Real estate is widely considered to be one of the most stable and reliable investment options. According to the DLD (Dubai Land Department), real estate sales in Dubai totaled 1.22 billion AED on April 10, 2023. Off-plan and existing properties transactions have crossed the 1 billion AED figure regularly in March and the first 10 days of April 2023.
Dubai, the UAE’s commercial hub, is one of the most developed and affluent economies. Also, the city’s dynamic and forward-looking business environment is continually evolving, making it a favorable market for savvy investors.
The endless pool of opportunities also draws real estate agents to practice their skills in Dubai real estate market. However, starting a real estate company in Dubai includes a series of legal processes.
Here is a detailed guide on how to open a real estate company in Dubai.
How to Open a Real Estate Company in Dubai?
When it comes to setting up a real estate business, legal registration is mandatory. Hence, you can either set up a company on Dubai mainland or in free zones.
Nonetheless, free zones are the most popular choice for establishing a real estate buying and selling brokerage firm.
Decide the Company’s Legal Structure
Founders must choose the right structure before establishing a real estate company. That’s because it will help the business position in both advantageous operations as well as financial positions.
Also, there are two types of business structures available for registering a real estate company in Dubai. That’s because it’s essential to be aware of such options to make informed decisions on time.
- LLC (limited liability company)
- Sole proprietorship.
Additionally, obtaining a free zone license is an option if you are seeking full ownership, but there will be some restrictions. However, you will have to partner with a local service agent to start trading operations in the city.
Moreover, for a 100% stake in the company, you can launch a real estate business on the mainland with a local UAE citizen acting as the sponsor.
Register a Trading Name
Upon choosing the type of business model for your real estate venture, you will need to register it.
Apart from registering your business, you need to come up with a trading name that resonates with people and reminds them of real estate.
With that, you have to submit supporting documentation to the DED (Department of Economic Development) to get your company’s trade name registered.
Request for Preliminary Approval
To obtain the preliminary approval request receipt, you will need to submit the application form along with the following documents.
- Required application form.
- Copies of passports of all (shareholders, manager, and owner).
- Visa copies of stakeholders.
- Notarized certificates of high school or university degrees of both the partners and manager.
Get the Right Qualification (RERA)
In order to get the RERA approval, you must get your credentials right. Hence, being an investor, you must enroll in and pass the formal qualification issued by the DREI (Dubai Real Estate Institute).
Certified Training for Real Estate Broker is the certification that you will be given after completing a four-day training course followed by an exam, forming a fundamental requirement of your Dubai real estate license.
MoA & LSA
Generally Memorandum of Association and Local Sponsor Agreement may be crucial, depending on the company’s legal framework. Such documents outline the key details of the business, including the list of shareholders, objectives, management, etc.
Also, in most cases, such documents need to be legalized or attested by a court or other legal authority to be recognized as binding under the law.
Choose the Right Place
You need to have an office space before launching a real estate firm. Also, pay attention to the importance of making tenancy arrangements (Ejari) with the concerned parties if the office space is rented.
PRO TIP: TRY TO LOOKUP FOR A GOOD OFFICE SPACE SINCE IT LEAVES AN EVER-LASTING IMPRESSION ON THE CLIENTS.
Apply for a Relevant License
Prior to setting up your brokerage in Dubai, you need to have a real estate trade license that permits you to operate your company.
Registering with Real Estate Regulatory Agency (RERA)
Upon getting a trade license, you can now register your company with RERA by completing the required documents:
- Application form.
- A copy of your DED license.
- Tenancy agreement.
- Receipt of RERA courses.
- Your company location.
Registering with the Ministry of Labor & Department of Naturalization & Residency Dubai
You must register your real estate firm with both MoL and DNRD in order to hire and sponsor the visas of foreign staff.
Obtaining a Certificate of Good Conduct
You need to obtain a good conduct certificate for launching a brokerage firm. The General Headquarters of the Dubai Police award the required certificate.
Get Approval from DLD
Lastly, you need to have approval from DLD (Dubai Land Department) before setting up a real estate business. It is a government agency responsible for managing the region’s real estate.
Wrapping Up
Albeit Dubai’s real estate market is booming, it is highly competitive. Hence, if you want your company to sustain itself in the long run, you need to be aware of the latest market trends to stay ahead of the game.
If you need guidance on how to open a real estate company in Dubai, the guide mentioned above will answer most of your questions.
