Starting fresh in Dubai or spotting an opportunity in a thriving sector?
Whatever your reason for needing office space, we at SpiderBC have got you covered. We specialize in office rentals and understand the ins and outs of both purchasing and renting office space.
To learn more about the legal steps and other essential details, read on.
How To Get An Office In Dubai: Steps to Buying or Renting
Now, let’s get straight to the point.
Buying An Office
You can actually get an office easily in Dubai, even within famous areas. However, it can be very expensive. Here’s a rundown of the whole process.
Step 1: Hire a Real Estate Agent
Find a real estate agent who knows about commercial properties in Dubai. Tell them what you need and how much you can spend. The agent must be licensed by the Real Estate Regulatory Agency (RERA).
Step 2: Conduct Legal Checks
Do a thorough legal check before buying. Verify who owns the property. Make sure there are no legal issues or debts tied to it. Get a lawyer to review all papers. They should check:
- The seller’s ownership (title deed)
- Any mortgages on the property
- If the property’s use matches your business
- Existing lease agreements
- Unpaid bills or charges
Step 3: Make an Offer
When you find a good property, make a formal offer. Work with your agent on the price and terms. Put everything in writing. Include conditions like finishing due diligence and getting financing. Be ready to pay a deposit (usually 10%) when your offer is accepted.
Step 4: Sign the Sale and Purchase Agreement (SPA)
Draft a detailed SPA with all terms. Both buyer and seller must sign it. This makes the deal legally binding. The SPA should include:
- Clear description of the property and what’s included
- Price and payment details
- Completion date and what happens if there are delays
- Seller’s promises about the property’s condition and legal status
- How to handle disputes
- When the deal can be called off
Have a lawyer check the SPA to protect your interests.
Step 5: Complete the Purchase
Pay the rest of the money as agreed in the SPA. Register the ownership change with the Dubai Land Department. Pay all fees to get your title deed. Legal steps include:
- Paying transfer fees (usually 4% of the price) to the Dubai Land Department
- Getting a No Objection Certificate from the developer
- Registering the property at the Dubai Land Department
- Switching utility accounts to your name
Step 6: Set Up Your Office
After buying, set up your office. Get utilities connected. Get all needed permits and licenses to operate legally. This means:
- Getting a commercial license from the DED or free zone
- Getting trade licenses for your business type
- Meeting health and safety rules, including fire safety
- Registering with the Ministry of Human Resources and Emiratisation if you’ll hire staff
- Following data protection laws if you handle personal info
Keep in touch with your lawyer throughout to ensure you follow all Dubai’s laws.
Renting an Office
Though Dubai is fairly lax with legal expenses, buying an office can still leave a huge dent in your finances.
As an alternative, you can rent low cost offices that provide everything any business, no matter the size, needs.
Here is a comprehensive guide on how to rent an office in Dubai.
Step 1: Contact Business Centers
Reach out to business centers that offer short term office space rentals. Tell them what you need. Ask about available offices, lease terms, and extra services. Check if they’re registered with the Real Estate Regulatory Agency (RERA). This gives you legal protection as a tenant. Ask for proof of their RERA registration.
Step 2: Visit Offices
Tour offices you like. Check safety features like fire exits. These must meet Dubai fire rules. Document any damage. Request the building’s safety papers and latest fire check report.
Step 3: Review the Lease
Read the lease carefully. Note rent, payment dates, and repair responsibilities. Have a lawyer check for:
- Dispute resolution
- Liability terms
- Subletting rights
- Emergency clauses
- Hiring rules
- Data protection
- Compliance with UAE and Dubai rental laws
Step 4: Negotiate Terms
Negotiate rent and lease terms with the business center. Good negotiation gets you better terms. See if you can get:
- Some time at the start where you don’t pay rent
- A way to end the lease early if you need to
- Money to help set up the office
- A limit on extra charges
- The option to stay longer
- Permission to make changes to the office
Get everything you agree on in writing. Make sure it’s part of the final lease. Dubai law says all these things need to be written down.
Step 5: Sign the Contract
Once you’re satisfied with everything, sign a Memorandum of Understanding. Make sure you understand all its terms. Pay any required deposits and your first rent payment. Take the MOU to the Dubai Land Department to get it officially stamped, as required by law.
Step 6: Obtain Necessary Permits
Apply for any needed permits from Dubai authorities. Your legal advisor can help with this. For the most part, you’ll likely need:
- DED business license
- Dubai Chamber registration
- Industry-specific approvals
While you’re at it, make sure you comply with UAE labor and company laws.
Step 7: Set Up Your Office
Once everything is settled, set up your office. Plan the design, arrange utilities and internet, and then you can start getting everything ready for business.
FAQs
How much does it cost to set up an office in Dubai?
Around AED 100,000 initially, including a refundable deposit of AED 50,000.
How to get a branch office in Dubai?
Appoint a local service agent, apply to the Ministry of Economy, get a business trade license from the DED, and register with local authorities.
How can I open a representative office in Dubai?
Appoint a local agent, reserve your trade name, obtain approvals from DED and MOE, and get your DED commercial license.
What is the cheapest way to set up an office in Dubai?
Virtual offices, especially in Free Zones, offer the most affordable options.
Conclusion
And that’s how it works. Remember to explore different areas in Dubai, and understand the property rules. These dictate how well your business will grow.
If you’re worried of running into hiccups, SpiderBC can simplify your journey.
Need assistance or have questions about setting up your office? Contact us at +971 43827700 (Direct) or +971 557012754 (WhatsApp), or email info@spiderbc.com. We’re ready to help!