Entrepreneurs looking to set up a company in the United Arab Emirates consider Dubai as their most preferred location. And why wouldn’t they? The city has it all. Right from tourism business to a consultancy firm, Dubai boasts of startup culture as its driving force in increasing its GDP every year. One such business setup is an engineering consultancy business which might not be as popular as a tourism business but has its own perks. But first, who exactly is an Engineering Consultant?
Who are Engineering Consultants in Dubai?
An engineering consultant refers to individuals whose companies are engaged in engineering activities in Dubai. The objective of the Dubai Municipality is to regulate the Engineering Industry in Dubai, ensuring excellence and quality control and to guarantee that both foreign and national companies can safely and competently carry out the work they tender for. The company must be accredited by the qualification team in Dubai Municipality’s Building Service Department before applying for a permit to practice in the areas of engineering and construction.
Classification of Engineering Consultancy in Dubai
The purpose of categorization by the Dubai Municipality (DM) is to ensure each company’s competencies are met with i.e. they are experienced and qualified to meet the criteria for the category in which they wish to be classified. The goal basically is to ensure excellence and quality control. The engineers are classified for starting the company in the following manner:
- First (Unlimited) Category- This enables participation in projects of any height
- Second (G+12) Category- This enables participation in projects up to 12 stories in height
- Third (G+4) Category- This enables participation in projects up to 4 stories in height
An engineering consultancy firm can be classified into three parts.
- Associate Engineering Firm
- Expert Engineering Firm
- Foreign Engineering Branch Office
Apart from these, there are local engineering firms who are owned by one or more UAE national entered in the register. There can be one or more expatriates who share possession of the organization, provided that they are entered in the Register and a maximum of 49% ownership is allowed. A local engineering firm can be further classified into three categories, namely
- First Category- Ten years of UAE Nationals or fifteen years for others
- Second Category- Five years of UAE Nationals or ten years for others
- Third Category- Three years of UAE Nationals or five years for others
How to Start an Engineering Consulting Business in Dubai?
Before starting this type of business, you must decide whether you want to set up in mainland or freezone. Every free zone procedure is different as set by its authority. For mainland, it is mandatory to have a local sponsor. Here are a few things you ought to about having local sponsor for your mainland company.
- He/She must be a UAE citizen
- He/She must have a B.Sc degree in Engineering from university on one of the same field
- He/She must have experience in the same field for at least three years after getting the degree
- He/She must be a part of the Engineer Association in the UAE
In order to start an engineering consultancy, here are the requirements you must know.
Requirements to Start an Engineering Consultancy in Dubai
- All the companies registering as a branch of an overseas company in Dubai must provide details of their work activities over the last 15 years so that they can be correctly classified
- The General Manager who is appointed in the consultancy must be an Engineer with a qualified experience of not less than 15 years. He must also be a national of the overseas country from where the branch originates
- A certified engineer with not less than 15 years qualified engineer must take responsibility of each activity listed on the trading license and must be a member of the Society of Engineers in the UAE
- If you are looking to establish an LLC or Civil Companies, then you must partner with an Emirati Architect or Civil Engineer with not less than 10 years qualified experience. The Engineer must hold a minimum of 51% of shares in the entity
- Overseas company must appoint a local agent to handle the application on their behalf. The local agent must be a resident of Dubai and Dubai born
Apart from aforementioned categories and requirements, the General Manager of the potential company must meet the DM for interview prior to the submission appearing before DM committee.
We at Commitbiz are business setup consultants who can help you in starting a business right from preparing documents to providing an office space. Our advisors have years of experience in this field and are well-versed with the legalities involved in setting up a business in Dubai. Contact us today for setting up an engineering company in Dubai.