When it comes to the property market, the UAE is one of the hottest places to invest. A famously stable economy, combined with accelerating demand and pro-real estate policies, means that there are real opportunities to drive profit. In this article, we’ll dive a little deeper into the advantages, processes and types of real estate business in the UAE. We will explore the following topics:
- Why start a real estate business in the UAE?
- How to set up a real estate business in the UAE – step by step
- Types of real estate business structures in the UAE
- The process of setting up a real estate business in the UAE
- Why choose SPC Free Zone?
Why start a real estate business in the UAE?
Business is booming for real estate businesses in the UAE. The real estate industry has enjoyed consistent growth for the past decade, and this trend is in no danger of slowing down. In fact, Dubai alone is one of the highest-yielding real estate markets in the world. Beyond high revenue and large profit margins, there are countless benefits to starting a real estate business in the UAE, such as:
- Predictable and stable economy
Property sales are directly tied to the economy. A healthier, more predictable economy offers safer investment opportunities for those looking to purchase real estate.
- Tax advantages and incentives
The UAE boasts one of the most competitive tax regimes in the world, with zero income tax and paid-up capital. Businesses on the mainland and specific free zones only need to start paying corporate taxes on incomes over AED 375,000.
- Surging demand for property in the UAE
The UAE’s population is rising fast, in part due to its popularity with non-nationals. In fact, 88% of the region’s residents are expatriates. Many of those new residents will be looking for real estate.
- Open market
The UAE’s property market is competitive. Anyone, including foreign investors, can tap into its opportunities.
- Transparent regulation and less red tape
The government is committed to driving foreign investment in Dubai and the UAE, which means they have put policies in place to help expatriates invest. The UAE also ranks highly in real estate transparency indexes thanks to concentrated efforts to enhance digital services, data provision, service charge management and automated valuations.
- Easy business setup
Setting up a business in the UAE is easier than you might assume, particularly with support from a company formation service like SPC Free Zone. E-channel services have speeded up the process significantly too.
How to set up a real estate business in the UAE – step by step
Setting up a real estate business in the UAE is relatively straightforward, provided you know which hoops to jump through. To ensure your real estate business setup is as smooth and pain-free as possible, get in touch with one of our special advisors for dedicated help. To help make the process a little simpler, we’ve broken it down into three steps.
Step 1: Submit your application
To legally operate a real estate business, you will need to apply for a licence. Simply select your business activity and provide your company name. To avoid holdups, make sure it complies with the UAE’s strict naming conventions. Depending on the free zone, you can have your licence issued in as little as two hours.
Step 2: Authorise e-channel services
The UAE now offers e-channel services, which have speeded up the setup process significantly. Make sure you apply for a login and an entry permit. This is usually valid for up to 60 days.
Step 3: Activate your status change
As soon as you have received your entry permit, you can activate your change of status. This will kickstart the final steps of the process. It means that you can book in your medical tests to apply for an Emirates ID. By law, all business owners are required to have an Emirates ID. It allows you to open bank accounts, rent properties and take out phone contracts.
Types of real estate business structures in the UAE
When it comes to setting up your real estate business in the UAE, you will need to choose an appropriate structure. Currently, there are four types of company structure in the UAE:
- Limited Liability Company (LLC)
Many business owners opt for an LLC. It requires a minimum of two and a maximum of 50 shareholders, as well as a UAE accredited auditor.
- Sole proprietorship
In this company setup, the business is owned by one individual who has total control over all operations and holds 100% shares of any profits.
- Civil company
A civil company is only available for recognised professions. The company can have partners owning 100% shares, providing it meets specific rules.
- Free zone establishment
A free zone establishment is governed by the rules and regulations of the free zone in which it is established.
The process of setting up a real estate business in the UAE
Setting up a successful real estate business involves more than setting up your business as a legal entity. Once your business is registered, you’ll need to consider the following steps:
- Market research
Research the market extensively, making physical inspections wherever possible.
- Ensure your qualifications are in order
Real estate agents in the UAE require specific qualifications to operate a successful real estate business, such as Certified Training for Real Estate Brokers.
- Apply for company certifications
Businesses must get approval and authorisation from the Real Estate Regulatory Authority. Once this is approved, you should receive a certificate.
- Set up your office
It is highly likely that you will require a physical office space to give your business the credibility it needs to attract new buyers.
- Outsource where possible
To get your business up and running, you’ll need to hire services such as accountancy or bookkeeping, marketing and even employees.
SPC Free Zone has helped countless aspiring entrepreneurs set up a successful real estate business. There’s no need to go it alone: our advisors are here to help.
Why choose SPC Free Zone?
SPC Free Zone is located in the heart of Sharjah, just 15 minutes from Dubai International Airport. We offer a fast and flexible business setup in the UAE, with a wide range of affordable packages to choose from. With immigration services onsite, you can have your e-commerce or any other licence issued in under two hours.
You can also enjoy benefits such as a choice of 1,500 business activities, 20 visas under one licence, and a dual licence that offers both mainland and free zone on the same licence. Our customers benefit from a whole string of other benefits too, including zero paid-up share capital, 0% corporate and personal income tax and 100% foreign ownership.
Ready to tap into new opportunities and launch your real estate business in the UAE? Get in touch with SPC Free Zone Sharjah to help navigate the setup process with ease.