Help with office rental in UAE – starting from 200 USD
We offer help with office rental in UAE.
The service includes the following:
- help in selecting office that most suits your tasks and budget;
- help in preparation and conclusion of agreement for office rental in UAE, which corresponds to the local legislation;
- help in arrangement of utilities and communications in the office.
Registration of a company in UAE requires a physical office, either owned or leased. Meanwhile, certain requirements to office area depend on the type of the company.
During registration of certain types of companies in certain free economic zones (FEZ), instead of renting a “real” office, renting a “virtual” office or a combined workplace is possible; such workplace can be in turn used by different companies.
We should note that companies registered in FEZ usually have to locate the main office in the territory of the same FEZ in which the company is registered.
Requirements to the office area can also depend on the type of business license of a company. Besides, the office area influences the number of UAE visas that can be obtained for employees – the bigger the office area, the more employees can obtain UAE visas.
Local companies in UAE (i.e. companies registered outside FEZ) should have a real office with a definite area.
Office rental in UAE for offshore companies UAE
Offshore companies registered in UAE may not rent an office in the territory of UAE. The address for such company is the address of the registration agent. Sometimes banks ask to verify the address of company; in such a case, the registration agent provides the offshore company bills for utilities in his name (i.e. in the name of the agent).Therefore, when registering an offshore company it is recommended to ask the agent at which address the license is issued – “real” or “virtual” address.
Office rental in UAE for companies in FEZ UAE
A company registered in any FEZ UAE may rent either “real” or “virtual” office (depending on requirements to such type of companies defined in the free zone, and the license).
If FEZ allows obtaining license during rental of a “virtual” office, such office will be provided by the zone itself. In UAE, a “virtual” office is permitted, for example, in free zones UAQ FTZ, DWC, Creative City, AFZA, SHAMS, RAKEZ, DMCC and some other. Such type of an office in different zones can be called differently – flexi desk office, office facility, smart office, or premium office. Sometimes a rental agreement provides that using a combined workplace in a free zone is only possible for certain number of hours per month. This option is seldom chosen by clients (especially if FEZ is located in other emirate).The cost of such offices starts from 10,000 dirham (2,740 USD) per year, and usually it is already included in the package on company registration.
When registering companies in FEZ with a “virtual” office, may entrepreneurs also rent for work a “real” office in one of Dubai business centers, if such an office is necessary as a workplace or for holding meetings.
If FEZ obliges to rent a “real” office (e.g., free zones JAFZA, DIFC) or a businessmen wishes to rent a “real” office himself and plant to work in it, such an office should be rented particularly within the territory of this free zone.
In certain FEZ (e.g., SAIF, Hamriyah, JAFZA) private persons do not own property in the territory of FEZ, therefore only FEZ itself acts as a leaseholder. In some FEZ (e.g., DMCC, DIFC) there is property owned by private persons, so a company may rent an office at them.
There is also a third variant, for example in FEZ JAFZA it is possible to rent an office at secretary company. In such a case, a room or “table” is rented that a client can use if needed. This variant is often chosen when during rent a free zone only has offices with large area, while a client does not wish to overpay. It should be still mentioned that even a “table” is usually expensive, on average the price starts from 5,000 dirham (1,370 USD) per year.
For instance, the free zone DMCC allows renting office at a secretary company; at that, the price of such rent is higher than rent of a “virtual” office but cheaper than rent of a small separate office. Such variant will be perfect when an office is needed rarely and when a rental agreement is necessary but there are no cheap offers in the market.
Obtaining UAE visas for employees of FEZ companies when renting an office in UAE
The number of UAE visas that a company can issue to its employees depends also on quantity and area of offices.
if a company rents a “virtual” office in FEZ, it usually has right for preliminary agreed number of UAE visas (1-3 UAE visas per company).
If a company rents a “real” office, usually the number of UAE visas is calculated based on 9 square meters per each visa.
Office rental in UAE for local companies
Subject to the legislation, a local company should rent a “real” office. This can be a cabinet in a business center or a separate office premises. Local companies are prohibited to rent a “virtual” office.
UAE visas for employees of local company when renting office in UAE
The number of UAE visas that a local company can obtain for its employees will depend on the office area.
If a company rents a “real” office, usually the number of UAE visas is calculated based on 9 square meters per each visa.
Types of potential premises when renting office in UAE
Usually, two variants of commercial premises are offered as a “real” office. These are offices without finishing (so called shell & core) and offices with finishing (so called fitted offices). Offices with finishing can be leased with furniture or without.
Offices with finishing are offices already available for work. Immediately after a company brings there its furniture and necessary equipment, the office can be used for business activity. Sometimes furniture and equipment are already provided with an office, so there is no need in arrangements.
Offices without finishing are offices with concrete blinding on the floor and rough walls. In such a case, a tenant has to hire a licensed company that will deliver the project, approve it in various authorities and then perform a repair.
Choosing a proper variant depends on a budget and on time available at a client, as well as on need of special design or planning. Usually, renting an office without finishing or make a repair on one’s own is only reasonable when there is an urgent need in certain office planning, while it is impossible to find an office with such planning. The cost of office rental without finishing is lower, but the client has to invest much money, time and effort in approval of the project.
In Dubai, there are quite a few business centers that offer offices starting from 20,000 dirham (5,500 USD) per year. Such offices can be separate or combined (shared) — in such a case, premises includes several tables occupied by representatives of different companies. Typically, client is also provided a phone, Internet, and certain number of hours in meeting hall when renting an office in a business center.
