Are you looking to set up a business in Dubai? If so, you'll need to understand the nuances of commercial leasing in the United Arab Emirates. There are certain conditions that apply to commercial leases in Dubai, such as the requirement that the owner be a UAE citizen or company, as well as restrictions on foreign ownership of commercial property. Additionally, all leases are subject to Value Added Tax (VAT).The standard length of a commercial property lease in Dubai is one year. At the end of the year, the tenant and landlord can agree to end or modify the contract.
If they do not decide to do so, the contract is automatically renewed for another year. Companies operating in the free zones of the United Arab Emirates must obtain an appropriate operating license from the relevant free zone authority and enter into a lease agreement. In most cases, it is possible to rent existing offices or warehouses or build custom premises. Leases of up to 50 years are available in some free zones, such as the Jebel Ali Free Zone. The Dubai International Financial Centre (DIFC) and some other free zones also offer wholly-owned options or “shared desktop solutions” for emerging satellite companies with one or two employees, without needing an office. A number of corporate documents must also be submitted, similar to those required to establish limited liability companies or branches.
Certain industries will require regulatory approvals. For example, law firms in Dubai must obtain a professional license from the Department of Legal Affairs of the Government of Dubai, and medical professionals normally require approval from the Ministry of Health. Although there is no standard procedure when it comes to legal costs, it is usually tenants in Dubai who disburse expenses related to the lease document. When setting aside your budget for commercial leasing in Dubai, consider all costs associated with this process. A foreign company operating in the private sector can supply products to its customers directly in the United Arab Emirates and may not need to name an agent or distributor. To be able to lease commercial offices, entrepreneurs must have a valid business license issued by the Dubai Department of Economics (DED) or by a free zone of the Government of Dubai. The free trade zones of the United Arab Emirates offer foreign investors the opportunity to establish a business presence in the Middle East region with 100% foreign ownership.
By contrast, a branch is a full-fledged company that is granted a business license and allowed to execute contracts or carry out other activities on behalf of its parent company. When selecting an office space for your business, you'll want one that stands out for its beauty and convenience. Research possible rent increases with RERA's rent increase calculator so you don't have any surprises when renewing your lease for your Dubai office. As long as your application is in order and all necessary fees have been paid, the relevant Emirates business licensing department will enter your LLC into their Mercantile Registry database and issue you a license to operate. Rent payments in Dubai are mostly made by checks, regardless of what type of property you rent. Choosing the right retail space in the right location is essential for successfully establishing and running your business. To take your business to the next level, consider hiring an experienced Dubai Business Configuration Consultant, like Adam Global Dubai.