FAQ – E-Office / Virtual Office

What assistance can Global Office provide for setting up a company?

• Practical Advice on and Assistance with Company Formation UAE
• Free Zone – FZE, FZ-LLC, FZCO, LLC company formation from A – (entire UAE)
• E-Office Free Zone / Virtual Office set up Dubai
• Individual counseling regarding right choice of set up (Domestic, Offshore, Free Zone)
• Contract management & document drafting (Board Resolution, Power of Attorney, etc.)
• Pre-approvals, categorization & registration with the concerned Government Departments
• License Renewals
• Open corporate bank accounts (incl. online banking, check book, credit card facilities)
• Employment / residence visa handling
• Office / Warehouse Space search
• Office fit-out coordination, Lease contract processing assistance

Can I set up a Virtual Office / E-Office in a Dubai Free Zone?

No. Dubai Free Zones do not offer this type of set up. They all require to take physical office space within the free zone boundaries. In a Dubai free zone the cheapest set up will cost you AED 40.000 p.a. plus proof of share capital ranging from AED 50.000 – 1 Mio depending on the legal structure of the company and the free zone chosen. Dubai free zones are also not looking for individual small type investors. They prefer established companies with a solid track record. So far only Northern Emirates free zones offer this cost-effective minimal set up and most of them have also waived the share capital requirement, which makes the set up very economic. So far only 1 Northern Emirates Free Zone has high court approval to operate a business center out of Dubai offering cost effective business set ups starting from AED 35,000 p.a. including license, registration fee, hot-desk space.

For whom is a Virtual Office / E-Office set up suitable or recommended?

This type of set up is a minimal set up which gives the investor a business license to legally operate as a business, open a corporate bank account and get a residence visa for the UAE. Usually either individuals (freelancers) with limited financial resources and minimal staff requirements go for this cost-effective option. This set up is also a reasonable way of testing the market for medium sized companies who are not yet sure if their products and services can be successfully implemented on the market and they just want to have a minimal legal set up with 1 – 5 staff.

With a Virtual Office set up can I/we lease office space outside the respective free zone?

Virtual Office usually comes without physical office space (as the name indicates). However, due to existing laws in the UAE which govern that it is mandatory for every business to have commercial space, the free zones that are offering E-Office/Smart-Office/Virtual Office set ups provide business centers with hot desks (which means clients come and go as they wish and take whatever space is available at that time). Some of the free zone business centers also provide conference room facilities which can be rented on an hourly basis.

What are the fees for setting up as an E-Office / Virtual Office?

The fees vary from free zone to free zone. The cheapest is currently priced at AED 25.000 p.a. and allows for max. 2 visa. That includes the business license, registration fees for 1 year. No dedicated physical office space is usually given. Some free zones provide business center facilities with hot-desks (first come first serve basis). For E-Office trading the fees start at AED 35.000 p.a and max 4 visa are given.

What fees are to be expected if I hire a consulting company to assist with the set up?

Full service consultants such as Global Office provide set up assistance from A-Z includes company formation, corporate bank account opening, visa assistance, relocation assistance, business plan writing, drafting all legal documents, guidance through the whole process. Fees in the market vary from AED 12.000 – 30.000 for a small set up. These fees are always on top of the free zone charges.

Can I handle the Virtual Set up myself?

Yes, if you are either willing to go through all the options that UAE free zones provide yourself, which is very time consuming (in addition free zones usually do not give all information as to limitations and obstacles that come with each set up). Alternatively you can book a comprehensive consulting session with a knowledgeable consultant such as Global Office (link) and get all relevant information with pricing, advantages, disadvantages and how to deal with the inherent paperwork.

When I register my company as a Virtual Office set up can I work from home and use my residence as office address?

You can basically work from home or anywhere else but you cannot use your home/residential address as business address on your website, stationary or business card. That is prohibited by law.

How many visa do I get with a Virtual Set up?

The number of visa largely depends on the free zone chosen (only Northern Emirates Free Zones provide Virtual Office set ups). The range is from 1 to max. 5 visa per company. If more is needed the company needs to rent physical office space within the free zone boundaries.

Can I work everywhere in the UAE with a Virtual Set up?

If the company has its business activity registered as a service based business (e.g. management consulting, advertising, administrative, marketing, sales assistance, etc.) you can work with any other company in UAE – free zone and mainland, although strictly speaking free zone law says you can only work inside the free zone boundaries or abroad (but this law is not strictly enforced for service-based businesses in free zones). If you have an E-Office Trading license then you would have to appoint a service agent (51% of that company has to be Emirati owned) which is required by governing law. Then you can also import/export goods within UAE mainland.

Can I rent office space in any free zone having a Virtual Office set up?

No. Each free zone operates by their own rules and regulations and only accepts tenants that are registered with them directly. If you wish to switch from one free zone to another the company (and visa) need to be terminated and the whole process has to be restarted again with another free zone. Therefore it is advisable to have a clear vision of what the business is aiming for and how fast it might expand and outgrow the virtual set up.

Do I need a detailed business plan for a Virtual Office set up?

Usually the free zone asks for a half to one page project description of the proposed business to review if they can accept it under their respective rules and regulations. Some only provide Virtual Office set ups for service companies, other provide E-Office Trading solutions as well.

Can I sponsor my family with a Virtual Office set up?
Yes, the investor can sponsor his wife and kids as dependants. The minimum salary the investor has to pay himself is AED 5.000 per month. Marriage and birth certificate documents need notarization and UAE consulate attestation and sometime Ministry of Foreign Affairs attestation as well. The investor has to get his residence visa first, then he can sponsor his family. Women are usually not allowed to sponsor their children unless they are divorced (and have approval of from the biological father) or the father is deceased.

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