Setting up a real estate brokerage firm in Dubai makes business as the sector is witnessing promising investments in 2022. The real estate sector largely benefitted from the government’s initiatives to foster the landscape of company formation in Dubai, especially the Golden Visa reform. The allure of a 10-year-long residency through the UAE Golden Visa has bolstered foreign investments in this sector, making it an ideal proposition for starting a real estate brokerage firm in Dubai.
However, real estate is a highly regulated sector involving certain government approvals for foreign investors. The approvals and other legal requirements can be navigated by applying for a trade license through business setup consultants in Dubai. Even then, you need to have a clear understanding of the licensing authorities, approving departments, required qualifications etc, to quickly obtain a real estate broker license in Dubai. Read ahead to know such aspects and many more:
Getting the Real Estate Brokerage License in Dubai
You can obtain a real estate license from the Department of Economic Development (DED) in Dubai. The DED real estate brokerage license applies to companies engaged in mediation between the seller and the buyer in order to complete real estate transactions and sales. The role of the real estate broker as per the DED license includes marketing and promotion of the properties through unified contracts and agreements approved by the Real Estate Regulatory Agency (RERA). Consult with business setup consultants in Dubai for more information on the real estate brokerage license.
The Process of Real Estate Company Registration in Dubai
Having a basic understanding of the rules of company registration in Dubai will make the licensing procedure easy for foreign investors. Business setup consultants in Dubai can guide you on the procedures of obtaining a DED real estate license. The key procedures are listed below:
Selection of Trade Name
Choosing the name of the company is the first step of company registration in Dubai. The name must comply with the trade name guidelines of the DED.
Determine an Appropriate Legal Structure
Determine how many shareholders or partners will be in your proposed real estate brokerage firm. Based on that number you can choose an appropriate legal structure for the company.
Initial Approval Request
In the next step of real estate company incorporation in Dubai, you need to get the initial approval from the DED. Business setup consultants in Dubai can assist you in getting the initial from the DED.
Approval from Real Estate Regulatory Agency
RERA is a regulatory body that regulates Dubai’s real estate market and provides a legal framework for all parties involved in the sector. RERA also enforces the rules governing the real estate sector in Dubai. For setting up a real estate company in Dubai, the investor must get approval from the RERA.
The rules of company incorporation in Dubai mandate that foreign investors choose an office space and prepare a tenancy contract (Ejari). If it is a Limited Liability Company (LLC), investors need to prepare the Memorandum of Association (MoA). You need to sign a partnership agreement as well in the case of LLC company incorporation in Dubai.
Receive the DED license
In the next step of business setup in Dubai, the applicant must submit all the documents to the DED including the MoA, RERA approval, tenancy contract, etc. The DED will then issue the real estate brokerage license upon the payment of the necessary fees.
How to Obtain the RERA Certification in Dubai?
Investors need to apply for a RERA certification to start their real estate brokerage firm in Dubai mainland. All the relevant documents must be submitted to obtain the RERA Certification. The process of RERA certification in Dubai involves the following:
- Apply for RERA’s course for real estate brokers
- Attend the classes at the RERA training centre
- Write and clear the RERA exam
- Obtain the RERA certification and license
Other Requirements for Real Estate Brokerage Firms in Dubai
Investors wishing to set up a real estate brokerage firm in Dubai mainland must obtain a Broker’s Card. This can be obtained after completing the process of registration with RERA. The broker’s card is critical to setting up any kind of real estate business in Dubai. Business setup consultants in Dubai can advise you on the process and requirements.
AML-CFT Requirements for Real Estate Brokers
Real Estate Brokers are classified as Designated Businesses and Professions (DNFBPs) under the UAE’s Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) framework. To comply with the UAE AML-CFT laws, Real Estate Brokers need to meet the following requirements:
- Identify and assess money laundering risk
- Make and update policies and procedures to minimise money laundering risk and document them
- Implement and maintain risk-based customer due diligence and ongoing monitoring procedures
- Identify and report suspicious transactions
- Establish a robust framework for AML/CFT, such as appointing a Compliance Officer
- Maintaining adequate records for all of the above
- Ensure compliance with the directives of Competent Authorities in the UAE in relation to the United Nations Security Council resolutions
- Report to the Financial Intelligence Unit (FIU) for purchase and sale transactions of freehold real estate properties in the UAE that include any payment methods such as Single or multiple cash payments equal to or above Dhs55,000; Payments that include the use of a virtual asset; and Payments where the funds used in the transaction were derived from a virtual asset
Hire the Best Business Setup Consultants in Dubai, UAE
Investors planning to start a real estate brokerage company in Dubai are advised to seek professional help due to the approvals involved. Business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can assist you in simplifying the DED licensing procedure. JBC has established hundreds of real estate companies as we are experts in company incorporation in Dubai.
We have a dedicated team to look at your specific requirements and advise you on the course of action to be taken. As a foreigner, you may not be able to navigate every aspect of business setup in Dubai, especially the approvals and documentation. However, JBC’s expertise in UAE immigration laws and labour laws may come in handy for you to easily establish your presence here. We offer bespoke business setup services in Dubai such as visa processing, document drafting, bank account opening etc. Consult with us today to easily obtain your trade license in Dubai.