Can you avoid renting an office for a Dubai UAE freezone company?

[Verbatim]

I prefer to work from home and I wouldn't mind saving on office costs.
Some websites say it's obiligatory, others say it isn't so I am not sure.
Another issue is banking as I've read banks may be more hesitant to give a corporate account if no office is rented.
What is your take on this?

 

[uplana]

Without a real office your application will decline most places. You need to setup a company with substance at least if you want to setup a business abroad / offshore and you need any form for banking or card processing.

Things are getting more and more complicated now a days, so you really need to do your homework and put some money on the table.

Inside mentor group gold you have actually a perfect guide that take you by the hand and guide you through the entire process step by step for a UK company / UK LTD

Same guide can be used for most other places at least in Europe.

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[CaptK]

Verbatim said:
I prefer to work from home and I wouldn't mind saving on office costs.
Some websites say it's obiligatory, others say it isn't so I am not sure.
Another issue is banking as I've read banks may be more hesitant to give a corporate account if no office is rented.
What is your take on this?
Click to expand...

When you register your company, you get a serviced office in the freezone. This is part of the package and is enough to get a Bank account.

 

[Fred]

CaptK said:
When you register your company, you get a serviced office in the freezone. This is part of the package and is enough to get a Bank account.
Click to expand...

Wrong - name me one bank that onbaords you nowadays with a Flexi Desk only beside of a small Pakistani or Egypt based bank with a local branch in the UAE - and even they are less and less onboarding Flexi Desk and even if it get's through - correspondence bank issues ahead and pending USD payments for ages.

Without substance in the UAE you don't come fare nowadays.

A good service provider provides this for his clients and makes the banking part working.

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[CaptK]

Fred said:
Wrong - name me one bank that onbaords you nowadays with a Flexi Desk only beside of a small Pakistani or Egypt based bank with a local branch in the UAE - and even they are less and less onboarding Flexi Desk and even if it get's through - correspondence bank issues ahead and pending USD payments for ages.

Without substance in the UAE you don't come fare nowadays.

A good service provider provides this for his clients and makes the banking part working.
Click to expand...

Done with MASHREQ a month ago in IFZA HQ and MyOffice in Business Bay.

 

[Fred]

CaptK said:
Done with MASHREQ a month ago in IFZA HQ and MyOffice in Business Bay.
Click to expand...

He still needs the personal flat substance - real substance - no shortterm rental or hotel flat.

Your answer let someone without any clue think he get's banking done by just registering the company but that's wrong especially when most people not really intend to live in Dubai.

And again Flexi Desk Banking - have fun with correspondence Banks screening every transfer if you have the same address then 10 thousand other companies on the SWIFT message.

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[CaptK]

Fred said:
He still needs the personal flat substance - real substance - no shortterm rental or hotel flat.

Your answer let someone without any clue think he get's banking done by just registering the company but that's wrong especially when most people not really intend to live in Dubai.

And again Flexi Desk Banking - have fun with correspondence Banks screening every transfer if you have the same address then 10 thousand other companies on the SWIFT message.
Click to expand...

I understand your point regarding the residential address. For now it's not a must but it does make it easier with an Ejari. "Proof" (6 months plus) of long-term serviced apartment or Hotel rental is still possible if you are "intending to buy a property".
Applying for your personal account first before doing your business account also helps.


IFZA HQ, I would assume has at least 5000 companies registered there. DMCC double that. Serviced, Flexi or proper office, even if you have a cupboard sized office or full floor. All have the same address when sending payments.

There is no way round it, the address is the address regardless of office. We are at the mercy of the banks at all times especially when transacting in USD.

 

[JimBeam]

Fred said:
He still needs the personal flat substance - real substance - no shortterm rental or hotel flat.
Click to expand...

I was in a similar position and I have figured out that:

1. I will not use an office to work while I might actually live in the apartment I rent - so I used flexi desk + rented apartment (ejari) + mashreq and it worked out (couple years ago)... They never asked for a new ejari (tenancy contract renewal).
2. If you start with an office and "downgrade" to flexi desk - the bank will know that on the renewal and can create you problems then... while with apartment you can always move to cheaper/smaller apartment or just cancel it as they do not check... so this is much better way (IMHO) to create "substance"... (if this is even considered a substance LOL).

 

[AMD]

I read in many posts substance is a requirement from now on and forward if you want to do business abroad and safe taxes.

 

[sergeylim88]

asking for a friend
he wants to get an office for his free zone company somewhere in dubai
needs it for bank account opening purpose
he needs the cheapest private office
what do you suggest?
can @Fred help with a suggestion?

 

[Fred]

sergeylim88 said:
asking for a friend
he wants to get an office for his free zone company somewhere in dubai
needs it for bank account opening purpose
he needs the cheapest private office
what do you suggest?
can @Fred help with a suggestion?
Click to expand...

Unfortunately we keep our possibilities for our clients to keep things valid and alive for as long as possible but usually depending on the Freezone the best deal the friend would get is a proper office from the authority - cheapest in Dubai is around 17.500 AED unfurnished.

I mean your friend need to expect to pay the same for the office the bank wants to see like he paid for the License of the Freezone that's always the bad awakening of course.

Difficult it will when he has a lot rep Freezone outside Dubai like Shams who has Flexi Desk only then he has to rent a proper office which starts not below 20.000 AED.

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[sergeylim88]

thank you for your response
his company is in ifza
where you recommend to rent that 17.500 aed office from auth?
also can you give a recommendation for the 20.000 aed proper office, i believe it is in one of the business centres, correct?

 

[Fred]

sergeylim88 said:
thank you for your response
his company is in ifza
where you recommend to rent that 17.500 aed office from auth?
also can you give a recommendation for the 20.000 aed proper office, i believe it is in one of the business centres, correct?
Click to expand...

Correct.

Contact directly IFZA but don't be surprised when the price wnt up - usually they try to be 2-3k below the market but demand is crazy recently so questionable if they have availability.

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[sergeylim88]

he told me that he did that, but they have no offices
do you have alternative?