Dubai is a bustling metropolis with a lot of power. Due to its first-rate infrastructure, it is already a prominent participant in the world's trade and tourism sectors and has drawn some of the most famous foreign investors. Therefore, as an entrepreneur, you must see the limitless potential and continue to expand if you intend to start a real estate firm in Dubai. The real estate sector continues to be a beacon of opportunity, attracting investors and entrepreneurs from around the globe. With a vision to further bolster the industry, the Dubai government introduced new regulations in 2023 for real estate companies. Thus, in today's blog, Dhanguard will discuss obtaining a real estate company license in Dubai.
Understanding the Dubai Real Estate Landscape:
One of the most advanced cities in the Middle East is Dubai. People travel there to find top-notch hotels, shopping centers, and entertainment venues. Both small enterprises and numerous significant international corporations are located in the city. Additionally, due to its convenient location and first-rate transit infrastructure, it has a strong real estate market. This makes it perfect for business owners looking to launch a real estate firm in Dubai. The real estate market is a dynamic and thriving sector known for its luxurious developments, stunning skyscrapers, and incredible investment opportunities. However, one must obtain the necessary licenses and approvals to operate a real estate business in Dubai legally and effectively.
The Advantages of starting a Real Estate Business in Dubai
The advantages of starting a real estate business in Dubai are numerous. There are multiple reasons why you should give this some serious thought. A few of these are:
Excellent Possibilities
The Real Estate market in Dubai has a promising future, as can be seen by looking at it. People are increasingly eager to invest in real estate in this area. This indicates that there will be an increase in demand for accurate estate-related services and goods. Start a real estate business in Dubai to exploit this expanding market.
High Profits
The UAE is a stunning nation with wonderful areas where you can invest. Given its fantastic weather and diverse culture, it is understandable why so many investors are looking to purchase land or buildings in this area. You can make significant earnings by starting a real estate business in Dubai. Additionally, you can use the money you make from investments to grow your company.
Simple Licensing Procedure
In Dubai, it is simple to launch a real estate business. All you have to do is adhere to all the guidelines. You must pass the real estate exam because the government wants to ensure that only competent people can work in this sector. Once you've completed this, you can submit your license application.
Strong System of Support
To succeed in the UAE, you must be familiar with local norms and culture. Getting a real estate business off the ground in Dubai also means getting accustomed to the city's culture and way of life. Fortunately, the Dubai government is constantly prepared to help.
Types of Real Estate Business in Dubai
There are four different real estate business ventures can be launched in Dubai:
Brokering Real Estate
Direct sales of properties to buyers or sellers will be made. You'll lead your team by discovering potential clients and exhibiting their properties. You should be able to negotiate transactions as an agent. However, if you lack the experience and skills, you might consider hiring someone who does.
Property Administration
This line of work entails maintaining other people's property while they are renting it out. You will look for options to extend the lease or assist the client in selling the property when it expires. You must be skilled in management and negotiation to thrive in this field.
Land Development
Land developers plan projects for land development. They guarantee that every project stage runs without a hitch and that the finished product is flawlessly executed. You must recruit pros to handle every part of the project, including engineering, architecture, marketing, and construction.
Real Estate Agency
A property agency handles every step of buying and selling real estate. It serves as a go-between for the buyer and the seller. You'll need a sizable clientele since commissions are often paid to agents.
These four categories of real estate firms provide various options for various people. Before making any judgments, learning more about these businesses is crucial because each presents its own difficulties and opportunities.
What is a Real Estate Company License in Dubai?
A real estate company license, also known as a RERA (Real Estate Regulatory Agency) license in Dubai, is a mandatory permit that allows individuals or companies to conduct real estate activities within the emirate. RERA, established by the Dubai Land Department, is the regulatory body responsible for governing and overseeing the real estate sector.
Types of Real Estate Licenses in Dubai:
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Real Estate Broker License: This license allows an individual or entity to act as a middleman between buyers and sellers, facilitating real estate transactions.
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Real Estate Developer License: If you plan to develop and sell your real estate projects, this license is the one to pursue.
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Real Estate Management License: This license is for those interested in property management services, overseeing the maintenance and rental of properties on behalf of their owners.
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Real Estate Valuation License: If you have expertise in property valuation, you can obtain this license to provide valuation services for real estate.
Shareholding Contracts for Different Real Estate Business Licenses
The Contracts for Shareholding for Various Real Estate Business Licenses are as follows:
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The majority of the company's shares, 51 %, must be held by UAE nationals if the investor wants to form an LLC company in the UAE for a Property Management Consultancy business license.
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A real estate brokerage must remain owned entirely by a UAE national to safeguard the investor's rights.
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Offering total protection to the investor is the goal of UAE Commercial Law and RERA, the regulatory branch of the Dubai Land Department.
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Numerous transactions are involved in the real estate brokerage industry. Complete control (100 % ownership) is given to a UAE native to lower the possibility of foreign investors fleeing with substantial money and abusing the license.
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The investor takes on the role of the company's manager, and the UAE national retains complete ownership of the business.
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A professional business license can be acquired from a free zone by expatriates and foreign investors, who can then quickly and hassle-free establish a company.
