In Dubai, investors and entrepreneurs from all over the world can obtain the opportunities they need to establish their businesses. And this location is favorable for many types of industries, including the construction sector, which has recently shown unprecedented growth. Therefore, many foreign investors like you desire to set up their construction companies in Dubai and achieve their goals successfully.
In this article, you will learn everything about the business setup process to establish a construction company in this emirate. More precisely, we will explain what you must know about the steps of the process, the approvals it requires, etc. In addition, you will also learn how to successfully become a contractor and seize business opportunities in this UAE emirate. Let us observe:
- What is a construction company in the UAE?
- How can you start your company in the UAE?
- How can you become a contractor in Dubai?
- What are the business opportunities for a construction company in UAE?
- What are the UAE required approvals for setting up a construction company?
- How can Connect FZ help you set up your construction company in Dubai?
1. What is a construction company in the UAE?
Due to the thriving economy of this country, construction companies in the UAE of all sizes have guaranteed success. As a matter of fact, you can find some of the best construction companies in the world in this country. And among the services that these companies provide, you will discover services in several sectors, including the following:
- Infraestructure.
- Transport.
- Building.
- Oil and natural gas plant construction.
- Mining.
- Trading and manufacturing.
- Automotive.
- Hospotality.
- Real estate.
- Heavy equipment.
- Electrical.
- Lightning.
There is a variety of projects that the best construction companies in the country can carry out. And the main factors that influence these projects can vary a lot, including complexity level, size, and location. So, if you desire to establish a construction company in this country, you need to define your area and other details. Below, we will explain how to set up your company in Dubai.
2. How can you start your company in the UAE?
As you may know, setting up a new company can be a complex and time-consuming process. And it will require you to get and/or provide a variety of documents before starting your business operations. Therefore, it is recommendable to be aware of the steps and paperwork that this process involves before carrying it out.
Below, we will briefly explain each step that the process to set up construction companies in Dubai involves, which are:
- Choosing a suitable company structure and location.
- Applying for a license to perform your business activities.
- Getting the necessary building permit.
- Obtaining the required approvals and other essential licenses.
- Learning about the provisions and limitations.
- Get your visa and open a bank account.
2.1. Choose a suitable company structure and location
The first step that all construction companies in Dubai must complete during the setup process is deciding on a location. In addition, they must choose a type of company structure that suits their requirements and needs in their chosen location. When it comes to location, Dubai offers two main ones; mainland and free zones. And each of these locations provides different advantages.
Keep in mind that choosing Dubai Mainland will require you to have a local sponsor. In the meantime, free zones do not require it and allow you to have 100% of foreign business ownership. On the other hand, you need to consider other features and benefits of each location and company structure before choosing.
2.2. Apply for a license to perform your business activities
To register new construction companies in Dubai, it is necessary to apply for a suitable license. And, in this case, it is mandatory to apply for a construction license, which can be obtained in any free zone. If you are setting up in Dubai Mainland, you must approach the DED (Department of Economic Development) to get the license.
A construction-related business will need to get a license under the commercial type. However, the license and any additional approvals may differ according to the business activities you want to perform. Therefore, make sure to determine your activities before applying for a license.
2.3. Get the necessary building permit
One of the most important things you must achieve is the building permit allowance for several business activities. And keep in mind that this procedure has to be done before getting a license for your business in Dubai.
This step of the business setup process may be a bit complex in many cases. Therefore, it is recommendable to have a business partner in the UAE who can help you complete this process. This way, you can easily overcome this challenging task and obtain all the licenses and approvals you require.
2.4. Obtain the required approvals and other essential licenses
Apart from the construction license, setting up your construction company in Dubai will require you to get additional approvals and certificates. Nonetheless, these elements will vary depending on whether you set up your company in a free zone or the mainland.
For example, free zone companies must have a G+1 permit. On the other hand, mainland companies will need a similar allowance. Among other necessary licenses, you will probably need a steel construction license, building maintenance license, etc. Below, we will mention some of the most vital approvals that you will need to get during the company formation process.
2.5. Be aware of the provisions and limitations
As you may know, in Dubai and other UAE emirates, construction companies must follow a number of rules and regulations. And, as we mentioned before, the government provides advanced infrastructure, lenient taxation laws, and supportive policies. With all these beneficial elements, the government looks forward to empowering construction companies in Dubai and across the country.
Nonetheless, it is mandatory to be aware of the limitations related to the construction license in this UAE emirate. Otherwise, you might make costly mistakes that can lead to penalties. For this reason, you should request consultation services to learn more about the local rules and guidelines.
