The United Arab Emirates (UAE) has become one of the busiest real estate markets in the world, drawing investors, developers and businesses from all over. The UAE, and notably Dubai, offers immense opportunity for real estate brokers and business owners with its iconic buildings, a strong economy and strategic positioning between East and West.
In this article, we will discuss steps you need to take to start a successful real estate business in Dubai, from choosing the right company structure to understanding licensing fees and costs.
How to Setup a Real Estate Company in Dubai
1. Understand about the UAE’s real estate market
It’s crucial to understand why the UAE is a suitable destination for real estate firms to start their business.
- Booming Transaction Growth: Dubai’s real estate sector saw record activity in recent years, driven by demand across residential and rental segments.
- Increased demand and trust from Investors: More and more overseas buyers, long-term residents and institutional investors regard UAE property as a valuable asset class.
- Regulatory Support: Government departments such as the Dubai Department of Economic Development (DED), Dubai Land Department (DLD), and Real Estate Regulatory Agency (RERA) ensure a structured market framework.
Together, these factors create a stable, transparent, and high-growth environment, making the UAE an ideal market for launching and scaling a successful real estate business.
2. Eligibility Criteria
Before you sign up, know what you need:
- Minimum Age: You must be at least 21 years old and generally live in the UAE to receive a real estate license.
- Education: A high school diploma or equivalent is a basic requirement; additional qualifications can strengthen credibility.
- Broker Certification: To become a broker, you must complete certified RERA training and pass the test.
You can receive official permits and do business legally in the UAE property market if you meet these conditions.
3. Choose the right company structure
Your first major decision is where to register your company:
Mainland:
- Lets you operate anywhere in the UAE.
- Licensed by DED.
- Gives you a lot of business options that aren’t limited by where you are.
Free Zones:
- Allow 100% foreign ownership and tax efficiencies.
- May restrict certain operations outside the zone without local partnerships.
- Ideal for back-office functions, consultancies, or investment holding companies.
Different Types of Business Structures:
Choose a type of business based on your goals:
- Sole Establishment: This is the best option for persons who want to create their own firm.
- Limited liability company (LLC): Limits liability and supports multiple partners (up to 50).
- Civil Company: This is suitable for professional services like property consultancy. It allows joint partners and responsibility.
The structure and licensing needs will also depend on the type of business you launch, such as a real estate brokerage, consulting firm, or property management company.
4. Register your business name
Choose a unique and appropriate name that follows DED guidelines. Once selected, submit it for approval along with the owners’ passport and residency documents. After approval, you can reserve the trade name marking an important first step in setting up your company.
5. Obtain Initial Approval
Once the name is approved, you need to obtain the DED (or the relevant Free Zone authorities) to approve it first. You should give them copies of your passport, residency visa, and in some cases, a police clearance certificate.
6. Sign and Complete the Memorandum of Association (MoA)
The MoA tells you how your business will work, who will own it, and how shares will be split up.
Have the MoA notarized by a legal body in the UAE. This agreement is now part of your business’s legal character, therefore make sure that all shareholders agree to the conditions.
7. Find your workspace
All businesses in the UAE must have a genuine office where they do business. You can rent a home and sign up for it with Ejari, the official tenant register. The office must be a particular size and follow the rules to acquire a final license. Some Free Zones may have flexible or coworking spaces.
8. Get a business trade license from the DED
The Dubai Land Department (DLD) is responsible for giving real estate agents in Dubai the licenses they need to do their jobs. You can’t sell or rent property until you have both licenses.
9. Register with RERA
The Real Estate Regulatory Agency is the regulatory agency for Real Estate. Send RERA your business license and other documents. Brokers must show that they have passed an exam and completed training that RERA has approved. You need RERA approval to lawfully represent clients and put homes up for sale.
10. Register with Immigration and Labour Departments
You need to register your business with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA) if you wish to hire people. Get contracts for workers and visas for employees. Check to see if the real estate agents or brokers you choose are RERA-certified.
