Estidama EJARI contract Dubai
In the Arabic language, “Estidama” is the word for sustainability. The Estidama program is a key part of the “Abu Dhabi Vision 2030”. It is a building design methodology that will allow buildings to be constructed and also operated sustainably. Even if Estidama took its root in Abu Dhabi, it is currently under work in all the emirates of the UAE.
How does the Estidama Lease Contract work?
Previously, to obtain a trade license for any mainland businesses in Dubai and the UAE, they had to rent a physical office space. The office had to be a minimum size of 200 square feet according to the Department of Economic Development in Dubai. After a business had rented such office space, officials from the Department of Economic Development in Dubai would come and inspect the office. If they approved of the space, only then they would issue a trade license.
However, recently the Department of Economic Development in Dubai started to permit smaller businesses to rent virtual offices and still be able to apply for trade licenses. This route is more sustainable for smaller businesses and hence it is named the Estidama lease contract. The Estidama lease contract is basically a contract for a virtual office. With the Estidama lease contract, you get a complete lease agreement, which is a requirement for getting a trade license in the UAE. You can get in contact with Estidama consultants in Dubai and get Estidama offices in business centers here easily.
Here are a few benefits of an Estidama contract in Dubai:
- Replacement for EJARI
An EJARI is required for getting a trade license in the UAE. And you need to rent a physical place to get an EJARI. However, the Estidama issued by the Dubai Land Department will work as an Estidama EJARI. That means you can use that Estidama EJARI contract to apply for a trade license in Dubai. You will receive a business address from the business center where you get the Estidama EJARI contract. Even if you will not work from that address, you can use it for business purposes. For example, when filling up official forms for your business, you can use that Estidama address as your business address.
- No need for a physical office space
Physical office spaces are expensive. They are not sustainable for many small businesses that can put the capital to better use. Many small businesses do not need a physical office space to work from. Most IT startups can efficiently work from home. In fact, regularly traveling to physical office space will be unproductive for these businesses because they are losing both time and money while commuting. An Estidama contract allows these businesses to work remotely and still get a trade license from the Department of Economic Development in Dubai.
- Sponsor visas
Depending on the size of the office you lease or rent, you may sponsor a certain number of visas for employees from abroad. Of course, the bigger the office space the more visas you can sponsor. However, even if you fulfill your office needs with an Estidama lease contract. You may still need to bring in employees and workers from abroad. That is why even without a physical space, and Estidama enables you to sponsor up to four employment visas or labor quotas.
- Various amenities
Depending on the business center you are getting the Estidama from, you will receive various amenities with the virtual office. Many business centers provide a front desk for your virtual office, while others give you the option of renting a dedicated desk. Some virtual offices also allow physical office spaces for few hours per month. They also provide meeting rooms should you need to meet with a client or a potential business partner. The TRN number is accessible with an Estidama. You can open bank accounts with the address provided by the virtual office. DU or Etisalat is also possible with an Estidama.
EJARI Registration in Dubai
In the Arabic language, “Ejari” means ‘my rent’. The authorities in Dubai have named the registration process of tenancy contracts EJARI. Besides the tenancy contract registration process, the tenancy contract itself is sometimes called an EJARI. The EJARI online registration system was initiated by the Real Estate Regulatory Agency (RERA) in Dubai.
EJARI registration is mandatory for any private rental contracts in Dubai. The tenant is required to complete the registration process and pay the EJARI fees. You can register the EJARI online or you can do it through the EJARI app as well. However, the EJARI contract must be printed from any one of the authorized typing centers in Dubai. The EJARI fees you will be required to pay at the typing centers are usually around AED 220.
Documents Required for EJARI
Here are the documents that you need to upload when registering for EJARI online in Dubai:
- The signed tenancy contracts
- The receipt of the security deposit
- A copy of your (tenant) passport.
- A copy of your (tenant) visa.
- Your Emirates ID.
- If the landlord is an individual (not a corporation), then his/her passport copy.
- A copy of your power of attorney.
- A copy of the title deed of the rented property.
- The DEWA bill and premises number.
- The previous EJARI if you are renewing.
A copy of your trade license if the EJARI is for commercial property.
EJARI Renewal process
Your EJARI needs to be renewed when you change the property that you are leasing or renting. The documents required for EJARI renewal are the same as the EJARI registration process with the addition of your previous EJARI. The EJARI renewal fees are also the same as the EJARI registration fees. The fees mostly depend on the agent you are hiring to do the EJARI for you.
If you are a foreigner looking to get started in Dubai or anywhere in the UAE. This all may be a little confusing at first. It is suggested you consult with professionals who have done these registration processes before. They also have the necessary connections to streamline the process of making an Estidama EJARI contract. They will also ensure there are no errors that may complicate the process while registering.
Frequently Asked Questions on Ejari and Estidama
Ejari registration in Dubai was introduced in 2010 to regulate and assist the local property market and protect landlords and tenants alike.
Having an Ejari is a fundamental aspect of renting in Dubai and ensures that all contracts are composed into the appropriate legally binding document structure. As a result, Ejari registration in Dubai is mandatory.
Many transactions mandate an Ejari, you need an Ejari for trade license renewal, for issuing visas, opening a bank account, for setting up utilities and even employment of domestic staff.
In most cases, your Ejari registration in Dubai should take no longer than one to two days after you have completed the application and submitted the necessary documents.
In rare cases, it may take longer, however, by using the Ejari app to register you can expect a quicker turnaround.
Ejari renewal is required every time you renew a tenancy contract, which in most cases occurs every year. To renew your Ejari in Dubai, you need all the required documents for registration as well as a copy of your previous Ejari.
