The Dubai real estate market has a high commercial potential. The metropolis is constantly growing and expanding. Innovative transport and digital infrastructure, stable investment climate make it attractive for the largest multinational corporations from all over the world.
For the convenience of living in the city, dozens of residential complexes have been built, equipped with everything necessary for a comfortable and safe life. Dubai is a resort and tourist center. Here you can relax by the sea all year round, attend exhibitions, concerts, and other cultural performances. Hundreds of restaurants, amusement parks, and nightclubs are open for the entertainment of citizens and guests. All this attracts millions of lovers of comfortable southern recreation and life to the city.
The real estate sector is a platform of great business opportunities. Real estate brokerage companies are in great demand. To open a company, it is necessary to collect a package of documents, obtain a license and comply with a number of requirements.
Obtaining a work permit in real estate is not difficult and does not take much time, provided that all documents are issued in accordance with the requirements of Dubai and the UAE.
From this article you will learn about what documents are required for registration of a real estate brokerage company and how much it costs.
Why do you need 100% local property in the UAE for a real estate brokerage business?
For business in the area of local companies in Dubai, there is a legal norm on the transfer of 51% of the partnership to a resident of the UAE. According to local legislation, only UAE citizens can own a brokerage business, i.e. they should own 100% of the rights to the company. To a foreign entrepreneur, such a law may seem questionable from the point of view of their own benefit, but this is not so for several reasons:
- The registration of real estate brokers is handled by the Dubai Land Department. He draws up specialized organizations, guided by the commercial law of the UAE, which is aimed at ensuring the complete security of the investor.
- Real estate brokerage business in a large metropolis involves a large number of transactions. There are cases when foreign investors hide with huge sums or abuse the license. 100% of the property is transferred to a citizen of the UAE, so that it is easier for the authorities to fully control the situation.
- The Emirate is granted 100% ownership, and the investor becomes the managing company. The investor is provided with a 100% power of attorney for the organization, full documented control over it, as well as full operational ownership. These protective legal measures make the brokerage business reliable and safe for the investor.
How to become a real estate agent in Dubai: step-by-step instructions
To start operations, you need to do the following:
Approve the name
Choose a name for your company. It can be Arabic or English, but comply with the guidelines established by the Department of Economic Development (DER).
Get initial approval + “Tashil”
Approval is issued by the DEK. Tashil is a state online system that draws up relevant documentation. Submit applications and issue initial permits.
Draw up a foundation agreement
It must be printed in accordance with the UAE commercial legislation and the protocols of the DER. Notarization of the Constituent Agreement is crucial.
Hire a partner who is a citizen of the country
This is a mandatory step, the need for which was described above. To make sure that the partner is reliable, you can request documents such as an Investor Protection Agreement or a Power of Attorney from a company that makes you a manager and grants you 100% operational ownership of the company. You can also get corporate sponsorship and make sure that you are cooperating with a reliable and trustworthy partner.
Complete the training and get a certificate of the Real Estate Regulatory Agency (ARN)
To open a company, a broker or agent must be certified by the ARN. It is very important to apply for the exam to the authority and get a broker’s certificate.
Certification includes the following steps:
- obtaining a resident visa within the company;
- applying for certified training;
- attending classes held at the training center of the authority;
- passing an exam;
- receiving license and certificate;
- certificate of proper behavior.
Get a certificate of proper behavior
It can be obtained from the Police Department, which makes a request to the ARN.
Get the approval of the Land Department
The opening of the enterprise requires the approval of the regional governing state body.
Rent an office
The presence of an office space is a prerequisite for obtaining a license. In accordance with the rules of the DARE, the applicant must have a lease agreement for a room or an entire office in a business center.
The cost of starting a business
Depends on several factors, including location and business activity.
The cost of the ARN registration exam depends on the level of education:
- for holders of a bachelor’s degree, the exam fee is 3200 dirhams;
- for persons without a bachelor’s degree – 6300 dirhams;
- for applicants without an educational qualification – 15750 dirhams.
The cost charged by the ARN for each event is 5020 dirhams.
As soon as the ARN training certificate is received, you can apply for a license. It will cost approximately 12950 dirhams if the applicant chooses the organizational and legal form of ownership of the future enterprise in the form of an LLC.
The approximate cost of opening a real estate company in Dubai starts from 21,000 dirhams. It depends on the chosen direction of the type of activity and government fees.
Key steps to start a real estate business in Dubai and the UAE
- Approval of the name.
- Obtaining initial approval + obtaining documents in “Tashil”.
- Certification of the foundation agreement.
- Cooperation with a local partner.
- Obtaining the approval of the Registration Service of real estate brokers.
- Obtaining a certificate of proper behavior.
- Obtaining the approval of the Land Department.
- Conclusion of a lease agreement.
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