REAL ESTATE COMPANY FORMATION IN THE UAE
Right from its inception as a nation, real estate has always been big in the UAE, growing from year to year for most if not all of its history. It is one of the most attractive industries for investors worldwide.
Dubai, which has witnessed many high value transactions, experienced a record breaking 2022 with an 86% growth versus 2021 to surpass AED 240bn in value.
Early in 2022, the UAE government announced 100% FDI in real estate. This has turned out to be a game changer for many foreigners. Post the pandemic, the government has now reinstated the requirement of the RERA exam for real estate companies. Now these companies must obtain a RERA card for their managers or shareholders to conduct this business activity in the UAE.
The Department of Economic Development rearranged the activity groups in mid-2022, allowing investors to choose the relevant activity according to their business plans. The new groups are as follows:
Group 1
Real estate buying and selling brokerage
Real estate leasing brokerage
Mortgage brokerage
Real estate management supervision
Group 2
Buying and selling of real estate
Leasing and management of other people’s property
Self-owned property leasing and management services
Group 3
Real estate mortgage consultancy
Real estate consultancy
Property inspection services
Real estate survey services
Real estate valuation services
Group 4
Real estate development
Buying and selling of real estate
Group 5
Real estate public auction organizing
Real estate exhibition organizing
Starting a Real Estate Company in Dubai
Real estate companies in Dubai have certain procedures and requirements to follow. These are as follows:
- Initial approval
- Name approval
- Registering tenancy contract
- Applying for license
- Applying for establishment card
- Applying for visa
- Applying for RERA exam, approval and card
Depending on the shareholder pattern, the company structure for a real estate company in Dubai must be chosen accordingly.
Real Estate – 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
The real estate license and the agent registration number is issued after attending a course from RERA.
Registration with RERA
Submit all required documents and register the company with RERA to obtain the RERA registration certificate.
Documents to be submitted
The following documents must be submitted to RERA for their approval of a real estate business company operations in Dubai:
- RERA application form
- DED business license copy
- Payment receipt
- RERA Course certificate
- Tenancy control/Ejari Copy
How MBG’s Real Estate Services Help
Professional consultation is a must in order to decide on the right activities and scope covered under each activity. MBG supports you with the right information and expert guidance. Our expert PROs with their full understanding of the applicable laws make your incorporation process swift , smooth and hassle-free.