Is it Wise To Setup a Real Estate Company in Dubai
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Are you wondering how to set up a real estate company in dubai?
Well Dubai being a top attraction for foreigners gives lucrative opportunities with world class infrastructure to invest.
However, It is best to start a real estate business in Dubai due to its advantageous location and supporting tax policies. There are several small and large businesses operating in Dubai. In addition the property market has good scope due to its central location and top rated road transportation system.
Considerable number of people are interested in buying flats in Dubai to settle with their families. You will get all the required details in this comprehensive guide to start a real estate company in Dubai.
4 types for setup a real estate company in Dubai
- Property brokerage
In this role, you’ll have the opportunity to engage directly with both buyers and sellers in the property market. Additionally, you’ll take charge of leading your team in identifying potential clients and showcasing their properties.
A key aspect of success in this field is mastering the art of negotiation. Nevertheless, recognizing the importance of experience and expertise, it’s advisable to consider enlisting the support of individuals who possess the requisite skills if you find yourself lacking in this area.
- Property management
This business model entails managing properties on behalf of their owners while they are being rented out. Upon lease expiration, your role extends to facilitating lease renewals or assisting clients in the sale of their property.
Success in this field hinges on possessing strong negotiating and management abilities, which are essential for effectively navigating the intricacies of property management.
- Land development
Land developers oversee the meticulous planning and execution of land development projects, ensuring seamless progress at every stage and achieving the desired outcome.
Effective management entails enlisting the expertise of professionals across various domains such as engineering, architecture, marketing, and construction, each contributing to the realization of the project’s vision.
- Property agency
A property agency serves as a comprehensive facilitator for real estate transactions, bridging the gap between sellers and buyers. Typically operating on a commission-based model, agents thrive by maintaining an extensive clientele base.
These four categories of real estate enterprises present diverse prospects for individuals with varying interests and skills. While each type presents its own set of challenges and benefits, gaining a deeper understanding of these businesses is crucial before making any significant decisions.
What licenses are required to start a real estate company in Dubai?
You need to avail a number of licenses to set up a real estate business in dubai.
- Trade license for real estate
First thing first, and the most crucial one is to get a Dubai trade license to work as a real estate company. This license is issued by the DED-Dubai Economic Department. The license documents are legal permits to carry out all the real estate related activities in the United Arab Emirate as per the activities mentioned.
- Real estate brokerage license issuance
DLD- Dubai Land Department is responsible to provide you the real estate brokerage license to operate real estate firms in Dubai. That means, you are not allowed to perform any real estate activities with the DLD license and it is compulsory for all real estate brokerage firms in Dubai.
- Get Commercial license
For activities including buy and sell the properties in the emirates on your behalf, you must have a commercial license to carry out certain activities.
- Register an Ejari
To govern rental agreements the Dubai Land Department- DLD has a system called Ejari. It is compulsory for everyone including landlords or property owners to get a register tenancy agreement with the Ejari department.
- RERA certification
To maintain the real estate ecosystem, there is a department called RERA- Real Estate Regulation authority. It monitors all the sale and purchase activities related to real estate in Dubai. All the real estate brokers and salespeople working in firms are bound to get RERA certification.
- What is the cost of setting up a real estate business in Dubai?
Several fees including legal fees, registration fee, office & licensing and operational costs need to be considered when starting a real estate firm in dubai.
Keep in mind that real estate business requires substantial investment according to the Dubai market. Moreover, it depends upon the office location and the size of staff you want to hire.
You can start the real estate brokerage license process after getting the RERA training accreditation. RERA costs you around AED 5100 for each activity. Starting a real estate business in Dubai will cost you at least 23000 overall.
Document required to get a real estate company license in Dubai
Acquiring a real estate business license in Dubai is a relatively straightforward process. Nevertheless, there are several essential steps to navigate beforehand.
These encompass gathering the necessary information and documents, gaining insights into the industry landscape, and identifying an appropriate location for establishing your company’s office.
The documentation necessary for obtaining a license may vary depending on the nature of your business. Here are examples of some of the most commonly required documents that you’ll need to provide:
- Proof of passing the Real Estate Exam.
- A valid passport.
- Proof of having a physical office space.
- Proof of having a licensed broker.
- Proof of having an accountant who is registered with RERA.
- A letter of recommendation.
- Your official degree.
- Criminal record.
- A RERA-approved property valuation certificate.
- Copies of your bank statements and credit card bills for the past three months.
The above list highlights important documents that you need to submit to start a real estate company in Dubai.
5 key benefits of starting a real estate company in Dubai
- Booming real estate market
Dubai is known for having a very attractive real estate market that is always getting bigger. Many people want to buy property there, which means there are plenty of opportunities for real estate companies to make money and be successful.
