Commercial Brokerage License Dubai [2023 Guide]
Are you considering starting a brokerage business in Dubai? While the market can be very competitive, it can also be very lucrative if you choose the right industry and offer quality service.
For example, Dubai’s real estate sector is always a top priority. With continuous real estate development, property owners (both commercial and residential) are in constant need of tenants. But they do not have the time to find them. Hence they work with real estate brokers. Partnering with companies like Dubai Properties or Meydan can be profitable for these brokerages.
But brokerages are not limited to just the real estate industry. To help guide you, we took an in-depth look at a commercial brokerage, its complexities, and licensing. By the end of this post, you will have a thorough understanding of the commercial brokerage license in Dubai.
In this article, we cover the following topics:
What is a commercial brokerage?
Commercial brokerage is a business activity in which a business entity (or broker) acts as a middleman between people (principals) who are buying and selling goods or providing services. They assist during negotiations and signing of contracts for the sale and purchase of goods or the provision of services and are entitled to payment under a brokerage contract.
What’s the difference between broker and brokerage?
A brokerage is a mediator for its clients in various transactions, including investments, loans, and property sales. A broker acts as a middleman, connecting a buyer and a seller to enable the completion of a transaction.
A broker’s primary duty is to solve the client’s problems for a fee. However, there are now alternative brokerage functionalities available. As a brokerage, you can:
- Carry out transactions on the financial markets for the client using the customer’s funds and acting on the customer’s behalf.
- Help traders by informing them of market conditions and delivering updates on price changes and other relevant information about trading platforms.
- Give information about other people on the market so that the client can make the right choice about how to handle the transaction.
- Funding customer margin trades.
- Safekeeping of sensitive client information.
- Putting in place the necessary technological infrastructure to enable trading on the exchange.
Brokers can be either people or legal entities. The broker acts on the client’s directions. The broker is subsequently paid, usually in the form of a set fee or a percentage of the total sale price. Some of the different kinds of brokers are:
- Real Estate Broker: An individual that provides or offers market analyses of, lists, and negotiates the rental or sale of a property on behalf of the owner, tenant, or buyer.
- Financial Investment Broker: Offers advice on investing, buying, or selling stocks, mutual funds, and other investment plans. They provide statistical and other factual information such as economic factors and trends and offer investment management services.
- Insurance Broker: They assist the customer in sourcing the best insurance plans based on price and benefits. They also act as the customer’s representative when dealing with insurance claims.
How to start a commercial brokerage in Dubai
There is little doubt that a commercial brokerage in Dubai has enormous growth potential. However, getting there requires a detailed and time-consuming procedure. If you want to start a commercial brokerage business, consider the following steps:
Step 1 – Select your business activity
Meydan Free Zone offers a vast range of commercial, industrial, and professional business activities. You may only engage in the activities specified on your license. You may easily add more later on if you decide to broaden or diversify your product offering.
Step 2 – Choosing your business name
Choosing a business name is crucial to starting a business in the UAE. It is essential to keep a few things in mind while you decide. Adherence to the strict naming rules in the United Arab Emirates is necessary. As a general rule, you should not use words that may be considered blasphemous or disrespectful. You must also ensure that the name you want is available and not already in use.
Step 3 – Applying for your trade license
Your next step should be to apply for a business license. The licensing procedure in Meydan Free Zone is digital, saving time and effort. The platform combines licensing with compliance and regulation, including UBO, ESR, and AML. As part of this procedure, you will need to provide the following documents:
- Passport copy
- A digital passport size photo
- Emirates ID copy (if applicable)
- Residence visa copy (if applicable)
Step 4 – Applying for your visa
To live in the country, you will require a resident visa. The visa application procedure is as follows:
- Getting an entry permit
- Changing your status
- Taking a medical exam
- Getting your Emirates ID and visa stamp
You may submit visa applications for your employees and family members simultaneously with your visa application.
Contact one of Meydan Free Zone’s business setup managers if you have any questions about the prerequisites. We can assist you in setting up your company as quickly as possible while keeping you completely compliant.
Cost of a commercial brokerage license in Dubai
The cost of starting a commercial brokerage license depends on multiple factors. They include license and visa fees, personnel and insurance costs, and the location of your office. A commercial brokerage license starts from AED 12,500.
How to grow your commercial brokerage business
Business success often requires adjusting to new circumstances. However, development and expansion are essential to a company’s continued success in today’s competitive and ever-changing business environment. There are various methods to build your UAE company; the best one will depend on your type of business, resources, timelines, and cash. Here are three that you can consider:
Establish an alliance
To grow rapidly, aligning with other companies that provide complementary products or services might be beneficial. Partnerships between businesses are a great way to expand into untapped areas. Furthermore, a well-placed collaboration might provide you with immediate access to new clients. However, a partnership’s primary goal does not need to be market entry. Partnerships may provide finance, technology, manufacturing methods, and many other benefits.
Target new markets
While your present niche market is thriving, you might consider exploring further opportunities. You can expand into new markets by capitalising on your established brand recognition. Start researching different locations to identify potential customers for your service.
Mergers and acquisitions (M&A)
There is a possibility that a merger would help your company increase its market share. Start by evaluating what businesses are comparable to yours. Find out what you can gain by merging forces or making the acquisition. Then analyse your cash flow and financial resources carefully. Next, recruit the most qualified personnel for accounting, marketing, and operations teams. Put together the best group of leaders to help create a plan of action and benchmarks for success.
Why start your business at Meydan Free Zone?
At Meydan Free Zone, our goal is to help set up companies and turn them into successful enterprises.
An added benefit of opening a company with Meydan Free Zone is getting a premier location for a business address. Located in The Meydan Hotel, Meydan Free Zone is 15 minutes from Dubai International Airport and has quick access to Downtown Dubai, Dubai Media City, and Sheikh Zayed Road. Furthermore, a prestigious business address presents a high-end status and can help get top-of-the-line clients.
Being a member of the Meydan Free Zone family, you also have access to a fully equipped Business Centre and monthly networking events. Our Business Centre has a world-class professional environment and an ambiance that inspires performance and provides privacy. In addition, you can take advantage of our exceptional offers for F&B and stay at The Meydan Hotel if needed.
Our consultants will support you with all aspects of your business setup in Dubai, so you can focus on finding clients and growing your business.