Documents necessary for office rental in UAE
To rent an office in UAE, the following documents are usually required:
- copies of passports of all the company owners.
- business license of the existing company, or permission for registration of a company, in case when an office is rented by a start-up.
- letter on provision of powers to a signatory.
- copy of signatory’s passport.
Terms of office rental in UAE
A rental agreement is usually concluded for 1 year minimum, and provides automatic extension for the next year.
Terms of rent of commercial premises in Dubai
A company should have a valid business license issued by the administration of the free zone, or the Department of Economic Development (DED) or, if a company is just in the process of registration, a permission for registration.
Our specialists will select for you a list of premises approved by the Municipality of Dubai and the Economic Department that will suit the type of license and activity of your company.
In the process of office rental, the tenant can bear extra expenses on utilities, including payments to the Dubai Electricity and Water Authority, phone lines, Internet, and air conditioners.
Sometimes payments can be already included in the cost of rental agreement, or another scheme of payment for extra services can be approved.
Price of our assistance in office rental in UAE
Our assistance in office rental in UAE includes the search of a real office that will suit a local company, or a company in the free zone DMCC. An office is selected according to the client requirements, such as office area, suggested budget, office location, and other.
If a client only has requirements to the cost of office, then the price of our service starts from 200 USD.
If a client has certain requirements (e.g., an office should be located in a definite region, certain area of an office, correspondence of an office to client’s standards, etc.), the price of the service increases, as we need to move and see offices.
Before concluding a rental agreement, our specialists check it for correspondence to legislative requirements, check all necessary documents, make sure that invoices are issued according to the legislation, and help with registration EJARI.
Registration in the system EJARI during office rental in Dubai
EJARI is the system for online registration by the initiative of the Real Estate Regulatory Agency (RERA). All rental agreements in Dubai should be registered in this system.
The main purpose of the system EJARI is to legalize relations between tenants and leaseholders in Dubai. Since 2010 all the main data, such as terms of a rental agreement and information on ownership, should be filed in the system EJARI.
The system assigns a unique code for each entry. The entire procedure became transparent for all interested parties, which allows the system EJARI resisting various abuses in the rental sector. The regulatory bodies in Dubai will not protect rental agreements that were not registered in the system EJARI.
The obligation to register the rental agreement in the system EJARI is born by a tenant as well as by a leaseholder, and an agent of company, if a realty management company participates in a transaction.
Usually, a leaseholder submits documents for obtainingя EJARI, and a tenant pays for it.
Requirements during office rental in Dubai
Except that all rental agreements in Dubai should be registered in the system EJARI, it is also necessary to conclude a service agreement with the Dubai Electrification and Water Agency (DEWA).
Please note that regarding local companies in Dubai, the Department of Economic Development (DED) tightened control over obtaining and renewal of licenses during office rental. And in many subdivisions of the Department, you should now present not only EJARI but also bills from DEWA, or a deposit related to connection of utilities by DEWA for new licenses at companies.
Responsibility for absence of an office when renting in UAE
Local companies are prohibited to rent a “virtual” office or a combined workplace.
If during an inspection (such inspections take place sometimes) the municipality does not find a company at the address stated in the business license, a company can be charged a penalty up to 20,000 dirham (5,500 USD). Undergoing an inspection is a coin toss – some companies can several years “rent” one-day offices, while other can be charged already after few months after obtaining license.
Working without a rented office in UAE
Often “temporary” offices are rented for 1-3 months, after which they pass to other “tenant”. Meanwhile, a rental agreement in such case is also concluded for 1 year, as it is the minimum allowed term. In these 1-3 months a tenant has to finish issuance of job visas for all his employees, as after that he won’t be able to pass the verification by the Ministry of Human Resources and Emiratization (MOHRE).
In real life, nobody appears in temporary offices; they are merely rented for the fact of rental agreement.
If an inspection is held and a company is charged with a penalty, it should be paid at renewal of a license or amendment of a license. Please keep in mind that a company license is not nullified at penalty.
UAE visas of employees of a company that were obtained at using such a “temporary” office are not nullified, but the “account” of a company can be frozen at the Ministry of Human Resources and Emiratization (MOHRE), which prevents obtaining quotes for new UAE visas for employees of a company.
To proceed operation, a company will have to provide a rental agreement for a new office, or verification that a company is actually located in the stated officeе.
Some companies choose to risk again and again and rent ”temporary” office, but in such a case possibility of repeated inspection increases.
It should be also noted that the office often passing to new tenants within the same year falls into a “risk group” from the point of potential inspection.
If a company has a standard license, inspectors of DED usually do not come for holding an inspection. If extra permissions from the Municipality of Dubai are needed for a license, then employees of the Municipality hold an inspection.
When obtaining quotes for UAE visas, an inspection ins held by officials of MOHRE, therefore, if a company has a “temporary” office and plans to issue UAE visas for its employees, it should do this in the first 3 months.
Ordering assistance in office rental in UAE
To obtain our service, please contact us at [email protected] for professional advice on office rental in UAE.
Afterwards, you should pay the service fee using a bank card, WebMoney, Western Union, or a bank transfer. The price of our service starts from 200 USD.
Upon payment for the service, the client sends us the necessary information and scanned documents.
Please contact us at [email protected] to order assistance in office rental in UAE!
Tags #FEZ in UAE