Understanding Ejari for Commercial Leases in Dubai: Step‑by‑Step
Ejari, which translates to “My Rent” in Arabic, is the mandatory electronic registration system for all rental contracts in Dubai, initiated by the Real Estate Regulatory Agency (RERA). For commercial tenants, an Ejari certificate is not just a rental receipt; it is a foundational requirement to obtain or renew a trade license, secure commercial utility connections, and legally protect business interests. Without a registered Ejari, a business legally does not have a recognized physical address, which halts almost all government interactions.
What is Ejari and Why is it Critical for Business?
In the residential sector, Ejari protects the tenant’s right to live in a property. However, in the commercial sector, the stakes are significantly higher. The Ejari system makes the relationship between the landlord and the commercial tenant transparent to the government.
For a business owner, the Ejari certificate is a prerequisite for several operational necessities. The Dubai Department of Economy and Tourism (DET) requires it to verify that your business has a physical location, which is a requirement for issuing your Trade License. Furthermore, you cannot request employment visas for your staff without a valid Trade License and Ejari.
Essentially, if your commercial lease is not registered in the Ejari system, your business operations can come to a complete standstill. This system also prevents the same commercial unit from being leased to multiple businesses simultaneously, protecting your investment.
Documents Required for Commercial Ejari Registration
Commercial leases require a more extensive list of documents compared to residential rentals because they involve corporate entities. To ensure a smooth process, it is best to have these documents ready before you visit a typing center or apply online.
For the Tenant (The Business)
Trade License: A copy of the initial approval or existing trade license.
Passport and Visa: Copies for the company manager or the authorized signatory.
Emirates ID: For the authorized signatory.
Memorandum of Association (MOA): Only if the tenant is an LLC or a partnership, to prove who has signing authority.
Security Deposit Receipt: Proof that the deposit has been paid to the landlord.
DEWA Premise Number: The 9-digit number located on the door of the commercial unit.
For the Landlord
Passport Copy: Or Emirates ID of the owner.
Title Deed: Must be valid and in the landlord’s name.
Management Contract: If a real estate management agency is signing on behalf of the landlord.
Ensuring you have these documents prevents delays. If you are looking for a new space to house your business, you can browse our available properties for rent in Dubai to find a unit that meets all regulatory standards.
The Step-by-Step Registration Process
Registering a commercial Ejari is a streamlined process, but it differs slightly from residential procedures due to the need for cross-verification with the economic department.
Step 1: The Tenancy Contract
Both parties must sign the Unified Tenancy Contract. While standard terms are pre-written, commercial leases often have an “Addendum” attached. This addendum is crucial as it outlines specific commercial terms like fit-out periods, signage rights, and reinstatement obligations.
Step 2: DEWA Activation
For many commercial units, you may need to activate your DEWA (Dubai Electricity and Water Authority) account or at least get the premise number verified before the Ejari is finalized, although frequently the systems are now linked so that Ejari activation triggers the DEWA welcome message.
Step 3: Registration Channels
You can register the contract through two primary channels:
Online (Dubai REST App or DLD Website): This is the fastest method if both the landlord (or their property management company) and tenant are tech-savvy and registered on the system.
Real Estate Services Trustee Centres: These are authorized typing centers. For commercial leases, this is often the preferred method because the centers can handle the nuances of company documents (like checking the MOA) more effectively than the automated app.
Step 4: Payment and Issuance
Once the documents are uploaded and fees are paid, the Ejari certificate is issued immediately. You will receive the official contract and the Ejari registration certificate with a unique ID number.
Costs and Fees for Commercial Ejari
Budgeting for government fees is an important part of your operational planning. While fees are subject to change by the Dubai Land Department, typically you should expect the following:
Registration Fee: Approximately AED 155 to AED 220 (depending on whether you do it online or at a center).
Knowledge and Innovation Fee: usually around AED 10 to AED 20.
Typing Center Fee: If you use a Trustee Centre, they will charge a service fee, usually bringing the total to around AED 220 – AED 250 (excluding VAT).
Commercial Tax (Municipality Fee): Note that while not paid at the Ejari counter, registering Ejari triggers the Dubai Municipality housing fee, which for commercial properties is often calculated as 5% of the annual rent, added to your DEWA bill.
Common Commercial Leasing Pitfalls
Commercial real estate in Dubai moves fast, and mistakes can be costly.
Neglecting the “Use” Clause
Ensure the Title Deed allows for your specific business activity. You cannot lease a warehouse designated for storage and try to open a retail showroom if the zoning doesn’t permit it. The Ejari system may reject the contract if the usage code on the Title Deed does not match your Trade License activity.
