How to establish a real estate company in Dubai?
Starting your own business in Dubai is every expats’ dream, it will also be their goal to become successful. Real estate business is a business field that can be achieved very quickly through very good knowledge, awareness and hard work. Real estate is a major contributor to Dubai’s economy, valued at 120.67 billion dollars. Dubai, a major hub for business and commerce with a population of 3.40 million, is in high demand for commercial and residential real estate.
New visas announced by the United Arab Emirates have led to an increase in the sales of residential units in Dubai. Establishing a real estate business in Dubai makes a lot of sense financially. If you have some experience in the real estate market, if you have the budget and the desire to start a business in the UAE, Then Dubai is definitely a great choice. It’s state of the are architecture is stunning, the most famous view of which is from the tallest building of the world , the Burj Khalifa, which rises above Dubai at a height of 828 meter’s, this and many other architectural jewels are proof of steady development of construction, as well as the Dubai’s real estate market.
In the business history of Dubai, a number of expatriates and locals have been able to achieve success through the real estate sector.it is all because of this Dubai is known as the heaven of successful businesses in the world and attracts many foreigners an locals to the real estate sector. Dubai is a business hub that has undergone a complete makeover in the last 20 years.
Now it has an impressive balance of old and new with a western business model. Known for its ability to attract foreign investors, Dubai remains a trade hub between west and East. For these reasons and more, Dubai attracts entrepreneurs. Real estate sector in Dubai has been growing quickly over the years. Also new regulations are set to come in that will allow more foreign investors to buy property in the emirate in 2022. This means that inquiries about real estate are growing faster than ever, so now is the best time to start a real estate business.
While starting a real estate company in Dubai we need to be well aware of certain things…lets discuss and check about them in detail here…
- Deciding the structure of the company
- Deciding the company name
- Appear and pass the RERA Examination
- Procedure for company registration after RERA examination
- Registration process for starting a real estate business in Dubai
- Evaluating the costs involved
- Finding a local sponsor
Now let us check each of them briefly
- Deciding the structure of the company: When starting a real estate company, we should have a good understanding of the company’s structure such as how to take the company forward and how to develop the potential of the business in a good way. We can think of this as the foundation when starting a real estate business. There are the four types of company structures in Dubai that you can invest in when it comes to real estate brokerage companies in Dubai which are
- Civil company
- Sole proprietorship
- Limited Liability company
- Free zone establishment
- Deciding the company name: At the initial stage of our business and in any case later, the first identity of our business is our business name itself. That’s why it is essential to have a name for our business. Always be careful to give a name that is very attractive and very professional
- Appear and pass the RERA Examination: Real Estate Regulatory Agency (RERA), the regulatory authority of Dubai Land Department (DLD) conducts the exam in online mode. Clearing the RERA exam conducted by DLD is a must to start a real estate company in Dubai.
Clearing the RERA exam is mandatory to establish a real estate business and the cost of the exams depends on the educational qualification of the investor. It varies for bachelor degree holders, master degree holders and non-degree holders
- Procedure for company registration after RERA examination: After clearing the RERA exam, the next step is to take legal procedure for company registration. To start a real estate company there are some legal steps that need to be taken. Learn about them well and follow them carefully
- Evaluation costs involved: When starting a business, we should have a good idea & knowledge about the money we need to spend. A business can be carried forward only if they are well understood about the costs involved in this business. If not, we will have to suffer in a big way after that we will not be able to continue the business. Cost of establishing a real estate business depends upon different factors such as location, size of the business, budget, etc.
- Finding a local sponsor: Finding a local sponsor in Dubai is a demanding process for businesses and new entrepreneurs. The local sponsor must be either a UAE citizen (also known as Emirati) or a corporate entity. The corporate entity must be wholly owned by UAE national and comprise a board of directors
Now let us check which documents are required to establishing a real estate company in Dubai
- Business plan
- Signed Application form
- If required, Original NOC certificate
- Passport copies of shareholders, investors and managers.
Now let us check the procedures of registration of a real estate company in Dubai
- Business name
- Preliminary approval application
- Approval from RERA
- Legal documentation
- Good conduct certificate
- DED license
- Registration with RERA
- Achieving broker’s card
Let us check each procedures briefly
- Business name: As we said before, when starting any business, you must find a business name. Because that will later become the identity of your business. Name must be attractive and professional
- Preliminary approval application : you have to submit the necessary application form, supporting documents like copy of investor’s passport, photograph etc. and get preliminary approval from the authorities
- Approval from RERA: the investor must appear for the RERA course and clear the examination for establishing a real estate company. After clearing the RERA course and clearing the exam, an investor gets approval from RERA (Real Estate Regulatory Agency) which clears the way to further steps
- Good conduct certificate: Dubai police issues a certificate of good conduct addressed to the real estate regulatory agency.
- DED licence: All the documents of the investor should be presented to the DED along with RERA Approval, Lease agreement, MoA etc. to get the real estate licence from the authority. A DED licence costs around AED 25000 Per service licence
- Registration with RERA: Registration is essential for a company to claim RERA registration certificate. All the documents need to be presented to secure the registration certificate
- Achieving brokers card : The investor gets a broker’s car after the process of registration with RERA, which is very important to establish any type of real estate business in Dubai
If you are not careful enough in the field of real estate business, there can be a huge downfall. But if you pay close attention, you can achieve great growth. It is a fact that some people have achieved growth in the field of real estate while others have rarely filed in their real estate business. That is why it is very necessary that we should be constantly careful while doing business in this area
The cost of starting a real estate company in Dubai is between AED 15000 AND AED 25000 (Excluding your car licence). Costs will change depending on a number of factors such as your office start-up cost, location, whether you base yourself in the Dubai free zone or operate through a mainland or offshore company. Generally, if you are based in a Dubai free zone the start up costs are lower.
Although the steps required to start a business in the UAE are not very complicated and confusing, it does require good and expert knowledge of the processes, what is more, it is important to note that if your business application is complete and error-free the application process is only simplified.
Shortly, experts in company formation can establish your company on your behalf, prepare your licence and visa applications and take care of all the necessary admin-leaving you free to focus on what you do best
If you study the above things in detail, you will get a clear idea about how to start a company in the real estate sector and help you establish your own business on the right path.