Establishing a real estate company in Dubai

Dubai is considered one of the most prominent global destinations for real estate investment, as it is characterized by a thriving economic environment, advanced infrastructure, and an active and growing real estate market. Establishing a real estate company in Dubai is a strategic step for investors who want to benefit from the great investment opportunities offered by the emirate. Dubai is not just a city, it is a global center that attracts investments from all over the world, thanks to encouraging government policies, flexible legislation, and initiatives aimed at strengthening the real estate sector.

Establishing a company in Dubai requires compliance with a number of conditions and procedures set by regulatory authorities. The most prominent of these procedures is choosing the type of company and determining its legal structure, whether it is a limited liability company, a joint stock company, or a branch of a foreign company. The company must also be registered with the Department of Economic Development in Dubai, and obtain the necessary licenses to practice real estate activities, including buying and selling real estate, property management, and real estate development.

Dubai is characterized by the presence of free zones that offer many advantages to real estate companies, including full ownership by foreigners, tax exemptions, and customs facilities. Free zones such as Jebel Ali Free Zone, Dubai Media City, and Dubai Internet City provide an ideal environment for real estate companies to grow and expand. In addition, Dubai has a world-class infrastructure that includes international airports, sea ports, and a modern road network, which facilitates investment and trade operations.

Establishing a real estate company in Dubai

How to establish a real estate company in Dubai

Establishing a real estate company in Dubai requires following specific steps to ensure compliance with local laws and regulations. Here are the basic steps for establishing a company in Dubai :

1. Choosing a business: Determine the type of real estate activity you would like to engage in, such as buying and selling real estate, leasing, property management, or real estate development.
2. Choose the company type: Choose the company type that suits you, such as a limited liability company (LLC), a sole proprietorship, a public joint stock company, or a free zone company.
3. Find a location: Choose the most suitable location for your real estate company. This could be in inner Dubai or one of the free zones.
4. Obtaining initial approvals: Submit a request to the Dubai Land Department (DLD) to obtain initial approval to conduct real estate activities.
5. Company Name: Choose a business name for your real estate company and check its availability through the Dubai Department of Economic Development (DED).
6. Company Registration: Submit a company registration application with the Department of Economic Development (DED) or the relevant authority in the selected free zone.
7. Obtaining a commercial license: Pay the necessary fees to obtain a commercial license to practice real estate activities.
8. Registration with the Dubai Land Department: After obtaining the commercial license, register your real estate company with the Dubai Land Department (DLD).
9. Registration with the Dubai Chamber of Commerce: Register your company with the Dubai Chamber of Commerce and Industry to obtain membership.
10. Opening a bank account: Opening a commercial bank account in the name of the company to facilitate financial transactions.
11. Recruiting employees: If you need employees, hire them and register them with the Ministry of Human Resources and Emiratisation.
12. Marketing and Advertising: Develop a marketing plan to advertise your real estate services and attract customers.

Licenses required to establish a real estate company in Dubai

To establish a real estate company in Dubai, you need to obtain several licenses and follow certain procedures. Here is a list of the main licenses you may need:

• Real estate activity license: A permit is required from the Dubai Land Authority (DLD), and this license is considered essential for any company operating in the real estate sector.
• Trade Permit: License of the company itself from the Dubai Economic Development Department (DED), which includes choosing the type of company such as a limited liability company or joint stock company.
• Construction and Development License: If you are planning construction or real estate development, you may need a license from the Free Zone Authority or the Dubai Construction and Development Authority (DMCC).
• Office License: You must also obtain a license for your office or company headquarters, this can be from DED or a free zone of your choice.
• Other licenses: You may also need other licenses such as a social insurance license and work visas for employees if you intend to hire them.

