Setting up a real estate business in Dubai

Are you planning to start a real estate business in Dubai? If yes, then Prospr unlocks a comprehensive guide for you. This guide will help you in setting up a real estate business in Dubai effortlessly. From registering your business to post-license requirements, everything is explained with details.

So, let’s get started and uncover every single aspect.

Basic eligibility criteria for Real estate license 

Before we start explaining how you can set up a real estate company in Dubai, you must know the basic requirement you must meet.

Age-requirement: Every person who wants to conduct any kind of business in Dubai needs a license. This permit lets you continue with business activities legally all over Dubai. 

Now if we’re talking about real estate company, you need a real estate Dubai license and this permit is only issued to a 21-year old person.

It means that you must be 21 years old to get a real estate work permit from the Dubai government.

Now the question is what if you don’t meet this eligibility criteria and your age is below 21 years old.

In that case, you need consent from your guardian and approval from authorities. After consent and approval, you can become a shareholder in a real estate company.

Document required to register your real estate business in Dubai

There are some organizations who oversee and manage all the real estate business activities in Dubai. These organizations. are governed by the Dubai government. 

They include  Dubai Department of Economic Development, commonly named as DED and RERA- abbreviation of Real Estate Regulatory Authority, which is a part of the Dubai Land Department DLD.

 

So, when you apply for your real estate license in these organizations, you need to provide some documents. Here is a list of each document:

• Owner of company needs to furnish Police clearance certificate
• You need initial approval of your business from DED
• A copy of the passport of the owner and manager is required.
• If you are a resident, then you will provide a copy of visa, emirates ID and NOC from your current visa sponsor. However, if you are a newcomer, you will provide the passport page details.
• You will propose more than three names. So, be ready to provide three different business names, which must fulfill DED requirements.

How to do real estate business setup in Dubai

Now once you have all the documents and initial approval, it’s time to proceed with complete setup. Here are some steps you need to follow.

Step 1- Choose activities

You need to pick your business activities from the list of DED real estate activities such as:

• Real estate buying & belling Brokerage
• Leasing property brokerage agent
• Buying and selling of real Estate
• Leasing & management of self-owned property
• Leasing and management of other people’s property

Step 2- Develop business plan

Now the next step after deciding about your business activity is to define your target market, and outline company goals. Your business plan should include SWOT analysis, market strategy, operational structure and financial projections.

Step 3- Select a suitable business location

If you want to streamline the business setup process then freezone is the best option for your startup as it unlocks tax benefits for you. However, when you want to run your real estate business in Dubai with utmost flexibility, go with a Mainland real estate business setup in Dubai.

Step 4-Decide legal structure

If you have picked buying and selling of real estate as your main activity then only legal structure option you can pick is to establish a limited liability company in Dubai.

On the flip side, when you decide to operate as Real Estate Buying and selling Brokerage OR Leasing Property Brokerage Agents then you have following three legal structure options:

• Sole Proprietorship
• Limited Liability Company LLC
• Civil Company

Choose a legal structure based on your real estate activity.

Step 5-Trade name registration

You need to register a unique trade name for your real estate company with DED.

Step 6- Business registration

You need to provide following documents for business registration with DED:

• Completed Application form
• Passport copies of the owner or manager and all shareholders
• Visa copies of all shareholders
• Registered Trade name
• Attested high school or university degree certificates of the manager and partners.

Step 7- Get RERA approval

Once you send your real estate company registration application, next estate is to get approval of RERA. This approval is a must for getting a real estate company license in Dubai.

STEP 8-Complete RERA training

Now it’s time to enroll yourself in  the Dubai Real Estate Institute (DREI) for the Mandatory certification training program designed for  ( real estate brokers. You need to complete this training and then pass the exam to complete your real estate license process in Dubai.

Step 9-Office Setup

Once you have real estate trade license, you can setup your business office. Try to choose a location with close proximity to your clients. Make sure that you pick a location as per regulatory requirements. 

Step 10- Business Bank Account

Open your corporate business account so that you can continue with your financial transactions.

Step 11-Employee visas process

Now you have obtained your real estate business license through which you can become a sponsor of your employees. That means you can begin with visa application process. It’s the point where you need to register your business with the Ministry of Labor  and the Department of Naturalization and Residency (DNRD) for visas of your employees.

What is the cost of setting up a real estate business in Dubai?

If you want to get a real estate brokerage license for your LLC then the cost of real estate license is AED 12,900.

Since you need to get a RERA certificate for your broker card.. That means you need to include its cost in overall business setup cost. You will have to get approval from RERA, you need to pay AED 5020 per activity. Online courses for brokers usually cost between AED 525 to AED 600. The cost of the broker exam in Dubai is AED 773.

Apart from license and RERA fee in Dubai, there are other cost factors such as:

• The location of office, lease fee
• Number of employees
• Size and scope of company.
• Operational and marketing cost
• Legal and registration fees 

Do you need an exact cost estimate for real estate company setup in Dubai? In that case, please share details of your activities and complete business plan with our business consultants. Email Prospr: hello@prosprplus.ae. We will respond to your business cost query within 24 hours.

FAQs

What are the different types of real estate licenses in Dubai?

Here are some different kinds of real estate license in Dubai

• Real Estate Brokerage License
• Property management license 
• Facility management license
• Property valuer license

 

Do you need a license to sell real estate in Dubai?

No matter what kind of business you run in Dubai, you need a trade license. As far as selling and buying of real estate is concerned, you need to get a Real Estate Brokerage License issued by the Dubai Land Department (DLD). Another mandatory requirement is to have a RERA certification, which is a must because through this certificate you will get your RERA Broker ID card.

Is real estate a profitable business in Dubai?

Yes, if you want to start a lucrative business then you should tap into the real estate market in Dubai. Demand for luxury, commercial, and residential properties are growing with the growth of the tourism sector, population, and infrastructure.

Are Free Zones a better option to start a real estate business in Dubai?

Yes, the free zone offers you a wide variety of perks and benefits. You don’t have to pay any corporate or income tax. Real estate business formation in a free zone is more cost-effective in comparison with Mainland real estate business. However, you always need to pick a jurisdiction based on your business goals.

 If you feel confused about jurisdiction, it’s always a good idea to email Prospr at hello@prosprplus.ae and book a consultation session with our business experts. We are always ready to assist you in this matter.

 Do I need a physical office to run a real estate business in Dubai?

Yes, you can’t get a real estate company license in Dubai without a physical office space. If you don’t want to arrange a physical office at the start, you should consider registering in free zone, because some free zones allow you to have a virtual office.

What are compliance requirements for operating a real estate business in Dubai?

Once you are done with real estate business setup in Dubai, you need to follow rules and regulation sets by authorities. For example, it’s essential to renew your real estate business license on time and also RERA certification periodically. Besides, you need to follow ethical and professional conduct guidelines provided by RERA. You will also comply with Ejari registration requirements for your rental space.

What is timeline for RERA license approval in Dubai?

Generally, you need to wait for 2 to 4 weeks for RERA license, given the scenario where you submit all the required documents.