Real Estate Company Setup in Dubai - Things to Know for the Foreign Investor
Contributed by Aurion
05 February, 2021
Real estate investment is a recognized long-term investment in Dubai. Dubai is a hub for property investors. Rental returns are assured in Dubai despite the downtime and falling property prices.
The hotel property market is an investment area that is considered a profitable property investment in Dubai.
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.
Real Estate Agency - Suitable Company Structures in Dubai
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.
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.
Property Management License in Dubai can be applied from Dubai Economy.
It 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
Shareholding Agreements for Various Real Estate Business Licenses
If the investor is looking for opening an LLC Company in UAE for a Property Management Consultancy business license, the 51% shares of the company have to be vested among the UAE national.
For a Real Estate Brokerage, 100% ownership remains with the UAE national to protect the rights of the investor.
UAE Commercial Law and RERA the regulatory arm of the Dubai land Department aims to offer complete security to the investor.
The real Estate Brokerage Business involves a large number of transactions. To reduce the risk of ex-pat investors absconding with huge sums and misusing the license, complete control (100% ownership is given to the UAE national.
Procedures Involved in Obtaining a Real Estate Business License in Dubai
The investor becomes the manager of the company and the total control of the company will be with the UAE national.
For expatriates and Foreign Investors, a professional business license can be obtained from a Free Zone and can easily set up a company without 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.
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 setting up a Real Estate Company 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!
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