International real estate investors now frequently go to Dubai. It is the perfect site to launch a real estate firm because of its advantageous location, first-rate infrastructure, and alluring tax policies. The legal, regulatory, and licensing procedures must, however, be well understood before launching a business in Dubai. This blog post will discuss the licenses needed to work in the real estate sector as well as how to start a real estate business in Dubai.
What Licenses Are Required?
You must receive a number of licenses and permissions from the necessary authorities in order to launch a real estate firm in Dubai. The following licenses you must get:
The first and most crucial license you require to launch any business in Dubai is a trade license. It is also given by the Department of Economic Development (DED) of Dubai and permits you to lawfully carry out commercial operations in the emirate.
Real Estate Brokerage License
You must receive a real estate brokerage license from the Dubai Land Department in order to run a real estate firm there. (DLD). Hence, you cannot lawfully engage in any real estate business in UAE without this license, which is a requirement for all real estate brokerage firms.
If you want someone else to buy or sell property on your behalf, a business license is necessary.
Dubai has a system called Ejari that governs rental agreements. It is specifically require for all landlords and property owners to register their tenancy agreements with Ejari.
In Dubai, the real estate industry is governed by the Real Estate Regulatory Agency (RERA). Therefore, all real estate brokers and salespeople must have RERA accreditation.
What is the Cost of Setting up a Real Estate Business in Dubai?
Legal fees, registration fees, office space leasing fees, getting required permissions and licenses, employing staff, marketing and advertising charges, and other operational costs are all involved in starting a real estate firm in Dubai.
The size and scope of the company, the location of the office, the number of workers, and the marketing plan are all variables that will affect the precise cost of starting a real estate firm in Dubai.
It is important to keep in mind, though, that starting a real estate business in Dubai might need a substantial investment, and it is vital to fully comprehend the neighborhood market as well as any applicable laws and regulations before beginning operations.
Once you have a RERA training certificate in hand, you can start the application process for an estate brokerage license. RERA charges AED 5,020 per activity. The license for an LLC cost about AED 12,950 but starting an estate business in Dubai is thought to cost at least AED 21,000 overall.
Benefits of Starting a Real Estate Business in Dubai
Starting a real estate business in Dubai might have several advantages. Here are Five key benefits of setting up a real estate business in Dubai:
Booming Real Estate Market
Dubai’s real estate market is one of the most desirable marketplaces in the world for investors and is continually expanding. Due to Dubai’s rising real estate demand, there are several prospects for real estate companies to prosper.
Due to its advantageous location between Europe, Asia, and Africa, Dubai serves as an important worldwide economic hub. This implies that real estate companies in Dubai have simple access to a large pool of potential clients and collaborators.
Dubai has made significant investments in the development of its transportation, communication, and utility infrastructure. Dubai is now one of the world’s most technologically sophisticated and contemporary cities as a result. The real estate sector is supported by this infrastructure, which facilitates company operations and client access to properties.
The real estate sector is heavily emphasized in Dubai’s stable and diverse economy. However, the government has taken action to guarantee that the real estate market stays stable and transparent, making Dubai an appealing location for real estate enterprises.
Ease of Doing Business
The Dubai government has put in place a number of policies to ease company operations in the city. Whereas, this includes simplified licensing processes, a solid legal foundation, and a supportive regulatory atmosphere.
In conclusion, Dubai is a great place to establish a real estate firm because it has a thriving real estate market, appealing tax laws, a prime location, first-rate infrastructure, a steady economy, and ease of doing business. Due to these elements, Dubai is the perfect location for real estate companies wishing to grow their operations and increase their revenues.
How to Set up a Real Estate Company in Dubai?
Legal business registration is mandatory everywhere, including Dubai. Therefore, those who are keen in setting up a real estate company in Dubai can do it in either the free trade zones or on the Dubai mainland.
However, free zones are typically the most favored alternative when setting up a real estate buying and selling brokerage firm in Dubai.
To start a real estate business in Dubai, follow these steps:
1. Decide Legal Business Structure
Choose the appropriate business structure before launching a real estate buying and selling brokerage company. This will also assist in positioning the business in the most advantageous operational and financial position.
To conduct real estate brokerage business in Dubai, there are primarily two types of business structures that may be registered:
2. Registering a Trading Name
Once you’ve chosen your company’s legal form or business model, you must submit an application to the Department of Economic Development (DED) in Dubai together with all necessary supporting documentation to have your trade name registered.
3. Preliminary Approval Request
The following step is to submit the required application form and the first documents listed below in order to obtain the preliminary approval request receipt.
- 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.
4. Approval from Real Estate Regulatory Agency (RERA)
RERA approval is the next stage. You must get the right credentials in order to do this. To do this, one must enroll in and successfully complete a formal qualification offered by the Dubai Real Estate Institute. (DREI). Certified Training for Real Estate Brokers is the name of the qualification is to granted. Finally, the Real Estate Regulatory Agency (RERA) test, which you must pass after this, is next.
5. Memorandum of Association
A completed and signed MoA of the business is necessary, depending on the legal structure of the company. Then the court will notarize and legalize this document.
6. Choose Premises or Location for your Business
To start a business, you must have office space. If the space is on rent, make tenancy arrangements (Ejari) with the relevant parties.
7. Apply for Real Estate Trade License
You must first receive the Dubai real estate trade license that will allow you to operate your firm before establishing your brokerage there.
8. Registration with RERA
After receiving the license, your business can register with RERA by completing the following paperwork:
- Application form
- DED license copy
- Tenancy contract (Ejari)
- Payment receipt for RERA courses
- Location of your business
9. Registration with DNRD and MOL
To hire foreign workers and sponsor their visas, you must register your real estate brokerage firm with the Ministry of Labour (MOL) and Department of Naturalization and Residency Dubai (DNRD).
10. Approval from Dubai Land Department
Before a real estate brokerage may open in Dubai, the Dubai Land Department must approve it. The Dubai Land Department, a governmental entity, oversees real estate matters in the area.
The process of launching a real estate company in Dubai is challenging and necessitates a full comprehension of the applicable laws, regulations, and licensing standards. It might take a long time and money to get the relevant licenses and permits. But you may run a prosperous real estate business in Dubai if you follow the rules and have the required licenses. Don’t forget to consult a qualified advisor who can help you through the procedure and prevent any legal problems. Contact us at +971 4 4081900 right away. Moreover, you can reach us by WhatsApp at +971 50 7775554 and email at [email protected].