Are you considering launching a real estate business in Dubai, UAE? The prospect is attractive, with Dubai’s impressive infrastructure, strategic location, iconic skylines, flourishing tourism industry, and attractive tax policies. Dubai has transformed into a global magnet for foreign investments, thanks to its remarkable landmarks like the Burj Khalifa and Marina101. The city’s property market is booming, promising exceptional returns on investment.
What Licenses Are Required for a Real Estate Business?
Before you Invest real estate in Dubai, you must secure several licenses and permissions from relevant authorities. Here are the essential licenses you’ll need:
Trade License: This is granted by the Department of Economic Development (DED) and allows you to operate a real estate business.
Real Estate Brokerage License: Issued by the Dubai Land Department (DLD), this license permits you to engage in brokerage activities, such as buying, selling, and renting properties.
Commercial License: If you plan for someone else to buy or sell property on your behalf in Dubai, you’ll need a business license.
RERA Certification: The Real Estate Regulatory Agency (RERA) certification is essential for individuals working in the real estate industry. It ensures compliance with regulatory standards and demonstrates professional competency.
Ejari: Dubai operates a rental agreement system called Ejari, which is mandatory for landlords and property owners. Under this system, tenancy agreements must be registered with Ejari.
Step-by-Step Guide To Establish Real Estate Business In Dubai
1. Choose Your Legal Structure:
Decide whether you want to set up your real estate company in a Dubai-free zone or on the Dubai mainland. Most people opt for free zones for real estate businesses.
2. Select a Legal Structure:
Choose a sole proprietorship or a Limited Liability Company (LLC) for your real estate brokerage. Famous legal structures in Dubai include Sole Proprietorship, General Partnership, LLC, Civil Company, Public Shareholding Company, and Private Shareholding Company.
3. Register Your Trading Name:
Apply to the Department of Economic Development (DED) to get your chosen trade name registered.
4. Obtain Preliminary Approval:
Submit the necessary forms and documents, including passport and visa copies and educational certificates of the owner or manager and shareholders, to obtain preliminary approval.
5. Get RERA Approval:
Enroll in a formal qualification from the Dubai Real Estate Institute (DREI) and pass the Real Estate Regulatory Agency (RERA) test to get the required credentials.
6. Prepare a Memorandum of Association:
Create and sign a Memorandum of Association (MoA) for your business depending on your legal structure. This document needs to be notarized and legalized.
7. Find Office Space:
Secure office space for your business. If you’re renting, arrange the tenancy agreement (Ejari) with the relevant parties.
8. Apply for Trade License:
Before you start operating, obtain the Dubai real estate trade license that permits your business activities.
9. Register with RERA:
After obtaining the license, complete the necessary paperwork to register your business with the Real Estate Regulatory Agency (RERA).
10. Register with Government Departments:
Register your real estate brokerage with the Ministry of Labour (MOL) and the Department of Naturalization and Residency Dubai (DNRD) to employ foreign workers and sponsor their visas.
11. Get Dubai Land Department Approval:
The Dubai Land Department must approve your real estate brokerage before you can officially open. This department oversees real estate matters in the region.
Advantages of Starting a Real Estate Company in Dubai:
Dubai’s real estate market is growing a lot. In just one month, more than 6,500 real estate deals were worth $4.98 billion. This shows that many people want to buy real estate in Dubai. The Dubai government wanted to attract even more people, so they made a rule. This rule says that you can have 100% ownership of your business. This means that you don’t need a sponsor to run your company. The Dubai government made this rule easier for investors to do business in Dubai. They want Dubai to be the best place for business in the world.
This is good for real estate businesses because they can have 100% ownership. They can be more confident about investing their time and money to make their company grow. The UAE government also made new visa rules in 2022. These rules include Green Visa, Golden Visa, Temporary Work Permit, and more. These rules will help the UAE and make it a top investor choice. If you start a real estate business in Dubai, you can have many benefits. You can have 100% ownership, don’t pay property tax, get a resident visa if you buy property, earn good rental income, and make a worthwhile investment.
How Much Does It Cost to Start a Real Estate Company in Dubai?
To start a real estate business in Dubai, you’ll need a minimum investment of AED 21,000. This includes AED 5,020 for RERA charges per activity and around AED 12,950 for an LLC license. Additional costs may apply based on your specific business needs.