Previously, the Department of Economic Development in Dubai required all businesses to rent or own at least one physical office with a minimum size of 200 sq. ft. before they issued the business trade license. However, with the introduction of the Estidama/Sustainability contract, businesses no longer need to rent or own physical office space when starting their journey.
Estidama is the Arabic word for ‘Sustainability’. The government launched this program to make Dubai more sustainable and one of the ways they can do this is by cutting the costs for new businesses looking to make Dubai their home. There are a lot of businesses that do not need a fixed physical space to work from. So, it is a waste of space and resources when these businesses are forced to get an office space for trade licenses purposes.
The Estidama contract allows businesses with fewer employees to rent virtual offices which are much more cost-effective than traditional office spaces. This is helpful for both the business and is in line with the objectives of the government. The businesses are saving on money and do not have to commute to work on a daily basis. While the space is saved for businesses that actually need a physical base of operations to run effectively.
Here are the things that the office Estidama/Sustainability contract in Dubai allows:
- You can rent a virtual office space.
- You can apply for the business trade license from the DED after renting a virtual office.
- As EJARI is a mandatory requirement from the authorities, this contract takes the form of Estidama EJARI.
- The Estidama allows up to 4 visas for the business owner.
- You can apply for the Tax Return Number (TRN) with the Estidama
- You can open a bank account with the Estidama.
- DU/Etisalat is possible with the Estidama
- Note that the Estidama is only available in Dubai. Abu Dhabi uses the Tajer Licensing Model.
Ejari is the web-based rental and leases registration system that was introduced in the UAE a while back. It was established by the government of the UAE with the goal of setting up a strong regulatory system for the rental market. On the other hand, Estidama is a program launched by the government to make UAE more sustainable in its rapid economic growth. It enables small business owners to register for the business trade license without renting a physical office.
What is Ejari ?
The Ejari brings all the components of renting physical office space to the internet. The Ejari tenancy contract is transformed into the standard format and accepted through the web. This enables the government to access the contract as it is saved in the Ejari information system. When the agreement is completed, the Ejari registration certificate is provided to the tenant. All the terms of the contract and the legal validity can be found on the internet thanks to the Ejari.
Ejari in short:
- An online registration system for the rental market in the UAE.
- Allows the government to have strong regulatory control over property rentals.
- Online registration allows tenants and officials to find necessary data in the Ejari information system.
- The payment of the fees can be done online.
What is Estidama?
Estidama is the Arabic word for ‘sustainability’. It is a program launched by the government to make the outstanding growth of Dubai more sustainable. As a result, they are cutting all the unnecessary costs that usually come with development. The Estidama contract allows small businesses to rent virtual offices, which are significantly more affordable and saves office space.
Estidama in short:
- Allows small businesses to rent virtual offices.
- They can apply for a business trade license without a physical office space.
- They can apply for a bank account and a TRN number with the Estidama.
- It is only available in Dubai.
The Estidama certification is provided after an examination by the Pearl Qualified Professionals. The Pearl Qualified Professionals inspects the development practices set by the Pearl Building Rating System. The Pearl Building Rating System was developed within the Estidama goals, which was to make the development across the UAE more sustainable.
So, what does the Pearl Rating System inspect before providing the Estidama certificate? The answer is divided into three categories. The Pearl Rating System focuses on these three rating systems:
- Building Rating System
- Villa Rating System
- Community Rating System
To get the Estidama certification, you need to get a fixed number of Estidama credits. The number of credits you will require will depend on the intended use of the building or office in question.
Here are the eight categories the Pearl Rating System requires credits for:
- Integrated Development Process
- Natural Systems
- Livable Buildings: Outdoors
- Livable Buildings: Indoors
- Precious Water
- Resourceful Energy
- Stewarding Materials
- Innovating Practice
The Pearl Qualified Professionals awards point based on five levels of inspection. These are the five levels of inspections that they conduct:
Reducing the energy use and greenhouse gas generation of your office and building is one of the key points of the Estidama sustainability program.
Reducing water consumption also gives you more credits towards your Estidama certification. As the problem of lack of freshwater is aiming to be tackled by the Estidama program.
The quality of air should be maintained according to the Estidama guidelines. For example, credits can be earned by prohibiting smoking inside of the premises.
The amount and type of raw materials used also give you credits. For example, using regional and recyclable materials is encouraged.
The number of raw materials wasted while construction is also inspected by the Pearl Qualified Professionals.
If you have any questions regarding the certification or want to get the Estidama Certification, then our consultants are always ready at your service. Feel free to contact us at any time.
The Estidama contract allows your business to rent a virtual office. This virtual office will count as an office space when you will be applying for a business trade license from the Department of Economic Development in Dubai.
Here are the steps you need to follow to obtain the trade license with an Estidama:
- Select your business’s legal structure.
- Select a trade license.
- Apply for the initial approval from the DED.
- Get your trade name registered.
- Apply for the Estidama contract.
- Rent a virtual office from a business center.
- Get the external approvals.
- Get the required documents to the DED.
- Receive the trade license.
The business formation process with an Estidama is similar to the process without one. The only difference here is, without getting a physical office space you will be getting a virtual office space.
The Department of Economic Development in Dubai has mandated that all businesses need office space in Dubai. So, before the introduction of the Estidama program, all businesses had to get a physical office space of at least 200 sq. ft. Now a virtual office fulfills this requirement, and you can register for the trade license with it.
The Estidama program was introduced to make development in Dubai more sustainable. If a business did not need office space to operate, then it does not need to waste office space for the sole purpose of registering for a trade license. As virtual offices are way cheaper than traditional office spaces, this is beneficial for both the business and Dubai as a whole.
If this process seems complicated to you, we are always ready to help you. Our consultants have registered the Estidama for a lot of businesses in Dubai. They also have the necessary connections that make it easier and faster for you to receive the trade license with the Estidama from the DED.