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Start a construction company in Dubai

December 20, 2021by Kate Williams0

The UAE is a country full of business opportunities that you can enjoy regardless of the country you come from. And if you decide to set up a business in Dubai, you will discover the most successful industries and sectors. The construction sector is among them, which means that operating a Dubai construction company is a very profitable idea.

In this article, you will learn everything you should know about this particular sector and its growth in the UAE. Besides, we will provide you with the information you need to set up your construction business in Dubai. And this way, you can discover the requirements you must meet before you start the business setup process of your company. Let’s observe:

  1. Business opportunities for setting up a construction company in Dubai.
  2. What is the process you must complete for starting your own construction company?
  3. How many requirements do you have to meet before setting up your company in Dubai?
  4. How many licenses related to this particular business sector can you obtain in Dubai?
  5. Steps to complete the license application process for a construction license.
  6. How can Connect Services Middle East help you set up your construction business in Dubai?

1. Business opportunities for setting up a construction company in Dubai.

Due to Dubai’s fast-growing population, it is pretty common to find new buildings every day in this city. And besides, buildings are some of the most popular and eye-catching attractions for tourists from all over the world. Therefore, the construction sector is one of the most successful industries in which you can start setting up your company.

One of the benefits of establishing your construction business in Dubai is that you can get multiple advantages. For instance, Dubai provides you with a tax-free environment and flexible business opportunities to achieve success in a matter of time. And one of the reasons for this is that Dubai has lots of mega construction projects that you can join and Do you want to know about the retail sector in Dubai, UAE? Here you can discover the information you need.

Some of the most outstanding construction projects in Dubai are the expansion of the Dubai International Airport and the redevelopment project of the Abu Dhabi International Airport. And thanks to important projects like these, setting up a Dubai construction company is one of the most profitable ideas. And you will have not only the support from Dubai’s government but also from Connect Services Middle East.

2. What is the process you must complete for starting your own construction company?

If you are interested in setting up a Dubai construction company, you must follow some simple steps. And once you complete the process, you will be able to start operating your business in Dubai as you desire. Remember that you can also get professional help and business services from Connect Services Middle East to speed up the process.

2.1. Determine the structure and the location of your construction company.

In order to start setting up your Dubai construction company, you will need to make vital decisions like these. You must select a jurisdiction that suits your needs, which can be the mainland or a free zone. And, depending on the option you choose, you’ll have to select one of the allowed business structures.

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Remember that each option has different requirements, so you also need to be aware of them. For example, a mainland company will require a local partner that holds 51% of shares. Meanwhile, a free zone company does not require it, which means that you can have 100% of the company’s share.

2.2. Start the registration process and apply for the license you need.

Once you have made your decisions, you must start the application process to obtain the license you need. And you should know that the license that allows you to operate a Dubai construction company comes under the commercial type. However, you must be aware of the different types of licenses related to the construction sector.

2.3. Get the required building permit for your business.

Right after getting your license, you will need to get the building permit too. With this permit, you can achieve allowances for several business activities in Dubai. Nonetheless, it is essential to count on civil engineers and business consultants who can help you get this permit. And with Connect Services Middle East, you can get the assistance you require to get everything you need.

2.4. Obtain other essential approvals and licenses to operate your company.

Besides getting your main business license and the building permit, it is also a requirement to get other approvals and permits. But these will depend on the jurisdiction and type of company structure that you choose. For example, a free zone company requires a G+1 permit. And some other requirements are related to the variety of licenses available.

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2.5. Be aware of the provisions and limitations of your license.

In order to operate your company properly, you must be aware of the rules and regulations for construction companies. And you should know that Dubai provides investors with friendly taxation laws, modern infrastructure, and supportive policies. However, there are also some limitations to keep you from going against the guidelines.

2.6. Get the visas you need and open a business bank account.

It is a requirement for every foreign investor to have a suitable visa to set up a Dubai construction company. Therefore, make sure to apply for the visas you require to carry out your business. Besides, you can also get visas for your relatives and domestic staff, in some cases. By contacting Connect Services Middle East, you can easily get all the visas you need.

