Home |Dubai Company Registration | How to start a real estate business in Dubai?

How to start a real estate business in Dubai?

Meydan Free Zone, A world-class business ecosystem to help you #GrowFromDubai

Answered on October 21,2023

Steps to start a real estate business in Dubai

Deciding Business Location
Choosing Business Activity
Choosing Company Name
Getting RERA Certification
Memorandum of Association
Applying for Trade License
Getting Approval from Dubai Land Department

Let’s take a closer look at each of them.

1. Deciding Business Location

It is essential to consider your business’ nature, accessibility to the market, and benefits when determining where to locate.

Dubai offers three economic environments to base real estate firms: mainland, free zone, and offshore. There are differences in these business models, as well as advantages and disadvantages. We can advise you on the best location for your needs at Meydan Free Zone.

There are fewer regulations in the Meydan Free Zone, which attracts more businesses. Furthermore, you will be exempt from personal income tax, import duties, currency restrictions, and excessive regulations if your business is located in Meydan Free Zone.

2. Choosing Business Activity

The next step is to choose a business activity in Dubai. The following are some of Dubai’s most common business activities for real estate firms.

THE MOST COMMON BUSINESS ACTIVITIES FOR REAL ESTATE FIRMS IN DUBAI

Professional Company
Sole Proprietorship
LLC (Limited Liability Company)
Partnership en-Commendam
Joint Venture
Private Shareholding
General Partnership
Public Shareholding

Property-related business activities are numerous. To move forward with your business, you should outline your business activities. This will determine what type of license you need. If you plan on running a real estate brokerage, opening a property consultancy, or any other related business, this must be stated in your license. You may include multiple business activities and can add more after your application.

The license type you choose must meet the needs and goals of your company. For example, you can legally represent the seller of a building, rent a building, manage properties for owners, and consult on building sales and lettings if you register real estate brokerage as your business activity.

3. Choosing a Company Name

The UAE has a very clear naming parameter you’ll need to stick to. But don’t worry; all are straightforward and largely common sense. Essentially, you should avoid blasphemous and offensive language and the names of well-known organisations. We will also cover a few more rules in your initial consultation.

4. Getting RERA Certification

To qualify for the license, you should register for the Dubai Real Estate Institute’s Certified Training for Real Estate Brokers course (DREI). This certification is necessary for the license-issuing process. You must pass an exam at the end of the course to become a registered real estate broker in Dubai. Obtain a Good Conduct Certificate from Dubai Police after passing the course.

After that, you need to contact RERA to obtain your broker ID. Once you get your broker ID, you can legally begin your career as a real estate agent in Dubai. RERA broker IDs are required in Dubai since each emirate has a real estate licensing body. It is important to remember that your license must be renewed annually.

Documents Required for RERA Registration

Application Form
DED License Copy
Tenancy Contract (Ejari)
Payment Receipt For RERA Courses
Location Of Your Business

5. Memorandum of Association

In accordance with UAE Commercial Companies Law, companies must include an object clause in a Memorandum of Association. The clause sets out exactly why the company is made and lists the economic activities it plans to undertake upon incorporation. If a company acts outside the activities mentioned in the object clause, the actions are potentially voidable as it operates outside of its powers. The company may even be penalized by authorities and sued by third parties.

A company’s Memorandum of Association (MOA) is a legal document prepared during incorporation. It defines the company’s relationship, its members, and the general public. The Memorandum of Association must be typed in accordance with the protocols of the Dubai Economy and Tourism Department, formerly the Department of Economic Development (DED), and UAE commercial law. It is also vital to notarise the MOA.

6. Applying for Trade License

Once you have successfully navigated this initial process stage, you can apply for your trade license. Trade licenses for free zones must be obtained from the respective authorities, such as Meydan Free Zone.

Your license application will require you to submit some documents. You need to get the final approval in the form of a professional services license. This license is required for those who want to run property management or brokerage services in Dubai. For that, you will need to submit it again.

You must also register your real estate brokerage company with the Department of Naturalisation and Residency Dubai (DNRD) and the Ministry of Labour (MOL) to employ foreign employees and sponsor their visas.

We’ll also help you obtain your visa. As part of this process, you will be required to undergo a fitness test, blood test, and chest x-ray. You can also sponsor the visas of others, such as dependent children and parents, your spouse, and any domestic staff.

At this stage, you will need to submit a form containing details about your business and its shareholders and proof of address and identification.

7. Getting Approval from Dubai Land Department

Dubai Land Department is the government body that oversees activities related to real estate in the UAE. Before operating a real estate brokerage business in Dubai, brokerages must receive approval from the Dubai Land Department (DLD).

Finally, if you’re getting paid in the UAE, you’ll need a corporate bank account. Meydan Free Zone can help with this step, too, advising on the right financial institution for your needs and circumstances.

