Complete setup of real estate brokerage firm in Dubai explained
Dubai offers a wealth of investment opportunities to everyone. Every investment can expect high ROI not only in Dubai but also in other emirates. If you are planning to become a real estate broker or agent in Dubai, you need to acquire a real estate license in Dubai.
This license isn’t that simple to attain, and become somewhat tricky when an expat tries to become a real estate broker in Dubai. But when business consultants from Prospr stand by the side of Foreigners, attaining a real estate license becomes a piece of cake.
Before we tell you how you can attain a license to start your real estate business, we would like you to understand:
What is the Cost of Opening a Real Estate Brokerage in Dubai?
If you have a plan to set up real estate brokerage in Dubai, then you need to be ready to spend anything between AED 21,000 to AED 40,000. If you set up an LLC, then the cost of a real estate license in Dubai is only AED 12,950.
However, there are many other cost factors involved. You need to pay the cost for getting RERa training certification and attempting an exam. You will pay around AED 5000 per activity.
Cost of opening a real estate brokerage in Dubai
Now if you are going to open a brokerage business in Dubai, you will have to be ready to make investment on many different factors. Here is a cost breakdown for your complete guidance by the best business consultants in Dubai.
RERA license Dubai cost
The cost of a RERA license varies from one license type to another and also depends on duration. If you plan to get only a one-year license, you will pay AED 10,000. However, when you get a 3-year license, you will pay around AED 30,000.
Trade name reservation fee- When you reserve a unique trade name for your real estate brokerage in Dubai, you will have to pay a fee for the trade name reservation. Don’t worry, this cost is one-time only.
Office rental costs
You need to rent an office space for opening a real estate brokerage in Dubai, it’s a mandatory requirement. Thereby, you need to add this cost to the overall cost of your business setup. The cost of an office varies from one location to another. Size and facilities also change the overall cost. Try to pick a location that keeps you close to your target customer while staying within your budget limit.
RERA training course and exam fee
Before you obtain RERA certification, you need to sign up for a training course and pass an exam. The cost of training ranges from AED 4000 to AED 6500 depending on where you get this training. Besides, you will also pay the exam fee.
Business consultancy fees
If you are a foreigner who wants to set up a real estate brokerage business in Dubai, it’s always suggested to hire professional business consultants in Dubai such as Prospr.
We help you navigate through the intricacies of complete business setup in Dubai. The consultancy fee is totally worth it as you get all the guidance you need to simplify the complicated business setup process. Prospr is different from other consultancy firms in a way that we offer the best value for the money and also convenience. From initial approval to trade license acquisition, we will be standing by your side.
Employee visa and insurance costs
Another cost factor is insurance coverage and visa cost. You will be responsible for health insurance and the visa of your employee. Depending on the size of your business and number of employees, this cost varies.
Additional costs
When you are going to create a budget limit for your real estate brokerage firm in Dubai setup, make sure you consider other cost factors as well.For example, you need to spend on marketing and promotion, as you want to beat the competition. There will be ongoing operational expenses, office setup and maintenance cost.
Why Do you need a real estate License in Dubai
Before I tell you how to get a license, you must understand why you need to get this license. Well, if you want to run your real estate brokerage in Dubai, this license becomes your work permit. It allows you to conduct real estate business activities in Dubai.
What if you don’t get this license?
In that case, your brokerage firm is illegal and can’t run any business activities in Dubai.
Who will issue this license?
The Real Estate Regulatory Agency RERA issues a RERA license that is a mandatory work permit for both real estate broker and agent. This regulatory organization oversees all the real estate matters in Dubai. Once you obtain a RERA license, you become a legitimate business in the eyes of investors and other businesses. This license ensures that investors remain protected from frauds and scam. As a result, real estate licenses maintain investor confidence and business integrity.
How to start real estate brokerage firm in Dubai
Here are some steps you need to follow:
Step 1-Choose a business name
Before you launch your real estate agency in Dubai, you need to select a business name and then ensure that this name conforms to the Department of Economic Development’s (DED) requirements.
Step 2- Get initial approval
Now the next step is to get initial business approval from DED. You will submit all the required documents to the Tasheel service center.
Step 3- Draft Memorandum of Association
You need to follow UAE commercial law and DED protocols for drafting Memorandum of Association MoA. Another thing to do is to attest this document through a notary.
Step 4- RERA certification
Before you get Real Estate Brokers Registration (RERA) certification, you need to sign up for the RERA training course. Once you finish this course and pass the exam, you will get a broker ID.
Step 5-Good conduct certificate
Now the next step is to get a Good Conduct Certificate from the Dubai Police. This certificate shows that you have a clean criminal record. This certificate will help you earn investor trust.
Step 6- DLD Approval
A regulatory body that oversees all the real estate activities in name is known as the Dubai Land Department (DLD). You have got a RERA certificate and have your real estate license. Now you need approval from DLD to start as licensed real estate brokerage business
Step 7- Office Space
Choose a specific business location, it’s a must have for setting up real estate brokerage in Dubai. You need to pick a location that complies with regulations and standards set by the DED and RERA.
Wrap up
Do you want to set up real estate brokerage firm in Dubai? Are you a foreigner who has little or no idea how to do it right? No worries, Business consultants from Prospr are always ready to assist you. It’s always challenging to arrange all the required documents and get approval from government bodies.
We offer Visa and Pro services to speed up the whole business setup process. From getting your entry permit to your complete company setup in Dubai, we offer ultimate guidance and support. Let Prospr help you build a successful real estate business in Dubai.
FAQs
Can I register a real estate brokerage as a foreign investor in Dubai?
Yes, foreign investors can set up a real estate brokerage firm in Dubai. They also need to follow all the steps mentioned above. But before they get any certificate, it’s vital to get a residency visa and land in Dubai.
How long does it take to get a real estate brokerage license in Dubai?
The timeline for getting this license varies. You need to complete all the steps, typically you can have this license within 4 weeks.
Are there any recurring costs or taxes related to running a brokerage for real estate in Dubai?
Yes, there are some recurring fees associated with this business model. First of all, you will renew your license and pay the license renewal fee. Other recurring expenses are office rental fees and taxes on profit.
Can I offer real estate services outside of Dubai with a RERA license?
RERA license permits you to continue doing real estate brokerage business only in Dubai. In case you have a plan to continue doing business in other emirates, you need to get licenses and work permits from the regulatory authorities of the respective emirates.