Overview
Starting a real estate company in Dubai has become an attractive destination for foreign investors due to the unique characteristics of the Dubai real estate market and the business thriving environment. The process of starting a real business in Dubai can be challenging for new entrepreneurs due to the necessity of comprehension of the applicable regulations, laws and licensing standards.
In this blog, we will cover the benefits and the entire process of launching a real estate business in Dubai.
Benefits of Starting a Real Estate Company in Dubai
There are several reasons to invest in Dubai real estate. Let’s explore the top reasons to ensure your business success in Dubai.
Thriving Real Estate Market of Dubai
Dubai has a dynamic and rapidly growing real estate market with a high demand for residential, commercial, and hospitality properties. The city’s strategic location, economic stability, and modern infrastructure make it attractive to investors and residents alike.
Tax Advantages
One of the most appealing aspects of investing in the real estate business in Dubai is its tax-friendly environment. There are no personal income taxes, corporate taxes, or capital gains taxes, making it an attractive destination for investors looking to maximize profits.
Diverse Real Estate Investment Opportunities
Dubai offers a diverse range of real estate investment opportunities such as residential properties, commercial spaces, luxury developments, and hospitality projects. Whether you’re interested in high-end villas, office buildings, retail spaces, or commercial real estate in Dubai, its market caters to various investment preferences.
World-Class Infrastructure of the Country
Dubai is globally known for its world-class infrastructure, including state-of-the-art transportation networks, modern utilities, and cutting-edge facilities. Dubai’s booming economy continuously increases the number of immigrants with their families, opening the doors for entrepreneurs to invest in a real estate company in Dubai and achieve continuous success.
Rising Demand for Properties in Dubai
Dubai is continuously experiencing a steady increase in demand for properties due to population growth, urbanization, tourism, and business expansion. This sustained demand provides ample opportunities for investors to set up a real estate company in Dubai and capitalize on market trends.
How to Open a Real Estate Company in Dubai?
Launching a successful real estate business in Dubai needs to complete some registration and documentation processes efficiently. Here is the entire process of a real estate business setup in Dubai:
Decide the Right Business Location
While selecting a location for your real estate business, consider some important factors such as the benefits available in an economic environment and accessibility to the market.
Dubai offers the following three options for a real estate company setup:
- Setup a Mainland Business in Dubai
- Setup a Freezone Business in Dubai
- Setup an Offshore Business in Dubai
Select the Right Business Activity
Identify profitable business activities for your real estate company in Dubai. The activity you choose for your business will determine the type of license you need for your business. Dubai offers these options for business activity:
- Professional companies
- Sole proprietorships
- Limited liability companies (LLCs)
- Partnerships
Decide Your Trade Name
While selecting a name for your real estate company must adhere to the naming parameters set by the UAE. your trade name should be unique and relate to your business, avoid using any offensive language.
Get RERA Certification
You need to register for the Dubai Real Estate Institute’s Certified Training for Real Estate Brokers course (DREI) which will qualify you for a real estate license in Dubai. After successful completion of this course, you will obtain a Good Conduct Certificate from Dubai Police.
After that contact the Real Estate Regulatory Agency (RERA) to get your broker ID, allowing you to legally operate a real estate company in Dubai.
Registration with RERA requires to complete the following documentation work:
- Application form
- DED license copy
- Tenancy contract (Ejari)
- Payment receipt for RERA courses
- Location of your business
Memorandum of Association
As per the UAE Commercial Companies Law, a business is required to include an object clause in its MOA ( Memorandum of Association). This clause informs about the purpose of your business and a list of economic activities you are intending to undertake.
The Memorandum of Association (MOA) is a legal document that is necessary to prepare during the incorporation process. It defines your company’s relations with its members and the local public.
Apply for a Trade License
Once you have completed all the initial steps, apply for your trade license to set up a real estate company in Dubai. Submitting a license application requires various documents. Taking advantage of business consulting services may help you navigate the complex document process without any delays and mistakes.
Get Approval from the Dubai Land Department (DLD)
To launch a successful real estate brokerage company in Dubai, you need to obtain approval from the DLD (Dubai Land Department). It is the main government body that is responsible for overseeing real estate activities in the UAE. So, a business must comply with DLD requirements to ensure the legality of its operations.
Conclusion
Starting a real estate company in Dubai offers numerous advantages to foreign investors. However, running a real estate business also comes with challenges that require careful planning, market research and a keen understanding of local regulations. Approaching the best business setup consultants may help you navigate all the documentation, legal and approval processes required for successful business setup in Dubai.
Register Your Business in Dubai with Us
Arab Business Consultants is a recognized business setup consultancy in the UAE, that may be your ideal partners to make your Dubai dream come true. We have years of experience in helping entrepreneurs with their successful businesses in Dubai Mainland, Freezone and Offshore companies. Our expert team of consultants will offer you the best PRO services, VAT Services, Virtual Office Setup Services and Local Sponsor Services in the UAE.
Talk to our consultants today and embark on your entrepreneurial journey in 2024.
Visit our website and explore our blogs to learn more about business setup plans in Dubai.
- Business Ideas in UAE
- Local Sponsors in the UAE
- PRO Services in Dubai
- Business Setup Consultants in Dubai
FAQ
- What is the eligibility requirement to start a real estate company in Dubai?
Entrepreneurs who want to establish a real estate business in Dubai must be at least 21 years old to get a permit to start their business.Â
- Which organizations in Dubai hold the authority for the Licensing of the businesses in real estate?
There are some main organizations responsible for licensing businesses in the real estate sector which are governed by the Government of Dubai. These organizations are:
- Dubai Department of Economic Development (DED)
- Dubai Real Estate Regulatory Agency (RERA)
- Which licenses and permits are essential to start a real estate company in Dubai?
The licences or permits required for a real estate company setup in Dubai may depend on the chosen business activity. A licence is essential to operate real estate business activities in Dubai.
The DED allows numerous real estate business activities, these are:
- Real Estate Buying & Selling Brokerage
- Leasing Property Brokerage Agent
- Buying and Selling of Real Estate
- Leasing & Management of Self-Owned Property
- Leasing and Management of other people’s property.
