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Business Setup in UAE/Dubai

How to setup a real estate business in Dubai, UAE

December 06, 2021

Real estate is one the best investment options anywhere because of its high and relatively stable value;  and when it comes to real estate,  what better place to invest in than Dubai!  The UAE, of which Dubai is the commercial hub, is one of the most affluent and developed economies with a great dynamic and forward-looking business temperament marked by constant change and improvement.  Its successful hosting of the recently concluded Expo 2022 Dubai despite the Covid-19 pandemic demonstrated that to the world.  It showcased yet again just how stable and attractive Dubai is as an investment destination.

In this article, we cover everything you need to know about setting up a real estate business in Dubai.

 

Why you Should Invest in the Real Estate Business in Dubai, UAE

The Dubai real estate industry is one of the highest-yielding real estate markets globally, standing ahead of markets like London and New York.

The real estate business in Dubai is currently generating renewed interest among both investors and customers and heading towards  long term sustainable growth. The sector recorded AED 16.2 bn. worth  of transactions in September’21, making it the best month in the past 8 years*.

Three key benefits of setting up a real estate business in Dubai especially stand out. First, investors can enjoy a stable, predictable and continuous cash flow in an affluent and stable economy.  Second, Dubai offers excellent returns, tax advantages, and diversification. And finally, given the huge growth in  demand from around the world, the real estate market is expected to soar higher in the future.

How to Set Up a Real Estate Business in Dubai

Setting up a real estate business in Dubai involves keeping a few things in mind and on paper, such as:

  • Deciding the company structure
  • Appearing for and clearing the RERA examination
  • The registration process for setting up a real estate business in Dubai
  • Procedure for the company registration post RERA examination
  • Deciding the name of the company
  • Assessing the costs involved
  • Finding a local sponsor

Real Estate Company Structures in Dubai

Following are the four types of company structures in Dubai that you can invest in when it comes to real estate brokerage companies in Dubai:

  • Limited Liability Company
  • Sole Proprietorship
  • Civil Company
  • Free Zone establishment

How to Get a Real Estate License in Dubai

The real estate business in Dubai, UAE is a sought-after one, with intense competitiveness in the market for investor license all year round.

The property management license/real estate license in Dubai can be applied from the Dubai Economic Development (DED). This covers a wide range of business activities:

  • Contracting with clean-up, maintenance, and security companies
  • Real estate brokers
  • Administrative bodies providing real estate space

Key Steps for Real Estate Company Registration in Dubai

  • Name approval
  • Initial approval and Tasheel
  • Memorandum of association
  • UAE Local partner
  • Approval from RERA
  • Good conduct certificate
  • Dubai Land department approval
  • Dubai rented office space

The procedure of registering a real estate company in Dubai

  • Trade Name: All establishment types in Dubai require you to first decide on a company name. That marks the first step of company formation.
  • Initial Approval Request: Submit the required application form, supporting documents such as investor passport copy, photograph, etc., and get the initial approval from the authorities.
  • Approval from Real Estate Regulatory Agency (RERA): For opening a real estate company, the investor needs to appear for the RERA course and pass the test
  • Approval from Real Estate Regulatory Agency (RERA): On appearing for the RERA course and passing the test, an investor gets the approval from RERA which clears the way to go ahead.
  • Legal Documentation: This requires choosing an office space and preparing a tenancy contract. In the case of an LLC company structure, the Memorandum of Association (MoA) must be prepared by the investor. Along with this, a partnership agreement needs to be made ready.
  • The DED license: All documents of the investor along with the MoA, RERA approval, tenancy contract, etc. should be submitted to DED to obtain the real estate license from the authority. The cost of a DED license is approximately AED 25000 (for services license).
  • Registration with RERA: Registration is required for a company to obtain a RERA registration certificate. All documents need to be submitted to secure a registration certificate.
  • Obtaining Broker’s Card: After the process of registration with RERA, the investor gets a broker’s card, which is crucial to setting up any type of real estate business in Dubai.

Cost of Setting Up a Real Estate Business in Dubai

The cost of setting up a real estate business in Dubai depends on a variety of factors which include, location, size of business, budget, and so on.

Clearing the RERA examination is important to set up a real estate business and the cost of the examination depends upon the investor’s educational qualifications. It is different for the bachelor’s degree holder, the master’s degree holder, and those without a degree.

The cost for a real estate brokerage license is AED 12,950. It may vary depending on the type of operations chosen and government fees.

Documents Required for Setting Up a Real Estate Business in Dubai

  • Signed application form
  • Business plan
  • Passport copies of investor, all shareholders, and managers
  • Original NOC certificate, (if required)

How MBG Helps with Setting Up a  Real Estate Business in Dubai

MBG Corporate Services is one of the leading firms helping investors in Dubai and abroad to set up their dream business in the industry of their choice. We have a huge and prestigious blue chip client base around the world that depends on our services.

We offer comprehensive and customized solutions for real estate business setup,  right from the beginning of the company setup process to the very end of it , and beyond.

*Source: Economic Times

For more info, reach us at: Business Setup in UAE


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