Property transactions in Dubai have a high yield. Moreover, even due to the ongoing pandemic this year, the real estate business in Dubai remains stable, transactions continue throughout the year. Where the investment market is developing, there is a demand for related, for example, real estate brokerage services in Dubai.
In the UAE, there is an increase in the density of the indigenous population and expatriates. This, combined with a business-oriented government policy and a strong economy, creates favorable conditions for attracting potential investors to open an intermediary firm. If you are interested in such a business, then you should hurry up. To help you get started, we have highlighted the basic requirements.
Registration of a real estate brokerage company
Legal registration of your business is required in any country. You can register it either in zones for local organizations or in free trade zones. Free zones are optimal for property operations.
Definition of the legal structure
Before starting a brokerage firm, determine the type of business structure. There are two main types:
- Individual entrepreneurship.
- Limited Liability Company (LLC).
It is noteworthy that in accordance with the legislation of the UAE, a brokerage firm can only be established in the full ownership of a citizen of the UAE or a company wholly owned by a citizen of the UAE. Therefore, you will have to appoint a UAE citizen as a local sponsor or partner..
Registration of a trade name
As soon as the legal structure or type of business is determined, it is necessary to register the name by contacting the Department of Economic Development together with all relevant documents.
Request for preliminary approval
The next step is to receive a receipt for preliminary approval, for which it is necessary to send the necessary application form and the following initial documents:
- application form
- copies of passports of the owner or all shareholders and manager
- copies of visas of all shareholders
- confirmed certificates of graduation from high school or university of partners and manager
Approval of the Real Estate Regulatory Agency (ARN)
The next step involves obtaining permission from the ARN. To do this, you need to get a qualification. You will need to pass the official qualification procedure, which is regulated by the Dubai Real Estate Institute (DIN). The certification obtained is known as Certified Training for Real Estate Brokers. Next, you will need to pass the exam of the Real Estate Regulatory Agency.
Foundation Agreement or Local Sponsor Agreement
Depending on the organizational and legal form of the business, a completed and signed Foundation Agreement or an Agreement on a local sponsor is required. This document is notarized in court.
Choosing a room or location for your business
To organize a business, it is mandatory to have an office space. In the case of a lease (Ejari), it is necessary to negotiate with the interested parties.
Applying for a license
Before opening your intermediary business in Dubai, you must obtain a real estate license in this country. It will allow you to conduct business legally.
How does the Department of Economic Development determine the purchase and sale of real estate:
|License category||Types of activities|
|Title: real estate|
Group: real estate
|These include firms engaged in the purchase and sale of property, acting as intermediaries between owners and buyers. The role is to sign the contract and get the approval of the commission.|
If the opening is planned in the area for local companies, then you need to apply to the Department of Economic Development. If the company will be created in a free zone, you can apply to the selected FEZ authority.
When submitting an application, together with the license fees, you must provide:
- application form;
- two 35×45 mm photographs (as for passport);
- a copy of the passport of the owner and partners or shareholders (if any);
- a copy of the Emirates ID card of the local sponsor (if available);
- notarized Foundation Agreement or Local Sponsor Agreement;
- NOC for expat partners;
- valid resident or tourist visa;
- lease agreement (Ejari).
After receiving the entire package of documents, the Department of Economic Development issues a payment voucher, which indicates all payments for the purchase of a license. After their payment, a license is issued.
Registration in ARN
As soon as you get a license, the company can be registered in the ARN. The authority will need to provide:
- copy of the license of the Department of Economic Development;
- lease agreement (Ejari);
- receipt for payment of ARN courses;
- location data;
Registration with the Department of Naturalization and Residency of Dubai and the Ministry of Labor
You need to register your organization with the Department of Naturalization and Residency of Dubai (DNRD) and the Ministry of Labor to hire foreign employees and sponsor their visas.
Certificate of proper behavior
The certificate is issued by the Dubai Police Headquarters.
Approval of the Dubai Land Department
The approval of the Land Department is required to open a brokerage company. This is a government agency responsible for all actions with real estate in the region.
What is the cost of opening a brokerage company in Dubai?
The creation of a company requires a large number of approvals and permits, which, in turn, are not free. The payment varies, and depends on the type of business structure and location. The initial cost usually includes the following services:
|Registration (service)||One – time|
|Cost of preliminary approval||One – time|
|Booking a trade name||At a time|
|Sponsorship + professional services||Annual|
|Buying an office||Disposable|
|Typing and translation of the constituent agreement||At a time|
|The founding agreement (articles of association) – the cost of certification||One – time|
|Drafting of the LLC agreement and confirmation of the Court Agreement||Disposable|
|Broker Identification Number||Annual|
|Certificate of good behavior||One – time|
|Fees of the Land Department||Annual|
|The work of real estate brokers ARN||At a time|
|Administrative services and municipal fee||Disposable|
|Market fees (250 dirhams)||Annual|
|Labor card||One – time|
|Employee visa||Once every 2 years|
|Mailbox rental||At a time|
|Landline phone (optional)||At a time|
|Stamp (optional)||One – time|