Dubai is one of the most attractive and fascinating countries in the world. We have noticed the transformation of this country from time immemorial, and now the beauty of this country has reached its zenith. Dubai’s most attractive goal has many eye-catching sites and beautiful beaches, not to mention the sky-scraping infrastructure. Dubai’s top-notch infrastructure is attractive for tourists and industry people by having a rich style culture, a high measure of living, growing GDP, tax-free environment, and flexible corporation opportunities. These make Dubai one of the best locations in the world for setting up a corporation.
Dubai has many mega construction projects reaching its way in the future. There are also several continuing projects for the World Expo 2020.
The UAE registered the highest structure project valuation in the Gulf Cooperation Council region, amounting to USD 319.1 billion. All these facts imply one thing: there is no better time for company formation in Dubai in the construction sector.
One of the highest-grossing companies in the UAE is the construction enterprise. Dubai is home to the tallest building globally, i.e., the Burj-al-Khalifa, and the world’s tallest residential building, i.e., Marina 101. There are also the Princess Tower and Burj-al-Arab, which are some of the most notable structures in Dubai.
Dubai’s government has sanctioned USD 7.8 billion to expand the Dubai International Airport and a redevelopment project worth USD 6.8 billion of the Abu Dhabi International Airport. Not to forget that Dubai will be hosting the World Expo 2020, providing umpteen opportunities in the construction sector.
Dubai government has funded a lot in the development of the travel and tourism sector. The promotional actions of the world’s first human-made island, i.e., the Palm Jumeirah, are also rising on a daily note. Other projects are in progress, like the Dubai land, Arabian Canal, and others.
Before you register your Russian construction company in Dubai, it is required to acquire a license to start the companyoperations.
Here are the different types of construction licenses in Dubai –
1. Wrecking and Demolition License; Activity Code – 451001; License Type – Commercial; Activity Group – Contracting and Building works
Activity Description – with this license, you will be allowed to engage in destroying buildings and other structures, which are in rundown conditions and are at the edge of collapse, or for replacement using different techniques, such as cranes for high rise buildings, excavators, and manual for medium buildings as well as building implosion using explosives.
2. Building Contracting License; Activity Code – 452001; License Type – Commercial; Activity Group – Contracting and Building works.
Activity Description – beneath this license, you will be interested in constructing all kinds of jobs like residential, hospital, airports, farms, commercial, schools, industrial, public and agricultural buildings.
3. Building Maintenance License; Activity Code – 454007; License Type – Commercial;Activity Group – Building, Maintenance, Surveillance and Cleaning work.
Activity Description – This license will allow you to support buildings without any equipment or extensions available inside, like restoration and reparation of roofs, columns, walls, floors, and others.
4. Steel Construction and Contracting License; Activity Code – 452008; License Type – Commercial; Activity Group – Contracting and Building works.
Activity Description – with this license, you will be allowed to execute all operations related to steel constructions and install steel structures on sites, such as warehouses, plants, huts, warehouse places, bridges, structures, and tunnels.
Procedure to Setup a Construction Company in Dubai
The steps are –
- Before setting up a company in Dubai, the first thing is to decide whether you want to go for a company formation in Mainland or a company formation in the Free Zone.
- The next step would be creating company registration at the Department of Economic Development (DED). Construction company comes in the commercial sector category, for which one needs to obtain a commercial license. This license is official approval to start any enterprise in Dubai.
- After receiving a license for setting up a company in Dubai, the next step would be hiring professionals like engineers and companycompani consultants in Dubai, who can apply for a ‘building permit’ on your behalf.
- Evaluation of the soil for construction and choosing the soil properties will be the job of the professionals, which is the next important step.
- Other activities include getting a Building License from the Dubai Municipality in the case of Mainland Company. In the case of a free zone, it is called the G+1 permit. There are other licenses to be accepted, like the environmental license and civil work permit.
Approvals and Permits Needed for a Construction Company in Dubai
- A civil works permit, which includes works before any foundations
- For a construction permit, the contractor needs to submit the design drawings of the proposed building by the relevant authority
- An environmental license from the relevant authority
- A permit from the Roads and Transport Authority to access the road and internal road network for transportation purpose
- To dispose of hazardous waste, approval is to be given by the relevant authority
- Permits from Dubai country commodities regarding utilities, such as a permit from the Dubai Electricity and Water Authority (DEWA) for water, electricity, and sewage, and a permit from Etisalat for telecommunications
- NOC from Dubai Civil Defence (DCD) for Dubai Airports Company and other related government entities
- A Building Completion Certificate, which allows the building to be occupied
Dubai’s construction sector is booming and is planning to reach new heights in its coming 3-4 years.
We have seen why Dubai acts as the best potential market for the construction company. A country with so much possibility for just one sector of its market is outstanding.
If you are into the construction company or planning to set up your business in Dubai, Russian lawyers team can help you in your company formation and business setup consultancy.
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What language should the company documentation be in for application to the Department of Economic Development (DED) and Ministry of Economy (MoE)?
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