Setting up a construction company in Dubai mainland can be highly rewarding for foreign investors looking for lucrative business opportunities. Dubai is mainly known for its skyscrapers and its construction industry continues to stay resilient to market shocks as evidenced by new projects in the pipeline and upbeat industry forecasts. A report by Mordor Intelligence says that the UAE construction market is likely to reach a value of USD 133.53 billion by 2027, registering a CAGR of 4.69%.
However, foreign investors need to have a thorough understanding of the regulations of business setup in Dubai before applying for the license. Moreover, construction is a special activity that requires special approval and permits from relevant authorities. Since several approvals are involved, it is advisable to apply for a construction business license through business setup consultants in Dubai. This article will you feed you with all the necessary information on the process of navigating the approvals and permits for starting a construction company in Dubai mainland. Keep reading for more information:
Trade License to Start a Construction Firm
A trade license is mandatory to conduct any type of commercial activity in Dubai. Operating a business without a trade license is a punishable offence in Dubai. The Department of Economy and Tourism (DET) is the competent authority that issues the trade license for businesses in Dubai mainland. A construction license is a type of commercial license. Business setup consultants in Dubai can help you obtain a construction license.
Approvals & Permits for a Construction Firm in Dubai
The construction business license is subject to approval from Dubai Municipality, which holds the right to regulate the license. It means you need to obtain a building license from Dubai Municipality to start a construction company on the mainland. Dubai Municipality’s Building Control and Building Permits Department has laid down the procedures and steps for issuing Building Permits. Business setup advisers in Dubai can assist you with the approval process.
How do Obtaining a Trade License for Construction Firms?
Foreign investors must have a solid strategy to navigate the process of company formation in Dubai. The DET has set out a series of mandatory steps that you need to execute to obtain a construction business license in Dubai mainland. Since some of the steps are complex, it is advisable to apply through business setup experts in Dubai. Now, let us go through the mandatory steps of company registration in Dubai mainland:
- Select the business activity
- Choose a name for the company
- Select a legal structure based on the number of shareholders
- Get initial approval from DET
- Rent an office space and sign the tenancy contract (Ejari)
- Proceed for Dubai Municipality approval
- Submit all the documents
- Pay the mandatory fees and receive the license
- Apply for visas
- Open a corporate bank account
Why You Should Start a Construction Company in Dubai?
The construction sector is without any doubt the essence of the UAE’s economy. The sector plays a vital role in Dubai’s economic development and is poised for rapid growth in the coming years. The government’s initiative to focus on developing smart cities is a huge stimulus for the industry. The UAE’s strategy to digitize up to 1,000 government services and install 2,000 Wi-Fi hotspots also provides a great fillip to the construction sector in the UAE. Moreover, liberal policies such as 100% foreign ownership, long term residency options (UAE Golden Visas) are also attracting more foreign investors into the construction market.
Business Setup Consultants in Dubai can Help You
Even though establishing a construction company in Dubai mainland is a highly rewarding opportunity, foreign investors have to navigate several complex steps and obtain special permits. The steps of business setup in Dubai mainland can be intricate for foreign investors but they can easily manage them by availing professional assistance. Business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can help you open your construction business company without any hassle. JBC is one of the leading providers of company formation services in Dubai with more than 21 years of experience.
We have a team of highly qualified consultants who are well-versed in UAE labour laws and immigration laws. JBC’s business setup advisers in Dubai can help foreign entrepreneurs to deal with complex procedures such as document drafting, visa processing, bank account opening etc. We also help the companies avoid hefty penalties by providing compliance services related to ESR, UBO & AML-CFT. Company incorporation in Dubai mainland becomes easier with JBC’s guidance and assistance. Contact us today for a meaningful consultation.