Construction License in Dubai

Dubai offers the world’s highest building Burj al Khalifa as well as boasts to be home for Marina 101, the world’s tallest residential building. In conjunction with the remarkable structures, the Dubai roads, highways and flyovers which are second to none embellish the excellent construction and substantially contribute to Dubai’s traditional lifestyle. This incredible metamorphosis towers iconic buildings, award-winning airports, extravagant hotels and resorts, reputed universities, modern hospitals and medical facilities, sports and entertainment venues, mega malls, waterways, dancing fountains – and a futuristic automatic metro network.

Why to Start a Construction Company in Dubai?

Conglomerates across the world are coming for business set up in Dubai and are seeking residency in Dubai to adhere to this purpose. Because of the high value of properties, a sharp elevation in construction sector is witnessed in Dubai. For uplifting infrastructure convenience, UAE has undertaken USD 7.8 billion project for expansion of Dubai International Airport.

Whether you undertake real estate for residential or commercial purpose, formation of a construction company in Dubai is one of the most profitable sectors these days. A major impact on upscaling construction in Dubai can be credited towards fulfilling the needs of upcoming World Expo 2020 that Dubai is scheduled to host. Resultantly, number of construction projects in Dubai is growing day by day.

The business environment comprising investor-friendly policies backed by a remarkable infrastructure in the state lead Dubai in becoming a business leader in terms of foreign direct investment resulted in a spate of applications reaching the desk of Department of Economic Development or DED for obtaining construction license in Dubai.

How to Get Construction Company License in Dubai?

When stepping to open up a construction business in UAE, one must first decide whether to consider to form Mainland Company or establish a Free Zone Company. Formation of Mainland Company will require you to have local sponsor who will also own 51% of your company shares. Formation of Free Zone Company in Dubai will grant you complete ownership. For better understanding of difference and benefits of these land zones, read here.

A Construction business setup in Dubai requires numerous approvals, licenses and clearances. On top of this list is the construction license registration. Once the permit is secured the business entity can then hire engineers, site in-charge personnel and workers of various kinds. Building license is yet another legal document which is required before the construction activity can take place. Dubai Municipality issued the license and called G+1 permit – a crucial step towards laying the foundation of a residential or commercial structure.

A construction company formation in Dubai UAE not only entails clearances but also several special permits from environmental and civil works departments. Discussed below are some of the necessary approvals asked by the Dubai authorities

1. Drainage and irrigation department – Involves liquid waste management and other disposable services

2. Water and electricity department – confirmation to provide the basic amenities to the occupants

3. Building department and Dubai civil defence authority – Both institutes are responsible to cross-checks the construction norms should be adhered to

Types of Construction License in Dubai

With various construction license, a separate set of documentation and regulations follows.

1.  Building Contracting license in Dubai

  • Activity Code : 452001
  • Activity Group : Contracting and building works
  • License Type : Commercial

Activity Description: A company having Building Contracting license in Dubai are allowed to involve in constructions of all kinds and for different uses. Mainly residential, farms, industrial, commercial, schools, hospitals, airports, public and agricultural buildings, also building adjusting, general maintenance, interior decoration, landscaping as well as electrical fittings and sanitary plumbing, the number of floors to be constructed shall be set by Dubai Municipality.

2. Wrecking & Demolition license in Dubai

  • Activity Code : 451001
  • Activity Group : Contracting and building works
  • License Type : Commercial

Activity Description: Includes firms allow to engage in the tearing-down of buildings and other structures on the verge of collapse or for replacement using different techniques, such as cranes for high rise buildings, excavators and manual for medium buildings as well as building implosion using explosives.

3. Steel Constructions Contracting license in Dubai

  • Activity Code : 452008
  • Activity Group : Contracting and building works
  • License Type : Commercial

Activity Description: Steel Constructions Contracting license in Dubai specialized in executing all operations related to steel constructions, as well as installing prefabricated steel structures on site, such as factories, warehouses, hangars, sheds, bridges structures and tunnels, also the execution of all civil works for such installations, mainly foundation piling, floor paving, lay connections. Firms engaged in manufacturing such structures; classifies under class 2811, the number of floors involved shall set by Dubai Municipality

4. Building maintenance license in Dubai

  • Activity Code : 454007
  • Activity Group : Building maintenance, surveillance and cleaning services
  • License Type : Commercial

Activity Description: Building maintenance license in Dubai allow for maintenance of buildings only; excluding any equipment or extensions available inside, such operations include restoration and reparations of roofs, columns, walls, floors and others.

Regardless the type of construction company you want to establish, you must take into account the provisions of building law in UAE which was amended in 2013. For official permission for a commercial license which gives you official permission to start the formation of your company in Dubai. After obtaining this license, building permit which will allow you to begin construction activities. You need specialists such as engineers or consultants who can apply on your behalf to get a building permit. Thereby, it shall be the responsibility of the consultant to evaluate the soil of construction site and determine its properties.

The construction sector in Dubai is prospering and is planned to reach new zeniths in the recent future. Although the construction business set up can be a tedious venture to establish, Dubai serves as the best potential market for the construction business. If you are into the construction business or planning to set up your business in Dubai, Commitbiz Management Consultants can help you in your company formation and business setup consultancy. Do Contact us today as we would be happy to assist you.

Frequently Asked Questions (FAQs)

1. What are the approvals required for Construction Company in the UAE?

After getting the necessary license, it’s essential to obtain external approvals from government authorities to start your construction company, some of them are -
• Dubai Water and electricity authority – required to get all the basic amenities for the company
• Drainage and irrigation department – approval for liquid waste management and other disposable services
• Building Department and Dubai civil defence authority – this determines whether the construction company works as per the legal norms of construction or not.

2. What are the benefits of opening a Construction Business in the UAE?

Some of the benefits are –
• Low cost on construction
• Easy license acquisition
• Cheap and easy transportation facilities
• Supply of skilled labourers

3. What are the requirements to open a construction company in Dubai?

Some of the requirements are –
• Company location
• Business license
• Building permit
• Approvals and other license
• Visa and bank account