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EWmums

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ewmoda

Are virtual offices (companies such as Creative Zone) Illegal?

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112

Posts

EW NEWBIE

Latest post on 15 November 2011 - 14:13

Lots of confusion and contradicting info on this topic !!! DH is looking to set up a company to do consultancy work Creative Zone offers trade licences for management consultants and for an additional 975AED will offer an [i'>'NOC from the FZ stipulating they have no objection to the company operating in other Emirates'[/i'> That for me sounds like a government entity saying it is ok to work outside your FZ ? Details can be found at : http://creativezone.ae/costs_and_add_ons

16

Posts

EW NEWBIE

Latest post on 18 October 2011 - 11:16

seriously? did anyone actually READ the article? which, may I add, is correct.... all business set ups in Dubai need to have a physical address. If they decide to cut costs by opting for a Virtual Office solution they are definitely doing so illegally, as per the article. Companies such as creative zone (who i have a license with) are issuing a free zone license and not a dubai license, and the requirement for a physical office is for dubai licenses (as per the article). hth's.

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 19:32

Hi Dentro, thanks for your post, would you mind sharing how you can open a management consultancy as a sole proprietorship without a local partner if you have those details? if you don't want to post on here please email me instead on [email protected]

1184

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EW OLDHAND

Latest post on 17 October 2011 - 19:24

you can open management consultancy as sole proprietorship professional company (no local partner required) in dubai as a standard llc. the cheapest and best thing. it is a myth that freezones would be cheaper than dubai registration. with fujeirah free zone, you do not need to pay for their phone line etc package if you do not want and you do not need to use "their premise" for your meetings, can be in any serviced office. you just cannot rent direct from landlord dubai commercial space, but any serviced office (like regus, etc) are fine. by the way, creative zone has no own premises, they themselves just rent offices from "signature business center" serviced offices. with fujeirah free zone, be very careful as visas may take very long time, up to 3 months. also the staff is quite rude and rough when you have problems and not everything rosy. good luck.

AdviceSeeker13702

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EW OLDHAND

Latest post on 17 October 2011 - 09:42

If you have any more questions feel free to email me :) Thank you!!! :)

worried12342824

137

Posts

EW NEWBIE

Latest post on 17 October 2011 - 09:39

If you have any more questions feel free to email me :) [email protected]

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 09:38

yep. Except you get a dedicated phone number and address. I recommend creativezone- you can pay their PRO fees per year. Rather than upfront. I liked that aspect. What kind of biz are you setting up? Thanks worried123, will contact CZ, I want to open a management consultancy business, so hopefully they'll be able to help!

worried12342824

137

Posts

EW NEWBIE

Latest post on 17 October 2011 - 09:17

yep. Except you get a dedicated phone number and address. I recommend creativezone- you can pay their PRO fees per year. Rather than upfront. I liked that aspect. What kind of biz are you setting up?

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 09:09

Yep. You pay their business PRO fees for a minimum of a year, then when you want to end the relationship they pass your paperwork to the FJ freezone, and you pay the FJ freezone 20000 dhs for a license amendment. Then you need the Noc's. It's endorsed by the Sheikh of Fujairah. So basically you'd be OK working from home on email/phone and then if needing to meet with people meeting in their premises in the Fairmont?? (BTW thanks for this you're making it a lot clearer for me)

worried12342824

137

Posts

EW NEWBIE

Latest post on 17 October 2011 - 09:04

Yep. You pay their business PRO fees for a minimum of a year, then when you want to end the relationship they pass your paperwork to the FJ freezone, and you pay the FJ freezone 20000 dhs for a license amendment. Then you need the Noc's. It's endorsed by the Sheikh of Fujairah.

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 09:02

Nope. Virtuzone and creativezone are not illegal, and when you sever your business relationship with them your license is only useable in Fujairah. Unless you get NOC's every two weeks to work in Dubai. edited by worried123 on 17/10/2011 They are not illegal? So if you go through them you're able to work out of their offices here in Dubai, but if you stop working with them then your license is still valid but only in Fuj?

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 08:59

I'm sure that article is correct, and I remember hearing on the news last April that it is illegal for RAK virtual FZ companies to operate in Dubai. I know a lot of people are doing so anyway but legally a RAK FZ licence permits you to operate only in the RAK free zone. If you want to operate your business in Dubai you will need to have a local partner and a physical office in Dubai. That of course is going to cost a whole lot more than just the RAK deal. It seems there are beginning to crack down on this and you would be running a risk trading in Dubai on a RAK FZ licence alone. Suggest you do more research and double check before buying into these schemes. Thanks Di@DXB, its so difficult to find the information though, if you ask the companies directly they tell you it's fine etc... think I may look into some more options to be on the safe side.

worried12342824

137

Posts

EW NEWBIE

Latest post on 17 October 2011 - 08:58

Nope. Virtuzone and creativezone are not illegal, and when you sever your business relationship with them your license is only useable in Fujairah. Unless you get NOC's every two weeks to work in Dubai. <em>edited by worried123 on 17/10/2011</em>

4000

Posts

EW MASTER

Latest post on 17 October 2011 - 08:52

I'm sure that article is correct, and I remember hearing on the news last April that it is illegal for RAK virtual FZ companies to operate in Dubai. I know a lot of people are doing so anyway but legally a RAK FZ licence permits you to operate only in the RAK free zone. If you want to operate your business in Dubai you will need to have a local partner and a physical office in Dubai. That of course is going to cost a whole lot more than just the RAK deal. It seems there are beginning to crack down on this and you would be running a risk trading in Dubai on a RAK FZ licence alone. Suggest you do more research and double check before buying into these schemes.

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 08:31

And here's another article, which makes me think it isn't allowed really... except you're allowed to work in the business centers set up by these free zones, right? anyone else have more up-to-date info? http://www.emirates247.com/business/corporate/licences-misused-may-be-revoked-rak-ftz-2010-08-03-1.274213

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 17 October 2011 - 08:19

Hi Ladies, The below article is a bit old, but I'm wondering about whether or not to go with Virtuzone/Creativezone and after reading this, I'm not sure if it is legal or not, anyone know for sure? TIA A growing number of advertisements offering to set-up businesses in Dubai with ‘virtual’ offices has prompted the Dubai Department of Economic Development (DED) to issue a warning that any business operating from a “virtual office” is illegal. It has advised potential investors not to be taken in by the advertisements as they would be deemed as having applied for a business licence with fraudulent documentation.... http://www.emirates247.com/news/virtual-offices-are-illegal-says-ded-2011-04-10-1.379074

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