The United Arab Emirates (UAE) has managed to establish itself as one of the biggest investment hubs in the entire world. Efforts to bring in foreign investment have yielded a lot of changes in the UAE policies which have benefited the investors. There are various free zones which specialize in different field or categories and the process to get your business up and running has been made extremely simple which is also one of the main reasons why the foreign investment has seen a lot of rising in a recent couple of years.
Modern changes such as allowing foreign investors to claim 100 percent rights to a company are all the means necessary to entice the investors even more. Previously, the local party was legally required to have 51 percent shares of the company even if the investors did not have anyone present locally, which meant they had to hire someone which was an added cost.
Young entrepreneurs are often on the lookout for the best possible solution for the limited funds they have and the comparison between flexi desk and virtual office has always been a hot topic for debate; we will look into what both these terminologies mean and in doing so, hopefully, it will be clear as to how they are fundamentally different.
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Understanding Flexi Desk
The Flexi desk is essentially is a great solution for people who are looking to get their business up and running without looking to spend too much money on the office space. The flexi desk is typically located in the business center of a free zone. Each free zone has its own rules and regulations when it comes to the flexi desk, so if you are looking to apply then you should definitely either contact the authorities for further information or visit their websites for it.
For those who are unclear on the idea of the Flexi desk; it is a dedicated chair and a desk. Depending on the free zone, you also have the option to use shared office facilities i.e. a phone, video conference rooms, and so on. Usually, flexi desk has a time limit attached to it; they are provided for limited hours per month which may range from 18 to 25. The flexi desk in the UAE provides you with an actual physical place for your company to operate from. The free zones often have dedicated P.O. Box numbers dedicated for the flexi desk consumers and you get them after your registration has been successfully completed.
When starting a business, it is especially important to understand how to utilize finances.
Benefits of Flexi Desk
Each business has its individual demands and depending on where your business currently stands, you need to make decisions accordingly to ensure that the business gets off the ground smoothly. As mentioned beforehand, the lower starting cost is one of the biggest plus points of having a flexi desk. Although it costs more than a registered address and it provides you with added incentives as well which makes it a better decision; saves you from actually renting a place, buying the furniture for the office, and other problems that come with the decision to rent out an office space. The second advantage would be the facilities that come with it i.e. having the ability to use video conference rooms, internet usage and more.
In order to find more cost-effective options, you would have to move away from popular residential areas which imply that you would have to drive some distance in order to get to the destination; this can be considered as a drawback but when you weigh both things together, the pros are always going to weigh more than the cons.
Virtual Office in UAE
The fundamental difference between the Flexi desk and a virtual office is the actual physical office space. The virtual office is just a registered address, which is no more than that. You cannot go to the ‘registered address’ and start your company operations. Apart from the registered address, you also get a telephone number associated with it. Most often, these virtual offices are also located in some of the most renowned business centers and at the heart of the city, therefore making it easier for potential clients to access.
As stated earlier virtual offices are especially popular with start-ups, SMEs, and small businesses because these offices provide efficiency and are overall a smart way of doing business in this ever-changing business landscape of Dubai. On top of that, it just cuts down the overhead immensely.
Advantages of Virtual Office
There are various benefits to obtaining a virtual office, some of them are as follows:
- Cheaper than a traditional office
- No need to buy or rent equipment, as the necessary equipment is already there
- No additional cost for maintaining the virtual office is incurred
- No need to hire administrative staff for delegating office work
There has been a rise in attaining virtual office space in Dubai and across the UAE as well. However, it is important to note that you cannot obtain virtual office space in the free zones of Dubai. This is primarily because you need an actual physical space in these free zones for your business to be registered.
- Freedom from the stress of rental equipment and office premises
- No dedicated personnel for management and administration needed
- Our package is customized in terms of the services needed
- Cost is comparatively lower than traditional offices
- No need for maintenance costs in a virtual office; the only cost incurred is of the package itself
- You need not relocate or delegate personnel from the company to carry out work in a virtual office; the service providers handle all the services on your behalf
In summary, the choice is open-ended as the choice is hugely dependent on what the business owner or the entrepreneur is looking for. If you are looking for a dedicated address with the ability to run your business from that place then flexi desk is a great option. If not, then a virtual office is also a viable solution. However, before finalizing anything, you should be well aware of the limitations of both these things. Other options include registered addresses, actual office space in any of the free zones, and more — these options, however, are for businesses that are either slightly advanced in their progress or investors that can afford and bear the cost of all of it.