Estidama Dubai translates to ‘sustainability’ in Arabic. This program is crucial to the “Abu Dhabi Vision 2030” initiative. The Estidama lease agreement acts as a virtual office lease. It includes a comprehensive lease agreement, essential for obtaining a business license in the UAE. Originating in Abu Dhabi, Estidama is developing across all the UAE’s emirates.
Ejari is an online system used for rental and lease registration in the UAE. It launched a while ago and has integrated the process of renting physical office space online. The system converts the Ejari lease agreement into a standard format and approves it via the Internet, allowing the government to view the contract in the Ejari database. After completing the agreement, the tenant receives an Ejari registration certificate.
How does the Estidama Dubai Lease Contract work?
In the past, companies needed to lease a physical office space, which had to be at least 200 square feet, to secure a trade license for any business operating on the mainland in Dubai and the UAE, according to the Department of Economic Development in Dubai’s standards. After securing this space, officials from the Department of Economic Development in Dubai would visit the premises to conduct an inspection. They would grant the trade license only after they deemed the inspection satisfactory.
Recently, the Department of Economic Development in Dubai has started allowing smaller enterprises to use virtual office spaces for their operations while still being eligible to apply for trade licenses. This new approach benefits smaller businesses, leading to the adoption of the Estidama lease contract. Entrepreneurs can reach Estidama consultants in Dubai for assistance, and business centers conveniently offer virtual offices.
Here are a Few Benefits of an Estidama Contract in Dubai:
Substitute for EJARI
To obtain a trade license in the UAE, you need a substitute for EJARI. You must secure a physical location to obtain this substitute. However, the Dubai Land Department issues an Estidama that serves as a substitute for EJARI. This means you can use the Estidama contract for your trade license application in Dubai. The business center where you acquire the Estidama contract will provide you with a business address. Even if you do not operate from this address, you can use it for business activities. For example, you can use the address from the Estidama contract when submitting official documents for your business.
No requirement for a physical office
Physical office spaces are expensive, making them unsustainable for many small businesses that could allocate their capital more effectively elsewhere. Many small businesses do not need a physical office space to operate. In particular, many IT startups can operate efficiently from their homes. Frequent visits to a physical office space can waste time and money for these businesses. The Estidama contract supports remote work for businesses, allowing them to obtain a trade license from the Department of Economic Development in Dubai.
Employment visa sponsorship
The number of visas you can sponsor for your employees may depend on the size of the office space you lease or rent. Generally, larger office spaces allow you to sponsor more visas. However, even with an Estidama lease contract, you may still need to hire foreign employees. This is why an Estidama contract allows you to sponsor up to four employment visas or labor quotas, even without a physical office.
Additional benefits
The business center where you obtain the Estidama may offer various additional benefits. Some centers provide a front desk for your virtual office, while others offer the rental of a dedicated desk. Certain virtual offices also allow you to use physical office spaces for a few hours each month and supply meeting rooms for client or business partner meetings. You can access the TRN number through the Estidama. Additionally, you can open bank accounts with the address provided by the virtual office and set up a DU or Etisalat account with an Estidama.
Dubai EJARI Registration Process
Registration with EJARI is a must for any private lease agreements in Dubai. The renter is obligated to complete the registration procedure and cover the EJARI fees. Registration can be done online or through the EJARI application. However, the lease agreement must be printed at a designated EJARI printing center in Dubai.
In Arabic, “Ejari” translates to ‘my rent’. The Dubai authorities have designated the process for registering tenancy agreements as EJARI. The tenancy agreement itself is sometimes referred to as an EJARI. The EJARI online registration system was launched by the Real Estate Regulatory Agency (RERA) in Dubai.
Documents Needed for EJARI Certificate
Here are the documents required for uploading when registering for EJARI online in Dubai:
- The signed lease agreements
- Proof of the security deposit
- A copy of your passport (as the tenant)
- A copy of your visa
- Your Emirates ID
- If the landlord is a person (not a company), then a copy of their passport.
- A copy of your power of attorney.
- A copy of the property’s title deed.
- The DEWA bill and the property’s address.
- The lease agreement from your previous EJARI if you are renewing.
A copy of your trade license if the EJARI is for commercial property.
EJARI Renewal process
Estidama translates to ‘Sustainability’ in Arabic. The government initiated this program to enhance Dubai’s sustainability and reduce the expenses for new companies aiming to establish their presence in Dubai. Many businesses can operate without a permanent physical location, so securing office spaces for obtaining trade licenses becomes unnecessary and inefficient for them.
The Estidama contract allows companies with a smaller workforce to use virtual offices, which are significantly cheaper than conventional office spaces. This arrangement benefits the companies financially and aligns with the government’s goals. Companies can save on operational costs and avoid the daily commute to work. Meanwhile, businesses that need a physical location to operate efficiently can use the available office spaces.