RERA License
The Real Estate Regulatory Authority, or RERA, regulates the Dubai real estate market. It keeps an eye on all transactions involving the sale and acquisition of real estate. Since it is a law, everyone is required to abide by its requirements. Agents, brokers, and even businesses fall under this category.
You must present specific paperwork and data to obtain an RERA license. They consist of the following:
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Evidence of passing the real estate exam.
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Proof that you are qualified to work in your field.
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Evidence that one has the necessary capital and financial statements.
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A photocopied passport.
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Evidence that you have an actual office.
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A list of the people you employ as staff.
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A statement confirming adherence to the RERA's norms and regulations.
Additionally, a yearly license fee is required. This sum changes depending on the size of your company. Once you have your license, you can confidently start a real estate business in Dubai.
How to Get a Real Estate License in Dubai:
The process of obtaining a real estate license in Dubai involves several steps:
Eligibility Requirements:
To apply for a real estate license, you or your company must meet specific criteria set by the authorities. This may include having a physical office in Dubai, a qualified team, and the required capital.
Application Submission:
Prepare all necessary documents, including a business plan, financial statements, and personal identification documents, and submit your application to the Dubai Land Department.
Registration with RERA:
Upon approval of your application, you'll need to register with RERA, providing all the necessary documentation and paying the associated fees.
Office Space and License Issuance:
Acquire a suitable office space that complies with the stipulated regulations and requirements. Once this is in order, you can obtain your RERA license.
Documents Needed in Dubai to Obtain a Real Estate Company License
In Dubai, obtaining a real estate company license is quite simple. You still have a lot of things to take care of first, though. This entails obtaining all necessary data and paperwork, researching the market, and locating an appropriate space for your business's office.
Depending on your business type, different documents may be needed to apply for a license. The most typical types of documentation you will need to present are illustrated below:
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A certification of real estate exam success.
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An active passport.
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Evidence that you have an actual office.
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Proof of having a broker with a license.
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Evidence that you are using a registered RERA accountant.
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A referral letter.
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Your recognized degree.
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A criminal history.
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A property valuation certificate with RERA approval.
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Copies of the last three months' credit card and bank statements.
The list of crucial documents you must submit to launch a real estate business in Dubai is highlighted above. Others, though, require that you first earn them.
Steps to Open a Real Estate Company in Dubai:
Dubai included, legal business registration is required. Those interested in establishing a real estate company in Dubai can do it either in the free trade zones or the Dubai mainland.
However, free zones are frequently preferred when opening a real estate buying and selling brokerage firm in Dubai.
The following are the Steps to Open a Real Estate Company in Dubai:
Select the legal system.
Pick the right business structure before starting a real estate buying and selling brokerage company. Additionally, this will help to put the company in the most beneficial operational and financial position possible.
There are essentially two types of business structures that may be registered in Dubai to undertake real estate brokerage activity:
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Sole proprietorship
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Limited Liability Company (LLC)
Creating a Trading Name Account
To register your trade name, you must submit an application to the Department of Economic Development (DED) in Dubai after deciding on your company's legal structure or business strategy.
Request for Preliminary Approval
The application form must be submitted along with the first set of papers indicated below to receive the preliminary permission request receipt.
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A request form
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copies each shareholder's passport and the owner's or manager's.
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Copies of each shareholder's visa-certified high school or college diplomas for the manager and partners.
Real Estate Regulatory Agency (RERA) approval
The next step is to have RERA approval. To do this, you must obtain the necessary credentials. The Dubai Real Estate Institute (DREI) offers formal qualifications to be completed correctly. The title of the staff is Certified Training for Real Estate Brokers. You must then pass the Real Estate Regulatory Agency (RERA) test, which comes after this.
Memorandum of Association
Depending on the legal makeup of the business, a finished and signed MoA is required. The document will next be legalized by the court and notarized.
Obtain a License
Before setting up a brokerage in Dubai, you must first obtain the real estate trade license that will enable you to run your business.
Register with RERA
Once you get the license, you can register your company with RERA.
Dubai Land Department's endorsement
The Dubai Land Department must approve opening a real estate brokerage before it may operate there. The Dubai Land Department, a governmental organization, governs real estate matters in the region.
Real Estate Brokerage Companies as Single Ownership in Dubai:
It's important to note that real estate brokerage companies in Dubai can be established as single-ownership entities. Previously, such companies were required to have a local sponsor or partner. Still, recent regulation changes have allowed full foreign ownership in certain areas, further promoting foreign investment.
Conclusion:
Obtaining a real estate company license in Dubai may seem complex. Still, it's a crucial step towards participating in this thriving emirate's vibrant real estate market. Whether you aim to become a real estate broker, developer, manager, or valuer, adhering to the regulations and requirements of the Dubai Land Department and RERA is essential. The recent changes allowing full foreign ownership of real estate brokerage companies in Dubai only enhance the appeal of this lucrative market. Following the outlined steps, you can embark on a successful journey in the Dubai real estate industry in 2023.
If you require further assistance or consultation on establishing a real estate company in Dubai, please contact our expert consultants at Dhanguard. We are here to help you navigate this dynamic city's ever-evolving real estate landscape.