The real estate market in Dubai is currently witnessing a sales surge, recording 9,720 total sales worth AED24.3 billion in August 2022. As per a report by Property Finder, August turned out to be the highest-performing month in 12 years in terms of transaction volume and value. These rosy figures make it the right time to set up a real estate development company in Dubai. You can start your firm easily by complying with the regulations of business setup in Dubai mainland.
Foreign investors need not bother about the complexity of the regulations as business setup consultants in Dubai can help them to get the license approvals quickly. However, basic knowledge about the laws, steps, requirements and standard procedures will help you to navigate the process easily. Read ahead to know what it takes for you to start a real estate development company in Dubai:
License for Real Estate Development in Dubai Mainland
You need to obtain a Real Estate Development license issued by the Department of Economic Development (DED). It is a commercial license with the DED Activity Code: 6499004. As per the DED’s definition, this license concerns the companies created for the development and founding of real estate projects which include housing and commercial complexes, tourism projects, and the development of the infrastructure and leisure facilities for such projects.
The Real Estate Development license in Dubai also covers the selling of property or projects per the freehold ownership law of property whether owned by the license holders or another party through a contract signed between the developer and the land owner and registration of the contract in the Escrow Accounts Department ahead of the commencement of the project. Business setup consultants in Dubai can help you prepare the application for this license.
How to Get a Real Estate Development in Dubai Mainland?
Getting a Real Estate Development license in Dubai will not be a complex process if you comply with all the standard procedures. You need to be aware of the relevant steps of company formation in Dubai to get the license without any delay. Given below are the mandatory steps you need to undertake to obtain a Real Estate Development license in Dubai mainland:
- Select the business activity
- Choose a company name
- Select a legal structure
- Obtain DED initial approval
- Rent office space, sign the tenancy contract (Ejari)
- Obtain external approval from Real Estate Regulatory Agency (RERA)
- Submit all the documents to the DED including the external approval
- Pay the fee and get the DED Real Estate Development license
Real Estate Regulatory Agency Approval for Developers
As per the regulations of company registration in Dubai mainland, you require approval from RERA to proceed with the license approval. RERA is a regulatory body functioning under the Dubai Land Department (DLD). RERA regulates Dubai’s real estate market and provides a legal framework for all parties working in the sector, and it also enforces the rules.
You need to apply through the Trakheesi system to get RERA approval for a Real Estate Developer License in Dubai. Business setup consultants in Dubai can assist you with the approval process. You need to submit the following documents for RERA approval:
- A copy of your residency visa, a passport copy, or an Emirates ID card
- Passport size photographs
- Proof of completing the RERA certified training and RERA exam
- A copy of your realtor licence
- Certificate of good conduct from the Dubai police
- A copy of your trade name reservation
Setting up an Escrow Account for Real Estate Developers
You need to comply with a wide range of requirements to complete the process of real estate company registration in Dubai mainland. You need to register a real estate development company and set up an escrow account if you want to construct a project and start off-plan sales in Dubai. Any payment made by the buyer will go to the escrow account only. Moreover, any payment to be withdrawn from this account will be as per the guidelines set by the RERA for particular project development only. Business setup consultants in Dubai can offer further guidance on this requirement.
Set up your Real Estate Firm with Jitendra Business Consultants
Setting up a real estate development company in Dubai mainland involves certain special requirements and approvals. Your company formation process will be delayed if you fail to meet the regulations of business setup in Dubai. However, you can apply through business setup consultants in Dubai such as Jitendra Business Consultants (JBC) to obtain the license quickly.
We offer bespoke business setup services in Dubai to help you meet all your company registration requirements. JBC has highly qualified consultants who can advise you on major requirements of real estate company registration in Dubai such as RERA approval, document drafting, visa processing, and bank account opening. We can also help you meet regulatory requirements related to Anti-money Laundering (AML), Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO).