Planning to start your construction business in the UAE will leave you with two options to select your location. You can either go for the Mainland Company, where you will need a local partner who is bestowed with 51% ownership of the shares, or a Free Zone companywhich allows your 100% ownership. Irrespective of the type of company you plan to set up, you will have to abide by the guidelines and provisions of building law in UAE.
You will be interested on: Construction Company Setup in Dubai
Steps involved to set up a Construction Business in Dubai
The first thing is to decide whether you want to set up a company in the Mainland or in the Free Zone.
The next step involves registering your company at the DED (Department of Economic Development. Construction businesses fall under the commercial sector and hence a commercial license is to be obtained. This license is permission to start a business in Dubai.
The next step after acquiring a commercial license is to employ professionals like engineers and business consultants who on your behalf can apply for a building permit.
The further step involves evaluating the soil and determining its properties by the professionals.
Obtaining licenses from various departments depending on the type of company is the next step. In the case of a Mainland Company, you will have to obtain a building license from the Dubai Municipality, while in the case of a Free Zone company it is a G+1 permit. Other licenses like civil work permits, environmental licenses, etc also need to be acquired.
Approvals and Permits Required
In case of a building permit, the contractor needs the submission of design drawings of the proposed building.
In case of works prior to any foundations, a civil work permit is applied for.
An Environmental License
Permit from the RTA (Roads and Transport Authority) to access road and internal network
Approval from relevant authorities to the disposal of hazardous waste
Permits from Dubai government entities regarding utilities. For example, a permit from Etisalat for telecommunications, permit from Dubai Electricity and Water Authority (DEWA) for electricity, and water.
A NOC from DCD (Dubai Civil Defence) for Dubai Airports Company and other government entities
To allow the building to be occupied, a Building Completion Certificate is acquired.
The factor that gives rise to the construction business in Dubai is increasing the number of foreign investors.
Entrepreneurs across the globe come to Dubai for business opportunities and to seek residency in Dubai. It leads to the increasing construction sectors that value the properties on this basis.
Construction Company Formation In UAE
When you look to start a construction business in the United Arab Emirates, decide either you form a Free Zone Company or a Mainland Company.
The formation of a Mainland Company needs you to have a local partner to own 51% of your company shares. Formation of the Free Zone Company grants complete ownership. You can understand the benefits and differences of these company formation types here.
It doesn't matter what type of company you like to establish, take into account the UAE provisions of building law amended in 2013.
For Contracting and Construction License in the UAE
Our experts of Black Swan will assist you with the company registration process. This needs to prepare the application form, essential documents and file them to the Department of Economic Development (DED) in the United Arab Emirates.
Get a commercial license to give you official permission to start your company formation in Dubai. After receiving this license, you need a building permit that allows you to start the construction activities.
You may need consultants or engineers to apply for your building permit. Then the responsibility of the consultant is to evaluate the soil from the construction site and to determine their properties.
Other licenses can be the building license that is issued by a Free Zone Company or Dubai Municipality known as G+1 permit. The construction companies should get a civil work permit and an environmental license.
Special Approval Needed From the Government Authorities
Once obtaining the above-mentioned license, the Construction Company of Dubai must acquire special approvals from the government authorities listed below.
Electricity and Dubai water Authority: You need a clearance from this department to provide the basic amenity to the occupants.
The Department of Drainage and Irrigation: This deals with disposable services and liquid waste management.
Dubai Civil Defense Authority and Building Department: These institutions keep a check of the construction company, whether it adheres to construction norms or not.
For more information on ways to set up a Construction Company in UAE, feel free to contact the Blackswan business set-up team.
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