11. Open a bank account for your business
A business bank account is particularly important while setting up a real estate business. The documents you normally need are your business license, MoA, Ejari tenancy contract, and copies of your passport or Emirates ID. With the new Dubai Unified License (DUL), opening a bank account is much quicker and faster, often taking only a few days.
12. Register with the Federal Tax Authority (FTA)
Get a Tax Registration Number (TRN) to make sure you pay your taxes. If your business makes more than the VAT threshold, you need to know what your VAT obligations are and how to file your taxes.
13. Follow the regulations and make changes when needed.
Get your licenses renewed every year. Stay up to date on RERA audits and changes to the law. You need to follow the regulations for reporting transactions and Anti-Money Laundering (AML).
Type of Real Estate Licenses in Dubai
In Dubai, real estate activities are strictly regulated, and obtaining the correct licence is essential to operate legally. The main types of real estate licences are real estate brokerage license, real estate consultancy license, property management license and real estate leasing and buying/selling brokerage license.
- Real Estate Brokerage Licence: Required for companies and individuals involved in buying, selling, or leasing properties.
- Real Estate Consultancy Licence: For firms providing advisory services, market analysis, or property investment guidance.
- Property Management Licence: Needed for companies managing properties on behalf of owners. Includes leasing, maintenance, tenant management, and operational oversight.
Documents required to start a real estate company in Dubai
To start a real estate company in Dubai, you need to prepare and submit several key documents to comply with DED, RERA, and DLD regulations. The exact documents may vary slightly depending on whether you set up on the mainland or in a Free Zone, but generally include:
- Passport copies of owners/partners
- UAE residency visas (if applicable)
- Passport-sized photographs
- Trade name reservation certificate
- Initial approval certificate from DED or relevant authority
- Memorandum of Association (MoA) or Local Service Agent Agreement
- Tenancy contract (Ejari) for office space
- RERA certification for brokers and agents
- Proof of previous real estate experience (if required)
- Bank reference letters (for certain Free Zone setups)
- Initial deposit for licence fees and capital requirements
Costs of Starting a Real Estate Business in Dubai
The cost of starting a real estate business in Dubai can vary significantly depending on the type of company, chosen location (mainland vs free zone), office requirements, number of staff, and other operational factors. Here’s a clear breakdown of typical costs you should budget for:
1. Government & Licensing Fees
- Trade Licence (DED): About AED 12,000 – 20,000 depending on the company structure.
- Real Estate Brokerage Licence (DLD): Around AED 12,900 if you plan to operate as a brokerage.
- RERA Training & Certification: Between AED 6,200 – 10,800 for course, exam and certificate.
2. Office & Operations
- Office Rent: Approximately AED 20,000 – 50,000+ per year for a small office; prime locations cost more.
- Ejari Registration: Around AED 1,000 – 2,000 to register the tenancy contract.
- Office Setup & Furniture: Roughly AED 20,000 – 50,000 depending on size and fit-out.
3. Additional Startup Costs
- Bank Guarantee (if required): Usually AED 50,000 – 200,000+ for third-party leasing businesses.
- Marketing & Website: Expect AED 5,000 – 15,000 or more initially.
- Staff Visas & Labour Costs: Around AED 4,000 – 7,000 per visa (excluding dependents).
4. Total Estimated Cost
Most real estate setups in Dubai require an initial investment roughly in the range of AED 50,000 to AED 150,000+ for a typical small-to-medium brokerage or real estate services company.
Setup Your Real Estate Business in Dubai with Helen and Sons
Starting a real estate business in Dubai requires careful planning and investment, but with the right guidance, it can be highly rewarding. At Helen and Sons, we specialize in helping entrepreneurs navigate the entire setup process from licensing and RERA registration to office solutions and staff visas ensuring your real estate venture launches smoothly and operates successfully.
