Dubai is one of the top names that comes through your mind when you think of attractive destinations, high standard of living, starting a new business because of it’s tax free benefits and many more to the list. Transformation of this country from days of yore, and presently the magnificence of this nation has arrived at its pinnacle. Dubai’s most alluring locations have many eye-getting locales and lovely sea shores, also the sky-scraping infrastructure.
The construction zone in the UAE operates with full volume due to a number of big mega projects and the number of foreign investors seeking to obtain residency in Dubai by investing in real estate has led to a fast increase of the construction sector in the emirate, considering the value of properties dedicated for such purposes is quite high. UAE has seen impeccable growth in the construction sector.
Steps to set up a construction business in Dubai:
Step 1 – Company structure and location
If you are considering starting a construction business in the UAE, you ought to initially ensure to go for a Mainland Company Formation or setup a Free Zone Company. Assuming that you choose to frame a Mainland Company, you will require a local partner to have 51% of the ownership for the organization. Nonetheless, a Free Zone Company permits you 100% ownership. Yet, regardless of what kind of company you intend to set up, you ought to think about the rules and regulations of building laws in UAE.
Step 2 – Construction License in Dubai
Construction company license in Dubai will allow you to provide the services into industrial, commercial and residential areas. After getting a construction license in UAE, you will be able to offer construction services to all kinds of real estate projects; that is going from small office repair to constructing a new building.
Types of a Construction license in Dubai:
- Wrecking and Demolition License – With this license, you will be allowed to engage in demolish buildings and other structures which are in rundown conditions and are at the edge of collapse, or for replacement using different techniques, such as cranes for high rise buildings, excavators, and manual for medium buildings as well as building implosion using explosives.
- Activity Code – 451001
- License Type – Commercial
- Activity Group – Contracting and Building works
- Building Contracting License – Under this license, you will be involved in constructing all kinds of buildings like residential, hospital, airports, farms, commercial, schools, industrial, public, agricultural buildings etc.
- Activity Code – 452001
- License Type – Commercial
- Activity Group – Contracting and Building works
- Building Maintenance License – This license will allow you to maintain buildings without any equipment or extensions available inside, like restoration and repair of roofs, columns, walls, floors and others.
- Activity Code – 454007
- License Type – Commercial
- Activity Group – Building, Maintenance, Surveillance and Cleaning work
- Steel Construction and Contracting License – With this license, you will be allowed to execute all the activities related to steel constructions and install steel structures on sites, such as warehouses, factories, sheds, storage place, bridges, structure, tunnels etc.
- Activity Code – 452008
- License Type – Commercial
- Activity Group – Contracting and Building works
Step3 – Approvals and Permits
After getting the necessary license, it’s important to obtain external approvals from government authorities to start your construction company in Dubai, UAE. Below are the list of approvals which are required for a construction company.
- Drainage and irrigation department – This is to take care of liquid waste management and other kinds of disposable services.
- Water and electricity department – It is important to get permission from these authorities as this provides some of the basic amenities of water and electricity to the owners.
- Building department and Dubai civil defense authority – This clearance makes sure that the construction guidelines and norms have been adhered to.
- For obtaining a building permit, the contractor must submit the design drawings of the proposed building and get that approved by the relevant authority.
- An approval from the Roads and Transport Authority to access the road and internal road network for transportation purposes.
- For disposal of waste, approval is to be issued by the relevant authority.
- A license from Etisalat for telecommunication needs.
- Completion Certificate allowing the building to be occupied.
How does The Clever Corp help with construction business setup in Dubai?
We, at Clever Corp, have a professional and dedicated team to help entrepreneurs and business owners to invest in forming a construction company in Dubai, UAE. We help in business setup in Dubai and also provide PRO services for real estate tasks. So, if you are thinking of launching or want to start a Construction company in Dubai and are not sure of how to get all the permits, please get in touch with us. We not only assist you in all legal work related to setting up a construction company in Dubai-UAE but also provide end-to-end solutions and handle all the mundane tasks required to do this.