***********

Our team at Meydan Free Zone can guide you through the entire process and ensure that all legal requirements are met seamlessly.

Get in touch today!

How would you rate the answer?

Excellent Good Neutral Poor Bad

Start Any Business, Company Setup Services Dubai, UAE
Answered on December 27,2022

To start a real estate business in Dubai, you need to follow the below steps.

Choose the right legal form for your business
Register the trade name
Apply for initial approval
Draft Memorandum of Association/Local Service Agent Agreement
Get additional government approvals
Apply for Business License

We will explain each of these in detail below.

Choose the right legal form for your business

You can start your business as a Sole Establishment, where the expatriate or foreign citizen can be the full proprietor of the business and the UAE citizen can be the regional agent.

Another option is to initiate your real estate business as a Civil Company where there can be more than 2 overseas resident partners and the UAE resident can be the regional partner.

The third option is that you start your business as a Limited Liability Company where the UAE citizen has 51% of the equity and the migrant has 49% equity.

Register the trade name

A trade name distinguishes one business from another. It also reflects the nature and the form of the business.

You should prepare a list of 3 to 4 names that you wish to have as your legal name and present it to the concerned department.

Once you have presented your request, the department would analyze it and sanction all the eligible business names. Therefore, you have the freedom to choose the one that you like most.

Here are some guidelines you must follow while creating a trade name.

The trade name must:

not violate the public morals or the public order of the country
be compatible with the required type of activity and the legal status of the company or business entity
not contain names of any religion, or governing authority, nor names or logos of any external bodies
not have been previously registered.
not have a name starting with words like "Universal", "Middle East", "International" and/or translate them into Arabic.

Apply for initial approval

Initial approval is a preliminary approval granted by the UAE Government to allow a foreign investor to proceed with setting up a business in the country.

It indicates that the government has no objection to the establishment of the business, but it does not give the business owner the authority to run or practice the business activity.

Drafting a Memorandum of Association (MOA) / Local Service Agent Agreement (LSA)

Memorandum of Association is considered as the constitution of the business organization and is a mandatory document for company formation in UAE.

It will contain the details of the shareholders, board of members, regulations regarding the operation of the company, policies, safety and security aspects, and so on. MOA has to be submitted along with other documents for business formation in the UAE.

Kindly note that businesses owned completely by non-GCC residents require a Local Service Agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.

Get additional government approvals

Based on the specific type of your business you might require additional government approvals as well.

It is better to have an experienced consultant by your side at this stage as they will help you in getting all the government approvals required for your business.

Apply for Business License

Once you have completed all the above steps it is now time to apply for the business license. The type of business license you will apply for depends on the primary activity of your business.

Once you have the business licence, you can start practicing business activities legally in Dubai.

You can collect the business licence from service centres of the economic departments or through their websites.

Documents required to register your real estate business in Dubai

You need to submit the following documents for registering your company in Dubai:

Copy of the passport of the shareholders and directors
Copy of the national identity card of the directors and shareholders
Recent bank statements, credit card statements or utility bills containing the name and residential address of the shareholders and directors
Initial approval receipt and all the previously-submitted documents
Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai
Duly attested memorandum of association
Approvals from other government entities concerned, as may be required

Open a bank account

After obtaining all the registrations and approvals from the concerned authorities, the company needs to open a corporate bank account to send and receive money relating to the company’s affairs.

Cost to set up a business in Dubai

The cost to set up a business in Dubai varies based on factors like the type of company you are planning to register, government approvals, location, etc.

However, based on a rough calculation, it might cost you AED 15000 to 20000 to set up a business in Dubai.

Benefits of registering a company in Dubai

If you think the cost to set up a business in Dubai is high, this can be offset by the following benefits.

Exemption from personal or corporate income taxes
Allowance of 100% repatriation of capital and profits
Lenient labor laws make it cost-effective to recruit labor forces
Excellent physical infrastructure
Some of the FTZs provide shared and virtual office facilities
Commercial company’s law provisions do not apply to FTZs
Exclusion from import and export duties

Time required to register a business in Dubai

Business registration in Dubai can be done within seven working days.

Check the status of company registration in Dubai

You can check if a company is registered in Dubai by visiting the Department of Economy & Tourism’s website in Dubai and clicking on “ Search License Information”

***************

If you are planning to start a real estate business in Dubai, StartAnyBusiness is the first and only private company to provide 100% transparency in business registration in Dubai.

You can submit the form below the answer section to reach out to us.

Note: All the information provided in this answer is based on the limited information available in the question. The exact steps to be followed, documents required, cost, time etc. may vary based on the specific requirement.

Guide

Complete Guide on Trade License in Dubai

Trade license is required for practicing business activities legally in the emirate. Types of Trade Licenses in Dubai Normal License: It requires the existence of a Mem..
Click here to get a detailed guide