Here are the things that the office Estidama/Sustainability contract in Dubai allows:
- You can rent a virtual office space.
- You can apply for a business trade license from the DED after renting a virtual office.
- As EJARI is a mandatory requirement from the authorities, this contract takes the form of Estidama EJARI.
- The Estidama allows up to 4 visas for the business owner.
- You can apply for the Tax Return Number (TRN) with the Estidama
- You can open a bank account with the Estidama.
- DU/Etisalat is possible with the Estidama
- Note that the Estidama is only available in Dubai. Abu Dhabi uses the Tajer Licensing Model.
Frequently Asked Questions
Ejari is a digital system for renting and leasing that the UAE’s government introduced not too long ago. The government created Ejari to establish a robust regulatory framework for the rental sector. Meanwhile, Estidama is a government initiative aimed at making the UAE’s rapid economic expansion more sustainable. It offers small business owners the chance to obtain a business trade license online without needing a traditional office space.
Ejari streamlines the process of renting a physical office space online. It converts the standard tenancy agreement into an online format, which the government can access through the Ejari information system. Once you finalize the agreement, you receive an Ejari registration certificate. This system provides easy access to the contract details and ensures its legal validity online.
Ejari in short:
– A digital platform for registering in the UAE’s rental market.
– Enables the government to maintain strong oversight over property rentals.
– Provides an online platform for tenants and officials to access relevant information through the Ejari system.
– Allows you to pay fees online.
Estidama Dubai translates to ‘sustainability’ in Arabic. The government designed this program to make Dubai’s impressive economic growth more sustainable by reducing unnecessary expenses typically associated with development. The Estidama agreement lets small businesses use virtual offices, which are more cost-effective and save on office space.
Estidama in short:
– A program that allows small businesses to use virtual offices.
– Facilitates the application for a business trade license without needing a physical office.
– Enables businesses to apply for a bank account and a TRN number.
– This program is exclusive to Dubai.
How to Get Office Estidama Certified?
The Estidama certification comes after Pearl Qualified Professionals test the building practices according to the Pearl Building Rating System. The system, created with the Estidama objectives in mind, aims to enhance sustainability in construction throughout the UAE.
So, what aspects of the Pearl Rating System do the professionals scrutinize before issuing the Estidama certificate?
The answer falls into three areas. The Pearl Rating System focuses on these three areas:
– Building Rating System
– Villa Rating System
– Community Rating System
To achieve the Estidama certification, you must accumulate a specific number of Estidama credits. The required number of credits depends on the building’s intended use.
Here are the eight categories for which the Pearl Rating System awards credits:
– Integrated Development Process
– Natural Systems
– Livable Buildings: Outdoors
– Livable Buildings: Indoors
– Precious Water
– Resourceful Energy
– Stewarding Materials
– Innovating Practice
The Pearl Qualified Professionals award points based on five levels of inspection. These levels include:
Energy:
Reducing the energy consumption and greenhouse gas emissions of your office and building are crucial aspects of the Estidama sustainability program.
Water:
Minimizing water use also earns your additional credits for your Estidama certification, as the program addresses freshwater scarcity.
Environment:
Maintaining air quality according to Estidama guidelines is another way to earn credits. For example, banning smoking indoors can contribute to your credit.
Materials:
The quantity and type of raw materials you use affect your credit earning. The program encourages using local and recyclable materials.
Waste:
The Pearl Qualified Professionals also evaluate the amount of waste you generate during construction.
If you have any inquiries about the certification process or wish to obtain the Estidama Certification, our consultants are always available to assist you. Feel free to reach out to us at any time.
The Estidama agreement allows your company to lease a digital office. You can use this digital office as your workspace when you seek a business license from the Department of Economic Development (DED) in Dubai.
Here’s what you need to do to secure a Dubai business license with Estidama:
- Choose the legal structure of your business.
- Select the appropriate business license.
- Submit the initial approval application to the DED.
- Register your business name.
- Submit the Estidama agreement application.
- Book a digital office from a business center.
- Obtain necessary external approvals.
- Submit the required documents to the DED.
- Receive your business license.
Forming a company with Estidama follows the same process as without it, except you’ll use a digital office instead of a physical one.
The Department of Economic Development in Dubai used to require all businesses to have office space in Dubai. Previously, businesses needed a physical office space of at least 200 sq. ft. Now, a digital office fulfills this requirement, allowing you to apply for a business license with it.
The Estidama initiative promotes sustainable development in Dubai. For businesses that don’t need physical office space, a digital office eliminates the need for unnecessary office space just to obtain a business license. Digital offices are significantly more affordable than traditional ones, benefiting both the business and the city of Dubai.
If this process seems daunting, we’re here to assist you. Our consultants have successfully registered Estidama for numerous businesses in Dubai and have the connections to expedite and simplify the process of obtaining a business license with Estidama from the DED.
