A Quick Guide for Commercial Tenants in Dubai Dubai is one of those few places that can boast about having a fast growing economy, plenty of business opportunities, stimulating leisure and entertainment activities, and a lot more. And, when you have these, don’t you feel like venturing out to grow your business? Or maybe you already have an established operation, and would want your business to succeed and flourish? Well, whatever the reason is, you need to make certain that you have made the right choice. This is done by carefully considering all aspects of a property prior to beginning your search. Given below are tips a commercial tenant in Dubai must be aware to make a well-informed decision. Eligibility to attain a commercial property: Before you apply for space in a commercial office, you need to have an official trade license issued by the Dubai Economic Department (DED) or a Dubai Government Free-zone. Also, keep in mind, you are not allowed to sub-let the property, as it is against the laws of the UAE. Essential documents: Trade License is a must before you begin any kind of business. A provisional approval from the Dubai licensing authority, passport of the Company Manager, which should be named on the Trade License, is a vital document. If, in case, signatory is not named on the Trade License then you will need a signing authority letter, along with a passport copy of the authorized signatory.
Fees: Depending upon the negotiations between the landlord and you, the yearly property maintenance, service charges, and district central cooling charges can either be integrated within the rent, or can be billed separately. In addition, you must keep in mind; the duration of a lease contract in Dubai is usually for a year with an automatic renewal for the second year. However, subject to negotiations, contracts can go up to ten years. Difference between operating onshore or within free-zone: Before you rent a property, you need to be absolutely sure about the difference between operating business on shore and free-zone. If you are an overseas entrepreneur, operating your businesses onshore is under the regulatory control of Dubai Economic department (DED). Also, a local partner that holds 51% shares of your company is required, and you need to pay 5% import duty, in case, you import any type of good for sale. In comparison, operating business in free-zone is a lot more convenient. This is because, you have a 100% ownership of your business and a local free-zone authority becomes your partner. Modification of the property: If you may want, you can alter the interiors, though, you will need a licensed equipped contractor, and a non objection certificate (NOC) from the landlord, the building’s manager, Dubai municipality, and in case you are in a free zone, you will need the relevant governing body.