How to Set Up a Construction Business in Dubai?
Dubai is known for its top-tier infrastructure, high and marvelous skyscrapers touching the blue skyline all around the world. The city boasts of fast-paced infrastructural development with several astonishing architectural projects. The tallest, the most beautiful building in the world, Burj Khalifa, is one of the many constructional wonders to behold. These multitudes of high rise buildings give boosts to not only tourism but to businesses as well. With ample business opportunities, tax-free amenities, and constant development over the past decades, Dubai has become the perfect ground to establish a construction business.
The UAE government will keep pumping funds in order to maintain the stability of its construction sector. If you have plans to start a construction business in Dubai, then it surely is the right choice for you. The anticipation of the upcoming Dubai Expo 2020 has made it a buzzword for providing opportunities and reasons for growth in the construction business. The expo will bring an influx of investors and growth prospects which is a perfect opportunity ready to grab. Even though the event is now postponed to be held from October 2021 to March 2022 due to COVID-19, it has not made a lot of impact on the construction sector. The construction projects are still on a rise, be it Arabian Canal, or Jumeirah Garden City.
Forming a Construction Company in the UAE
This guide will help you understand the complete process so you can make the most of this opportunity to set up your Dubai building construction company.
1. Identify the Company Zone for Set Up
The initial step is to identify the zone for setting up your construction business. There are two options – mainland and free zone. With a mainland company, you can carry out your construction activities all across the UAE’s market. You are allowed to work with any business or individual without any restriction, which provides you a lot of options. However, this is usually done by the formation of a Limited Liability Company (LLC).
For an LLC, a local partner is required who’ll have 51% ownership of the construction company and 49% will be with you. Another option is to appoint a National Service Agent (NSA), where the business-related activities will come under a professional license and appointed to an NSA but expatriates will be allotted 100% of their company shares.
A free zone company is a separated business setting. It’s secluded from the mainland businesses and has special rules and laws. Furthermore, a free zone company offers 100% ownership but the company can only conduct business in the specifically defined free zone areas and in parts outside of UAE but cannot sell anything to the mainland UAE areas.
140 square feet is the required space to set up an office and start your Dubai building company in the mainland. However, the laws for free zone companies are different. A free zone company can be set up with flexible workspace options. Both options have a unique set of benefits and limitations. You can choose any but it’s important to understand the difference between both to make the right choice as per your requirements.
2. Obtain the Required Licenses
Proper and systematic licensing is essential for legally starting a business. The construction business is no different. An official commercial license is required to establish a construction company. So, you need to register your company at the Department of Economic Development (DED) or other concerned governing body. Moreover, you’ll need the help of business consults for the seamless establishment of your construction tech company Dubai. Consultants make your life easier by applying to all the required permits. Their primary responsibility is to assess and evaluate the soil and its properties for construction.
Depending on the category of your construction company, different licenses will be required. These can include wrecking and demolition license, contracting license, maintenance license, and various others. For mainland companies, Dubai Municipality issues a compulsory building license. For free zone companies, it’s called the G+1 permit. There are numerous other licenses or permits that will be required, consisting of the civil work permit and environmental license.
3. Special Permits
The last step is to acquire several special permits and clearances from the respective government authorities. This can be done after getting the necessary license approval from the DED.
Refer to the checklist below to make things simpler for your understanding:
- For telecommunication services, a compulsory permit from Etisalat is required.
- Dubai Electricity and Water Authority (DEWA): this permit is required to access basic amenities to all occupants of the building.
- No Objection Certificate (NoC) from the Dubai Civil Defense Authority, Dubai Airport Company, and other related authorities.
- A permit from the Building Department that ensures how safe the building is and that all the construction norms were adhered to and followed.
- Permit from the Drainage and Irrigation Department to ensure proper liquid waste management and other disposable waste management.
- Building completion certificate which signifies that the building is ready to be occupied.
- A permit from the Road and Transport Authority for the main road and internal path access for transportation.
Let Shuraa Make the Process Easier!
It makes perfect sense to start a construction business in Dubai because of its booming and expanding business sector. The region keeps on bringing more and better opportunities for new-age investors and entrepreneurs. It’s quite astonishing to see the progress of the construction business in UAE that it has been considered the top business sector over the two to three decades.
Starting a construction company can be challenging as it requires several permits from various authorities. Contacting several authorities and submitting the demanded paperwork can turn into a long and tiring process. The business consults at Shuraa assist you in acquiring all the required permits with a simplified and easy-to-follow process. Collaborate with us, and we’ll guide you in your journey to become a construction business owner.
Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message at +971 50 777 5554. You can also write to us at info@Shuraa.com.