How To Start A Real Estate Business In Dubai
Dubai and the UAE, in general, are well-known for many things, but perhaps none more so than real estate business in Dubai. That is probably why so many people want to start a real estate business in Dubai. So, suppose this is something that interests you. In that case, this article will go over everything you need to know about starting a real estate company in Dubai.
The international market has recently slowed, but bouncing back is what Dubai does best, attracting people from all over the world for real estate investment. In such circumstances where Dubai is soaring in international market, if you choose to work with a company setup specialist, you will get your business off to a good start by ensuring that all of the necessary paperwork is in place for your new Dubai real estate company.
What Exactly Is Real Estate Brokerage in Dubai?
The By-Law No. 85 of 2006 regarding the Regulation of Real Estate Brokers Register in Dubai, also known as the “Brokers Law,” was issued in May 2006. Brokerage is the contract entered into by a broker with their client to look for a second party to enter into a specific contract.
Opening a real estate brokerage in Dubai is the practice of assisting clients interested in purchasing, renting, or selling real estate properties and connecting them with prospective buyers or tenants.
Broker vs. Agent in Real Estate
There are several misconceptions about the distinction between real estate brokers and agents. For one thing, while both can sell homes and assist purchasers in selecting properties, a real estate broker has received more thorough training and license from the Real Estate Department. A real estate broker can hire agents to work for their firm. As specified in the UAE Brokers Law, they would also be accountable for specific financial and managerial concerns.
The most acceptable part of becoming a real estate broker is that they are allowed the flexibility to work independently instead of an ordinary agent who would require the direction and control of a registered broker.
If their brokerage firm is legally and effectively created, a real estate broker will perform their trade successfully and opening a real estate brokerage in Dubai will be no problem.
How to Begin a Real Estate Business in Dubai
You must follow numerous stages to establish a real estate business in Dubai, regardless of the area of real estate you want to go into – from development to brokerage to management.
1. Decide if you want a free zone or a mainland license:
The first consideration is whether a free zone or a mainland structure is best for your business. You can trade with the UAE market and bid on government contracts if you have a mainland setup. You may also take the free zone path with a 0% tax rate, no currency limitations, total customs tax exemption, 100% profit repatriation, and many other advantages. While your free zone business cannot deal directly with the UAE market, there are solutions to consider that may allow you to do so in the future. Because this is an important choice, a business formation specialist can advise you on the best course of action.
2. Decide on your business activity:
Your selected activity must be precisely aligned with the business activity you intend to perform. It is advisable to retain the services of a business formation professional to ensure that everything is explicit and lawful.
3. Select a business name:
UAE is quite stringent regarding company naming. Therefore it’s essential to be aware of the rules. Essentially, you must avoid using any terminology that may be considered insulting or profane. Any name that is already in use by a well-known organization must be avoided. If you’re calling your firm after yourself, make sure you don’t shorten it. So Mike Smith Real Estate is all right, but M Smith Real Estate isn’t. Of course, you’ll want to make sure your selected company name is still accessible for registration.
4. Obtaining a real estate license
The next step in starting your real estate firm is to apply for a license. Remember that the sort of license you’ll need will most likely differ depending on whether you’re managing, brokering, or creating.
You can apply to the Department of Economic Development for mainland installations (DED). However, it is critical to deal with a business formation professional who can walk you through the procedure, whether it’s a business setup in Dubai on the mainland or in a free zone.
Remember that you will also require appropriate authorization to operate in Dubai real estate lawfully. When dealing in real estate, there is one more requirement: passing the Real Estate Regulatory Authority’s Certified Training for Real Estate Brokers course (RERA).
How can BlueKryon help you?
Though the procedure of forming a business in Dubai and the other Emirates is not too complicated, a previous understanding of the process may be necessary to complete the incorporation. Fortunately, BlueKryon has assisted hundreds of investors in establishing their businesses in Dubai.
We are a group of committed experts that are well qualified to assist local and international professionals wanting to develop their practices in Dubai and the other Emirates, intending to provide the most appropriate advice and package that meets their demands. Our employees are expert at company formation in UAE, whether its legal advice or helping you throughout the process.
Contact us now to learn more about how we can assist you with launching your real estate brokerage in Dubai.
