Real estate investment is a recognized long-term investment in Dubai. Dubai is a hub for property investors. Real Estate Company Setup in Dubai is profitable for investors as there is a steady flow of new properties into the market as well as an existing supply of unsold properties.
Also, for certain apartment types, there is always a demand in UAE. Additionally, the properties in the hospitality sector is an investment area that is considered a profitable in Dubai. Generally, the Rental returns are assured in Dubai despite the downtime and falling property prices globally.
Start a Real Estate Company in Dubai
Real Estate companies in Dubai have certain procedures and requirements to follow. These are entities that involve the buying, selling, and renting of apartments, villas, townhouses, commercial buildings, etc., in UAE.
Depending on the shareholder pattern the company structure for the real estate company in Dubai must be chosen accordingly.
There is a growing demand for real estate properties in Dubai and there are many active real estate projects that are nearing completion. The real estate landscape in Dubai is currently in a boom period.
The 1 bedroom and Studio Apartments will be always in demand across UAE as most of the employed expat community in UAE stay in such apartment types. While their family will be in their home town. Hence, there is immense potential for a Real estate company setup in Dubai.
Real Estate Agency – Suitable Company Structures in Dubai
There is a boom in the real estate business as the market is on an upturn. So, a real estate company setup in Dubai is beneficial for the business owner. Depending on the number of shareholders and business authority, there are multiple company types available in UAE.
A real estate company can be set up as any of the below company structures:
- Sole Proprietorship
- Limited Liability Company
- Civil Company
- Free Zone Establishment
For real estate brokerage, the company or individual must obtain a certificate from the Real Estate Regulatory Authority (RERA) under the Dubai Land Department. The Real Estate License and the agent registration number is issued after attending a course from RERA.
Real estate company setup in Dubai involves a series of steps that the investor must follow. It is best advisable to seek the assistance of an expert Business Consultant for setting up a real estate company in Dubai.
How to Get a Real Estate License in Dubai?
Real Estate is a prospective business category in the UAE. It is a key industry that contributes to the economy of the UAE. Getting a business license is a mandatory requirement for a real estate company setup in Dubai.
There are various business activities in the broad real estate sector. Depending on the investor’s preference and business background, they must choose the right business activity for starting a real estate company in Dubai.
Property Management License in Dubai is one of the most popular business license categories in the real estate sector. The Property Management License in Dubai can be applied from Dubai Economy or any of the Free Trade Zones in Dubai.
Property Management License covers a wide range of business activities ranging from:
- Contracting with Clean-up, Maintenance, Security Companies
- Administration Requirements Provider for Real Estate Space
- Real Estate Broker Arrangements, and more.
UAE Commercial Law and RERA the regulatory arm of the Dubai land Department aims to offer complete security to the investor when it comes to real estate related transactions in Dubai.
Similarly, a real Estate Brokerage is a preferred business license by investors who wish to conduct real estate transactions in UAE. The real Estate Brokerage Business involves a large number of transactions.
It can be formed as 100% foreign ownership in the Mainland as per the new amendment. However, to reduce the risk of ex-pat investors absconding with huge sums and misusing the license, a UAE national can be added as a shareholder or as a local service agent.
Procedures Involved in Obtaining a Real Estate Business License in Dubai
There are many procedures involved in real estate company setup. Among that, obtaining a real estate business license in Dubai is the most important step. Furthermore, adding the shareholders and appointing managers are an important step in the real estate company setup in Dubai.
For expatriates and Foreign Investors, a professional business license can also be obtained from a Free Zone and can easily set up a 100% owned company without any hassles.
Get associated with an expert business consultant in UAE to register your property management. real estate business.
Types of Real Estate Business Activities in Dubai
There are various types of real estate business activities in Dubai, The real estate brokerage is a popular one among them.
The Real estate brokerage in UAE has two different groups – Real Estate Leasing, and Real Estate Buying & Selling Brokerage. The role of Real Estate Brokerage is working as a link between landlords and tenants regarding property lease against the amount.
The buying and selling brokerage involves real estate property purchases between the owners and buyers.
Procedures of a Registration of a Real Estate Company in Dubai
A real estate company in Dubai can be registered by following the below procedures. In the mainland of Dubai, the real estate company setup is governed by the Dubai Economy, Dubai Land Department, and the RERA.
Business owners can follow the below steps to register their real estate company in Dubai and obtain the Real Estate business license from the respective trade licensing authority.
1. Confirm a Trade Name
Choose the tradename and get the name approved by the Dubai Economy. It is the first step in company formation.
2. Initial Approval Request
Submit the required application form, supporting document – investor passport copy, photograph, etc., and get the initial approval from the authorities.
3. Approval from Real Estate Regulatory Agency (RERA)
For opening a real estate company, the investor/director/manager must appear for the RERA Course and pass the test.
Once the approval certificate from RERA is obtained, the official contract and other agreements can be prepared accordingly.
4. Legal Documentation
Once the initial approval is received and the RERA Certificate is obtained, the investor can choose the required office space and the tenancy contract can be prepared.
In the case of an LLC Company Structure ( Companies with more than one shareholder), the memorandum of association is to be prepared by the investor.
Also, the partnership agreement for the LLC Company must be made ready.
5. License from DED
All investor documents along with the MOA, RERA Approval, tenancy contract, etc., must be submitted to DED to obtain the real estate license from the authority.
The cost of a real estate business license from DED is approx. 25000 for services license.
6. Registration with RERA
Register the company with RERA to obtain the RERA Registration Certificate. Submit all the required documents to secure the Registration Certificate.
Documents to be submitted:
The following documents are required to be submitted to RERA for the Approval of the Real Estate Business Company operations in Dubai.
- RERA Application Form
- DED Business License Copy
- Payment Receipt
- RERA Course Certificate
- Tenancy control/Ejari Copy
- Location Map
7. Registration with DNRD and Ministry of Labor
To hire employees and sponsor the visas, the company has to be registered with DNRD and the Ministry of Labor.
8. Obtaining Brokers Card
The Real Estate Agent employed by the company must be a holder of the brokers’ card issued by RERA.
Cost of Starting a Real Estate Company in UAE
The cost of Real Estate Company Setup in Dubai depends on the business jurisdiction chosen.
To set up a Real Estate business establishment in UAE, the investor has to shell out Approx. AED 25,000 as the business setup cost for a mainland company.
There are various company structures in the Free Zone and Mainland. There are single shareholder Free Zone Company, multiple shareholder Free Zone Company, LLC Company – DED mainland.
Real Estate Business License is categorized under the Professional License type in UAE. The cost of setting up a real estate brokerage in the Free Zones of UAE is a cost-effective means to easily start an establishment in UAE.
An investor can opt for a fully furnished ready-made office for their real estate company and avail a host of business benefits offered by the Free Zones of UAE.
To know more about opening a real estate company in UAE, talk to our expert business consultants right away!