These days, foreign real estate investors visit Dubai regularly. Its prime location, excellent infrastructure, and enticing tax laws make it the ideal place to start a real estate company. Nonetheless, before starting a business in Dubai, one must have a thorough understanding of the legal, regulatory, and licensing processes. This blog post will cover how to start a real estate company in Dubai as well as the licenses required to operate in the real estate industry.
Advantages of Establishing a Real Estate Company in Dubai
Establishing a real estate company in Dubai may provide several benefits. The following are the top five advantages of starting a real estate company in Dubai:
Location Strategy
Owing to its strategic location at the intersection of Europe, Asia, and Africa, Dubai is a major global economic hub. This suggests that real estate firms in Dubai have easy access to a vast network of possible partners and customers.
Booming market for real estate
One of the world’s most appealing real estate markets for investors is Dubai, which is constantly growing. There are many opportunities for real estate enterprises to thrive because of Dubai’s growing demand for real estate.
Steady economic growth
Dubai’s economy is broad and stable, with a significant emphasis on the real estate sector. Nonetheless, the government has taken steps to ensure that the real estate market remains transparent and stable, which attracts real estate companies to Dubai.
Top-Notch Infrastructure
Dubai has developed substantial investments in its utility, communication, and transportation networks. As a result, Dubai is currently among the most modern and technologically advanced cities in the world. This infrastructure supports the real estate industry by making it easier for businesses to operate and for clients to access properties.
Doing Business Is Easy
The administration of Dubai has implemented several policies aimed at facilitating business operations within the city. On the other hand, this calls for streamlined licensing procedures, a strong legislative framework, and a welcoming regulatory environment.
Similarly, establishing a business in another emirate, whether it be a free zone or the mainland has numerous benefits. You can obtain help with business setup in Ras al Khaimah Economic Free Zone (RAKEZ), which is a reasonably priced choice for entrepreneurs.
Steps to start a Real estate business in UAE
Registration as a legal business is required everywhere, including in Dubai. As a result, those eager to establish a real estate business setup in Dubai may choose to do it on the mainland of Dubai or in one of the free trade zones.
But when it comes to establishing a brokerage company in Dubai for the buying and selling of real estate, free zones are usually the preferred option.
To begin a real estate company in Dubai, take the following actions:
1. Choosing the Business Structure
Before starting a company that deals with real estate, decide on the best type of legal business structure available. Additionally, this will help to put the company in the best possible operational and financial condition.
To engage in real estate brokerage activities in Dubai, one may primarily register two categories of business structures:
a. Sole proprietorship
b. Limited Liability Company (LLC)
2. Getting a Trade Name Registered
To register your trade name, you must submit an application to the Department of Economic Development (DED) in Dubai together with all required supporting papers after deciding on your company’s legal structure or business plan.
3. Request for Provisional Approval
The next step is to get the preliminary approval request receipt by submitting the necessary application form and the first set of papers mentioned below.
a. Application Form
b. All shareholders and the manager’s passport copies
c. Copy of each shareholder’s visa
d. Verified diplomas from universities or high schools earned by the partners and manager.
4. Real Estate Regulatory Agency (RERA) approval
The next step is to get RERA approval. To accomplish this, you need to have the appropriate credentials. The Dubai Real Estate Institute (DREI) offers a formal qualification that must be enrolled in and properly completed to accomplish this. The qualification that has to be provided is called Certified Training for Real Estate Brokers. The last test you have to pass is the Real Estate Regulatory Agency (RERA) exam.
5. Memorandum of Association
Depending on the legal structure of the organization, a written and signed Memorandum of Agreement (MOA) may be required. This document will then be notarized and made official by the court.
6. Select Your Business’s Location or Premises
You need an office if you want to launch a business. If the space is rented, work with the appropriate parties to create tenancy agreements (Ejari).
7. File for a Trade License in Real Estate
Before opening your brokerage in Dubai, you must first obtain the real estate trade license that will permit you to run your business.
8. RERA registration
required license receipt, your company can register with RERA by filling out the required paperwork:
a. Application form
b. copy of the DED license
c. lease (Ejari)
d. Receipt of payment for RERA courses
e. Location of business
9. Signing up with the Ministry of Labour and DNRD
You must register your real estate business with the Department of Naturalization and Residency Dubai (DNRD) and the Ministry of Labor (MOL) to hire foreign employees and sponsor their visas.
10. Dubai Land Department approval
The approval of the Dubai Land Department is mandatory for the opening of a real estate brokerage in Dubai. The government agency in charge of real estate in the region is the Dubai Land Department.
Conclusion
Starting a real estate business in Dubai is difficult and requires a thorough understanding of the relevant laws, rules, and licensing requirements. Obtaining the necessary licenses and permits could be expensive and time-consuming. However, if you abide by the regulations and hold the necessary licenses, you could operate a successful real estate company in Dubai.
Wordcraft is currently the leading business consultant in Dubai, and we have in-house experts to help you. We serve you with a free consultation to start your own business in other emirates too. Get in touch with us immediately for business setup services in UAE!