- Dubai strategic location
Given its strategic position connecting Europe, Asia, and Africa, Dubai stands out as a pivotal global economic hub. Consequently, real estate companies in Dubai enjoy convenient access to a broad array of potential clients and partners.
- Dubai world-class infrastructure
Dubai has heavily invested in enhancing its transportation, communication, and utility infrastructure. As a result, it has emerged as one of the most technologically advanced and modern cities globally. This robust infrastructure also bolsters the real estate sector by facilitating smoother company operations and improving client accessibility to properties.
- Dubai stable & suitable economy
Dubai’s stable and diverse economy places significant emphasis on the real estate sector. To ensure stability and transparency in the market, the government has implemented measures, making Dubai an attractive destination for real estate enterprises.
- Ease of doing business in Dubai
The Dubai government has implemented various policies aimed at streamlining business operations within the city. This includes simplified licensing procedures, a robust legal framework, and a supportive regulatory environment.
Dubai emerges as an ideal destination for establishing a real estate firm due to its thriving market, favorable tax regulations, strategic location, top-notch infrastructure, stable economy, and conducive business environment. These factors make Dubai the perfect choice for real estate companies looking to expand their operations and boost their profits.
Step by step guide to start a real estate company in Dubai
Legal company registration is mandatory in Dubai either its mainland or in Free Zones. However, Freezone is the most favorable option to set up a real estate brokerage firm in Dubai.
Below mentioned are the steps to start a real estate business in Dubai.
- Choose legal business structure
Before you launch a real estate buying and selling brokerage company choose the suitable business structure to better position your business. This will help you to forecast the business operation and financial position.
There are four main structure for real estate business in Dubai:
- Sole entity
- LLC- limited liability company
- Civil company
- Freezon establishment
- Register a trade name
The second mandatory step is to register a trade name. After you decide the company model you need to submit an application to Dubai Economic Department-DED along with all necessary documents. Additionally, for some type of name you need to pay an extra amount of fee to DED.
- Initial approval
You need the below mentioned documents for initial approval
- Application form
- Passport copies of owner or manager and all shareholders
- Visa copies of all shareholders
- Attested high school or university degree certificates of the manager and partners.
- RERA approvals
After initial approval the next step is to get RERA approval. Before getting RERA approval, one must complete all the right credentials for the enrollment. Application must enroll and complete the formal curriculum by Dubai Land Department. Next step is to go for the RERA- Real Estate Regulatory Agency test, which is the final step.
The name of this qualification is “Certified Training for Real Estate Brokers”. To get a RERA license, you will have to provide certain documents and information. These include the following:
- Proof of having passed the Real Estate Exam.
- Evidence of being qualified to practice your field.
- Proof of having the proper capital and financial statements.
- A copy of your passport.
- Proof of having a physical office space.
- A list of the staff members employed by you.
- A declaration of compliance with the rules and regulations set forth by RERA
- Memorandum of association
Depending on the legal structure of the company, it is imperative to have a fully executed and duly signed Memorandum of Agreement (MoA) for the business. Following completion, this MoA will undergo notarization and legalization by the court to ensure its validity and enforceability.
- Choose business location
Establishing a business necessitates securing appropriate office space. If the chosen space is rented, it is essential to formalize the tenancy arrangements through the Ejari system with the relevant parties.
By completing Ejari registration, businesses can operate within a secure and structured environment, promoting stability and compliance within the commercial premises.
- Get real estate trade license
Before establishing your brokerage in Dubai, it is imperative to obtain the necessary Dubai real estate trade license. This license serves as the legal authorization that enables you to operate your firm within the Dubai real estate market.
Securing this license is a fundamental step in ensuring compliance with regulatory requirements and demonstrating your commitment to operating within the bounds of the law.
- RERA registration
Following document are required to register with the RERA
- Complete application form
- DED license copy
- Tenancy contract (Ejari)
- Payment receipt for RERA courses
- Location of your business
- Registration with DNRD and MOL
In order to employ foreign workers and act as their sponsors for visa purposes, it is imperative to register your real estate brokerage firm with both the Ministry of Labour (MOL) and the Department of Naturalization and Residency Dubai (DNRD).
This registration process is a critical step in ensuring compliance with labor laws and immigration regulations in the United Arab Emirates (UAE).
- DLD approvals
Prior to commencing operations, any real estate brokerage intending to operate in Dubai must obtain approval from the Dubai Land Department (DLD).
As the primary governmental entity responsible for overseeing real estate affairs in the region, the DLD plays a pivotal role in regulating and supervising the real estate sector to ensure compliance with established laws and regulations.
