Pros and Cons of Company Formation With Flexi Desks in UAE

Pros and Cons of Company Formation

What are Flexi Desks?

The Flexi desk also referred to as a hot desk or co-working space facility, has become very popular in the business sector in the UAE. In the last two decades, the immense transformation that we have seen in the workspace environment is due to the growing acceptance of the flexible office space structure. In the UAE, most free zones in Dubai allocate the Flexi desk facilities to the businesses that register with them.

Therefore, the Flexi desks are available with the company license package when investors form a business setup in Dubai free zone or other northern emirates.

Flexi desks or co-working spaces are cost-effective, and flexible solutions for office space need, making them the most desired space for both startup entrepreneurs and freelancers. However, there are many challenges in co-working spaces or Flexi desks, apart from the advantages they offered.

Below we will discuss both pros and cons of company formation with Flexidesk facilities in, Dubai UAE.

Pros of Flexi Desks Facilities in UAE

1) Flexibility

Flexi desk facilities in the UAE free zones create better office space. Compared to other workspaces in business setups, the flexible desks are a class apart for they can help to accommodate more people in less area. In addition, the flexibility in using space optimally makes Flexi desks in UAE more appealing to investors and businessmen.

2) Cost-Effective

The Flexi desks are a reasonably priced and cost-effective business setup that businesses prefer to meet their essential business needs. You get them at a monthly rent and the license fee. However, it allows companies to save the money spent on unnecessary overhead costs compared to traditional office spaces like parking spaces and meeting rooms. Once leased a Flexi desk, the investors will not need to worry about maintenance costs, lease term negotiation, furniture, office utilities, maintenance and additional office services.

3) Enhanced Productivity

The traditional business setups follow fixed routines, becoming monotonous for employees. Following the same mundane routine may affect the productivity and the impact of which reflects on the business. Flexi desks, on the contrary, have a flexible work environment, and the possibilities of restrictions are less.

4) Can Adapt to Bigger Space Later

Usually, startups, independent professionals, freelancers, new entrepreneurs opt to set up their business in free zone Flexi desks to get acquainted with the setup. Mostly, it is a suitable office space solution for startups in the initial years of their business. However, once businesses have grown and secured enough funds for expansion, they can move to bigger office spaces later. This is one of the many benefits that make Flexi desks popular among entrepreneurs and startups in the Dubai free zone.

business setup Flexi Desks

Cons of Flexi Desk Facilities in UAE

Here are some of the significant disadvantages of the Flexi desks in the UAE:

1) Bank Account Opening

Businesses opting for a Flexi desk in free zones may find it difficult to open a new bank account. The KYC procedures that comply with the recent Anti-Money Laundering (AML) guidelines has made the process more challenging for Flexi desk businesses. It asks for a physical office address as a requisite to open an account. As a result, companies with no physical office or a Flexi desk in UAE would have a challenging time opening their bank account. Also, the absence of tenancy contracts for businesses with Flexi desks in the UAE is another reason that creates obstacles in opening a bank account.

2) Challenging for Team Hierarchy

The Flexi desks provide flexibility to the employees, but in many cases, management finds it difficult to maintain the discipline of the team hierarchy. The concept changes the manager-subordinate equation due to the open space environment. However, some businesses consider this as an advantage. But, companies that give more priority to leadership controls find the Flexi desk facilities damaging for team hierarchy.

3) Not for All Business Types

Businesses that need more space and privacy will not see Flexi desk facilities as advantageous. They find the setup disruptive for their everyday work. Employees will need to share many things in the shared environment, leading to disorders. Arranging privacy and space can be challenging for them.

Conclusion

We have seen a rapid transformation in the workspace sector in the last two decades. Dubai has been leading in creating innovative office space for its growing professionals and investors. It has embraced every positive change in the business environment. Not getting deterred by the troubles, an increasing number of businesses are now enthusiastic about adapting to the new forms of work culture, especially the Flexi desks.

However, attempts are being made to eliminate the troubles and create more fitting solutions to cater to office space needs. If you find the process of finding suitable office space complicated, you can contact reputed business setup or company formation consultants for a smooth and reliable service.