For anyone operating their business in the United Arab Emirates (UAE), you should be aware of all the possible methods for conducting your business in the region. The UAE has established itself as one of the best investment opportunities for every investor across the globe; the ease of doing business is one of its biggest selling point and the free zones are becoming more and more accommodating with each passing day. The latest ruling that a foreign business owner can claim complete ownership of the company registered in the UAE has already met with a great response from the foreign investors.
Many people who lay the foundation of their business often do not know what a Flexi Desk is, which is why we have compiled a complete guide that is going to unravel all the questions you might have regarding it. Not only that, but we will also be pointing out the differences, its pros and cons, and much more.
Table of Contents
What is a Flexi Desk?
If you choose to do business in Dubai or any other emirate, the Flexi desk will come as a part of the package by default. The Felix desk is known as many other different names some of which are as following: hot desk, Flexi office, smart desk, or business center desk. Despite the different names, the functionality remains the same. Having a small dedicated desk is the minimum requirement to conduct your business as part of a registered company in the UAE. Although having a felxi desk is obligatory but you can waive your rights if you choose to pick a different option such as having an executive office instead. In that particular scenario, you can give up your right to have a flexi desk.
A Flexi desk is basically is a dedicated desk and a chair that is typically located in the business center of your free zone. Depending on your package and other details, the felxi desk can have the possibility to share office facilities which might include a phone, fax, internet, or P.O. Box. Other additional benefits can include things such as usage of office equipment, meeting rooms, shared facilities, or videoconference room, etc.
The Flexi desk provides a limited number of hours, however, for you to conduct your business. The lower limit is set at 18 hours whereas the upper limit caps at 25 hours a week. The flexi desk will act as an actual physical place for your business and you can run your business entirely from there. The free zones often offer free P.O. Box services to the flexi desk users and give them a dedicated address so they can use it as their business address and receive documents.
It is worth mentioning that flexi desk can also be registered for Mainland company registration as well, which was previously not approved as you needed a minimum of an executive desk for the Mainland company registration.
Flexi Desk vs. Registered Address
Oftentimes businesses used the registered addresses in order to attain a license for the company. However, the flexi desk actually provides you a physical address where you can visit and conduct your business from. The registered address is something that is only abstract and you cannot make use of it apart from using it to showcase that you actually have an address for your business, which is not a viable solution if you look at long-term development. Additionally, a company with only a registered address cannot apply for resident visas, therefore, becomes ineligible to hire anyone.
Although flexi desk is much better but it is an expensive option. If you are starting your businesses and you want to choose between the both then you should refer to your business model first and foremost. You need to understand whether you have additional money to spare or not. If you already hold a UAE visa and are on a tight budget then a registered address is a great place to begin. When your businesses scale, you can slowly transition out and opt for a flexi desk instead.
Advantages of Setting a Business with Flexi Desk in Dubai
The Flexi desk in Dubai comes with a number of benefits attached to its hip. However, it can be challenging to navigate through this but that is why we have come up with a guide to help you make an informed decision. As mentioned before, there is no one specific recipe to success and in order to understand whether you should set up a company with flexi desk or traditional office space, you first need to understand what your business demand actually is. Only when you can decipher what your goals are, you can make a better decision what option you should opt for.
However, many people prefer Flexi desk over the traditional ones because of its advantages, and here is everything good that can come out of it:
- Flexibility: The Flexi desk can accommodate more people in less space, which is why it is a better option to have compared to the traditional space. In addition to that, it also saves more money because it is a cheaper option.
- Cost-Effective: The Flexi desk is much more economical than other options. The shared workspaces come at a monthly rent along with license fees and all these overhead charges can be avoided.
- Enhance Productivity: The traditional option can often lead the employees into a fixed routine which can become monotonous and result in loss of creativity. Flexi-desk provides the flexibility to the employees to remain creative and help them throughout the process.
- Freedom: Often times when businesses start, they are on a tight budget which would lead them to choose flexi desk but as they progress they can maintain a steady income stream. Once that happens then these businesses can easily migrate from a flexi desk to a traditional office space that is better suited to their needs instead.
Everything You Need to Know About Flexi Desk in UAE
The Flexi desk is always going to be located where the business is registered. You cannot legally set up a flexi desk in Dubai while your business is registered in Sharjah as it would be against the law. There are exceptions in this case that apply to Ras Al Khaimah free zone — its desks are not only located locally but also exist outside in Dubai. Depending on your budget, you can choose between either of those locations for your business.
Not all free zones have flexi desk and a few to name would include: DIFC, ADGM, and Dubai Silicon Oasis. Although the flexi desks are highly in-demand and free zones like JAFZA are always pre-booked so it is important to act as soon as you can spot an opportunity.
It is important to understand that each free zone has its own rules and regulations, especially when it comes to flexi desk. For instance, in DMCC the flexi desk is allowed to be used for only a few hours per week but the location of it is unsuitable which is why most people end up not using it. Compare that to other free zones and you might have a completely different outlook such as Ajman Free Zone, which has no time limit and DWC also has limited hours but they can be extended very easily.
Here are some examples of how flexi desk office space actually looks like in different free zones:
DMCC Flexi Desk
KIZAD Flexi Desk
DWTC Flexi Desk
SAIF Flexi Desk
DTEC Flexi Desk