Documents required to establish a company in Dubai

To establish a company in Dubai , you need to submit a set of papers and documents to ensure compliance with local laws. Requirements vary slightly based on company type and location (within Dubai or in free zones), but in general, the required paperwork includes:

1. Copies of passport: Copies of passports must be provided for all partners or shareholders in the company.
2. Copy of residence visa: If one of the partners or shareholders is a resident of the UAE, a copy of the residence visa must be submitted.
3. A copy of the Emirates ID card: for individuals residing in the Emirates.
4. Business Plan: Includes details of planned business activity, goals, strategies, and financial projections.
5. Company registration application form: filled out and signed by all partners or shareholders.
6. Memorandum of Understanding and Articles of Association: Legal documents clarifying the company’s structure, shareholding percentages, and partners’ rights and obligations.
7. Lease Contract: Proof of the office address or commercial location of the company. The site must be approved by the local regulatory authority.
8. Initial approval: Approval from the Department of Economic Development or the competent authority (if the activity requires this).
9. Additional permits: Some commercial activities may require additional permits from certain authorities, such as health or environment.
10. Required fees: Pay the necessary fees to register the company and issue the commercial license.
11. Capital Statement: A statement showing paid-up capital if required for the chosen type of company.
12. Power of attorney: If you use a service agent or attorney, you may need to provide a power of attorney allowing them to submit documents on your behalf.

The cost of establishing a company in Dubai

The costs of establishing a company in Dubai vary based on several factors, including the type of company, geographical location, and additional services required. In general, the basic costs that may be involved in setting up a company in Dubai include:

1. Business license costs: depend on the type of company and the scope of business activities you intend to practice.
2. Registration costs: Includes company registration and establishment fees in the Department of Economic Development or the selected free zone.
3. Legal and accounting consulting costs: You may need the services of a lawyer or accountant to assist in preparing the necessary legal and financial documents.
4. Rental costs: To rent the office or commercial space needed for the company’s headquarters.
5. Staff and social insurance costs: If you need to hire employees, payroll and social insurance costs must be taken into account.
6. Advertising and marketing costs: to promote your services and attract new customers.
7. Other government fees costs: such as attestation, stamp, and other government processing fees that may be required during the incorporation process.

The main advantages of establishing a real estate company in Dubai

Establishing a real estate company in Dubai provides many attractive advantages that encourage investment in this vital sector. Here are some key advantages:

• An active and diverse real estate market: Dubai is considered one of the largest real estate markets in the world, which provides wide opportunities for dealing in commercial, residential, hotel and retail real estate.
• Flexible investment policies: Dubai offers a flexible investment environment with laws that encourage foreign investment, facilitating greater access to the market.
• Advanced technology and infrastructure: Dubai has modern infrastructure and advanced technologies, which supports the rapid growth of real estate projects and facilitates their management and operation.
• Strategic location: Dubai’s strategic location enhances it as a crossroads for trade between East and West, which increases the attractiveness of real estate investments in the city.
• Encouraging business environment: Dubai provides an encouraging business environment with flexible labor laws and simple procedures for establishing and managing companies.
• Political and economic stability: Dubai enjoys political and economic stability that enhances investor confidence and supports sustainable business growth.
• Government facilities: The government in Dubai provides great facilities to real estate companies through incentive programs and tax facilities.

At the conclusion of our article about establishing a real estate company in Dubai, we emphasize that this endeavor represents a promising investment opportunity given the thriving real estate market and stable economic environment in the emirate. Dubai is a favorite destination for real estate investors thanks to rapid growth, increasing demand for residential and commercial properties, in addition to government policies encouraging foreign investment.

Setting up a company in Dubai requires careful planning and a thorough understanding of legal procedures and regulatory requirements. It is necessary to obtain the necessary licenses and choose the appropriate legal structure, whether it is a limited liability company, a public joint-stock company, or another. In addition, investors must prepare a detailed business plan that includes a comprehensive feasibility study of the local market and determine marketing and financial management strategies.

One of the biggest advantages of establishing a real estate company in Dubai is taking advantage of the advanced infrastructure and modern technology available in the emirate. Technology plays a vital role in enhancing sales and leasing processes, and providing innovative solutions to meet diverse customer needs. Dubai is also characterized by the presence of a wide customer base of different nationalities, which increases the chances of growth and success in the real estate market.

Moreover, continued government support to stimulate the real estate sector makes Dubai an ideal environment for establishing and developing real estate projects. These efforts include tax facilitation, improved legislation, and providing incentives to investors, ensuring a competitive and fair business environment.

The most important frequently asked questions about establishing a real estate company in Dubai