Cost of Opening a Commercial Register in Dubai
Dubai is a prime destination for entrepreneurs looking to establish their businesses due to its strategic location, business-friendly regulations, and tax advantages. If you’re considering opening a commercial register in Dubai, it’s essential to understand the associated costs and requirements. This guide provides a detailed breakdown of the expenses involved in registering a business in Dubai.
What Is a Commercial Register in Dubai?
A commercial register is a legal requirement for businesses operating in Dubai. It serves as an official record that authenticates a company’s existence and legal status. Registering your business ensures compliance with UAE regulations and enables you to operate legally.
Factors Affecting the Cost of Commercial Registration
The total cost of registering a business in Dubai depends on multiple factors, including:
- Type of business license: The cost varies for commercial, professional, and industrial licenses.
- Business location: Setting up in mainland Dubai differs from registering in a free zone.
- Company structure: Costs vary for sole proprietorships, LLCs, and branches of foreign companies.
- Government fees: Fees may include registration charges, visa processing, and municipality costs.
Breakdown of Costs for Registering a Business in Dubai
1. Trade Name Registration Cost
Before applying for a license, you need to register a unique trade name with the Dubai Economy and Tourism Department (DET). The cost typically ranges from AED 620 to AED 2,000, depending on the name’s uniqueness and content.
2. Initial Approval Fees
Initial approval from the authorities allows you to proceed with the licensing process. The fee for this ranges between AED 120 to AED 500.
3. Business License Fees
The cost of a business license depends on the type of business activity:
- 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 Rental Costs
Dubai requires businesses in some sectors to have a physical office. The cost of renting office space depends on the location:
- Virtual office: AED 10,000 – AED 15,000 per year
- Shared office: AED 20,000 – AED 40,000 per year
- Dedicated office: AED 50,000 and above per year
Free Zone vs Mainland Business Registration Costs
There are two main jurisdictions for business registration in Dubai:
1. Mainland Business Setup
Businesses in mainland Dubai require local sponsorship for ownership, and costs generally include additional governmental fees. Costs start from AED 15,000 and vary based on activity.
2. Free Zone Business Setup
Free zones offer 100% foreign ownership and allow tax exemptions. Setup fees start at around AED 12,000, depending on the free zone chosen.
For more details on selecting the right free zone, visit Best Free Zones in UAE for Business Setup.
Additional Costs to Consider
- Visa costs: AED 3,000 – AED 7,000 per visa
- Sponsorship fees (if applicable): AED 10,000 – AED 25,000 annually
- Government approvals and permits: AED 500 – AED 5,000
- Corporate bank account setup: Varies by bank and business type
Is It Affordable to Register a Business in Dubai?
Dubai provides multiple business setup options catering to different budgets. While the initial investment may seem high, the benefits outweigh the costs due to tax advantages, world-class infrastructure, and ease of doing business.
Conclusion
Understanding the cost of opening a commercial register in Dubai is crucial before starting a business. By selecting the right type of company, location, and business model, entrepreneurs can optimize costs and maximize their chances of success. For official regulations and latest pricing updates, check the UAE Government Portal.
