Office Requirement for Starting a Business in Dubai

Setting up an office for a business in Dubai involves complying with the local regulations and meeting certain requirements. A physical office space is generally required for a business setup in mainland. However, there are certain options available such as shared offices or virtual offices that can fulfil the requirements

What is the purpose of obtaining a License?

For the clients, Dubai Economic Department -issued licenses guarantee that the company is legal and abides by all relevant local regulations.The license you need and the laws and regulations that particularly apply to your business are determined by the type of business, company structures, and jurisdictions in which in which you do business.

 

 Types of Office Spaces in the UAE

Onshore Offices- They are traditional office space that companies can lease or buy. These spaces are usually intended for when an office functions on a long-term basis and be customised in accordance with the tenant’s needs. Typically, the tenant is solely responsible for any construction, modification, furnitures and utilities.

Shared Offices- They are considered as an option for Onshore Businesses. Shared offices are owned by a third party that provides most essentials like desks and other furniture that are shared with other tenants. The benefits arising from this are that they are easy to set up and require little investment.

Free Zone Offices- These are available to companies that operate within one of the free zones. Each free zone may have different requirements that dictate the amount of office space or number of desks required based on the number of employees or type of business.

General Requirements:

1. License

The Department of Economic Development (DED) is the primary authority for issuing licenses for mainland businesses. Every business needs to obtain the necessary license first.

2. Office space

The type of office space you choose will depend on your business needs and budget. Free zones often provide pre-fitted offices and flexible lease terms, while mainland locations may require a more traditional setup.

3. Tenancy Contracts

This is a legal requirement and is necessary for obtaining or renewing your business license.

4. DED Approval

After securing an office space, you’ll need to submit the necessary documents to the DED for approval. The DED will review the documents to ensure compliance with the local regulations before issuing the business license.

5. Staff Requirements

The process of obtaining work visas for employees involves submitting relevant documents, including employment contracts, to the General Directorate of Residency and Foreigners Affairs(GDRFA).

6. Corporate Bank Account

This is often a prerequisite for any business registration. Different banks may have varying requirements but generally, every business organisation must need to provide corporate documents.

7. Insurance

Health Insurance is mandatory is necessary for employees in Dubai. Employers are typically required to provide health coverage for their staff.

8. Public Services

Registering for utilities is a practical step that involves setting up electricity, water, and telecommunications services for every office.

9. VAT registration

Value Added Tax registration is mandatory for every business meeting specific turnover thresholds. Businesses need to charge VAT on taxable supplies and submit regular VAT returns to the Federal Tax Authority.

It’s crucial to engage with the a business consultant or the best lawyer n Dubai to  guide you through the specific requirements for your type of business and to ensure compliance with all regulations. 

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