Building constructions play a pivotal role in the development and growth of Dubai’s economy. Nothing makes Dubai awesome than seeing the tallest building such as hotels, offices, and more with elegant design.
Could it be some of the affluent expatriates are lured by the tallest and most beautiful structures in Dubai? Some investors though are out to grab the endless business opportunities found in the UAE including starting construction companies.
The construction business is one of the most lucrative business ideas right now because of the snappy growth and development in Dubai. Construction has become rife hence investors are opening construction companies to provide raw materials for the construction works within the AUE. That said; how do you start a construction company in the UAE?
You must obtain a professional building construction license in Dubai to be permitted to open a construction company in Dubai. If your company is situated in the Dubai Mainland, ensure you have a valid trading license from the Department of Economic Development. On the flip side, Free zones have different jurisdictions you can apply to get your trading license.
Once you have a building construction license, you are free to start your building construction activities in Dubai. Nonetheless, if you are wondering how the entire process of obtaining a trading license for your company is done, you can contact our expert consultant at Vigor Business Set Up to guide you on the successful steps to get your document. Read on to find out more about construction licenses in Dubai.
What is the Process to Obtain a Construction License in Dubai, UAE?
To obtain a construction license in Dubai, UAE, you will need to apply to the building department. If you want to start your construction activities on the mainland, you will need to obtain a free zone license. Individual licenses are required for each type of construction activity. Once your application is approved, you will be issued a construction license.
What You Should know about the Construction Licenses in Dubai?
Construction licenses in Dubai are issued by the Dubai Department of Economic Development (DED) and are required for any construction activity taking place in the Emirate, except for construction taking place in a free zone.
A construction license is required to obtain a permit for any construction-related activity, and consultants must be licensed to provide services related to construction. The UAE has made it a priority to develop the construction sector, and as a result, the process of obtaining a construction license in the UAE is relatively straightforward. However, approval from other entities such as the GCC may be required for certain projects.
Now that you know what is needed to start a construction business. What type of construction license does your company need? Let’s find out:
What are the Types of Construction Licenses in Dubai?
There are different types of construction licenses in Dubai, which are issued by the Dubai Municipality. They include
- A commercial license,
- A contracting license,
- A foundation construction license.
Each of these has different requirements, and a construction company must have the appropriate license for the type of work they will be undertaking. For example, a contracting license is required for any construction work that involves altering the structure of a building.
How Much Would it Cost to Start a Construction Business in Dubai?
If you’re looking to start a construction business in Dubai, you’ll need to factor in the cost of the following few key things:
- A business setup consultant,
- A license,
- Mainland office space.
Depending on the size and scope of your construction business, these costs can range from a few thousand dirhams to over half a million. But with the right planning and budgeting, starting a construction business in Dubai is achievable.
Construction License in Dubai- Things You Must Know
Construction licenses in Dubai are required for any type of construction, whether it is a residential building or a commercial one. The approval of the consultant is required to obtain a construction license.
Free zones have their own rules and regulations regarding construction licenses. The priority to the construction sector is given by the UAE government as it plays an important role in the economy. The construction sector is one of the most important sectors in the GCC region.
Therefore, you must acquaint yourself with all the intricacies needed to establish a building company in the UAE. Sometimes it may get rocky for beginner investors to execute the application process successfully.
Should you find any difficulties to apply for a trading license in the UAE, liaise with our professional consultant who has years of experience in working in this field?
Frequently Asked Questions about Construction License
1. How much do construction workers earn in Dubai?
Generally, a construction worker or a person working in installation/building construction in Dubai earns around 12, 300 AED per month. However, salaries might range depending on some factors within your workplace.
Therefore, salaries might range from 4,810 AED to 37,400 AED. Typically, this salary includes transport, and housing, among others.
2. Can I do construction work without a license?
A license is an important document every business setup must-have for the success of their company. Some countries or cities might not be strict with licensing issues; however, you cannot carry out construction activities in Dubai without having a valid business license.
It is better to arm yourself with a trading license before meddling in the construction business.
3. Are construction companies liable for VAT?
VAT is normally charged on all taxable commodities in the UAE except those which are not confined under this wing. Additionally, VAT is also charged on all goods imported into the United Arab Emirates.
A license is a document that permits you to carry out all your business activities in any country where you’re holding your business. The UAE is a strict country that commands all business companies to have a professional license before executing their company’s business activities.
And so, if you want to open a construction company in Dubai, you must apply for a construction business license. For more information about trading license in Dubai, feel free to contact Vigor Consultants to shed light on what needs to be done.