# Visa Quota / Size of Commercial Premises relationship?



## Lamplighter

Hi there

I'm in the early stages of starting up a company (LLC with local partner, not FZE) and I need to lease commercial premises as offices and for storage.

I will employ my workforce directly, and I'm told that the number of direct employees I may take into the business (the visa quota) depends on _inter alia_ the area of the rented premises. I have experienced similar previously when opening an office in DAFZA, but I wasn't aware the same would apply in this case when opening a non-freezone LLC and employing workers who are not office based.

So, the size of the premises becomes a key part of my initial planning based on the number of employees I envisage requiring to support the business growth.

However, despite numerous calls to Dubai Municipality, the Department of Labour, RERA, etc etc, I'm none the wiser as to how this relationship between visa quota and area premises is calculated.

I've lost count of how many times I've been "_advised_" to proceed with the company registration and/or to find suitable premises, then "_you will be told_" how many people you can employ. This is not _planning_, in my definition!

Would someone please share some knowledge or experience on this with me, and/or direct me where to find the answers, so I can go look at some properties which are the correct size!!

Thanks, frustratedly
Lamp

(wondering whether to x-post onto DDR!)


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## BedouGirl

I don't know if this is the 'legal' amount but we recently worked on 120 square foot work space per employee - in this you would include workstation, seating, filing/storage and so on. Like everything here, you are going to have to work on a suck it and see basis for your TL application - horrid expression I know, but that's how it goes. Also, be careful of the differentiation between your office and warehouse space. They really are not the same - ie, you cannot convert warehouse area into offices. Civil Defence have a big say in what you can and can't do. I guess this means, when you look at commercial spaces, you just need to ensure the space allocated to the office area is sufficient to cover your needs for now and for future expansion. Can your sponsor not drum up some assistance for you?


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## khawar

I actually "read" somewhere it is 10 sq meters per person. This comes to 100 sq ft per person. That is the rule of thumb. But officially saying it to everyone shall cause problems so it is very hard to pin down on paper.

The reason is that they need a measure to make sure companies are not giving too many visas to those not actually working there. To decrease illegal immigrants who overstay their visas.

I have been here since 2007 and this measure was found in writing in 2010 when I researched for my company.

There are exceptions. Technical service companies can have more because they have more people outside as laborers rather than desks.
Labor companies like construction could have less office space but would need to rent suitable living spaces in labor camps. Yes I know labor camps makes people dread of the hitler times. However, the labor camps is a good business and are designed to accommodate workers. They are optimized to provide economical housing so workers do not have to retrofit apartments.

The kitchens and washrooms are like community areas. Similar to a large company which has a canteen for their workers. Before the labor camps, workers had to figure out how to live in cramped villas or apartments designed for less people per room.

They have now an official limit of 200 sq ft per person.
Offices are 100 sq ft per person.

Apt rent is 25000 per year
A shop rent is 25000 per year
License is 7000 per year
Sponsor is 7000 per year
Total for shop : 39000

Apt 25000 aed / 500 sq ft = 50 per sq ft
Shop total 39000 / 500 sq ft = 78 per sq ft.

Apt rent per person per year 200 sq ft = 100 x 50 = 10000 per year
Shop rent per person per year 100 sq ft = 100 x 78 = 7800 per year

Cost of visa processing : AED 8000 per person.

Average time a person stays : 3 years
Paper work cost 8000 / 3 years = 2666 per year

So one worker in Dubai costs a company : 10000 + 7800 + 2666 = 20466 per year.

This is if you are experienced.

If you are not experienced. Then it can cost more. A lot more.

Also add about 300,000 business building expenses to have as an investment if you are serious.
20% of 300,000 = 60000 per year capital expense.

This is for a 5 people business.

So add 12000 AED per year for business operating and building expenses per worker per year.

So a worker shall cost 20466 + 12000 = 32466 per year to maintain in Dubai.

Salary is dependent on what the worker is capable of doing.

Generally 32466 is 1/3 of revenue. For admin.
1/3 for marketing
1/3 for salaries.

This makes the salary 32466 / 12 = 2705 per month. Minimum.

Below that salary, you are likely to lose money.

So the hourly wage comes to 13.52 AED per hour and the minimum billable to client is AED 40.60 per hour.

Selecting to sell some service at less than 40 AED per hour is going to lose money in Dubai.


Regards,

Khawar Nehal


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## andy2329

*regarding the visa quota and labor camp*

hello, lamp and all expats in uae. recently i faced one puzzle regarding visa quota and labor camp.

we are a big telecom construction company in abu dhabi. we received one notice that if the the company apply less than 35 visa (here 35 is in accordance with company situation, so just ingnore it. for other company, maybe the number is different), then no need to apply for the labor camp; but if u wanna upgrade visa quota above 35, then u have to apply for the labor camp, it is said 700 aed per person per month for living in the labor camp; 350aed for not living there. i feel rediculous about this notice. can anyone verify it for me? it is carried out by the govenment?

ken


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## khawar

I would recommend contacting the source mentioned in the letter to verify the message or get a clarification.

Regards, 
Khawar Nehal


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