2.6. Get your visa and open a bank account
As an investor or entrepreneur, getting a suitable visa in Dubai will be a requirement. It will allow you to live and work in this emirate, as well as sponsor your family members and domestic staff. And depending on your needs, you can choose between different types of visas available in Dubai.
Once you get your visa and business license, you need to open a business bank account in the UAE. Feel free to choose a local or international bank that suits your needs and requirements.
3. How can you become a contractor in Dubai?
To become a construction contractor in a location such as Dubai, you need to follow the steps we mentioned before. And with the benefits and incentives that this emirate provides, you will become a successful contractor in no time. Besides, keep in mind that this emirate has strategic plans to attract more investors and entrepreneurs like you for many purposes.
To summarize, make sure to get your construction license to start operating your construction company in Dubai or become a contractor. Also, it is essential to obtain some other permits and approvals, which we will mention below. If you seize the many business opportunities that Dubai offers, you will reach success and achieve your goals quickly.
4. What are the business opportunities for a construction company in UAE?
Among the most lucrative and successful business sectors in Dubai, you can find the construction sector. As you may know, Dubai has some of the tallest buildings in the world, such as the Burj al Khalifa. Apart from that, you will find more examples of the finest structures, like Marina 101, Burj Al Arab, and more.
And to favor the expansion of the tourism industry, the Dubai government is currently overtaking many development projects. Of course, it involves the participation of all construction companies in Dubai, including the new ones established by foreigners. Therefore, if you are looking forward to setting up a construction company, Dubai is the perfect place to do it.
5. What are the UAE required approvals for setting up a construction company?
In order to complete the business setup process, you will also need to obtain certain approvals from important government authorities. All construction companies in Dubai must get the following external approvals before starting their operations in the emirate:
5.1. Approval from Dubai Electricity and Water Authority (DEWA)
Not only construction companies in Dubai must obtain this approval but also all industrial-related companies. And the main reason is that DEWA (Dubai Electricity and Water Authority) is the entity that provides vital services.
Without water and electricity, running a construction company is simply impossible. Therefore, make sure to obtain approval from DEWA so you can cover the basic amenities that your company will need.
5.2. Approval from the Drainage and Irrigation Department
Apart from approval from DEWA for water and electricity amenities, you will need the respective approval from this authority. And with this element, you will have the necessary permit for liquid waste management, among other kinds of disposable services. Many industrial-related businesses, such as construction companies in Dubai, must get this approval in order to start operating.
5.3. Approval from the Building Department and Dubai Civil Defense Authority
This particular approval works as a clearance that determines whether construction companies in Dubai operate as per the construction regulations/norms. Once you obtain this approval, it will be easier to perform your activities in the emirate.
5.4. Additional approvals
As we mentioned before, it is a requirement to obtain a building permit during the business setup process in Dubai. And apart from the approvals and permits we have mentioned so far, you will also need these:
- For transportation purposes, construction companies in Dubai need to get approval from the Roads and Transport Authority. This permission allows them to access the road and internal road network.
- For telecommunication purposes, a construction company in this emirate needs a license from Etisalat.
- Lastly, your company will also need a Completion Certificate, which will allow it to occupy the building.
6. How can Connect FZ help you set up your construction company in Dubai?
When it comes to setting up companies in the UAE, Connect FZ is your best ally during this important process. With our experience and solutions by your side, you can easily establish your construction company in any Dubai location available. And whether you choose Dubai Mainland or a Dubai free zone, our specialists will help you build your company successfully.
In Dubai, you can satisfactorily set up your construction company and operate it in any of the following free zones:
- Dubai Airport Free Zone Authority (DAFZA)
- Dubai Silicon Oasis (DSO)
- Jebel Ali Free Zone (JAFZA)
- Dubai South Free Zone (DWC)
- Dubai Multi-Commodity Center (DMCC)
But if you desire to set up your company in another UAE location, you can choose between these emirates:
Do you desire to establish your construction company in Dubai or another UAE location? In that case, you should work with our specialists, who will guide you throughout the business setup process to ensure your success. But first, make sure to contact us by sending us an email at contact@connectfz.com, or you can also call us at +971 43 316 688 to talk to one of our representatives.
Are you looking forward to working with the best UAE companies? Then The Talent Point will help you find the most suitable job opportunity in the country according to your skills and experience. And all you need to do is to visit thetalentpoint.com, explore the available options, and send an email to contact@thetalentpoint.com with your CV and application attached. You can also contact our recruits to get further support when looking for a job in the UAE.
