In the digital age, virtual offices have become one of the most familiar options for a business in the UAE. If you have appropriately observed, you will come across ads on, newspapers, and even on the Internet for virtual offices. However, you might be wondering, how legal is a virtual office formation in the United Arab Emirates? The answer is, it depends on how you set up the virtual office.
Recently, due to the increasing preference for virtual offices and the way people are using unfair practices to become part of UAE’s business ecosystem, the Dubai Department of Economic Development (DED) cautioned the public and business owners that operating a business only on the Internet is not legal according to local laws.
Illegal Practices Leads to Illegal Virtual Offices
It is crucial to make note that in the UAE, all commercial businesses and enterprises should possess an actual office and a physical office/business address.
This makes many fraud business setups agencies somehow launch an office using dubious means to avoid paying more for office space. Most of the time, many advertisers and imposters pretending to be qualified business setup consultants mislead people and trick them into fraudulent practices.
These advertisers will convince you to believe that DED hardly does strict inspections and verifications of a physical office. Therefore, you need not worry about it.
You will find the same advertisers even persuading you to accept that you can rent a property without actually renting it. Many business owners who have just begun, are not aware of the local law and fall for such tricks. The purpose is to just obtain lease documents/agreements from recognised commercial building owners. People use this address for their ulterior purpose, but the fact is, the business exists only on paper.
Many advertisers and businesses follow this fraudulent practice and even people whom such advertisers and agencies trick. You may be successful in deceiving the municipality officials for a short period. In future, when problems emerge, you would be left on your own, suffering, penalised and may even get punished more severely. Law will not protect such investors or business owners who get into such fraudulent practices.
However, they fail to realise that they will invite more trouble than convenience in the long run. Therefore, it is sensible to rent a smaller office space in UAE than fall into illegal practices.
Virtual Offices are Legal if Possessed Legitimately
Virtual offices in Dubai UAE are very much legal. But only if it is obtained through a lawful process and is linked to a legitimate physical office. Meeting the requirements of the local law is necessary to survive in the business sphere of Dubai and other emirates. And if cost is the only concern in renting a virtual office in the United Arab Emirates, hire a professional business setup consultant for the right price and guidance.
