Dubai is one of the most prosperous and dynamic cities in the world, with a diversified economy and a constantly growing real estate market. If you want to take advantage of the opportunities that this emirate offers, one of the most profitable options is to set up a construction company in Dubai. However, to do so, you have to comply with a series of legal requirements. In addition, you have to comply with other different aspects such as financial and technical ones. All of this can be complex if you are not familiar with the local system.
In this article, we will explain the steps to follow to create your own construction Company in Dubai. From choosing the type of license and the area of operation to hiring the personnel and obtaining the necessary permits. We will also give you some practical advice so that you can manage your business successfully and avoid possible inconveniences. If you follow these guidelines, you will be able to start your project safely and confidently.
Why Select Dubai for Starting a Construction Company?
A construction company in Dubai is one of the businesses that the government is looking for to help diversify the economy. There are several benefits to starting this company, for example, the easy availability of one of the common construction license types. In addition, the support of the government, the increase in the influx of tourists, and others that you will see described below:
Growing opportunities: The government in the UAE has multiple initiatives in various sectors all to diversify the country’s economy. The idea is that these initiatives will produce a gradual increase in foreign investments in Dubai. For example, the National Strategy for Higher Education 2030, the Energy Strategy 2050, and the Dubai Tourism Strategy. All to guarantee that the construction industry in the country has very positive prospects.
Low construction cost: Thanks to the diversification of the economy, there is a significant reduction in construction costs. In comparison, the United Arab Emirates has one of the cheapest construction costs of any developed city in the world. For instance, New York, Paris, Doha, San Francisco and more. This reduction in rates is due to the growing competition in the construction sector.
Accessible labor: The availability of labor raises a big question in any activity of a Construction Company in Dubai. Currently, there is a large shortage of productive and competent labor in the world. However, the Middle East region seems to defy this global shortage. The low employee salaries in Dubai make it a very profitable location for these companies.
Government Promotion: Currently, thanks to the government in the UAE there are measures to ensure that investors and visitors from the world enter the country. This country offers various characteristics to companies to establish their businesses of any type. For instance, a holding company in the UAE.
How to Launch a Construction Business in Dubai, UAE?
Dubai’s most attractive location boasts a variety of eye-catching monuments. In addition, it has a high infrastructure and beautiful beaches. Thanks to its excellent infrastructure, high GDP, high standard of living, diverse population, tax-free environment, and adaptable opportunities, Dubai attracts different populations. From tourists to business travelers.
For all these factors, Dubai is among the best places in the world. Specifically, to do business. To do this, you must take into account several steps to follow and understand the importance of a trade license in Abu Dhabi.
A Construction company in Dubai, United Arab Emirates is one of the highest-earning industries. For instance, the Burj al Khalifa, the world’s tallest building, as well as Marina 101, the world’s tallest residential structure, are in Dubai. Additionally, other important buildings in Dubai are the Princess Tower and the Burj al-Arab.
Starting a Construction company in Dubai involves several steps. For example, business planning, registration, and compliance. Before starting to talk about this guide, you have to know that you have to apply for a special license and you have to understand its meaning, such as the trade license in Abu Dhabi. Below you will see a step-by-step guide on how to Start a Construction Company:
Right Legal Form For Your Business
If you want to setup a construction Company in Dubai, the most suitable option is the mainland. In this way, all continental companies are subject to all the laws and regulations that exist in the UAE.
Register the Trade Name & Get Construction License in Dubai
In order to start a construction Company in UAE you must register your business name with the Department of Economic Development better known as DED. Therefore, the business name you choose must be unique and cannot be offensive.
Additionally, you must apply for initial approval from DED. In this way, you will have to send a completed application form along with other documents. Among these documents, we can find a copy of your passport and a business plan for your construction company.
On the other hand, the commercial sector category includes the construction industry in UAE. Therefore, you will need to obtain a business license. It is important to note that in order to start any business in Dubai, a business license is of utmost importance.
Thus, if you have additional activities, you must include obtaining a construction license from the Dubai Municipality. In addition, there are other licenses that you must obtain, such as the environmental license and the civil works permit. Therefore, you cannot forget the importance of a business license to establish your business successfully without any inconvenience.
Open a Corporate Bank Account
By setting up a construction business in Dubai and obtaining your construction license, you will have the ability to open your own corporate account. Furthermore, this is of utmost importance for all businesses in Dubai. In this way, you will need it so that you can receive payments from any of your clients and also to be able to make payments to your suppliers.
Visa and Labor Requirements
Secure residency and sponsorship visas for you and any foreign employees. You must follow labor laws in the UAE, including hiring practices, working conditions, and wages.
However, it is essential that the process of setting up a company in Dubai can be a complex journey. Which involves following regulations and legal requirements. Therefore, a good recommendation is to consult commercial and legal experts with experience in the market in the UAE. One of the best is Connect Business Centers, so you can guarantee the success of your business and compliance with the laws.
One of the most important job requirements is the Construction Company License in Dubai. You have to know that there are different types of construction licenses. Each of them corresponds to a specific type of construction work. This document is similar to the DED trade license, but it is specifically for the construction sector. The types of construction licenses in Dubai are as follows:
- Construction contracting license: Its function is to allow companies to undertake the construction of industrial properties, residential buildings, office spaces, and commercial buildings.
- Demolition license: This license gives authorization to the company to carry out demolition work on different structures.
- Contracting license for steel construction: Its function is to allow the company to build steel structures. For example, warehouses, factories, and bridges.
- Building maintenance license: It allows companies to carry out building maintenance work. For example, plumbing repairs, electrical repairs, and painting.
- Landscape gardening license: This license allows the company to install and design the landscaping elements. For example, lawns, gardens, and irrigation systems.
How Can I Obtain a License for a Construction Company in Dubai?
First, you have to choose whether to form a free zone or continental company when opening a Construction company in Dubai.
To establish a Construction company in Dubai, you need numerous licenses, authorizations, and approvals. Registration of a construction license in Dubai is the one that has the first place on this list. Subsequently, the business entity can hire site personnel, engineers, and workers of various types after obtaining permission. Another essential legal document before any construction activity can begin is a construction license.
If you want to lay the foundation for a commercial or residential structure, you have to go to Dubai Municipality. This entity is in charge of issuing the license and the G+1 permit.
In addition, when establishing a construction company in the UAE you need several special permits. Specifically, from the civil works and environment departments. Some of the necessary approvals required by Dubai authorities are described below.
- Irrigation and Drainage Department: This department is responsible for the management of disposable services. Specifically, liquid waste.
- Electricity and water department: To confirm that the occupants have access to basic services.
- Dubai Civil Defense Authority and Construction Department: Both entities have the responsibility of ensuring that construction standards are followed.
How Connect Business Centers Can Help You Start Your Construction Company in Dubai?
The opportunities for the construction business in Dubai are very great. However, one of the main obstacles that entrepreneurs who want to start a construction company face is choosing the right office for their activity. Furthermore, options such as renting or buying any physical space are very expensive and require a very high initial investment.
There can also be many bureaucratic procedures and a series of legal obligations that can delay the start of operations. For this reason, a better alternative is to choose to contact Connect Business Centers. In this way, you will be presented with all types of solutions to meet the requirements of each company.
Therefore, if you want to start your construction company in Dubai you must contact the best. Additionally, you can find advice on any other information on how to obtain your business license, UAE regulations, and many other things.
For this reason, do not waste any more time searching for the ideal location to set up your construction company in Dubai. Contact us at our number +971 43 316 688 or send us an email at contact@connectbusinesscenters.com.
