The UAE is a captivating destination, boasting impressive skyscrapers and a breathtaking skyline. It offers abundant business opportunities, thanks to its tax-free environment, making it an attractive choice for investors. Notably, the construction sector in the UAE has experienced remarkable growth, with Dubai currently holding the second position in terms of construction. With the potential for further advancements, reaching the top spot is within reach. To assist you in this endeavor, here is a comprehensive guide to starting a construction company in the UAE.
If you’re considering starting a new business in Dubai, it’s highly recommended to engage the services of reputable business setup consultants. These consultants play a crucial role in providing the necessary support and guidance from governing bodies. By selecting the best business setup consultants, investors and aspiring entrepreneurs gain access to the right resources and approvals essential for their business operations.
The UAE provides a lot of options for entrepreneurs from all over the world. You can choose from a wide array of company structures when setting up a company here. Some of the most popular ones are Sole Proprietorship, General Partnership, Limited Liability Company, and Civil Company.
Today, we are going to look at how you can start a Civil Construction Company in Dubai easily.
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How can I Start Construction Business in Dubai?
Starting a Civil Construction Business in Dubai is comparable to starting other types of companies in the city. However, you need a few extra approvals and documents to start the company because you need to prove your expertise in the field.
If this is your first time starting a Civil Company in Dubai, then it is highly suggested that you get assistance from professionals. Company Setup experts are here to help you out.
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Here are the steps you need to follow in order to start a Civil Construction Company in Dubai:
Step 1: Select your Business Activities
The first step of starting a Civil Construction Company in Dubai is to select the business activities you want to perform through your business. This is because your business activities will decide which business trade license you need to apply for.
However, since you will be providing professional services through your Civil Construction Company, you will require a professional trade license unless you specialize in a highly technical field. In such cases, you will require the respective business trade license of that field.
Step 2: Register your Trade Name
You will need to register a trading name for your Civil Construction Company in Dubai. To do this you will have to follow a few naming regulations set by the government of the UAE.
Additionally, you need to ensure that the name is unique inside the UAE. The name you have in mind can exist elsewhere in the world. As long as it is not registered inside the UAE, you can go for it.
Step 3: Get the Initial Approval
The Department of Economic Development in Dubai is responsible for handling the registration process of new businesses in the city. To obtain the business trade license for your Civil Company in the city, you need to get the initial approval from the Department of Economic Development in Dubai.
To get the initial approval, you will need to fill in an application form with all the required information.
Step 4: Get an Office Space
All businesses in the city need to get an office space in order to receive the business trade license because the tenancy contract and EJARI are mandatory.
However, if you do not require a physical office space, then you can get a virtual office space to meet these requirements. After you have acquired office space for your Civil Construction Company in Dubai, you can move on to the next step.
Step 5: Get the External Approvals
Depending on the business activities you want to perform through your Civil Construction Company in Dubai, you need to get a few external approvals from various government bodies and agencies.
For example, if you want to provide healthcare services then you need some external approvals from the Dubai Healthcare Authority (DHA).
Step 6: Submit the Required Documents
After you have received all the required approvals, you need to procure the required documents as requested by the Department of Economic Development in Dubai. Here are the documents you will need to provide to start your Civil Company in Dubai:
- Certificate of trade name reservation
- Initial approval certificate
- Copies of the passports of all the partners in the business
- Tenancy contract and EJARI
- Partnership agreement between the affiliated entities
Step 7: Obtain the Business Trade License
After you have submitted all the required documents, the Department of Economic Development in Dubai will provide a payment voucher to you. You will need to complete the payment related to the voucher.
If all the document checks out and the payment is completed, they will provide the business trade license to you within a few days.
How much does it cost to start a construction company in Dubai?
While the initial cost of opening a construction company in Dubai is approximately AED 23,000, it is crucial to recognize that this amount only serves as a starting point. In addition to this, you must also consider expenses related to visas, office setup, staffing, and the cost of acquiring all the required permits and approvals.
