UAE is a major business destination of the world and many foreign investors are choosing UAE for launching their business. UAE is home to top companies and start-ups that are having offices in prime locations.
The Free Zones are the major factor for the business growth in the region. They offer a host of attractive business setup packages for investors. Having an office space in the Free Zones of UAE is highly beneficial for investors.
Having office space in UAE is a requirement for many businesses. It is mainly a factor that depends on the investor’s requirements. However, having an office space in UAE for your company is highly beneficial for the investor in many ways.
Why Should an Investor Get an Office Space?
There are numerous advantages of having Office Space for investors in the UAE. Office Space in UAE provides ample business benefits for the investor and the company. Following are a few reasons why the investors must have a physical office space for their company.
1. Prestigious Dubai Address
Having an office in Dubai will enable the investor to get a prestigious Dubai Address. Also, the office spaces in Dubai are of top-class infrastructure. It adds value to the branding of the company.
Again, there are certain business activities where the office space is not a mandatory requirement nor branding of the company is a factor.
For example, software application development can be conducted remotely by the engineer and the company branding aspect is a secondary consideration by the clients.
2. Physical Infrastructure
The Office Space in UAE has top-class infrastructure and facilities for investors. It will have meeting halls, dedicated conference rooms, a cafeteria, internal and phone facilities, and more.
The physical office space will have all support systems to effectively work and keep up the productivity. Also, having a physical office space will help in bank account opening as the Know-Your-Customer procedure would be completed faster.
3. Minimal Documentation – Tenancy Contract
Owning or renting an office space in UAE in the mainland or the Free Zone involves minimal documentation. There are various leasing and licensing options available for a yearly and multi-year lease.
The tenancy contract agreement preparation is a straightforward process. It adheres to the specific terms and conditions of office leasing with the Free Zone authorities or the Department of Economic Development of the specific Emirate in UAE.
4. Reduced Overhead Expense
When it comes to office expenses, the electricity and water usage in offices across Free Zones are covered within the rent.
In the case of fully furnished office spaces, there is no additional investment for the company. The operational expenses for the company are the only cost that is recurrently incurred by the company.
5. Credibility and Recognitions
The office space provides the investors a sense of credibility among stakeholders such as other suppliers, banks, third-party service providers, etc.
Also, there will be higher customer trust and recognition for the brand due to having a physical office space. Again, for certain business activities, there is no requirement of having a physical office space as their nature of work depends on individual contributions than a company identity.
6. Accessibility & Flexibility
Having an office space in UAE provides the investors the ability to access the office 24/7. It offers immense flexibility in terms of working at the desired time and also maintaining the office contracts.
The office provides easy accessibility for the employees to work at their comfort, host onsite meetings, plan projects ahead, and more. The offices in UAE have the flexibility in operating times and have 24/7 security.
How to get office space in UAE?
There are various office spaces available across UAE for the investors. To get an Office Space in UAE for the business, the investor can take the assistance of a Best Business Setup Consultant such as AURION.
The team will assist in choosing the right Free Zone, preparing the tenancy contract for the office space, and checking the availability of office space in Free Zones, and on the mainland.
Free Trade Zones or Mainland of UAE – Getting an Office Space for the Company
Depending on the specific business requirements, there are office spaces and warehouses available in UAE in the Free Zones and the mainland. Office Space in UAE can be taken along with the Trade License from the chosen business jurisdiction.
The Free Zones in UAE have customized office spaces and warehouses for specific business activities. The office spaces start from Shared Desk or Flexi Desk to the Executive Offices.
Similarly, there are warehouses in a few selected Free Zones. They vary from 100 Sq. m to 700 sq. m and above. Also, there are specialized facilities available for sectors such as Cold Storage, e-commerce goods, Agriculture produce, heavy equipment, and more.
How to Choose an Office Space for a Company
Office Space rents vary significantly depending on the popularity of the Free Zone and the Emirate where the company is registered. Also, the proximity to the Airports, Seaports, availability in-house-customs checks, etc., are factors contributing to competitive advantage and higher office rents.
For example, Office Space rent in Dubai Airport Free Zone costs AED 62,500 for a 25 Sq. m office. Similarly, office space in the Northern Emirates such as Ras Al Khaimah would be much cheaper than in Dubai.
So, in a nutshell, getting an office space for a business in UAE is a straightforward process. The Free Zones have designated office spaces ranging from Flexi Desk, Shared Office, and Executive Offices of various sizes.
In the mainland of UAE, depending on the Emirates where the Trade License is obtained, the office space can be taken anywhere in the emirate with the Trade License.
Things to know before choosing an Office Space
There are a few parameters to look at while choosing the right office space for your company. UAE offers a whole lot of options with varying costs and infrastructure for office space. Investors must assess a few factors before agreeing upon an office space in the region.
Choosing the right office location is an important aspect for a company. For example, a marketing consulting company being at the business center or Free Zones is ideal for networking and scaling up easier.
Similarly, trading companies prefer to be close to airports and seaports to keep their transport cost low and also faster exchange of goods with international markets.
Office rents at prime locations are always a notch higher. Hence, investors must take into account a budget depending on the expected revenue earned. There will be multiple expenses for a company to run its daily operations.
Proper budgeting of funds is essential to always maintain a positive cash flow and achieve faster business results with reduced spending.
3. Approval from the Authorities
Certain office customizations, warehouse works, fit-out works in the office require special approval from the authorities.
Also, companies in the food and beverage sector, light manufacturing, etc., require Municipality approvals. Hence investors must be aware of the approval required for the chosen business activities and office location.
4. Size and Space
Office Size and Space requirements are important aspects for companies. while taking office space, the investor must be well aware of the square feet and office space while renting the space.
The office must have the required infrastructure and space to accommodate employees, furniture, cabinets, devices, and more.
5. Visa Allocation
Another important aspect linked to office space is visa allocation. Depending on the sq. m the visa is allocated for the company in the mainland of UAE.
Also, in Free Zones there are various visa quotas associated with the size of the office. For example, to have more than three visa quotas, office space is a mandatory requirement in a few of the Free Zones of UAE.
6. Future expansion
While choosing the office space, the investor must consider the future expansion plans of the company. The size of the office, as well as the location, can be finalized keeping the future expansion goals in mind.
Hence to add more employees in the future and expand the office space, mainland companies will have the flexibility without any hassles.
Alternatively, in Free Zones, the business license package must be upgraded by adding more visa quotas and revising the tenancy agreement for taking larger office space in the Free Zone.
There are various business license packages in the Free Zones for investors depending on their specific business requirements.
Hence, in a nutshell, having an office space in UAE has a host of business benefits for the investor, and also enables the entrepreneurs to structure the business operations and required support functionalities.
To know more about having an office space in UAE and ways to obtain a trade license at the lowest cost, connect with our expert Business Consultants right away!
Contact Us: Aurion Business Consultants