Construction License in Dubai

Dubai, known for its architectural innovations, boasts world-class infrastructure, a good network of roads, and a commitment to excellence in construction. The Emirate is constantly evolving with its groundbreaking construction projects in various sectors.

If you are passionate about the construction business, obtaining a construction license in Dubai is the first step towards setting up a construction business. 

Demand for Construction License in Dubai

Setting up a construction company in Dubai either for residential or commercial projects can be profitable.

Dubai’s business environment, which includes investor-friendly policies and remarkable infrastructure has made the Emirate emerge as a business leader in foreign direct investment. It has resulted in numerous applications being filed for obtaining a construction license.

How to Get a Construction License in Dubai?

Here are the steps to avail construction license in Dubai:

• Prepare a Business Plan

You need to prepare a business plan with all the necessary details, such as the business activity you wish to be involved in. It should also contain details of all the shareholders and directors.

• Decide on a Business Name

You need to choose a name for your business, as every business should have a name. It should adhere to governmental norms.

• Choose a Business Structure

The business structure should be decided to avoid last-minute changes and keep any unforeseen circumstances at bay. Preferably, mainland LLC company formation is recommended as an option.

• Register your Business

You need to register your trade name with the Department of Economic Development (DED) and get the name registration certificate from the authority.

• Initial Approval

The next step is to obtain the initial approval from the relevant authorities. This is required to conduct your business activity without facing any legal issues. 

• Avail Commercial License

A commercial license is mandatory to start a construction company in Dubai. You must apply for one with the relevant authorities before starting your business operations in Dubai.

• Get Additional Approvals

If you set up a mainland company, you will also need to obtain a building license, known as a G+1 permit, from Dubai municipality. You might also need an environmental license and civil work permit from the relevant authorities.

• Open a Bank Account

For easy transactions, you need to open a corporate bank account. It will enable you to pay for the supplies and receive payments from your clients.

• Build a Team and get  Visas

To run a successful construction business in Dubai, you need a skilled team of professionals, and it is important to secure visas for them and their dependents.

You need to ensure that you adhere to this by keeping UAE labour laws in mind. The number of visas you can obtain depends on the size of your business.

Types of Construction License in Dubai

Conglomerates from all over the world are coming to Dubai to set up businesses and seek residence. Given this, Dubai's building sector has seen a dramatic rise.

There are different types when it comes to Construction licenses in Dubai. They are based on the type of your chosen activity and have a separate set of regulations and documentation. Let us take a look at them:

Type of License	Building Contracting license in Dubai	Wrecking & Demolition license in Dubai	Steel Constructions Contracting license in Dubai	Building maintenance license in Dubai
Activity Code	452001	451001	452008	454007
Activity Group	Contracting and building works	Contracting and building works	Contracting and building works	Building maintenance, surveillance and cleaning services
License Type	Commercial	Commercial	Commercial	Commercial
Activity Description	Having a building contracting license in Dubai means you are allowed to be involved in constructions of all kinds and for different uses.	Firms are allowed to tear down buildings and other structures that are on the verge of collapsing or need replacement.	This license enables your company to specialise in executing all operations related to steel constructions, and install prefabricated steel structures.	It allows your company to carry out maintenance of buildings which don’t have any equipment or extensions.

Things to Consider Before Setting up a Construction Business in Dubai

The construction industry in Dubai is prospering and can reach new heights. Although the construction business setup can be tedious, Dubai is the ideal place and has the upper hand when it comes to scope.

If you wish to set up a construction business in Dubai, here are the things you need to consider: 

• You must first determine whether to incorporate a Mainland Company or a Free Zone Company. 
• For forming a Mainland Company local sponsor must hold 51% shares of your company. Establishing a Free Zone Company in Dubai would provide you with total ownership. 
• You must get several approvals and certifications for setting up a construction company in Dubai. 

Approval from Government Authorities

Since numerous approvals are needed from governmental authorities, we have compiled a list of the departments. Refer to the table below:

Department	Responsibility
Drainage and Irrigation Department.	It is in charge of liquid waste management and other disposable services.
Water and Electricity Department	Ensure that residents have access to essential facilities.
Building Department and Dubai Civil Defence Authority.	Both organisations ensure that construction standards are followed.

Regardless of the type of construction business in Dubai, certain procedures need to be followed to obtain a construction license. Only after obtaining this license and getting a building permit can you begin construction activities in Dubai. Specialists such as engineers or consultants can apply on your behalf for a building permit.

If you are planning to set up a construction company, you can contact the consultants at Commitbiz for more information about the company formation process or other relevant information. We will be glad to assist you.