How to Start a Real Estate Business in the UAE?
The UAE's real estate market has emerged as one of the most profitable sectors, attracting investors, entrepreneurs, and real estate professionals from across the globe. With its world-class infrastructure, booming economy, and rapidly growing population, the UAE presents ample opportunities for those looking to venture into the real estate business. Setting up a real estate business in the UAE, particularly in Dubai, offers numerous benefits, including high returns on investment and a favourable regulatory environment. In this blog, we'll guide you through the essential steps to establish your real estate business in the UAE, with a focus on the mainland setup in Dubai.
Real Estate in the UAE
The UAE's real estate sector has seen exponential growth over the past two decades, driven by robust demand, government initiatives, and significant foreign investment. Cities like Dubai and Abu Dhabi have become global real estate hubs, offering everything from luxurious residential properties to state-of-the-art commercial spaces. The introduction of freehold property laws, attractive financing options, and visa incentives for property investors have further fueled the sector's growth. For entrepreneurs, starting a real estate business in the UAE provides access to a market that is dynamic, diverse, and continuously expanding.
Steps to Form a Dubai Mainland Real Estate Business
Setting up a real estate business in Dubai mainland involves a series of steps that ensure your business is compliant with local laws and regulations. Here's a detailed breakdown:
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Documentation: At DhanGuard, we make the documentation process seamless by handling all your paperwork efficiently. To begin the process, you'll need to provide the following documents:
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Passport copy of all shareholders
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Passport-sized photographs of all shareholders
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Trade Name: Selecting an appropriate trade name is crucial for business setup in Dubai. The name can be in either Arabic or English and must comply with the UAE's naming guidelines. We assist in verifying the availability of your chosen trade name and securing approval from the Department of Economic Development (DED).
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Initial Approval: Before proceeding further, initial approval must be obtained from the DED. This step confirms that the UAE authorities have no objections to you setting up your real estate business. At DhanGuard, we handle this process on behalf of every shareholder, ensuring a hassle-free experience.
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Memorandum of Association (MoA) Signing: All shareholders are required to sign the Memorandum of Association, which outlines the business's structure, activities, and capital distribution. We guide you through the MoA drafting and signing process, ensuring compliance with legal requirements.
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Ejari Registration: A registered office is mandatory for a real estate business in Dubai. Whether you opt for a virtual office or a physical space, you'll need to register the tenancy contract with Ejari, the official rental registration system in Dubai. We facilitate the Ejari registration, helping you secure a proper office setup.
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External Approval: To operate a real estate business in Dubai, you need approval from the Real Estate Regulatory Agency (RERA). This external approval typically costs around AED 5,500* and is a crucial step in obtaining your real estate license. DhanGuard manages the entire approval process, and within 24 hours, you can receive your business license.
Why is a Mainland License Better Than a Freezone License for Real Estate?
When choosing between a mainland and a freezone license for your real estate business setup in UAE, it's essential to understand the advantages of each. However, a mainland license offers distinct benefits that make it the preferred choice for real estate companies:
Flexibility to Operate Anywhere
A mainland license allows you to operate anywhere in Dubai and across the UAE. In contrast, a freezone license restricts your business activities to the freezone area and limits your ability to conduct business with clients outside the freezone.
Access to All Developers
With a mainland license for business setup in Dubai, UAE, you can work with all real estate developers in Dubai and the UAE. Freezone companies often face restrictions when dealing with developers, limiting their business opportunities.
Broker Registration Number (BRN)
A BRN is essential for real estate agents in Dubai, and it is issued only to those operating under a mainland license. Freezone companies do not qualify for a BRN, which can hinder their ability to operate fully in the real estate market.
Participation in Government Tenders
Mainland companies are eligible to participate in government tenders and projects, offering an additional revenue stream that is not accessible to freezone companies.
No Restriction on Office Location
Mainland companies can set up their offices anywhere in Dubai, while freezone companies are restricted to the specific freezone area, limiting their operational flexibility.
Conclusion
Setting up a company in Dubai, UAE, is a promising venture with the potential for high returns. By following the steps outlined above and opting for a mainland license, you position your business for success in one of the world's most dynamic real estate markets. At DhanGuard, we are committed to helping you navigate the business setup process with ease, ensuring that your real estate business is established quickly and efficiently.
To get started, contact us today!
