DUBAI
E-Office
Cost-effective E-Office / Virtual Office Solutions with full Business Licence
Definition Free Zone: According to the World Federation of Free Zones (FEMOZA) a free zone is a portion of clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality. Free Zones are special investment models allowing the client to do business without obstacles. The free zones are governed by established laws from the government of each country. There are more than 20 types of free zones in the world. Major categories are: Free Port, Export Processing Zones, Free Trade Zones, Bonded Warehouses, Fiscal Warehouses, Offshore Centres. In the UAE the government has guaranteed that there will be no corporate taxes for companies established in the free zones for a period of up to 50 years. All profits can be transferred out of the country whenever required. There are no currency restrictions.
Definition Northern Emirates: The UAE is made up of 7 emirates, which are: Abu Dhabi (capital), Dubai and the Northern Emirates Ajman, Sharjah, Umm Al Quwain, Ras Al Khaimah, Fujeirah.
E-Office: Currently there are 3 Free Zones in the Northern Emirates who offer the option of setting up a business as an E-Office (electronic office = virtual). This cost-effective set up is mostly popular with small business owners and freelancers who want to enjoy all the benefits of a free zone but avoid the expensive set up costs generally associated with Dubai free zones.
The E-Office set up provides full business license, residence visa and the option to open personal as well as corporate bank accounts with any UAE bank. E-Office comes, however, without any office space facility. The investor can work from anywhere in the UAE (and/or abroad) with this license and operate the bank account through online banking. For those individuals who do require physical office space, the free zones offer a “hot-desk or flexi-desk” solution, which includes a desk in a business centre along with phone, fax and PO box facilities.
Important note: The E-Office set up through a Free Zone is for Service companies only – Trading is not allowed under this license. For a trading license office or warehouse spaces need to be rented and a trading license has to be applied for.
E-Office Advantage: The E-Office set up can be done with a relatively small budget. As soon as the company name approval is given, the actual formation can be completed in 1 week. This type of set up includes the possibility to open corporate and private bank accounts at any bank in the UAE.
Registration costs: for the entire first year vary from AED 25,000 (USD 6,794) to AED 30,000 (USD 8,152) plus proof of share capital. The following year costs will be around AED 21.000 (USD 5,706) - AED 25.000 (USD 6,794) p.a.
Share capital: varying from AED 100,000 / USD 27,174 to AED 184,000 / USD 50,000. The funds are blocked for 1-3 weeks depending on how fast the formalities with the free zone can be completed. After that it can be either used for operating the business or transferred outside the UAE.
Visa: With the E-Office set up one residence visa will be granted (owner can sponsor his family, i.e. wife and children – no limitations). Residence can be taken in any of the 7 emirates of the UAE.
Benefits: The Free Zones guarantee complete tax exemption, no bookkeeping required, unlimited capital repatriation and are ISO 9000 certified.
