Register A Construction Company In Dubai
Choosing Dubai as your construction company location is a great decision. The reason is, Dubai is a fast-paced country and the most attractive country. This country has evolved and has proven to become the most quickly growing nation. The beauty of this country is at its peak, and it is the right time for you to benefit from it by establishing a business in Dubai. It is a nation that has sky-scraping buildings, beautiful sites, and eye-catching beaches.
The sky-high infrastructure of Dubai is eye-candy for tourists and visitors from all around the world. It is no less than a giant corporate hub for all businessmen.
People from the corporate field should visit Dubai and experience its luxurious lifestyle, classy and rich culture, increasing GDP, easy-going business options, and tax-free workspace. Such opportunities are one of a kind and make Dubai the best place to start your construction business.
Through this article, we will be going to provide you detail process of registering a construction company in Dubai and the various document requires for registration. So, without any further ado, let jump into it
The reason why you should eye Dubai for your company registration needs is that it has various kinds of construction events coming towards it in the future. Currently, there are many projects in progress for the next World Expo.
You should consider Dubai for registering your construction company as it is known to have recorded as the country with a massive project valuation in the Gulf Cooperation Council region. The amount totals USD 319.1 Billion. Our purpose of making you familiar with this data is to let you know why Dubai is a great choice for registering a construction company.
Future Of A Construction Company In Dubai
The building industry is among the largest growing sector in the Emirates. Burj Khalifa, which is the tallest building in the world, and Marina 101 which is globally known for being the highest residential multiplex. The 2 most popular landmarks are the Burj Arab and the Princess Tower.
The Dubai parliament approved a USD 7.8 billion expansion of Dubai International Airport and a USD 6.8 billion reconstruction of Abu Dhabi International Airport. Not to mention the fact that Dubai organized the World Expo, which opened up a plethora of construction prospects.
The government body of Dubai has put in a lot of time, capital, and effort to grow the tourism industry of Dubai. The advertising operations of the Palm Jumeirah, the globe’s biggest man-made island, also are increasing frequently. Other initiatives, such as Dubai Land, the Arabian Canal, and many others, are in the process.
Steps To Setup A Construction Company In Dubai
UAE Construction Permit
Before registering a construction company in Dubai, you must first secure a license to begin operations. The following are the several types of construction licenses available in Dubai:
Obliterating and Destruction License
451001: The activity code
License Category: Building and Constructing Works
With this license, you will be able to destroy large structures that are in disrepair and on the verge of collapsing or to substitute them using various methods such as forklifts for tall structures, manual labor for medium-rise buildings, bulldozers, and infrastructure detonation using explosive materials.
Building Contractor’s License
452001: The activity code
License category: Business
Procurement and construction work is a group of activities.
Under this license, you will be employed in the development of a variety of structures, including residential, farms, public, airports, rural structures, hospitals, schools, commercial, and industrial.
Permit for Maintenance Works
454007: The activity code.
License Category: Commercial
Work in the Activity Group includes construction, maintenance, monitoring, and cleaning.
This license will enable you to restore and repair roofs, floors, walls, columns, and other structures inside structures that do not have any technology or extensions accessible.
Steel Construction and Contracting License
452008: The activity code
License Category: Commercial
The activity group manages the contracting and Building assignment.
To describe the activity, using this license, you’ll be able to take forward all your processes concerning steel construction and you’ll also be able to install steel infrastructures on various locations like bridges, warehouses, factories, sheds, structures, and tunnels.
Procedure To Setup A Construction Company In Dubai
There is a set pattern to everything, and the same applies to starting a new firm. To register a construction company in Dubai, you need to follow certain steps.
The steps are –
The first and the foremost stage to form a company in Dubai is to carefully decide if you wish to form your company in the free zone, or in the mainland. Once you have decided that, your next step should be to register your company through the Department of Economic Development. The building is classified as a commercial activity, which necessitates the acquisition of a commercial license. This license gives you the official go-ahead to open a company in Dubai.
After obtaining a company license in UAE, the next stage is to hire experts in Dubai, such as engineers & corporate advisors, to register for a ‘building consent’ on your account.
Specialists will be in charge of evaluating the material for building development and assessing its qualities, that would be the next crucial stage.
In the instance of the Mainland Business, such procedures include acquiring a Building License from the Dubai Municipality. It is known as the G+1 authorization in the event of a free zone. Additional permissions, such as the ecological license and the legal work permit, must be acquired.
Necessary Permits and Authorizations Required
Permission for infrastructure projects, which covers work done before any bases are laid. The contractor must submit detailed plans of the planned project to the relevant rule to get a permit to build. So, let’s dive into details and know more about the mandatory permits one needs to have to register a construction company in Dubai.
You would need:
- An authorized environmental license from a relevant body.
- An official allowance from the Roads and Transport Authority to use the external & internal roads for transport needs.
- Approval from relevant bodies to get rid of dangerous waste and residual building material.
- Another permit that is required is from the UAE government bodies, for utilities. The utilities include electricity, water, and sewage. So, you will need permission from the Dubai Electricity and Water Authority. To gain a permit for telecommunications you will need a confirmation from Etisalat.
- The next permit you would need is a NOC for Dubai Airports Corporation from the Dubai Civil Defence.
- Last but not the least, you will also need a Building Completion Certificate that helps you gain a permit to occupy the building.
The purpose of this blog was to make you realize that the construction sector of Dubai is growing every day and will be at its peak in the forthcoming years.
We, at Odint Consulting, have studied the market of Dubai, and have concluded that if you are thinking of starting a construction company in Dubai, you should go with the idea without keeping any second thoughts.
In Dubai, starting a construction business normally costs between AED 15,000 and AED 25,000.
Dubai’s construction industry is expected to remain rock-solid in the forthcoming years, with modifications in Expo being the main reason for the sector’s success.
6 permissions are needed to set up a construction company in Dubai. Such as licenses for transport, disposal of waste, utilities, and an environmental license.
- Visa and bank account
- Business license
- Company location
- Approvals and other licenses
- Building permit
Some of the benefits are –
- Easy license acquisition
- Cheap and easy transportation facilities
- Low cost on construction
- Supply of skilled laborers
The construction industry in the UAE was previously projected to increase by 3.8% in 2022, but GlobalData has revised that prediction down to 2% in real terms for this year.
Azhar Ansari is a company formation specialist with 8+ years of expertise in international business. Financial planning, risk management, and other related areas.