3. How many requirements do you have to meet before setting up your company in Dubai?

There are some specific approvals that you must obtain in order to establish your Dubai construction company in the UAE. And apart from approvals, it is also possible to require additional permits and licenses to start operating your business. For instance, these are some of the required approvals and permits that you will need to obtain:

  • Permits from different government entities related to utilities. This includes permits from DEWA (Dubai Electricity and Water Authority) and Etisalat for telecommunications.
  • A permit from the Roads and Transport Authority. It will allow you to access the road and internal road network for transportation purposes.
  • Permits from the Drainage and Irrigation Department, which involves liquid waste management and other related services.
  • Approvals from the Building Department and Dubai Civil Defense Authority. These departments make sure that all construction companies follow the rules and regulations as they should while operating in Dubai.

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4. How many licenses related to this particular business sector can you obtain in Dubai?

Besides getting the main construction license, you will probably need some individual licenses related to the main one. But getting these licenses will depend on the kinds of activities that you will carry out. Let’s take a brief look at them:

4.1. Building Contracting License.

If you obtain this license, you will be able to construct many types of buildings, such as hospitals, schools, etc. It also includes farms, airports, residential, industrial, commercial, agricultural, and public buildings. And this license belongs to the contracting and building works activity group.

4.2. Building Maintenance License.

As for this one, it allows you to maintain certain buildings that don’t have equipment or extensions available inside. For instance, it includes restoration and reparation of walls, roofs, columns, floors, and other elements. This license also belongs to a certain activity group, which is the building, maintenance, surveillance, and cleaning works group.

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4.3. Wrecking and Demolition License.

You can destroy buildings and other types of structures by having this license. But those buildings must be in rundown conditions or at the edge of collapse. Another case in which it’s necessary to destroy buildings is when replacing the current buildings to build new ones. And you can use different methods and tools to carry out this activity. Just like the building contracting license, this one belongs to the contracting and building works activity group.

4.4. Steel Construction and Contracting License.

And with this license, you can execute all operations that involve steel constructions, like installing steel structures. Some places that require these structures are warehouses, storage places, factories, tunnels, bridges, sheds, and many others. And this license also belongs to the contracting and building works activity group.

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If you desire to obtain these licenses in no time, you should contact Connect Services Middle East. With the services that we offer, you can get the legal documents you require in less time and without too much effort. This way, setting up your Dubai construction company will be a simple process that won’t take too long.

5. Steps to complete the license application process for a construction license.

One of the main requirements you must meet to run your company is having a license that covers your activities. And you can easily get the construction license you need to operate your Dubai construction company. All you have to do is to follow these steps:

  • Choose a jurisdiction that suits your requirements, this way you’ll know which the pertinent authority is. If you choose Dubai Mainland, you will get your license from the DED (Department of Economic Development). But if you choose a free zone, you’ll get your license from the Free Zone Authorities.
  • Depending on the field of activity you select, you will have to obtain some additional approvals from some departments. And besides, you must provide technical personnel and pass certain procedures for the accreditation of experts.
  • And the last step is submitting your documents to the authorities and paying the required fees to obtain your license.

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6. How can Connect Services Middle East help you set up your construction business in Dubai?

Setting up a Dubai construction company is easier if you have Connect Services Middle East as your partner. Due to the variety of business services that we offer, we are capable of providing you with the solutions you need. And besides, we can also help you understand how the market works in Dubai to help you create a strategy.

And regardless of the jurisdiction you choose, we can help you establish your company in a free zone or mainland. Plus, you can also request our business licensing services to obtain the licenses you need to operate your construction company. With these services, you can save a lot of time so you can reach success in the short term.

On the other hand, Connect Services Middle East also provides many different packages that include the facilities you require. Furthermore, you are also free to choose between the different types of office spaces that we can provide you with. Therefore, make sure to get in touch with our team to obtain more information about our services.

Would you like to contact Connect Services Middle East to obtain more information about the business setup process of a construction company in Dubai, UAE? If you have any questions, call us on +97143316688. Or you can also email us at info@connectme.ae, and you will talk to one of our representatives who will gladly answer all of your questions.

Kate Williams

Kate is the Global Strategy Director at Connect Group. She is specialized in company formation, international business expansion and employee relocation. She studied in Southampton (United Kingdom) and moved to the UAE in 2014.

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