The laws regarding rent increases apply to both residential and commercial Landlords with property in Dubai. The one main difference is that a commercial lease is likely to be negotiated for a 2-5 year term and whereas a residential lease is generally for 12 months. 5% VAT is applicable on commercial rental amounts.
Enlisting the services of a commercial property broker increases the chance of selling or renting your property out quickly. This is a specialized segment of the business and the broker should not only have a thorough knowledge of your property in order to fully promote and market but potentially could have waiting customers or have access to potential clients to purchase or lease your property.
You will need a business address to apply for and secure a trade license so you complete the property search in conjunction with setting up a new business.
Every business of every category must have a local government license to trade in Dubai. There are three categories of licenses commercial, professional and industrial depending on your business activity.
Commercial Law, also known as Business Law and Corporate Law are the main bodies which govern business and commercial transactions in Dubai. In line with the countries vision and on par with international standards, the UAE offers a supportive and effective legal framework for businesses. The country has issued many initiative and platforms to encourage investment in the country.
The Dubai Government established Tecom Investments FC LLC which launched Dubai Internet City in 2000. This remains a dedicated free zone area for the information, communication and technologies sector and Dubai has now more than 20 free zone areas including Jebel Ali, Dubai Airport, DMCC located in JLT, Media & Knowledge City, Tecom, Silicon Oasis and Techno Park. All these areas are subject to their own FZ regulations and offer specific industry and mixed business licenses.
- 100% foreign ownership of company
- 100% repatriation of capital and profits
- 100% free transfer of funds
- 100% exemption of import and export duties
- Quicker formation
- Inexpensive workforce and easy recruitment procedures
- Longer lease options
Exclusive Links works closely in partnership with preferred companies who specialize in the administration and process of new company setups. Please contact your commercial team to discuss the best referral for your business model.
Finance is available for commercial property in the same way as residential, providing you meet the required criteria. There are certain lenders more willing to lend on commercial property and through our preferred partner, Exclusive Links can put you in touch with the best mortgage to suit your requirements.
An offshore company may own property or other assets in the UAE but may not partake in any business activities in the UAE. An on-shore company’s license permits the company to partake in the business activities listed on the license, within the area under the jurisdiction of the authority issuing the license.
You can own both commercial and residential property here in Dubai as an overseas investor. The complete property service offered by Exclusive Links can assist you with finding you the right Tenant. We can also offer property management services and be your property manager on the ground in Dubai for continued support and peace of mind during a tenancy or vacant periods. Our specialized commercial division and the Exclusive Links Team will help you manage your investment.
This depends on your business plan objectives. Renting a property would give you the flexibility of expansion, location and reducing liability. Purchasing your premises will protect you from rental increases, unexpected landlord demands and eviction. Your outlay of funds will be paying towards an asset instead of losing on the payable rent. These assets can also be rented out to a Tenant for potential income if required. All commercial sales and lease revenues are now subject to 5% VAT (effective from 1st Janaury 2018).
