Things to Know before Starting a Construction Business in Dubai

Construction Business in Dubai

Setting up a construction company in Dubai mainland offers lucrative opportunities for foreign investors due to the emirate’s strategic location, ease of doing business, modern infrastructure and business-friendly regulations.

Recent construction intelligence shared in the BNC Projects Journal also supports the profitability of the construction sector in Dubai. It states that the UAE has seen a staggering 135% year-on-year (YoY) growth with AED 49.25 billion project announcements compared to AED 21 billion in the same quarter last year. Moreover, project awards have spiked from AED 33.46 billion to AED 49.22 billion.

However, before jumping into the water, you need to consider the various aspects of business setup in Dubai. You may have to secure various permits and government approvals to get your construction company license in Dubai mainland.

Since approvals and permits are involved, it would be ideal to get the license through the best business setup consultants in Dubai.

In this blog, we discuss the key considerations before starting a construction business in Dubai mainland:

Steps to Open a Construction Company in Dubai

Dubai Economy and Tourism (DET) is the competent authority issuing a construction company license in Dubai mainland. You need to follow the steps designed by the DET for establishing a construction company in Dubai. The following are the mandatory steps:

Select a company name

Foreign investors need to select a name for their construction company. The company’s name should meet all the conditions stipulated by the DET such as avoiding blasphemous or offensive names. You should also avoid the names of other well-known construction companies in Dubai.

Choose a Legal Structure

You need to determine a legal structure for your company depending on the number of shareholders. Business setup consultants in Dubai can help you determine the most appropriate legal structure for the company.

Choose a Location

To apply for a construction business license in Dubai mainland, you need to have a physical office. Investors must choose a suitable location and rent/lease an office space. The tenancy contract from the property owner must be notarized and submitted to the DET.

Get Permits and External Approvals

To open a Dubai mainland Construction Company, you need to secure a building license from the Dubai Municipality. It is called a G+1 permit. Additionally, you need to obtain an environmental license and a civil work permit. Company setup consultants in Dubai can advise you on how to approach the relevant government departments to obtain the approvals.

Submit the Documents to the DET

Once the approvals and permits are secured, you can submit the documents to the DET along with the official fees. The DET will review the submission and issue the trade license.

Apply for UAE Residence Visas

Now, you can apply for sponsorship and UAE residence visas for yourself and any foreign employees. However, you need to ensure you are complying with the UAE labour laws, including hiring practices, wages, and working conditions. Business setup service providers in Dubai can assist you with the visas.

Open a Corporate Bank Account

Once you have secured a construction company license in Dubai, it is time to open a corporate bank account. Opening a bank account in Dubai is a complex process due to stringent KYC procedures. Therefore, it is advisable to seek the help of company setup consultants.

Top Business Setup Consultants in Dubai Can Help You

Getting a construction company license in Dubai mainland is a complex process as it is a Special Activity. Multiple approvals and permits are required to set up a construction company in Dubai. Foreign investors unaware of the intricacies of business setup in Dubai may find the process tough to navigate. However, company setup experts in Dubai such as Jitendra Business Consultants (JBC) can simplify the process.

We are a two-decade-old company providing reliable company formation services in Dubai and across the UAE. JBC can help you accurately select activities, determine an appropriate legal structure and properly draft legal documents. JBC’s bespoke company setup services in the UAE also encompass visa processing, assistance in bank account opening, and compliance services such as ESR, UBO, and AML-CFT. Consult with JBC today to turn your business dream into a reality.

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