• BY VR1 Global

Construction Company in Dubai – Setup Guide

Setting up a construction company in Dubai is a challenge for many entrepreneurs. The city is steadily unfolding, with modern skyscrapers, malls, and residentiary complexes being built every day. 

To be a part of this roaring industry, you require to have a license from the Dubai Economic Development. 

This step-by-step guide will help you understand the process of setting up a construction company in Dubai, including the documents required and the distinctive stages involved. 

Continue reading if you’re excited about starting a construction company in Dubai,

How to start your Construction company in Dubai

Dubai’s construction industry employs thousands of people and contributes to the development of the city’s infrastructure. 

Dubai is an increasingly profitable destination for construction companies from all over the world.

It is also home to some of the most epochal architecture and engineering feats in the world. 

The construction industry in Dubai is profitable and there are plenty of opportunities for those with the right skills and expertise. Several rules and regulations must be followed to operate in Dubai.

Here are a few guidelines and instructions given by the UAE government for starting a lucrative construction business in Dubai.

Steps to starting your construction company in Dubai

Before setting up your own construction company in Dubai, UAE, you must determine a name for it. 

The UAE Government’s regulations on business names must be followed. 

The following steps must be adhered to incorporate your construction company in Dubai after your trade name has been approved.

Step 1: Decide on the company structure

To set up your Construction business in Dubai, you have to register your business in either the Mainland or the Freezone. 

For a Mainland company in Dubai, you need a local sponsor who will hold 51% of your company’s shares along with ownership rights.

If you are looking to set up a Freezone company, then no need for a local sponsor and you can have 100% ownership in the Company.

Step 2: Apply for a license

If you chose a Mainland company structure with a local partner, then you need to submit the license application to the Department of Economic Development

For the Freezone Legal structure, all you have to do is, connect with the Freezone authorities for required permissions.

For construction business activity, you will be required to apply for a Commercial License in Dubai.

Step 3: Obtaining the building permit

After acquiring the Commercial License for your Business activity, you need to apply for a Building permit.

Getting a Building permit in Dubai is vital in the mainland to commerce the business smoothly.

If you are in Freezone, then obtaining a g+1 permit is required from the concerned free zone authority.

Step 4: Apply for license & approvals

Along with a Building permit, you need to get additional approvals for a Construction company in Dubai, including civil works, environmental license, maintenance license, steel construction contracting License, etc.

Along with the above licenses, you also need to apply for 

• Permit from the Roads & Transport Authority to access the road network
• A permit from DEWA – Dubai Electricity & Water Authority for water, electricity, and Sewage.
• A permit from Etisalat for telecommunications
• Approval for Disposal of Hazardous waste from Drainage & Irrigation Authority
• NOC from Dubai Civil Defence for Dubai Airports Company
  

This is an exhausting and tedious process that requires a group of Engineers, Consultants & other legal advisors.VR1 Global LLC can assist you in obtaining the building and commercial permit for your Construction business without you being worried about how to process and complete it.

Step 5: Apply for Visas

Once you have acquired your legal permits and license to commence your Construction Business in Dubai, it’s time to apply for a visa.

This includes applying for:

• Residence Visa for you and your family 
• Employees (depending on the number of employees)

The UAE government will issue an entry permit to enter the country. Upon entering the country, you must complete the Medical tests to get your Residence visa or Investor Visa. If you already own a Residence visa of your own then you can skip this process and move ahead.

Step 6: Manage visa and Bank account

Now it’s time to open a Corporate and Personal Bank account with Local or Internationals banks in UAE.

However, if you are starting your business in Dubai and opening a Corporate bank account, then you must keep in mind that it is not a smooth process.

Banks in UAE follow stringent rules and regulations when opening an account. However you do not need to worry, VR1 Global Business Setup Consultants are competent in handling this process smoothly and accurately without any setbacks or redundant hurdles.

Documents required to start your construction company in Dubai

Here is the list of Documents that you require to keep in hand when you are starting your Construction Company in Dubai:

• LSA if you are setting up a Mainland Company
• Passport Copy
• Curriculum Vitae
• Trade Name Registration Copy
• Commercial License Copy
• Permit and approvals from Dubai Water & Electricity Authority (DEWA), Drainage and Irrigation Department, Building Department, Dubai Civil Defense Authority, Roads & Transport Authority & From Etisalat Telecommunications

Type of Construction Licenses available in Dubai:

1. Building Construction License in Dubai 

• Activity Code: 452001
• Activity Group: Contracting & Building Works
• License Type: Commercial License

This License is issued to firms involved in constructions of all kinds and for different uses, mainly residential, farms, industrial, commercial, schools, hospitals, airports, public and agricultural buildings, also building adjusting, general maintenance, interior decoration, landscaping as well as electrical fittings and sanitary plumbing, the number of floors to be constructed shall be set by Dubai Municipality.

2. Wrecking & Demolition License in Dubai

• Activity Code: 451001
• Activity Group: Contracting and building work
• License Type: Professional License

This License is issued to firms engaged in the tearing down of buildings and other structures on the verge of collapse or for replacement using different techniques, such as cranes for high-rise buildings, excavators, and manuals for medium buildings as well as building implosion using explosives.

3. Steel Construction Contracting License in Dubai

• Activity Code: 452008
• Activity Group: Contracting and building work
• License Type: Commercial License

This License is issued to firms specialized in executing all operations related to steel constructions, as well as installing prefabricated steel structures on site, such as factories, warehouses, hangars, sheds, bridges structures, and tunnels, also the execution of all civil works for such installations, mainly foundation piling, floor paving, lay connections. Firms engaged in manufacturing such structures are classified under class 2811, and the number of floors involved shall be set by Dubai Municipality

4. Building Maintenance License in Dubai

• Activity Code: 454007
• Activity Group: 
• License Type: Professional License

This License is issued for the maintenance of buildings only, excluding any equipment or extensions available inside, such operations include restoration and reparations of roofs, columns, walls, floors, and others.

How VR1 Global LLC can help you in setting up your Construction company in Dubai

Building a construction company in Dubai is a fairly tiresome process. However, there are a few key things to keep in mind, such as making sure you have the required licenses and permits, as well as connecting with a trustworthy company formation expert. 

VR1 Global LLC is a perfect option for those looking to start their construction company in Dubai, and our team can help you with all the significant steps involved in the process.

If you’re looking to set up a construction company in Dubai, VR1 Global LLC can help you with all the documentation and get you started quickly and easily. Call or Whatsapp +971508045640 to speak with a company formation expert now.