Co-working spaces are trending all around the world. Many multinational companies are looking to enter new markets offering a unique incubating environment for the start-ups and small businesses to increase their productivity, grow and expand themselves.
Co-working spaces enable first-time entrepreneurs to run their business by cutting down operating costs and other administration worries. They also offer many opportunities for businesses to collaborate. Many start-ups businesses may find their first customers in their co-working spaces. Companies in the co-working spaces can learn the general business trends, and many do’s and don’ts at different stages of the businesses from their cotenants.
Dubai is a metropolis in the Middle East region, has readily adopted the start-up trend. The presence of expatriates from many countries and business-friendly policies of the Government means that it can be the right place for the incorporation and the growth of start-ups. The new unique approach towards problem-solving and innovation is the mantra of the start-ups, and the presence of all major corporations in the world is the perfect test ground for these start-ups.
Scope for the Co-working Spaces
- Many large venture capital and private equity investors based in Dubai attract start-ups and small businesses to enter Dubai.
- Co-work spaces have the flexibility of choosing to operate either in the Free zone or Mainland zone. The zones offer different advantages depending upon the business for the start-ups and co-working spaces to base their operations in Dubai.
- More than 30 start-ups were operating from Dubai in 2017, and the number has increased rapidly with overseas investment from the United States of America.
- Dubai is the gateway for the MENA region and start-ups based in Dubai have already been serving many customers in this region.
- UAE and in particularly Dubai is one of the top destinations for infrastructure investment attractiveness due which many properties are developed in Mainland and free zones in this regard.
- Dubai also provides world call class infrastructure in roads, seaports, airports and mobile & internet connectivity.
- Dubai World Expo 2020, which is scheduled to take place from October 2020, has provided a fresh impetus on the infrastructure development. The Government has invested billions of dollars in developing the infrastructure that is expected to attract millions of foreign tourists.
There are many other advantages for potential entrepreneurs and international companies to set up business in co-working spaces and be a part of the success stories of those start-ups incubated at your premises.
How to start a Co-working Space?
Here is a guide with essential steps that can help to start a co-working space in Dubai.
Register Your Business
The first step for any organisation or entrepreneur in setting up a business is to register the company and tradename with the local authorities. All necessary documentation and procedures must be completed for any business to start operations. There are strict penalties that are applicable for any non-compliance with the local laws. It is advised for companies to be thorough with all the relevant rules and regulations of the land.
Rent/ Lease a Commercial Space for Co-working Space
There are two different zones- Mainland or free zones where you can rent the commercial space to start a co-working office. Various legislations are applicable to different zones depending upon the market served. Upon deciding the zone and the commercial space, the terms of the contract are negotiated with the developer including the caution deposits, exit terms and facilities following which a rental agreement has to be signed between two parties with the help of a real agent.
The VAT was implemented in GCC countries including UAE from January 2018. Companies may need to register for VAT purposes depending upon the region where the services are rendered. If the co-working space is situated in the Mainland, an additional 5% VAT charges are applicable on the rent charged for the tenants which have to be collected and further paid to the Government. Tax experts can guide co-working spaces more about the VAT.
Interior Decorators/ Interior Designers
Interior designers are required to add life and glamour to the co-working space, which is required to create positive vibes all over to keep the spirits high for the start-up tenants. Dubai is known as a creative hub and home to many interior design companies. The prospects of Dubai Expo 2020 and growth in the construction industry has attracted many interior companies to Dubai. After carrying out thorough market research, co-working spaces can finalise and obtain the services of the Interior designers for their co-working space.
Open a Corporate Bank Account
It can be a requirement for the companies to mandatorily open a bank account in either a local bank or a local branch of an International bank during the process of Business registration. In order to run the business, bank account acts as a lifeline for internal and external business requirements. Dubai is a Financial capital of the region, has the presence of almost all international banks. It is quite simple to decide and open a bank account by providing all the relevant documents.
There are plenty of ways to reach out to potential customers to sell the workspaces for their customised requirement. Since there is growth in the number of start-ups in Dubai who look for workspaces, it will always benefit from hiring advertising agencies to promote the co-working space. Advertising agencies are experts in the use of various forms of marketing to support their clients. They can run the relevant ad campaigns, which will be effective in finding the customers.
We at Commitzbiz can effectively assist entrepreneurs and companies who look to be a part of the start-up ecosystem as a co-work space provider by helping them in setting up the business. Our experts can also facilitate in aspects of post- business setup. Please contact commitbiz to know more.