Before establishing a business in Dubai, securing a trade license is paramount. This license, issued by the Dubai Economic Department (DED) or a free zone authority (e.g., DMCC, DSO), will guide your search for suitable commercial properties. Importantly, the UAE Commercial Companies Law now allows full foreign ownership of onshore companies, expanding business opportunities.
Finding the Ideal Location:
License Compatibility: Ensure the chosen location aligns with your trade license requirements.
Strategic Considerations: Market Viability: Assess the location’s suitability for your business model.
Accessibility: Consider factors like foot traffic and ease of access for customers and employees.
Parking Availability: Adequate parking space is crucial for both employees and customers.
Office Type and Employee Visas
Visa Eligibility: The type of office space directly impacts the number of visas available for foreign employees.
Flexi desks: Typically allow up to three visas.
Serviced offices: Offer four to five visas depending on the size.
Physical spaces: Generally, one visa is permitted per 29 square feet.
Essential Documentation
Purpose of Use: Ensure the property’s intended use aligns with your business activities (e.g., office, warehouse).
Required Documents:
- Proof of business ownership
- Necessary permits for commercial space usage
- Compliance with existing building plans
Lease Agreement Considerations
Property Modifications: Clearly outline any planned modifications (e.g., installing cubicles) within the lease agreement.
Accurate Information: Ensure the lease agreement accurately reflects the property address, rental rate, lease term, and start date.
Landlord Requirements, Be prepared to provide:
- Business plan
- Financial statements (personal and corporate)
- Bank references
- Credit scores
- Previous landlord references (if applicable)
- Provisional approval from licensing authorities
- Company manager’s passport
- Signing authority letter
Budgeting:
Rental Costs: Consider the annual rental rate, security deposit, and other associated costs.
Rent Increase Calculator: Utilize RERA’s Rent Increase Calculator to anticipate potential rent fluctuations upon lease renewal.
Lease Agreement Types
- Gross Lease: Landlord covers property expenses (maintenance, insurance, taxes).
- Land Lease: Tenant leases land and constructs their own building.
- Triple-Net Lease: Tenant covers all expenses (rent, insurance, taxes, maintenance).
- Modified-Net Lease: Expenses are shared between landlord and tenant.
Post-Lease Activities
Essential Services: Activate electricity and water services through DEWA.
Property Insurance: Obtain insurance coverage for property damage.
Interior Design (if applicable): Engage an interior designer for shell and core units.
Subletting: Obtain written approval from the landlord before subletting the property.
Early Lease Termination
Be aware of early termination penalties, typically equivalent to two months’ rent.
Rent Payment
Cheques: Cheques are the most common payment method.
Security Deposit: A security deposit of approximately 5% of the annual rent is typically required.
SASA Real Estate Services
Our team of experienced real estate agents can assist you in finding the perfect commercial property for your business needs. We provide valuable insights on market trends, pricing, and legal regulations to help you make informed decisions.
Our services include:
- Property Search and Selection
- Market Analysis
- Landlord Communication
- Lease Agreement Preparation and Registration
- Utility Activation
- Property Management Support
Contact SASA Real Estate today to explore your commercial property rental options in Dubai.
