Real Estate in Dubai is always in demand. It is so high that property in the emirate regularly outyields prestigious real estate hot spots like New York and London. It is also the region with the highest returns on real estate compared to other popular areas worldwide. In addition, eGovernment services make the entire process seamless online: making payments, getting visas, and obtaining certifications easier than ever.
Naturally, this makes property in Dubai an attractive option for international investors. And where there’s demand, there’s an opportunity. Whether you want to invest in the property yourself or start a property management company or real estate brokerage, there can be few better places than Dubai.
And when you start a UAE business with the help of Meydan Free Zone, you can be up and running in no time. Our team are experts in business setup in Dubai and can help you with licensing, visas and much more.
In this article, we’ll cover everything you need to know to start your real estate company in Dubai, UAE, including:
The Benefits of Starting a Real Estate Business in Dubai
Impressive yields and high demand for the property are just two of the many reasons to start a real estate business in Dubai.
The UAE is also famed for its lack of unnecessary bureaucracy, regularly ranking well in the World Bank’s ease of doing business. So, starting a business to buy and manage a property can be straightforward with the right support.
Then, there is also the UAE’s attractive tax rate of 0% on personal income. And there are more benefits for free zone companies, too, including 100% freedom to repatriate capital and profits.
Set up in Meydan Free Zone, and you’ll also benefit from:
Premier location
Being at one of the most sought-after centrally located commercial addresses in Dubai puts you minutes away from major pulse points and the city’s vital commercial and financial hubs.
Easy start-up
Benefit from a smooth registration process with access to priority government relations assistance and broad support services tailored to address your individual business needs.
A great place to live and work
Take advantage of the unique opportunity to live and work in Meydan’s premium mixed-use developments offering innovative office spaces that encourage business growth.
Steps to Start a Real Estate Business in Dubai
We can guide you through the steps required to start a real estate business in Dubai at Meydan Free Zone.
Steps to start a real estate business in Dubai
Let’s take a closer look at each of them.
1. Deciding Business Location
It is essential to consider your business’ nature, accessibility to the market, and benefits when determining where to locate.
Dubai offers three economic environments to base real estate firms: mainland, free zone, and offshore. There are differences in these business models, as well as advantages and disadvantages. We can advise you on the best location for your needs at Meydan Free Zone.
There are fewer regulations in Meydan Free Zone, which attracts more businesses. Furthermore, you will be exempt from personal income tax, import duties, currency restrictions, and excessive regulations if your business is located in Meydan Free Zone.
2. Choosing Business Activity
The next step is to choose a business activity in Dubai. The following are some of Dubai’s most common business activities for real estate firms.
THE MOST COMMON BUSINESS ACTIVITIES FOR REAL ESTATE FIRMS IN DUBAI
- Professional Company
- Sole Proprietorship
- LLC (Limited Liability Company)
- Partnership en-Commendam
- Joint Venture
- Private Shareholding
- General Partnership
- Public Shareholding
Property-related business activities are numerous. To move forward with your business, you should outline your business activities. This will determine what type of license you need. If you plan on running a real estate brokerage, opening a property consultancy, or any other related business, this must be stated in your license. You may include multiple business activities and can add more after your application.
The license type you choose must meet the needs and goals of your company. For example, you can legally represent the seller of a building, rent a building, manage properties for owners, and consult on building sales and lettings if you register real estate brokerage as your business activity.
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3. Choosing a Company Name
The UAE has a very clear naming parameter you’ll need to stick to. But don’t worry; all are straightforward and largely common sense. Essentially, you should avoid blasphemous and offensive language and the names of well-known organisations. We will also cover a few more rules in your initial consultation.
4. Getting RERA Certification
To qualify for the license, you should register for the Dubai Real Estate Institute’s Certified Training for Real Estate Brokers course (DREI). This certification is necessary for the license-issuing process. You must pass an exam at the end of the course to become a registered real estate broker in Dubai. Obtain a Good Conduct Certificate from Dubai Police after passing the course.
After that, you need to contact RERA to obtain your broker ID. Once you get your broker ID, you can legally begin your career as a real estate agent in Dubai. RERA broker IDs are required in Dubai since each emirate has a real estate licensing body. It is important to remember that your license must be renewed annually.
Documents Required for RERA Registration
- Application Form
- DED License Copy
- Tenancy Contract (Ejari)
- Payment Receipt For RERA Courses
- Location Of Your Business
5. Memorandum of Association
In accordance with UAE Commercial Companies Law, companies must include an object clause in a Memorandum of Association. The clause sets out exactly why the company is made and lists the economic activities it plans to undertake upon incorporation. If a company acts outside the activities mentioned in the object clause, the actions are potentially voidable as it operates outside of its powers. The company may even be penalized by authorities and sued by third parties.
A company’s Memorandum of Association (MOA) is a legal document prepared during incorporation. It defines the company’s relationship, its members, and the general public. The Memorandum of Association must be typed in accordance with the protocols of the Dubai Economy and Tourism Department, formerly the Department of Economic Development (DED), and UAE commercial law. It is also vital to notarise the MOA.
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6. Applying for Trade License
Once you have successfully navigated this initial process stage, you can apply for your trade license. Trade licenses for free zones must be obtained from the respective authorities, such as Meydan Free Zone.
Your license application will require you to submit some documents. You need to get the final approval in the form of a professional services license. This license is required for those who want to run property management or brokerage services in Dubai. For that, you will need to submit it again.
You must also register your real estate brokerage company with the Department of Naturalisation and Residency Dubai (DNRD) and the Ministry of Labour (MOL) to employ foreign employees and sponsor their visas.
We’ll also help you obtain your visa. As part of this process, you will be required to undergo a fitness test, blood test, and chest x-ray. You can also sponsor the visas of others, such as dependent children and parents, your spouse, and any domestic staff.
At this stage, you will need to submit a form containing details about your business and its shareholders and proof of address and identification.
7. Getting Approval from Dubai Land Department
Dubai Land Department is the government body that oversees activities related to real estate in the UAE. Before operating a real estate brokerage business in Dubai, brokerages must receive approval from the Dubai Land Department (DLD).
Finally, if you’re getting paid in the UAE, you’ll need a corporate bank account. Meydan Free Zone can help with this step, too, advising on the right financial institution for your needs and circumstances.
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Cost of Opening a Real Estate Brokerage in Dubai
Dubai’s real estate license cost will depend on many factors, including your business location, activities, and size, all of which will play a part.
In addition to the real estate license fee, you will also have to pay AED 2,500 for the RERA real estate brokers’ course.
For a full breakdown of costs, get in touch with the team at Meydan Free Zone.
Take Your Business to New Heights at Meydan Free Zone
Meydan Free Zone is a thriving, centrally located economic district with one of the most prestigious business addresses in the region.
We offer our businesses a host of innovative investment and lifestyle benefits in a secure, regulated environment that empowers productivity. And we can help you join them too.
Our expert team can assist the entire company formation journey, from registering your company name to managing your license and visa applications.
To find out more, visit our website, or get in touch with us via setup@meydanfz.ae or 800FZ1.
