It’s not easy for everyone to start a company from scratch. Entrepreneurship can test your mettle with its demands and demands. Consistent effort and making moral choices are two of the most important aspects of business planning. When it comes to the latter, finding an appropriate location is crucial to the development of the business as a whole. It provides security measures and improves the efficiency of business operations. Because of EXPO 2020, Dubai has become a global trading hub and economic powerhouse, and many new businesses are springing up in preparation for the event.
Demand for commercial property in Dubai has risen in tandem with the city’s thriving startup scene. Despite the abundance of available commercial real estate in the city, new businesses have a hard time raising the necessary funding. If you’re looking for a suitable property with low outlay of capital, commercial real estate rentals are a great option. Getting your business off the ground and expanding in the face of such intense rivalry will provide its own unique set of difficulties.
In Dubai, you’ll need items like a business license to rent an office space. For businesses currently up and running in the city, various commercial permits are available. Because the site is contingent on the license, it can’t be decided until the license is granted. The commercial unit licensing area should correspond to the physical location of the business. If you have a store or showroom that relies on walk-in consumers, the location you choose is crucial. In addition, there needs to be enough parking for all of the employees’ cars. So, before signing a lease, make sure the location meets the needs of your company by investigating the trade licensing requirements.
You, as a prospective tenant in Dubai, need to be aware of a few things whether you are a native of the United Arab Emirates or not. The following are the most important considerations for any business renter.
To be eligible to lease commercial office space in Dubai, prospective tenants must be in possession of a current trading license from the Dubai Economic Department (DED) or a Dubai Government Free-zone. If a business owner has the necessary permits, they can set up shop either onshore or in a tax-free zone.
If you want to rent an office space in Dubai, you’ll need to bring over a few important pieces of paperwork. For instance, you will need a trading license and a copy of the passport of the individual named on the trade license in order to operate in the Emirate.
It’s important to know the variations between doing business on home soil and in a free trade zone. In order to legally conduct business in Dubai, foreign entrepreneurs must have local partners who own 51% of the company and submit annual reports to the Dubai Economic Department (DED). In addition, business owners must pay a 5% import fee on all products imported for resale. In contrast, when running a business in a free zone, you can keep all of the profits and become a partner with the local free-zone administration.
Typically, commercial premises are offered to tenants in a “shell or core” format, in which the space is empty upon move-in. The kitchen and restrooms are usually located in the hallways or other communal areas of the building. Increased competition has led to larger, better-equipped apartments being offered by landlords. A apartment that has been “fitted” means that all of the furniture and appliances have been installed.
Tenancy agreements are typically for a period of 12 months, with the option to renew for an additional 12 months if both sides agree. Both the tenant and the landlord have the option of extending the lease for up to ten years.
In Dubai, most landlords would rather receive a check drawn on a UAE bank than any other form of payment.
Both the lease term and the monthly rent are subjects to tenant-landlord negotiation. The rent can be paid in any number of cheques agreed upon by the parties. This might be anywhere from a single check to as much as 12 (albeit quite unlikely) checks. At the time of lease signing, the tenant will provide the landlord with all rent checks for the duration of the lease. These checks will be postdated to future dates if they are not to be cashed immediately.
As a potential tenant of a business building in Dubai, you should be aware of any additional costs that may arise. Furnishing and fitting costs, in particular for shell units, government permission fees, annual property service charges, and agency fees like CORE Commercial’s. The overall cost will be determined by the square footage of the unit as well as any special furnishings you may like.
There is typically a penalty for breaking a commercial lease early in Dubai. A penalty equal to two months’ rent may be assessed by the landlord. This fee is meant to compensate them for any financial losses that may arise from not meeting the rental duration specified in the contract. You must depart the premises immediately, and you will not be allowed to return for a period of two months. While the landlord has ultimate say over the specifics, tenants can try to negotiate with their landlords to see if more agreeable terms can be worked out.
Tenant is only allowed to do interior renovations if all affected parties sign off on the work. If you’ve rented a house in a free zone, you’ll also need to notify Dubai Municipality, the competent agencies there, Dubai Civil Defense, and Emirates Health and Safety.