How does Renting an Office Space in Dubai Save Cost During Company Formation?
Any company in Dubai, be it an offshore company or a mainland establishment, seeks a wonderful office space to set up their business. To their pleasure, the UAE has several cost-effective office spaces that match their budget and simplify company formation. Furthermore, having a legal office space in Dubai is obligatory for all businesses (unless they opt for a virtual office) to acquire a trading license.
With the right knowledge of how the office space legislation works, you can get an office for rent in Dubai. You should have an in-depth understanding of your business model to select the best location for company formation. Moreover, this will decide where you’ll rent an office, and factors like resource availability, transportation, access to different markets (local and international), etc., all depend on your office’s location.
How does Renting an Office Space Save Cost?
You have the option to either purchase a property for carrying out your business activities or renting space during your business tenure. Therefore, renting an office space in Dubai is a smart choice because it saves you a handful of money when compared to purchasing an office. Here’s why renting is advantageous:
1. No Overhead Costs
Unlike other renting legislation in different parts of the world, the renting laws in the UAE are transparent and don’t involve any hidden costs. All you need to pay is the rent and a safety deposit (which is refundable) for your rented office space. Moreover, in case you fail to pay the rent on time, you become liable to certain penalties, and the information for the same is discussed beforehand. However, there aren’t any add-ons in such scenarios as well.
2. Easily Manageable
Company formation in Dubai is a dream for many. Those who have sufficient capital with them invest in their venture in the UAE, but cost management still plays a critical role. Purchasing an office space blocks a significant amount of money, and you’re forced to compromise with other operational aspects. Therefore, a simple solution to protect yourself from this long-term investment is by renting an office space of your choice. Your money isn’t tied up in real estate through renting, which allows you to invest freely in business growth activities.
3. Low Maintenance
Dubai boasts of its high-tech business infrastructure, and the same goes for the rented offices too. If you have a large team and need several resources, prefer a furnished office for rent in Dubai. When the team size is small, opt for cost-effective office spaces and save hefty sums of money. In either case, the associated maintenance cost is minimal, and service hiccups are negligible.
4. Custom-Made Solutions
The UAE is a developing business hub that has taken giant strides in the world market in the past years. Business centers established in Emirates make office renting easier than ever with customized solutions. The investors and entrepreneurs can choose the type of office space they want by specifying their requirements. It can be work hours, system enablement, digital requirements, and more. Furthermore, the companies established in business centers become a part of its working ecosystem, and it benefits their venture in the long run.
Other Benefits of Renting an Office Space in Dubai
Apart from the financial aspect, there are several other advantages of renting an office space in Dubai. Some of them include:
- Renting an office space doesn’t involve confusing paperwork, and the process is pretty lenient. Therefore, new-age investors who cannot spend too much on office space also get viable flexi desk options alongside other alternatives like the office-per-hour model.
- With round-the-clock service availability, quick assistance, and advanced infrastructure, rented office space in Dubai doesn’t let you down on any grounds. All you need to do is make a smart decision regarding the office location. A mistake here can cause a lot of unnecessary trouble in the future. Therefore, always consult with a business advisor who’ll provide vital information about various business locations in Dubai, the cost of renting an office space, etc.
- You also need to get an office for rent in Dubai to create a professional impression on your clients. A well-maintained office reflects your business ethics and helps you increase your client base. You can also indulge in business networking and collaboration with other businesses in your region.
How to Rent an Office Space in Dubai?
You need to have a commercial or professional trading license to obtain the leasing document from the landlord. Furthermore, 200 sq. ft. is the minimum office size that you need to have to apply for a legal trading license. Your office’s size also has a critical role to play in your visa application. Larger the space, the more visas you can apply for. Therefore, if you want to apply for multiple visas and have a medium to large team size, go for a bigger rented space.
Documents include passport copies, provisional approval certificate, LSA agreement (for expats forming LLCs), etc. The tenancy contract has a minimum tenure of 12 months, and the preferred payment mode is through cheque from either your personal or corporate bank account. Moreover, if you wish to alter the interior of the office space, you need to obtain the NOC from the property owner. You can reach out to the Dubai Municipality and other concerning departments and raise your concern in case of any dispute.
Amenities like water and electricity are readily available upon the submission of your legal business license. To terminate your lease agreement before the designated tenure, you need to pay a reasonable penalty fee, and the amount is always discussed before signing the agreement. However, if the landlord finds your reason justified, he may/may not charge the penalty fee.
Collaborate with Shuraa Business Setup
At Shuraa, we simplify company formation. Our business experts know all the laws inside out, and when you get in touch with us, you get the most cost-effective package for business establishment. The decision to rent an office space in Dubai should never be taken in haste as it can adversely affect your business ambitions and hinder your company’s operations.
We help you find the best rental space for your venture after deeply analyzing your business activities. You also get complete documentation assistance from our consultants, and all you need to do is collaborate with us.
