How do you Set up a Real Estate Business in Dubai?

by Priyadarshini Balamurugan 05, Feb 2024

Dubai is considered a hub of businesses. The economy is rising like the skyscrapers in Dubai. It is always a good time to incorporate your business in Dubai. Among all the businesses, the real estate business in Dubai is one of the best. Read the blog to learn more about the real estate platform.

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What Are The Licenses Required To Start A Real Estate Business in Dubai?

Below is the list of licenses to start a real estate business in Dubai:

If you want to start a real estate business in Dubai and need to operate your activity, you need to get this license from the Department of Economic Development (DED). This is the authority that allows you to perform your business activities.

This license is related to the land, so you need to get this license from the Dubai Land Department (DLD). With this license you can engage in activities like buying, selling, reselling and renting properties in Dubai.

The commercial license in Dubai allows you to allow someone else to buy or sell a property on your behalf.

This is a license which is essential for anyone who is involved in the real estate business in UAE. RERA makes you look credible in the eyes of your clients.

The Ejari is known as the rental agreement which is mandatory for any landlords and property owners in Dubai. This is a tenancy agreement registered with Ejari.

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How do you start Establishing a Real Estate business in Dubai?

Some of the basic procedures that may help you in opening a real estate company in Dubai are:

Choose your legal structure beforehand, and decide where do you need to incorporate your business. You have two options mainland and freezone and you have to decide your legal structure as per the location. A Few legal structures you can choose are:

Decide a trade name for your business and while deciding it is mandatory to keep some things in mind like choosing an appropriate name, avoiding using religious names, if you need a person’s name it should be the full name, and avoid using offensive names. After selecting get it approved by the relevant authorities.

Initial approval is mandatory to proceed further. Get all your documents such as Visa, Passport and educational certificates of all the shareholders, submit them to the authority and get the initial approval.

Enrol yourself in the Dubai Real Estate Institute (DREI) and get yourself RERA certified and registered.

Prepare a MoA for your business and get it notarised to perform business activities depending on your legal structure.

Find a better office space depending on the nature of your business and prepare Ejari with the relevant authorities.

DLD is the major authority to give you approval to start or continue your real estate business in Dubai.

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Benefits of Setting up a Real Estate Business in Dubai

The following are the benefits of starting a real estate business in the UAE:

  • Best Locations for your Businesses.
  • Business-Friendly Environment.
  • Low Tax Rates Comparitively.
  • Easy Government Rules.
  • Hassle-Free Visa Rules.
  • Good Rental Incomes.
  • 100% Ownership.
     
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Cost of Starting a Real Estate Business in Dubai

The cost is completely based on the size of your business and the location you choose to incorporate your business.

For more information on costs, please contact our experts, Commitbiz can guide you through the exact price ranges.

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FAQs

What is RERA?

Real Estate Regulatory Authority, part of the Dubai Land Department, is a government agency that licenses real estate agents, brokers, and developers and regulates all real estate activities in Dubai.

What is the cost of opening a real estate brokerage in Dubai?

The cost of obtaining your real estate brokerage license will depend on many factors, including your specific business activities and company size and location. In most cases, however, start-up costs are usually low.

3. Which business entities can be registered to carry out real estate business in Dubai?

There are two main structures through which your real estate business can be registered –

  • Sole Proprietorship
  • Limited Liability Company (LLC)

4. What are the documents required to register a license for Real-Estate Business in Dubai?

Along with license fees, you must provide these documents –

  • Completed application form
  • Two Passport size pictures
  • Passport copy of the owner and the partners or shareholders (if any)
  • Copy of emirates ID of the local sponsor (if any)
  • Notarised MoA and LSA
  • NOC for ex-pat partners
  • Valid residence or tourist visa
  • Tenancy contract (Ejari)

5. Which are the additional approvals needed to start real estate business operations in Dubai?

Apart from RERA,

  • It would help if you got your real estate brokerage company registered with the Department of Naturalisation and Residency Dubai (DNRD) and Ministry of Labour (MOL) to employ foreign employees and sponsor their visas.
  • Approval from the Dubai Land Department is required for opening a real estate brokerage in Dubai. The Dubai Land Department is a governmental body administrating everything concerning real estate in the region.
  • Certificate of Good Conduct from Dubai Police General Headquarters