Dubai boasts a dynamic real estate sector that offers both aspiring and experienced real estate agents a wealth of opportunities!
Dream of building a prosperous real estate career, by taking advantage of the hottest real estate market in the world? Getting your real estate trade license is the first step!
Our in-depth guide provides prospective agency owners and inexperienced real estate agents with the knowledge and resources they need to complete the Dubai license procedure successfully.
It’s important to note that Dubai’s real estate requirements and regulations are often evolving. Don’t rely just on this guide, as we can’t provide you legal advice. Always consult the latest information from government sources.
Understanding the Dubai’s Real Estate Market
It’s essential to understand the two main regions to consider for your real estate business in Dubai. Each have their own requirements and benefits:
- Mainland: The mainland refers to operating within Dubai’s physical boundaries. Operating within the mainland is the most flexible option, for where and what you can sell or rent. To operate on the mainland, it’s essential to get approval from the Department of Economic Development (DED) before setting up your real estate company. Our article [title] provides more information.
- Free Zone: There are numerous free zones in Dubai, like the Dubai International Financial Centre (DIFC) that offer specialized real estate licenses, with specific benefits and their own regulations and requirements.
Types of Trade License in UAE
A trade license is like a special permit letting your business operate legally in the UAE. There are four main types, each designated for different kinds of activities:
Commercial License
This license permits businesses to sell and purchase products. It includes businesses like shops, distributors and wholesalers.
Professional License
This license enables businesses to offer services to the clients. Businesses, such as lawyers, accountants, and doctors can benefit from this license.
Industrial License
This license is for businesses that manufacture products, like factories and workshops.
Tourism License
This license caters to businesses involved in UAE tourism. For instance, travel agencies, guides, and tour operators can benefit from it.
Documents Required for a Trade License
Several documents are required for a trade license including:
DED Approval
Your business can only operate if your business plan has been approved by the Department of Economic Development (DED).
Signed Application
Every manager in your company needs to sign the trade license application form.
Memorandum of Association (MOA)
MOA is a legal document that outlines the rules and regulations your company follows to ensure compliance with the UAE’s real estate legal framework.
Passport
Copies of all managing partners’ passports are required.
Office Proof
A real estate agency is required to submit proof of your physical office space, such as a lease agreement. It’s important to prove you’re operating within Dubai, if you’re hoping to sell real estate in this market.
The Application Process: A Step-by-Step Guide
Pick a Business Name
To begin, choose a business name that is memorable and effectively reflects your business’ identity. Consider doing a Google search, to make sure the name isn’t taken. Ideally, you want a name you can use for all of your social media channels as well, so that you can more easily build your brand.
Your unique business name needs to follow UAE regulations – i.e. no offensive or religious references in the title – or it won’t be approved.. Choosing your name also means choosing your business structure (sole proprietorship or LLC) for your business.
Define Your Business Activities
Your business activities are the services your company provides. Be specific about what your company will do. Are you selling properties, renting properties, or are there other services you plan to provide? Being specific is important, because each license covers up to 10 activities.
Fill Out the Application
You can find an application from the Department of Economic Development (DED) for a trade license that requires basic information about you and your company. Submit it and wait for initial approval.
Get Extra Approvals (if needed)
Some businesses might need additional permissions from other government entities. Do your research beforehand to avoid delays.
Gather Your Documents
This includes the completed application form, signed by all company managers, a Memorandum of Association, copies of passports for all managing partners, and proof of your office address (e.g. tenancy contract).
Choose a Location (Mainland only)
If you’re setting up in the Mainland, you’ll need a physical office. Get a tenancy contract certified by Ejari and submit it with your documents.
Submit Your Application
Once you have everything ready, submit it to the DED to receive your trade license.
Pay the Fees
To acquire a trade license, you must submit an application fee and a license fee—which we will discuss in the next section.
Financial Considerations: Understanding the Costs
Have all your documents and paperwork ready to submit the application? Wait, there’s more!
Learn about the financial cost of acquiring a trade license, so you can budget effectively and avoid any surprises.
Keep in mind that the cost of your trade license depends on several factors including:
- Essentially, the cost depends upon the product or services that you are selling to your customers. For instance, a restaurant business is bound to cost more than a boutique shop.
- Are you opening your business in a free zone or mainland? This can affect the cost as well.
- The structure of your business such as sole proprietor or LLC can also impact the financial cost of the trade license.
- Several business types also require external additional approvals from different government offices to operate within a legal framework. Take into account their costs as well.
Applying for a trade license in Dubai can cost between AED 15,000 and AED 50,000. Remember that free zone licenses have different costs than mainland licenses.
Disclaimer: These expenses are outlined simply for information purposes only. Depending on individual conditions, you may be required to pay additional fees. Conduct thorough research and visit the respective authorities’ websites (DED, DLD, DREI) before proceeding with the final process.
How to Renew Your Trade License in Dubai?
With a trade license, you can run your business without any worries of legal trouble. Therefore renewing it every year is crucial to ensure compliance with Dubai’s real estate legal framework. Here’s everything you need to know:
Get the Necessary Approvals
While it largely depends on a business, you might need to stamp some approvals from several government offices such as Dubai Land Department (DLD) to avoid legal hot waters. You can also get these approval before the start of the renewal process to save yourself ample time and headaches.
Gather Your Documents
You’ll need:
- Valid tenancy contract: This needs to be valid for at least 3 months from the date you apply.
- Ejari registration: This confirms your tenancy contract.
- Completed renewal form: The DED will provide this.
- Photos of all business partners: Just a simple headshot.
- Payment number for renewal fees: You’ll get this after submitting your application.
- Approval and authorization letters: If applicable.
Keep in mind that all the shareholders of your business are required to submit these documents to the Department of Economic Development (DED) for approval.
Renewing your license is not an option. If you want to operate within the UAE region then you have to renew your license on time to mitigate any legal issue and ensure the smooth operations of your business.
Key Takeaways
Our comprehensive article empowers you with information regarding the essential license, organized required paperwork, and application process that can help you obtain a real estate trade license in Dubai. However, our guide offers general information regarding acquiring a license in Dubai. For the most updated and personalized, legal advice, consult a professional lawyer specializing in real estate licensing in Dubai. For more information, connect with us!
