Dubai is a famous developed and eye-catching city. It is the land of large buildings and huge skyscrapers touching the skies. The sky-scraping infrastructure is one of its main sources of attraction for not only tourists but also businessmen and investors from across the globe. There is a huge potential for the construction sector of Dubai. The flexible business opportunities, increasing GDP, high living standards, rich class culture, and tax-free environment makes this Emirate an excellent place to set up a construction business. If you are also an investor or an entrepreneur and interested in this industrial sector, perhaps you must be looking to know how to start a construction company in Dubai, UAE. Read this guide to learn everything about it.
Steps to Start a Construction Company in Dubai, UAE
The process of establishing a construction company in Dubai is straightforward, quick, and cost-effective. Following are the steps to follow to form the company:
Step 1: Select a Company Name
The first thing to do is to select a nice name for your new construction company. There are certain rules to follow when naming a company in Dubai. Don’t include the name of any popular company or include any blasphemous or offensive language in your company’s name. You can name your company against your name but it should full name and not any abbreviations of your name. Make sure your chosen name is available for registration by the relative department.
Step 2: Choose a Location
There are two economic zones where you can set up your construction business in Dubai. One is a free zone and the other one is mainland. Both jurisdictions have their own pros and cons. A company operating in a free zone lets you have 100% of the ownership. Whereas in the mainland, the ownership is 51%, and the remaining 49% is given to the local sponsor. The approvals required for both places are also different from one another. Choose the economic zone that matches the requirements of your business.
Step 3: Submit the License Application
There are independent jurisdiction authorities for the free zones. So, you have to approach the related authority to apply for a construction license in the free zone. Whereas for applying for a license in the mainland, you need to go to the Department of Economic Development. Additional approvals and different licenses are required for different business activities. Make sure to make a list of your chosen or planned business activities. Moreover, the legal construction license falls under the category of commercial type.
Step 4: Get Building Permit and Additional Approvals
Next up, you have to apply for permits. If you are operating your company in the free zone, you need to get a G+1 permit. Otherwise, just apply for the building permit. At the same time, you also need to submit an application for extra approvals such as environmental and civil works licenses which you may need.
Step 5: Get the Visa
Post that, apply for your visa. You can also submit a visa application for your family members, domestic staff, and close relatives. For obtaining a visa, you might need to get some tests done including a blood test, medical test, chest X-ray, and more.
Step 6: Open a Bank Account
You also need to open a bank account. It is important because you will be involved in trading activities that require bank transactions. The process is easy for locals. But for foreigners, it can be somewhat tricky. But business setup consultants in Dubai like Riz and Mona can help with that. Our experienced professionals will determine your requirements, and recommend the best suitable bank. Also, we will go through your application to eliminate the possibility of rejection or any delay.
Assess Your Limitations and Provisions
There are some rules and regulations set by the government of the UAE that every business has to follow. The UAE helps to empower the working ecosystem of the region through its business-supportive policies, tax-free laws, world-class infrastructure, and business-friendly environment.
However, you must know the limitations of your construction license to ensure that you don’t go against any guidelines. The business experts in Dubai help you understand what you can do and what you should avoid running a hassle-free construction business in Dubai.
How to Get a Construction Company License in Dubai
There are certain construction company license requirements in Dubai that you must follow. The following are the steps involved in getting a construction license in the UAE:
Step 1: Choose an economic zone for your construction company. Get the license from the related authority if your company is in the free zone. On the other hand, go to the Department of Economic Development for companies on the mainland.
Step 2: The UAE Building Department controls all aspects of construction activities. Getting individual licenses needs extra approvals from different agencies depending on the field of activity such as the Department of Civil Protection, the Department of Road Industry, and others. You are required to pass a number of procedures and give technical assessments for the accreditation of experts to issue various licenses for construction works in Dubai, UAE.
Step 3: Collect the documents to submit to the related authorities
Step 4: Pay the fees and get your construction company license
Types of Construction Business Licenses in Dubai
There are various types of construction business licenses in Dubai. Every license has different regulations and requirements. These licenses are as follows:
Type 1: Landscape Gardening
This license is for the development, improvement, and organization of cottage grounds, villas, parks, and gardens.
Type 2: Concrete Works and Foundation
There is a license for the reinforcement of cracks with concrete, foundation and wall construction, and the concrete casting of warehouse and industrial floors
Type 3: Construction of Metal Structures
You can get a license for the installation of steel and metal structures, frame structures, hangars, exhibition stands, and pavilions.
Type 4: Construction of Special-purpose Facilities
The department also offers a license for the construction of pipelines, electric power substations, airports, sewage disposal plants, and seaports
Type 5: Facade and Finishing Works
External or internal wall covering of residential, commercial, and industrial premises with any materials is covered under this license.
Type 6: Construction of All Types of Facilities and Buildings
This license is given to the construction of different types of buildings such as residential buildings, production areas, villas, warehouse premises, and malls.
Type 7: Maintenance of Facilities on a Turnkey Basis
This last type of license is for the supply of decorative elements, construction materials, furniture, and equipment for facilities that are under construction and already erected facilities.
Special Approvals are Required for Opening a Construction Company in Dubai
Several special permits and clearances are required to obtain from civil and environmental works departments for forming a construction company in Dubai. Some of the compulsory ones are mentioned below:
Water and Electricity Department: This department provides necessary amenities to the holders. So, the clearance of these two authorities is a must.
Drainage and Irrigation Department: This permit is given to disposable services such as liquid waste management.
Building Department and Dubai Civil Defense Authority: Both authorities make sure that a construction company follows the construction norms. A Building Completion Certificate should be obtained from these authorities. This permit makes it legal to get a building. A civil works permit should also be obtained from the relevant authorities. It is for works before any foundations. For issuing a building permit, go to the relevant authority. To get this permit, the contractor must submit the design drawings of the proposed building. An environmental license should also be issued from the respective authority.
Roads and Transport Authority: A permit should be obtained from the Roads and Transport Authority to access the internal road and external road network for transportation purposes.
Dubai Civil Defence: NOC should be obtained from Dubai Civil Defence (DCD) for government entities such as Dubai Airports Company
Start a Construction Business in Dubai, UAE with RIZ & MONA
In the coming years, the construction section of Dubai will continue to boom and reach new heights. Dubai owns an incredible potential market for the construction business promising unexpected profits. And this potential is from only one of the city’s many lucrative markets. So, if you are looking to start a construction company in Dubai, UAE, RIZ & MONA Consultancy is here to help you out.
From our initial discussion, our experienced agents will make everything clear including the services associated with business setup or company setup in Dubai, UAE. We have detailed local and global knowledge, so we will advise you to provide the highest level of service that you deserve.
Work with us now to equip yourself with remarkable services and recommendations to become a successful construction business owner in Dubai. Contact us now and book a slot for yourself to setup your construction company in Dubai like a professional.