How to Get a Construction Company License in Dubai
Starting a construction company in Dubai involves several steps and permits. Here’s a simplified guide:
- Choose Business Type: Decide if you want a Mainland or Free Zone Company for your construction business.
- Construction License: The first step is to obtain a construction license, which allows you to set up your business. With this license, you can hire engineers, site staff, and workers.
- Building License: Before any construction work can begin, you need a building license. The Dubai Municipality issues Construction License in Dubai, which includes a G+1 permit for residential or commercial structures.
- Specialized Permits: There are specific permits required from different departments:
- Drainage and Irrigation Department: This department handles liquid waste management and other services.
- Water and Electricity Department: This confirms that the building will have access to basic amenities.
- Building Department and Dubai Civil Defence Authority: These ensure that construction standards are met.
Different Types of Construction Licenses in Dubai
In Dubai, there are various types of construction licenses, each tailored for specific types of construction work. Here are some of the common construction license types:
- Building Contracting License: This license lets a company handle various construction projects, including residential buildings, industrial properties, commercial construction, and office spaces.
- Wrecking & Demolition License: With this license, a company can perform demolition work on buildings and other structures.
- Steel Constructions Contracting License: This license allows a company to construct steel structures like bridges, warehouses, and factories.
- Building Maintenance License: Companies holding this license can carry out maintenance work on buildings, including tasks like electrical repairs, plumbing fixes, and painting.
- Landscape Gardening License: This license permits a company to design and install landscaping features, such as gardens, lawns, and irrigation systems.
What are the Business Opportunities for Construction Company in UAE?
The UAE boasts one of the world’s most dynamic construction industries, offering a plethora of opportunities for construction companies. Dubai’s government is driving special development projects to boost tourism, like the iconic Palm Jumeirah, Deira Island, and Maritime City, creating vast prospects for the construction sector.
The UAE is also investing heavily in transportation infrastructure. Projects such as Dubai International Airport’s expansion and Abu Dhabi International Airport’s renovation present substantial opportunities for construction companies.
Furthermore, there are various specific projects available for bidding in the UAE. Regardless of the type of construction business, Dubai is a profitable hub with new projects emerging consistently. By seizing these opportunities, you can pave the way for a promising future in the construction industry.
If you need assistance with this journey, our experts at Company Setup Consultants are available around the clock to guide you through the process.
Guide to Obtaining a Construction Company License in Dubai
To obtain a construction company license in Dubai, you must first decide whether to establish a Mainland or Free Zone Company within the UAE.
For initiating a construction business in Dubai, several clearances, licenses, and approvals are necessary. The initial step is to register for a construction license. Once this permit is secured, the business can proceed to hire engineers, site supervisors, and various types of workers. Another essential legal document required before commencing any construction activity is a building license.
The Dubai Municipality issues the building license and G+1 permit necessary for laying the groundwork for residential or commercial structures.
Furthermore, establishing a construction company in the United Arab Emirates entails obtaining specialized permits from departments overseeing civil works and environmental regulations. Some of the crucial approvals mandated by Dubai authorities include:
- Drainage and Irrigation Department: Responsible for managing liquid waste and other disposal services.
- Water and Electricity Department: Ensures provision of basic amenities to occupants.
- Building Department and Dubai Civil Defence Authority: These institutions oversee compliance with construction standards and safety regulations.
Navigating these steps and obtaining the necessary approvals is vital for the successful establishment and operation of a construction company in Dubai.
How much is a construction license in Dubai?
The cost of initiating a construction business in Dubai can fluctuate based on several factors including business size, nature of construction activities, and location of operations.
Typically, the starting cost for obtaining a construction license in Dubai is around AED 25,500.
How can we help to Setup a Civil Construction Company in Dubai?
If you want to start a Construction Business in Dubai but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants have started various types of Companies all over the UAE. Contact us today and hit the ground running.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971 582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
