Update on foreign ownership
This article predates the change to the UAE’s foreign ownership rules. Federal Decree-Law No. 26 of 2020 removed the requirement for a UAE national to hold 51% of a mainland company for most commercial and industrial activities, with effect from June 2021, and for the great majority of activities you can now own a mainland company outright. A local partner or service agent is still required for a limited list of activities. Where the text below refers to a 51% local sponsor, read it as the position before that change — see our current guide to mainland ownership.
Planning to start your construction business in the UAE will leave you with two options to select your location. You can either go for the Mainland Company, where you will need a local partner who is bestowed with 51% ownership of the shares, or a Free Zone company which allows your 100% ownership. Irrespective of the type of company you plan to set up, you will have to abide by the guidelines and provisions of building law in UAE. Blackswan BSS will help in Start a Construction Business in Dubai.
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Steps involved to set up a Construction Business in Dubai
The first thing is to decide whether you want to set up a company in the Mainland or in the Free Zone.
The next step involves registering your company at the DED (Department of Economic Development. Construction businesses fall under the commercial sector and hence a commercial license is to be obtained. This license is permission to start a business in Dubai.
The next step after acquiring a commercial license is to employ professionals like engineers and business consultants who on your behalf can apply for a building permit.
The further step involves evaluating the soil and determining its properties by the professionals.
Obtaining licenses from various departments depending on the type of company is the next step. In the case of a Mainland Company, you will have to obtain a building license from the Dubai Municipality, while in the case of a Free Zone company it is a G+1 permit. Other licenses like civil work permits, environmental licenses, etc also need to be acquired.
Approvals and Permits Required
In case of a building permit, the contractor needs the submission of design drawings of the proposed building.
In case of works prior to any foundations, a civil work permit is applied for.
An Environmental License
Permit from the RTA (Roads and Transport Authority) to access road and internal network
Approval from relevant authorities to the disposal of hazardous waste
Permits from Dubai government entities regarding utilities. For example, a permit from Etisalat for telecommunications, permit from Dubai Electricity and Water Authority (DEWA) for electricity, and water.
A NOC from DCD (Dubai Civil Defence) for Dubai Airports Company and other government entities
To allow the building to be occupied, a Building Completion Certificate is acquired.
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