Many might look at the bright lights and big cities of the UAE and get the impression that it is an environment dominated by only the biggest businesses. However, while it’s certainly true that many of the world’s largest and most prestigious companies do business here, the Emirates is also home to a growing number of startups and small enterprises.
One of the major reasons why so many small businesses and solo entrepreneurs see success here is the ease and affordability of launching a business in this part of the world. Take the coworking license, for example.
A Mainland Coworking License offers the most affordable route to a mainland setup in the UAE today. Under such a license, you are permitted to trade from the UAE mainland without taking on permanent premises. Instead, you can make use of one of the country’s many coworking spaces – giving you access to the wider UAE marketplace without costly overheads.
What are the benefits of coworking license in UAE?
Coworking is gaining huge popularity the world over. There are now estimated to be over 11,000 coworking spaces worldwide, servicing some 1.2 million people. Here are five reasons why so many people are turning to this flexible way of working:
Coworking can boost productivity: Coworking spaces offer the perfect middle-ground between the often stuffy nature of a corporate office and the casual surroundings of your home or the local coffee shop. Less formality, coupled with fewer distractions, often leads to greater productivity for those of use that don’t thrive in either the super corporate or super casual environment.
It’s great for networking: Coworking spaces allow you to work by yourself, but not alone. As a freelancer or solo entrepreneur working from home or a solo office, it’s easy to feel cut off from the rest of the local community. Coworking spaces bridge that gap, bringing you closer to likeminded individuals, often to the benefit of your business.
It stops you feeling isolated: Coworking spaces aren’t just a good idea for your business, they can be good for your mental health too. Working alone can be tough at the best of times, it’s even harder in the lonely early stages of a startup. Working in a shared space allows you to feel part of a community.
It’s flexible: Coworking spaces offer great flexibility. You can essentially make use of the space as often or as little as you wish. As your business grows, you also have the option to expand and take on your own premises at your own pace.
Coworking is cost effective: A coworking license allows you to make use of premium office facilities in excellent locations without taking on much of the cost. You don’t have to worry about utility bills or any other overheads. Simply turn up with your laptop, everything else is taken care of.
A coworking license allows you to make use of premium office facilities in excellent locations without taking on much of the cost. You don’t have to worry about utility bills or any other overheads. Simply turn up with your laptop, everything else is taken care of.
If you are looking to get your company license in Dubai, Dubai free zone visa, or the cheapest trade license in the UAE. Then our team can help.
How to apply for a coworking license
The process of applying for a coworking license in the UAE follows a similar pattern to any other license application.
First you must choose your business activity or activities. It’s important that your license states every activity that you intend to undertake. Carrying out unlicensed activities can lead to fines or even revocation of your license. That’s why it’s a good idea to work with a company setup expert who can align your business activities to those permitted by the Department of Economic Development or the municipality of the Emirate you are choosing to set up in.
Next, you must choose your business name. Keep in mind that the UAE has a strict set of naming conventions relating to businesses. For example, your company name should not include any offensive or blasphemous language or make reference to known organisations and corporations. You must also check that your chosen business name is available to be registered. A company formation expert can do this for you as part of the license application process.
The process itself is straightforward yet rather precise. You simply apply directly to the Department of Economic Development or relevant municipality. A company formation expert can help you here, managing the entire application process on your behalf should you wish.
A successful coworking license application usually follows the same six step process:
- Submit the required documents and make your payment.
- Reserve your chosen business name.
- Receive initial approval from the relevant authorities.
- Sign the Memorandum Of Association or Local Service Agent Agreement.
- Apply for your immigration file.
- Receive your visa.
What is the cost of a coworking license in UAE?
The coworking license is known to be one of the most affordable ways to do business in the UAE, with good reason.
Coworking license packages start in the region of AED 12,600 and can cost as much as AED 42,000. Should you wish to lower your initial startup costs further, it is possible to pay in instalments. In this instance, a basic coworking license package would cost approximately AED 1,260, while a premium package usually costs around AED 3,950 per month.
As with all business licenses in the UAE, there is an annual renewal fee. For the coworking license, this costs between AED 12,600 and AED 33,000, depending on the package you choose.
Coworking in the UAE
Applying for a coworking license in the UAE is not overly complicated. However, it does require some prior knowledge of the licensing requirements in this part of the world. Any confusion or misunderstanding during the application process could lead to errors in your submission which could cause delays.
We are BIZ, the official Dubai representative office of Fujairah Creative City Free Zone. If you are looking to open your company in Dubai, get a free zone license, or start a small business in Dubai, then we can help. From visa applications (including UAE investor visas) to all the necessary admin tasks, we handle it all – leaving you free to get on with your business.