Dubai is one of the most beautiful cities in the world with its stunning skyline, which makes it an attractive tourism and investment destination for foreigners. Dubai’s property sector is on the road to sustainable development, a characteristic of innovative businesses. Here is a guide to how to start a real estate business in the enticing city of Dubai.
How to Choose the Right Type of Structure for the Real Estate Business in Dubai
Many types of business forms can be used to establish a real estate company setup in Dubai. The potential owner has the option, and it depends on the size of the business. The favourite structural forms are: –
- sole proprietorship;
- limited liability company;
- civil company;
- Freezone company setup establishment.
Then, in order to have a fully operational real estate brokerage business in Dubai, the standard company registration procedures must be followed. The Dubai business incorporation consultants will assist you on these matters.
What Do You Require To Start Real Estate Brokerage Businesses in Dubai
A Dubai real estate company can perform the following activities:
- renting properties;
- It acts as a representatives of owners while selling a property;
- consultancy services;
- Property management services.
To broker real estate transactions, a company or person must first obtain certification from the Dubai Land Department’s Real Estate Regulatory Authority (RERA). The real estate license is given after completing a course and the issuance of a real estate agent registration number.
A broker’s card will be given to individuals who receive the RERA certificate and are employed by real estate companies in Dubai. If you need assistance in establishing a real estate business in the emirate, do not hesitate to contact the company registration advisors in Dubai.
Step 1: Choose Your Company’s Business Model
Keep in mind that if you want to be the sole owner of your company as a foreign entrepreneur, you’ll need a Freezone company setup license. Otherwise, most businesses in the rest of the United Arab Emirates (UAE) must be owned 51 percent by a UAE national. There are a few different types of market structures to choose from in Dubai.
- The sole proprietorship is the first business model. There is no minimum amount of capital required for a company, and only one manager is permitted.
- The owner’s one-person limited liability company is the second category. The responsibility of a shareholder is limited to the value of the stock he or she owns.
- The civil company is the third category. This team of professionals can be of any nationality, but if none of them are UAE residents, they will need the services of a local service agent.
- The fourth form is the Limited Liability Company, which requires UAE nationals to own 51 percent of the company.
- The fifth form is a Partnership Company, which requires UAE nationals to be general partners but allows foreigners to be limited partners with no limits on ownership share.
Step 2: Register Your Company and Obtain Licenses
You’ll need to come up with a name, and it is best if you can use words like “real estate” or “broker,” as this will help people understand what your company does. The Department of Economic Development will require you to register your business and reserve your trade name (DED).
Then, in order to receive final approval, you must resubmit the original documents and add new ones. You must also complete a required course offered by the Real Estate Regulatory Agency to obtain a real estate license (RERA). Different real estate practices necessitate additional licenses, so it’s best to consult the RERA website for more details.
Since the property market in Dubai is unique, you may want to consider hiring an agency to assist you with the registration process, visas and licenses, and all the bureaucracy. They may also provide guidance on the business model in order to minimise risks and costs.
Step 3: Set Up a Professional Company Office
This move is critical because the physical presence of an office will lend credibility to your company, mainly if you are a foreigner with no prior business experience in the UAE. This office should have a landline phone number as well as a cell phone number.
In Dubai’s free zone, you can rent or buy office space. You can choose between spaces of 20-30 sq. ft. metres to 2,000 square metre offices on several floors. For instance, you can start with a Flexi-desk if it best suits your budget and needs. The best part is that you can use it on a part-time basis and maintain a full-time physical address.
This may be a handy temporary solution before your company and finances stabilise, at which point you’ll need a full-time office and staff. You can also consult one of the Dubai-based agencies if you are unsure about your location option.
Conclusion
If you have some real estate experience and the financial means and desire to start a business in the United Arab Emirates, Dubai is an excellent option. Its ultramodern architecture is stunning, with the most fantastic view being from the world’s tallest structure, the Burj Khalifa, which stands 828 metres tall and towers over Dubai.
This and many other architectural gems prove Dubai’s steady growth in construction and, with it, the real estate market. This is an excellent opportunity to enter a rapidly expanding real estate business setup in Dubai.