Fit-Out Periods
Commercial tenants often negotiate a “rent-free” period to fit out the office. Ensure this period is clearly dates in the contract. While Ejari registers the financial start and end date, the addendum should specify access dates to avoid disputes.
Subleasing Issues
Subleasing is illegal in Dubai unless explicitly approved in writing by the landlord and registered. If you are a business center or working with a co-working model, specific permits are required. Unauthorized subleasing can lead to immediate eviction.
To minimize these risks, many investors prefer to buy their own office space. If you are considering building equity rather than renting, explore our properties for sale in Dubai for prime commercial opportunities.
Renewing Your Commercial Ejari
Commercial leases are typically renewed annually. Unlike residential leases where auto-renewal is common, businesses must actively renew the Ejari to renew their Trade License.
The renewal process is identical to the initial registration. However, you must bring the previous Ejari certificate. If there are changes to the rent amount, the RERA Rental Index applies to commercial properties as well, though market rates for commercial spaces can be more volatile than residential.
Cancelling an Ejari Contract
If your business is moving to a new location or closing down, you cannot simply walk away. The existing Ejari must be cancelled before a new tenant can register.
No Objection Letter (NOC): The landlord must confirm that you have vacated the premises and all dues are settled.
DEWA Final Bill: You must show proof that utilities have been disconnected and the final bill paid.
Cancellation Fee: There is a nominal fee to cancel the contract in the system.
Failure to cancel the old Ejari will prevent you from registering a new Ejari at a different location, which ultimately blocks your Trade License transfer.
Why Professional Management Matters
Managing commercial leases involves tracking renewal dates, negotiating rent adjustments, and ensuring compliance with evolving DLD regulations. For landlords owning multiple offices or retail units, this administrative burden is heavy.
Our dedicated property management team handles the entire lifecycle of the lease. From drafting the addendum to handling the Ejari registration and disputes, we ensure your investment remains compliant and profitable.
Commercial vs. Residential: Key Differences
| Feature | Residential Ejari | Commercial Ejari |
| Primary Purpose | Living accommodation | Business operation & Trade License |
| Main Document | Emirates ID / Passport | Trade License + MOA |
| Utility Fees | 5% Municipality Fee | 5% Municipality Fee (often higher base) |
| VAT | Exempt (usually) | 5% VAT applicable on commercial rent |
| Disputes | Rental Dispute Center | Rental Dispute Center (Commercial division) |
Why Partner with West Gate Dubai
At West Gate Dubai, we understand that a commercial lease is a business partnership. Whether you are an investor looking to maximize yields on office spaces or a business owner seeking the perfect headquarters, our strategic approach ensures you are protected.
We offer access to exclusive off-plan projects in Dubai that include commercial strata units, allowing you to invest in upcoming business hubs before prices appreciate.
We have many more properties available than what is listed online. To get a personalized list of commercial spaces that match your business needs, please fill out the form on our website, and a professional Agent will contact you via our contact us page.
FAQs
1. Can I get a Trade License without Ejari?
No, in most cases, the Dubai Department of Economy and Tourism (DET) requires a valid Ejari certificate (or a purely digital lease for certain co-working licenses) to issue or renew a mainland Trade License.
2. Who pays for the Ejari registration, the landlord or the tenant?
By market custom in Dubai, the tenant typically pays the Ejari registration fees and the typing center charges. However, this can be negotiated differently in the lease contract.
3. Does the 5% VAT apply to commercial rent?
Yes, unlike residential properties, commercial property rent is subject to a 5% Value Added Tax (VAT). This must be listed in the contract and is paid by the tenant to the landlord, who then remits it to the Federal Tax Authority.
4. How long does the Ejari registration take?
If you visit a Trustee Centre with all correct documents, it is usually completed instantly (within 20–30 minutes). Online applications via the Dubai REST app are also processed very quickly, often within a few hours.
5. What happens if I don’t register Ejari?
If you do not register, your contract is not legally recognized by the Dubai government. You will be unable to renew your trade license, cannot sponsor employee visas, and cannot file a case with the Rental Dispute Settlement Centre if a conflict arises.
Secure Your Business Future Today
Navigating commercial laws in Dubai requires attention to detail. A valid Ejari is the passport for your business operations. Whether you need assistance with property management for your commercial assets or advice on your next corporate location, West Gate Dubai is here to guide you.
We have many more properties available in prime business districts. Please fill out the form to be contacted by a professional Agent via our contact us page to secure your ideal commercial space today.
