The real estate industry is one of the most rewarding economic sectors in Dubai, as great numbers of foreign investors and citizens relocating here for different reasons need to buy or rent real estate to operate as companies, respectively to live in. Many investors decide to invest in real estate not by opening construction companies which involve a lot of money and more hassle when it comes to the licensing procedures, but by setting up real estate companies through which they can sell or rent properties in Dubai.
Steps for Opening a Real Estate Business
Following are the basic steps for opening a real estate company in Dubai Mainland:
Step 1: Establish the location of your real estate company. There are certain areas within the country that are designated “free zones.” Lower regulations in these areas tend to attract businesses. For example, while most businesses are required to be 51 percent owned by a United Arab Emirates (UAE) national, the ownership can be 100 percent in a free zone.
Step 2: Establish the type of business organization. In Dubai, there are seven categories of business organization. These are general partnership, partnership en-commendam, joint venture, public shareholding, private shareholding, limited liability, and share partnership.
Step 3: Complete the mandatory training course necessary for a real estate license through Real Estate Regulatory Agency (RERA). If you have a college degree, you will take the Real Estate Certified Practitioner’s Training Course. Without a degree, you will register for the Real Estate Executive Diploma Program.
Step 4: Set up your professional office. This includes an actual office space with a landline phone (not just a cell phone). These things, along with your real estate license through RERA and your commercial license with Dubai.
Type of Structure for the Real Estate Company in Dubai
There are several types of business forms which can be employed for setting up a Dubai real estate business. The choice belongs to the future owner and it depends on how large the company will be. The preferred types of structures are:
- The sole proprietorship;
- The limited liability company;
- The civil company;
- The free zone establishment.
