Opening a real estate company in Dubai requires being aware of the regulations set in place by the Dubai Land Department (LDD). The legal requirements for registration of a real estate company in Dubai are as follows:
- Submission of the Memorandum of Association
- Submission of the Articles of Association
- Submission of the Trade License of the company
- Submission of the names of at least two shareholders of the company
- Payment of AED 500 for registration at LDD
It is important to secure valid documents for the registration of the real estate company. Any false information or misleading documents can result in rejection of the application. Furthermore, the real estate company will be required to be licensed with the Dubai Real Estate Regulatory Authority (RERA).
The cost of setting up a real estate company in Dubai, largely depends on the type of company structure you choose. If a foreign company decides to set up a branch office in Dubai, the cost could be higher than setting up a local LLC. A general estimate of cost can be made based on the following factors:
- Registration Fee: AED 500
- Memorandum of Association: AED 600-AED 800
- Articles of Association: AED 600-AED 800
- Trade License: AED 4,000-AED 5,000
- Bank Guarantee: AED 5,000-AED 6,000
- Company Setup: AED 3,500-AED 5,000
- RERA Registration: AED 3,500-AED 5,000
The cost estimation is subject to change depending on the type of structure you choose for setting up the real estate company, however, these figures should give you a general idea of the costs involved in setting up a real estate company in Dubai.
Support for Foreigners
The city has long been considered a safe haven and a major financial hub for investors from around the globe. Dubai has many incentives to draw in foreign investors and entrepreneurs and is particularly welcoming of those in the real estate industry. Setting up a real estate company in Dubai enables foreign investors to have access to the high-end local residential and commercial property markets. There is no personal income or capital gains tax in Dubai, and the government offers a number of incentives and benefits to foreign investors.
The Dubai government also provides a non-recourse mortgage loan program, allowing foreigners to purchase real estate in Dubai on a loan that is backed by the property itself. This type of loan program makes it easier for foreign investors to get financing and purchase properties in Dubai.
Experts recommend that it is important to explore the local real estate market and to take the advice of an experienced real estate broker before making any decisions. Real estate brokers can provide information on prices, market trends, and upcoming projects in Dubai. It is important to do your due diligence and thoroughly research the real estate company you are looking to invest in, as well as the type of property you are interested in purchasing.
It is also highly recommended to seek the advice of real estate lawyers, as they will have a better understanding of the finer details and intricacies of local real estate laws in Dubai. With the right legal advice, you can ensure that your real estate company is properly registered with RERA and that you are compliant with all the relevant laws and regulations related to the real estate industry.
Advantages & Disadvantages
One of the main advantages of setting up a real estate company in Dubai is the ease of access to foreign markets. As Dubai is considered an international financial hub, foreign investors can easily access the Middle Eastern market and have the ability to tap into the high-end residential and commercial property market. Furthermore, there are no restrictions on foreign ownership in Dubai, and the government offers plenty of incentives and benefits to foreign investors.
However, there are certain disadvantages that should be considered before setting up a real estate company in Dubai. Firstly, the process can be time consuming and requires costly paperwork. Furthermore, the process of registering a real estate company with RERA can be complex and confusing, so it is important to have the right legal advice and support.
Due to the increase in competition in the real estate market in Dubai, it is important to have an effective marketing strategy. One of the best ways to reach out to potential customers is to create a website for your company and utilize digital marketing services to reach potential clients. Furthermore, a well designed and thought out logo can also help your real estate company stand out in the market.
It is also important to establish a relationship and trust with customers. By providing excellent customer service and offering great property deals, you can ensure that your company has a good reputation and can retain customers in the long run.
Setting up a real estate company in Dubai is a complex process and needs to be done in compliance with all the legal and regulatory requirements. It is important to do your due diligence and research before investing in a real estate company in Dubai. Furthermore, it is important to have an effective marketing strategy and to provide excellent customer service in order to stand out in the competitive market and ensure customer retention in the long run.