure operational legitimacy.

Key Factors Affecting the Cost of a Commercial Register

The cost of opening a commercial register in Dubai varies based on several factors:

• Business Type: The type of business entity (LLC, sole proprietorship, free zone company) influences costs.
• Location: Whether the business is on the mainland or in a free zone affects registration fees.
• License Type: Different business licenses, such as commercial or professional, have distinct costs.
• Visa Requirements: Costs may rise depending on the number of visas requested.
• Government Fees: Various UAE government departments impose registration fees.

Breakdown of the Cost of Opening a Commercial Register in Dubai

The following are typical expenses when setting up a commercial register for your business:

1. Trade Name Registration

Before company registration, you’ll need to reserve a unique trade name with the Department of Economic Development (DED). This typically costs between AED 620 and AED 2,000, depending on name preferences.

2. Initial Approval Fee

The DED requires an initial approval to confirm compliance with UAE regulations. This costs around AED 120 to AED 500.

3. Business License Fees

This is among the most significant costs. The license fee depends on the business type:

• Commercial License: AED 10,000 – AED 15,000
• Professional License: AED 5,000 – AED 10,000
• Industrial License: AED 15,000 – AED 25,000

4. Office Space Costs

Dubai requires businesses to have a physical office space, which increases costs. Renting an office can cost anywhere from AED 10,000 to over AED 100,000 depending on the location.

5. Visa Costs

Business owners and employees need visas. Sponsoring an employee visa usually costs between AED 3,000 and AED 7,000 per visa.

6. Additional Government Fees

There are other required fees:

• Notarization costs: AED 500 – AED 2,000
• Chamber of Commerce registration: AED 1,200 – AED 5,000

Free Zone vs. Mainland: Cost Comparison

Entrepreneurs can choose between setting up in a free zone or on the mainland. Here’s how the costs compare:

• Free Zones: Lower cost packages starting from AED 5,500, but with operational restrictions.
• Mainland: Higher costs but greater trade flexibility with local and international businesses.

How to Reduce the Cost of Opening a Commercial Register?

To minimize expenses:

• Opt for a free zone to reduce registration costs.
• Select a shared office space to lower rent expenses.
• Consider a business setup package that covers licensing and visas in one fee.

Final Thoughts

The cost of opening a commercial register in Dubai varies based on multiple factors. Entrepreneurs can manage costs by choosing the right business structure and setup location. Proper planning ensures compliance with UAE regulations while maintaining a cost-effective business setup.

For more details, check out our guide on Best Free Zones in UAE for Business Setup.