A construction license is an official permit that allows a construction firm to operate its business activities.
Construction License in Dubai
The United Arab Emirates have fascinated the world to the utmost level when it comes to the presence of architectural designs. The nation holds one of the tallest building of the world, ‘The Burj Khalifa’, as well as world’s tallest residential building ‘Marina 101’, which stands as a landmark for the region. Be it any business domain; the state-of-infrastructure has always excelled leaving a surprise for the global audience. Currently, the Expo 2020 construction is at full pace, which is expected to attract 25 million tourists, which would simultaneously boom the tourism and hospitality industry. The entire scenario paves out a way for the construction business, and foreign investors look forward to investing in this booming market which is expected to grow by 4.9%. If you hold an interest in setting up a company in Dubai, specific to the construction business, then you are in the right way. However, it is to be noted that to start a construction business; you need to hold a construction license.
What is a Construction License?
A construction license is an official permit that allows a construction firm to operate its business activities. The license gets issued by the Department of Economic Development (DED), one of the highest government authorities in Dubai. When it comes to holding a construction license in Dubai, the following types are available:
- Building Contracting License
- Wrecking and Demolition License
- Steel Constructions Contracting License
- Building Maintenance License
Why Start a Construction Company in Dubai?
Dubai is home to millions of foreign expats who have been settling down in Dubai because of vast opportunities in the field of the job as well as business. World’s best conglomerates take place in Dubai, and seek a way forward to get settled in the region, which has inclined the growth of construction companies in the nation. Some of the best reasons to start a construction business in Dubai are as follows:
- Be it residential or commercial front, the demand for construction is very high in Dubai
- The number of business setup in Dubai has been exponentially increasing
- Real-estate business is one of the top growing industries
- The tourism and hospitality industry is expected to rise, the demand for construction gets high
- Robust network in the air, water and road transport and well-built infrastructure
- Availability of designated zones like Mainland, Free Zone and Offshore based on business needs
How to Start a Construction Company in Dubai?
To start a construction business in Dubai, the below-mentioned steps are to be followed accordingly:
1.Select a Location
The location selected to start a construction business matters to a great extent. When it comes to the UAE, options like the Mainland, Free Zone and Offshore have smoothened the process for businesspersons. In case, you choose Mainland; a local partner is to be appointed who will be holding 51% of your company shares, whereas the rest 49% of shares will be held by you. On the other hand, if you choose a free zone, the zone will grant you complete ownership. Do choose the location based on business needs.
2.Obtain a Commercial License
A commercial/construction license is to be obtained which gives you to right to conduct business activities. To get the same, you need to apply in the DED in case of Mainland. In case of a Free Zone, it needs to be obtained from the respective Free Zone Authority.
3.Obtain a Building Permit
Next, a building permit is to be obtained after obtaining the commercial license. The building permit will allow you to start the construction activities.
4.Gather the Special Approvals:
While setting up a construction company in Dubai, certain special approvals are to be taken from the concerned Government Authorities. The approvals are to be taken from the following authorities:
- Dubai Water and Electricity Authority: clearance from these two authorities is important to avail the basic amenities
- Drainage and Irrigation Department: is necessary to gather the permit related to liquid waste management and disposable activities
- Building Department and Dubai Civil Defense Authority: it ensures that the construction norms have been followed accordingly.
Furthermore, the construction company might also need to obtain an Environmental License and Civil Work Permit.
By Feb 2019, the growth rate of the construction sector has depicted an upward cliff at a rate of 54%, and the output is expected to increase steadily. Dubai holds the second largest hotel construction in its pipeline, which again leverages the construction domain. This turns out to be the perfect time to set up a construction business in the UAE, and having a helping-hand beside you can ease the entire company establishment process. At Setup Dubai Company, we are determined to provide the best company incorporation services to our clients irrespective of industry and size of the organization. Our business experts are well-versed with the legal proceedings and can help you accordingly. To have a word for any business set up query, do contact us-we’d be glad to assist.