The purchasing and selling of real estate in Dubai is very popular due to the tremendous profits that can be obtained. Even with the ongoing pandemic this year, the real estate industry in Dubai has remained strong, with transactions continuing throughout the year, making it a profitable business prospect. Additional information: A thriving investment market would also generate demand for associated services such as real estate brokerage in Dubai, which will be in high demand.
Furthermore, the increasing population density of Dubai, particularly the growing number of expatriates in Dubai every year, combined with pro-business government policies and, not to mention, the robust economy, are sufficient to entice potential investors to establish a real estate buying and selling brokerage company in Dubai.
As a result, if you are considering establishing a real estate brokerage business in Dubai, now is an excellent moment to make an investment in this massive and lucrative industry. In order to assist you in getting started with your real estate brokerage business in Dubai, we have compiled a list of the most important criteria that you must meet.
The registration of a real estate brokerage business
Business registration is required in every nation, including Dubai, in order to conduct legitimate operations. Anyone interested in establishing a real estate company in Dubai may do so on either the Dubai mainland or in one of the free trade zones, according to the UAE law.
Free zones, on the other hand, are often the most favoured location for establishing a real estate buying and selling brokerage business in Dubai.
Make a decision on the legal framework.
Choose the appropriate kind of business structure for your real estate buying and selling brokerage firm before you begin operations. This will assist in positioning the business in the most advantageous position possible, both operationally and financially.
For the purposes of carrying out real estate brokerage activity in Dubai, there are two primary kinds of company structures that may be formed in the city.
Limited Liability Company (LLC) for a sole proprietorship (LLC)
It is worth noting that, according to UAE law, a real estate brokerage business may only be established with the entire ownership of a UAE citizen or with a corporation that is fully controlled by a UAE national. First and foremost, you must choose a UAE citizen who will serve as a local sponsor or partner for your organisation.
Creating a trade name is a simple process.
Once you’ve decided on a legal structure or company type, you’ll need to register your trade name with the Department of Economic Development (DED) in Dubai, along with all of the necessary supporting documentation.
Obtaining preliminary approval is a requirement.
To get the preliminary permission request receipt, the applicant must provide the following initial papers in addition to the required application form:
Form for submitting an application
Copy of the owner’s passport, or copies of the passports of all shareholders and the management
All stockholders’ visa documents are required.
Certificates of high school or university graduation from the partners and management that have been attested
Real Estate Regulatory Agency approval is required (RERA)
The RERA must provide its permission before the project may proceed. It is essential for you to acquire the appropriate credentials in order to do so. A official qualification granted by the Dubai Real Estate Institute is required, which must be completed and passed in order to be eligible (DREI). Certified Training for Real Estate Brokers is the name given to the qualification that is granted. Following that, you will be required to pass the Real Estate Regulatory Agency (RERA) test, which you must pass in order to continue.
Memorandum of Association (MoA) or Agreement with a Local Sponsor (LSA) (LSA)
Depending on the legal structure of a company, a completed and signed Memorandum of Agreement (MoA) or a Limited Liability Company (LLC) is needed. This document will be notarized and legalised in the presence of the court clerk.
Choose a location or a place of business for your company.
When starting a company, it is very necessary to have an office space. If you are renting a space, be sure to coordinate your tenancy contact (Ejari) with the appropriate parties.
Fill out an application for a licence.
Before you can start your real estate brokerage company in Dubai, you must first acquire a Dubai real estate trade licence, which will enable you to conduct your business activities legally.
The following is how the DED defines the terms “purchasing” and “selling” real estate:
Activities that are permitted under a licence category
The licence has the following designation: Real Estate Activity Code: 702001.
Real Estate is a collection of people who do things for a living.
Commercial licences are available.
These include companies that engage with the purchase and sale of real estate, as well as those who serve as intermediaries between property owners and purchasers. Once the contract is signed and the commission has been received, the position is considered complete and finished.
It is important to note that if your real estate brokerage business will be located on the mainland, you will need to submit your application directly to the DED. You may submit your application directly to your selected free zone authority, on the other hand, if you have chosen a free zone setup as your business setup option.
When submitting your application, you will be required to provide the following documents in addition to the appropriate licencing fees:
application form that has been completed
Two photographs the size of a passport
A copy of the owner’s passport, as well as the passports of any partners or shareholders (if any)
Copy of the local sponsor’s emirates identification card (if any)
For expat partners, a notarized memorandum of understanding and an LSA NOC are required.
Visas for residency or tourism that are valid
Contract of tenancy (Ejari)
Following receipt of the complete set of papers, the Department of Environmental Defense (DED) provides a payment voucher that includes all fees that are required for obtaining the licence. The licence is issued by the DED after the money has been received.
RERA registration is required.
Once you have obtained the licence, your business may now be registered with RERA by providing the necessary papers to the regulatory authority:
Tenancy agreement, application form, DED licence, and DED certificate (Ejari)
Receipt for RERA courses that have been paid for
Registration with the DNRD and MOL for the location of your company
In order to hire foreign workers and sponsor their visas, you must first register your real estate brokerage business with the Department of Naturalization and Residency Dubai (DNRD) and the Ministry of Labour (MOL).
Certificate of Good Conduct (Certificate of Good Conduct)
The General Headquarters of the Dubai Police Department has given this certificate.
The approval of the Dubai Land Department is required.
For the purpose of establishing a real estate brokerage in Dubai, approval from the Dubai Land Department is needed. The Dubai Land Department is a governmental organisation that is in charge of overseeing all aspects of real estate in the area.
What is the approximate cost of establishing a brokerage firm in Dubai?
Setting up a real estate firm in Dubai requires a large number of licences and approvals, all of which will incur a number of expenses that will vary depending on the kind of business structure and location chosen. While this is true, the initial set-up cost of starting up a real estate company in Dubai takes into account a number of factors, including the following.
|Preliminary approval cost
|Trade name reservation cost
|Sponsorship + PRO services
|Physical Office (buying of property)
|Physical office (rent)
|MoA typing & translation cost
|MoA and AOA (articles of association) attestation cost
|Drafting the LLC contract and Court Agreement Attestation (CAA)
|Good Conduct Certificate
|Land department fees
|RERA real estate brokers’ course fee
|Administrative services fee and public waste municipality fee
|Market fees (AED250)
|Immigration card fees
|Labour card fees
|Once in 2 years
|Emirates ID (per employee)
|P.O. box rental
|Telecom landline (optional)
|Company stamp (optional)
Getting your real estate company up and running in Dubai is simple!