Selecting an office or other commercial premises when establishing a company in the United Arab Emirates requires careful, detailed consideration. This is due to the fact that the UAE applies specific rules and regulations that differ significantly from practices common in many other countries. This specificity is primarily explained by the existence of three fundamentally different types of companies in the UAE, each with its own requirements regarding the availability and format of commercial premises.
Offshore companies in the UAE
Let us start with companies intended for international business, commonly referred to as UAE offshore companies. A strict limitation applies to such companies: they are not permitted to lease or use a physical office or any other commercial premises within the UAE. An offshore company does not conduct operational activities inside the country and has no physical presence.
For offshore companies, only a registered legal address is предусмотрен, which is typically provided by a licensed registered agent. This address is used exclusively for registration purposes and official correspondence and does not imply actual business operations or the presence of employees in the UAE.
Companies in the UAE free economic zones
The second category includes onshore companies registered in free economic zones. Different regulatory requirements apply depending on the specific free zone.
In some free economic zones, companies may choose between a virtual office, a physical office, or other commercial premises. In other free zones, leasing physical premises is mandatory and may include an office, warehouse, or production facility with an office component. In such cases, minimum space requirements are usually established, often not less than 50 sq. m, although the exact parameters depend on the rules of the selected free zone.
It is important to note that both virtual offices and physical premises must be located strictly within the boundaries of the free zone in which the company is registered. This means that a company is not entitled to lease an office in another emirate or outside its free zone. For this reason, the choice of a free economic zone must be carefully considered. Saving on registration in a remote free zone may result in the need for an office in Dubai, which is impossible due to the company’s place of registration.
Mainland companies in the UAE
The third category includes companies registered on the UAE mainland. Such companies enjoy greater territorial flexibility and may lease commercial premises outside free economic zones throughout the UAE.
For mainland companies, leasing office space is mandatory, with a minimum area requirement of 30 sq. m. The exact parameters may vary by emirate and activity type, but a physical office is a mandatory condition for obtaining and renewing a business license.
Additional requirements for commercial premises
In addition to the above regulations, several requirements must be considered when leasing office or other commercial premises in the UAE. In particular, each company must have its own separate premises. The use of a single office by multiple companies, as well as subleasing, is generally not permitted unless expressly allowed by the rules of a specific jurisdiction or program.
It is also important to consider that commercial real estate in the UAE is strictly classified by purpose: office, retail, warehouse, industrial, and other categories. Premises may only be used in accordance with their officially designated purpose and the company’s licensed activities.
Special attention should be paid to the fact that the number of work and residence visas a company may obtain for its shareholders and employees is directly linked to the type and size of the leased premises. The larger the area and the higher the property's category, the greater the number of visas that may be available under the applicable immigration and licensing rules.
Summary
Choosing an office or other commercial premises when opening a business in the UAE is not merely an organizational matter, but an important element of corporate and immigration planning. The correct choice of jurisdiction, company type, and premises format helps avoid unnecessary expenses, restrictions, and regulatory complications in the future.
