Steps by step Guide to start a construction business in Dubai,UAE

The UAE is a captivating destination, boasting impressive skyscrapers and a breathtaking skyline. It offers abundant business opportunities, thanks to its tax-free environment, making it an attractive choice for investors. Notably, the construction sector in the UAE has experienced remarkable growth, with Dubai currently holding the second position in terms of construction. With the potential for further advancements, reaching the top spot is within reach. To assist you in this endeavor, here is a comprehensive guide to initiating a construction company in the UAE.

If you’re considering starting a new business in Dubai, it’s highly recommended to engage the services of reputable business setup consultants. These consultants play a crucial role in providing the necessary support and guidance from governing bodies. By selecting the best business setup consultants, investors and aspiring entrepreneurs gain access to the right resources and approvals essential for their business operations.

The UAE provides a lot of options for entrepreneurs from all over the world. You can choose from a wide array of company structures when setting up a company here. Some of the most popular ones are Sole Proprietorship, General Partnership, Limited Liability Company, and Civil Company.

Today, we are going to look at how you can start a Civil Construction Company in Dubai easily.

Steps to Start a Construction Business in Dubai

Starting a Civil Construction Business in Dubai is comparable to starting other types of companies in the city. However, you need a few extra approvals and documents to start the company because you need to prove your expertise in the field.

If this is your first time starting a Civil Company in Dubai, then it is highly suggested that you get assistance from professionals. Company Setup experts are here to help you out.

Here are the steps you need to follow in order to start a Civil Construction Company in Dubai:

Step 1: Select your Business Activities

The first step of starting a Civil Construction Company in Dubai is to select the business activities you want to perform through your business. This is because your business activities will decide which business trade license you need to apply for.

However, since you will be providing professional services through your Civil Construction Company, you will require a professional trade license unless you specialize in a highly technical field. In such cases, you will require the respective business trade license of that field.

Step 2: Register your Trade Name

You will need to register a trading name for your Civil Construction Company in Dubai. To do this you will have to follow a few naming regulations set by the government of the UAE.

Additionally, you need to ensure that the name is unique inside the UAE. The name you have in mind can exist elsewhere in the world. As long as it is not registered inside the UAE, you can go for it.

Step 3: Get the Initial Approval

The Department of Economic Development in Dubai is responsible for handling the registration process of new businesses in the city. To obtain the business trade license for your Civil Company in the city, you need to get the initial approval from the Department of Economic Development in Dubai.

To get the initial approval, you will need to fill in an application form with all the required information.

Step 4: Get an Office Space

All businesses in the city need to get an office space in order to receive the business trade license because the tenancy contract and EJARI are mandatory.

However, if you do not require a physical office space, then you can get a virtual office space to meet these requirements. After you have acquired office space for your Civil Construction Company in Dubai, you can move on to the next step.

Step 5: Get the External Approvals

Depending on the business activities you want to perform through your Civil Construction Company in Dubai, you need to get a few external approvals from various government bodies and agencies.

For example, if you want to provide healthcare services then you need some external approvals from the Dubai Healthcare Authority (DHA).

Step 6: Submit the Required Documents

After you have received all the required approvals, you need to procure the required documents as requested by the Department of Economic Development in Dubai. Here are the documents you will need to provide to start your Civil Company in Dubai:

• Certificate of trade name reservation
• Initial approval certificate
• Copies of the passports of all the partners in the business
• Tenancy contract and EJARI
• Partnership agreement between the affiliated entities

Step 7: Obtain the Business Trade License

After you have submitted all the required documents, the Department of Economic Development in Dubai will provide a payment voucher to you. You will need to complete the payment related to the voucher.

If all the document checks out and the payment is completed, they will provide the business trade license to you within a few days.

How much does it cost to start a construction company in Dubai?

While the initial cost of opening a construction company in Dubai is approximately AED 23,000, it is crucial to recognize that this amount only serves as a starting point. In addition to this, you must also consider expenses related to visas, office setup, staffing, and the cost of acquiring all the required permits and approvals.

What are the Business Opportunities for Construction Company in UAE?

The construction business in Dubai and the UAE is undeniably one of the most lucrative sectors, boasting impressive revenue generation. The region proudly showcases numerous iconic structures, including globally recognized landmarks such as Burj Khalifa, Marina 101, Princess Tower, and Burj Al Arab. The competition for constructing sky-scrapers is intense among the GCC regions.

Furthermore, the government is actively involved in multiple development projects aimed at expanding the tourism industry. Ambitious ventures like the Maritime City, Palm Jumeirah Island, and Deira Island have opened up significant opportunities for the construction business in Dubai. In addition to these projects, the government has strategic investment plans to enhance transportation infrastructure. Notable examples include the expansion projects of Dubai International Airport and Abu Dhabi International Airport, which present strong prospects for construction companies operating in the region.

Approvals Required for Construction Company in UAE

Once you have obtained the necessary license, it is crucial to acquire external approvals from government authorities in order to commence your construction company in the UAE. These approvals include:

Dubai Electricity and Water Authority (DEWA): This approval is required to ensure access to essential amenities such as electricity and water supply for your construction company.

Drainage and Irrigation Department: Approval from this department is necessary to manage liquid waste and other disposal services in compliance with regulations.

Building Department: The Building Department plays a vital role in approving construction activities, ensuring that your company operates in accordance with legal construction norms and regulations.

Dubai Civil Defence Authority: This authority examines and evaluates the adherence of your construction company to safety measures and fire prevention protocols.

How can we help to Setup a Civil Construction Company in Dubai?

If you want to start a Civil Company in Dubai but you do not know where to get started, then you are in the right place. This is because Company Setup Consultants have started various types of Companies all over the UAE. Contact us today and hit the ground running.

To Speak with our Experienced Business Consultants for further information and assistance, call us at +971 585734555. Send a WhatsApp Message for Chat Query on +971 585734555 or email us at ask@growbox.ae.