Real Estate Company in United Arab Emirates Basics: Licensing and Formation
Do you wish to learn more about how to start a Real Estate Business in the UAE? United Arab Emirates is a sizable metropolis with the pinnacle of contemporary infrastructure. UAE uses the most cutting edge knowledge and technology in real estate. The greatest companies from around the world are drawn to it because it also delivers steady investment.
The real estate sector in UAE offers a lot of business prospects because of this. How to obtain a Real Estate Company License in the UAE is a question that many investors have. The requirements should also be understood, though. Due to the continued expansion of UAE's real estate market, there is a huge demand for launching a Real Estate Company there.
Like anyplace else in the globe, opening a Real Estate Company in UAE entails obtaining a license, creating a business strategy, finding funding, and employing agents.
But the United Arab Emirates has a few extra restrictions that are unique to there. In order to engage with the local business specialists at Dhanguard who offer comprehensive business support by handling all the heavy lifting for you, it is better and more cost effective.
Thus in this blog, Dhanguard will extensively discuss everything about a Real Estate Company Formation and Licensing in UAE. So without any further ado, let’s learn!
How to Obtain a Real Estate Company License in the United Arab Emirates
In Dubai, United Arab Emirates, the real estate industry is highly sought after, and there is constant competition for investor licenses.
The Dubai Economic Development is the place to apply for a property management or real estate license in the UAE (DED).
This includes a broad range of commercial activities:
Contracting with cleaning, maintenance, and security firms
Brokers in real estate
Administrative entities that provide real estate
Regarding licenses for leasing and overseeing private real estate services:
The license holder or one of the partners must be named on a copy of the property ownership and ownership.
According to Local Ordinance No. 2/2003, second-degree associates are allowed to manage an owner's real estate.
Regarding licenses to provide leasing and property management services to 3rd parties:
A bank guarantee in the amount of AED 5 million is required for licenses to provide leasing and property management services to third parties.
If a branch of the license is opened, it must have the same trade name as the parent license and at least 20 administrative staff members.
The Steps to Register a Real Estate Company in UAE
By completing the steps listed below, a real estate firm can be registered in the UAE.
Establish a Trade Name
Select a trade name and have it approved by the said authority or department. It's the initial phase of company formation.
Initial Request for Approval
Get the initial approval from the authorities after submitting the necessary application form, supporting documentation (such as a copy of the investor's passport), and so on.
Getting Approval from Real Estate Regulatory Agency
Investors, directors, and managers must attend the RERA Course and successfully complete the test before they can create a real estate firm.
The official contract and other agreements can be created in accordance with the permission certificate from RERA after it has been obtained.
Submitting the Legal Documentation
The investor can choose the desired office space and the rental contract can be created once the initial approval is acquired and the RERA Certificate is obtained. The investor is responsible for drafting the memorandum of association in the case of an LLC Company Structure (Companies with more than one shareholder). Also required is the preparation of the LLC Company's partnership agreement.
DED issued license
The DED must receive all investor documentation, including the MOA, RERA Approval, tenancy contract, etc., in order to grant the applicant a real estate license. A real estate business license from the DED costs about $25,000 for a services license.
Registration in RERA
To receive the RERA Registration Certificate, the company must register with RERA. To obtain the Registration Certificate, submit each of the needed documents.
The following documents must be presented to RERA in order for the real estate business company operations in Dubai to be approved.
Tenancy Control/Ejari Copy Location Certificate from RERA Course
Application form for RERA, copy of a DED business license, and payment receipt
Registration with the DNRD and the Ministry of Labor
The business must be registered with DNRD and the Ministry of Labor in order to hire personnel and sponsor visas.
In the United Arab Emirates, how much does it cost to start a Real Estate Business?
The price of starting a real estate company in UAE is influenced by a number of variables, such as location, business size, budget, and so forth.
For a real estate enterprise to get off the ground, passing the RERA exam is crucial. The cost of the exam is determined by the investor's educational background. It varies depending on whether the person has a bachelor's degree, a master's degree, or no degree.
AED 12,950 will get you a license to work as a real estate broker. It might change based on the government fees and the operations type selected.
Why should you choose the United Arab Emirates to start your Real Estate Company?
Ahead of markets like London and New York, the real estate sector in UAE has one of the highest yields worldwide.
There is now a resurgence of interest in UAE's real estate market among buyers and investors, and it is expected to grow sustainably over the long term. September 21 was the strongest month in the previous 8 years for transactions in the sector, totaling AED 16.2 billion.
Setting up a real estate business in the UAE has three major advantages that particularly stand out. First, in a prosperous and stable economy, investors can take advantage of a steady, predictable, and ongoing cash flow. Second, Dubai provides diversification, tax benefits, and high returns.
And finally, the real estate market is predicted to fly even higher in the future due to the enormous surge in demand from all over the world.
Thus we can conclude with the fact that starting a Real Estate Company in the United Arab Emirates is a fruitful decision because of the vast opportunities, cutting edge technologies and booming economy which can help and supplement your company's success. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to visit our Branch Office or our website as well.