Dubai is a thriving and powerful metropolis. Its world-class infrastructure has already established it as a key participant in trade and tourism, as well as attracting major international investors. So, if you're thinking about starting a real estate firm in Dubai, as an entrepreneur, you must realise the limitless potential and keep expanding.
The good news for entrepreneurs is that real estate is one of Dubai's most profitable industries. In the contest for towering structures in the Gulf States, Dubai is the front-runner. The world's tallest structure, the Burj Khalifa, as well as Marina 101, the Princess Tower, and a slew of others, are proof of Dubai's burgeoning Real estate market.
Increasing rent moderation, supply, and changing demand for executive jobs in the employment sector are all expected to persist and impact the residential market in 2018, according to a new research release. As a result, you may notice a large number of international people who have purchased residential apartments in Dubai. As a result, it could be a fantastic chance for real estate investors looking to start a business in Dubai.
But how does one go about starting a real estate business in Dubai? For this, Dhanguard conducted some study to learn about the essential procedures that can assist you in starting a real estate company in Dubai while saving money. Continue reading.
Are you prepared to launch a real estate venture in Dubai?
Whether you want to create a real estate brokerage firm, a property management firm, or a development firm, there are a few procedures you must complete before applying for your licence.
To begin, make a list of your business's activities. The type of service you are allowed to provide will be determined by this. If real estate brokerage is listed as an activity, you can rent properties, act as a representative for a property seller, consult on property sales and lettings, and manage properties on behalf of owners.
There are numerous property-related business opportunities. Working with a company formation professional at this point is recommended since it is critical that your selected activity matches exactly with the activities you plan to carry out.
The next step is to pick a business name. In the UAE, this requires a little more consideration than in other parts of the world. Why? Because the UAE has a set of naming conventions that are both rigid and simple to follow. An expert in business formation can assist you in adhering to them.
Both have numerous advantages. Freezones like Fujairah Creative City provide advantages like a simple and rapid incorporation process, ongoing business support, and financial incentives like tax exemptions and no currency limitations.
On the other hand, Mainland allows you to trade directly with the UAE market and possibly lucrative government contracts.
The best setup for you will be determined by the type of your business. Again, a company formation specialist can help you decide what is the best course of action.
Making an application for a real estate licence
You can now apply for a licence to start your real estate firm in Dubai once you've settled on your name, activities, and setup type. A professional services licence is required if you want to provide brokerage or property management services.
You can apply directly to the Department of Economic Development (DED) or to one of the UAE's several free zones.
Free zones are frequently the most straightforward and cost-effective method to start a real estate business, and they come with a slew of enticing incentives, including zero percent personal and corporate income tax and complete customs tax exemption. In addition, unlike many other countries, UAE free zone enterprises have the ability to repatriate all invested cash and profits. There are no currency restrictions or foreign exchange regulations.
In order to work in the UAE real estate market, you will need additional certification in addition to your Trade licence.
To be approved to deal in the real estate market, you must pass the Real Estate Regulatory Authority's Certified Training for Real Estate Brokers course (RERA). You will be given a permit and be able to begin trading once you have completed the exam.
Our experts can assist you in obtaining a firm license in Dubai, a Dubai free zone visa, or the cheapest free zone license or visa in the UAE.
Process to start a Real Estate Business
The process to start a Real Estate is as follows-
To start your real estate business, look into the location and type of business
To begin, look for a place for your real estate firm, as UAE regulations require businesses to be 51 percent held by UAE nationals. However, because there are few free zones in the country, ownership can be 100 percent if you explore other areas.
Regulations are less stringent in some locations, luring more firms. Furthermore, operating a real estate business in a free zone can provide you with benefits such as a 50-year corporation tax exemption, no personal income tax, no import taxes, no currency restrictions, and the avoidance of burdensome regulations.
Have you decided on the type of company you want to start? There are eight different types of business organisations in Dubai:
- Sole Proprietorship
- General Partnership
- Partnership en-Commendam
- Joint Venture
- Public Shareholding
- Private Shareholding
- Limited Liability Company
- Professional Company
For your real estate business, you should register a trade name
In every country, legally registering your business is required. So, once you've decided on a business kind, go to the Department of Economic Development in the UAE and register a trade name together with all the necessary documentation. Try to add words like "real estate" or "broker" in your trade name because it should be relevant to your business.
To receive an initial approval, the majority of the registration work can be completed online. But your work isn't done yet; you'll need to resubmit your initial documents and add a few more to get final approval. The UAE government will then issue you with a commercial licence to buy and sell real estate.
This will lead you to the next step...
Prepare yourself for the licencing procedure by becoming educated or certified
You must complete a professional training or course and earn a certificate in order to receive initial clearance and authorisation from the Real Estate Regulatory Authority (RERA) in Dubai. This is required in order to obtain a permission from the Dubai Real Estate Regulatory Agency.
Furthermore, if you have a college diploma, you must complete the Real Estate Certified Practitioner training course. If you don't have a bachelor's degree, you'll need to enrol in the Real Estate Executive Diploma programme, and you can learn more about it by visiting the RERA website.
Employ back-office support
You must manage all of your tasks like an expert as an entrepreneur. However, you may become bogged down with specific responsibilities, such as back-office, real estate accounting, and so on, at some point. As a start-up, keeping track of your expenses and revenue is critical, and keeping track of your expenses and revenue can help you adopt better plans.
As a result, outsourcing accounting services is preferable to recruiting an in-house team of professionals, which can be more expensive.
Why is it preferable to outsource?
You can benefit from outsourcing your accounting services in the following ways:
- Operational costs were reduced.
- Service is available 24 hours a day, 7 days a week.
- Expertise is available.
- Project completion within the agreed-upon period.
What accounting services do firms offer?
- Bookkeeping
- Accounts Payable and Receivable
- Bank Reconciliation
- Preparing Financial Reports
- Payroll Processing
- Tax Preparation
Create a real estate office
As a real estate business owner, having your own office will set you apart in the market and help you gain consumers' trust by demonstrating that you are operating responsibly. Furthermore, the UAE government's proper licences and RERA will assist you identify yourself as a trustworthy business owner.
How to Obtain a Dubai Real Estate Developer License?
If you want to start a business as a property developer in Dubai, the requirements are more stringent. At the moment, RERA only allows businesses registered with the DED to engage in real estate development operations throughout the UAE. UAE nationals must own 100 percent of such businesses.
Are you ready to establish a real estate business in the United Arab Emirates?
While the steps to create a business in the UAE are not particularly difficult, they do necessitate some prior knowledge of the process. Furthermore, it is critical to remember that the application procedure is only simple if your business application is full and error-free at the time of submission.
When forming a new company in the UAE, it's a good idea to engage with a company formation professional to guarantee that this is the case.
A business formation expert can help you open Corporate bank accounts and recommend the best financial institution for your unique needs, in addition to managing your licencing application.
Many also provide visa and immigration services, and can assist with all government formalities, clearances, work permits, and visa applications needed to do business in the UAE.
In brief, company formation professionals can set up your business on your behalf, file your licence and visa applications, and handle all of the paperwork, leaving you free to focus on what you do best.
Conclusion
Finally, more than any other job, starting a real estate firm will teach you more about people, community concerns, life, and the impact of government.
We can assist you in forming a new company in Dubai, obtaining a Dubai trade licence or a free zone licence, or starting a small business in Dubai. We handle everything from visa applications (including UAE investor visas) to administrative responsibilities, leaving you free to focus on your business. Get in touch with Dhanguard right away!