A construction business setup in Dubai, UAE can be a great idea. With Dubai being the hub of various opportunities, there has been massive growth in the sector in recent times.
Dubai is moving at a rapid speed toward achieving its dream GDP. They are moving towards creating a tax-free environment with the highest standards of living. There’s a lot of business scope in Dubai. Major construction projects are also coming up in the region. If you want to establish a construction company in UAE and KSA, this is for you!
Licensing in Dubai
If you are considering a fresh construction business setup in Dubai, you need to apply for the G+1 license. The license has brought about significant growth in recent times.
The company will issue the license accordingly. However, you must also analyze the minimum requirements for starting the license in Dubai. Make sure to cater to the needs of classification. As per the guidelines, engineering and consultancy activities depend on Dubai’s business activity.
Dual License in UAE
The Abu Dhabi Department of Economic Development announced the concept of a dual license in September 2018. With the help of these licenses, businesses will be able to conduct commercial activities. This move was taken to ensure more investments are made. It helped to determine economic development across the country.
The economic initiatives were aligned with His Highness Sheikh Mohammed bin Zayed Al Nahyan and Chairman of the Executive Board. Various moves were introduced along the way to determine the growth of the business. Small and medium-sized businesses had grown rapidly in the private sector.
Can a construction company hold dual ownership in UAE and Saudi Arabia?
Holding dual ownership of construction companies in Saudi Arabia and the UAE can be a slightly complicated process. Since you need a dual license, it is advisable that you reach out to professionals. Since you are going to start a construction company, having a dual license can help you. You can own a company with dual ownership as long as you have the dual license.
What are the key considerations for applying for a dual license in the UAE?
If you are considering a business setup in Saudi Arabia, you need to consider various factors. These become more important if you are planning to apply for dual licenses. The authorities recommend following the guidelines for dual licenses.
Given below are some of the key considerations of applying for a dual license in the UAE and Saudi Arabia for construction business setup:
- Companies operating in the mainland and free zones will need to apply for dual licenses. They need to apply for an onshore license that will allow them to conduct the activities. The company can therefore have an onshore DED license within the UAE free zone.
- The dual license will act as a permit for holding the business and not the branch for a Free zone company. The Free zone company will be another entity that can conduct freely. These companies will need to hire staff, carry out normal operations and hire staff.
When you want to set up a company in the free zone and mainland, you will need to consider various factors. Depending on whether the business caters to the needs or not, you need to apply for the license.
Can construction companies hire staff for dual licenses?
One major confusion among businesses is if they can hire staff on dual licenses. It is advisable to follow the basic guidelines to proceed with the business setup. The guidelines for hiring staff on dual licenses are given below:
- The Labour Card isn’t issued with the dual license. If you have a dual license, you will not be eligible for Labor Card or e-channel registration. The employees will need to register for one to be able to work.
- With a Free zone visa, you will need to apply for or rent around 8-10 sqm per employee. The office space should be constructed in a free zone. It will help to keep up with the costs as compared to the mainland office space. In the mainland office, the staff may or may not work within the office space. Furthermore, mainland companies require a minimum of office space and it doesn’t matter whether the staff is working from the office or outside the space.
Approvals and Permits for Business Construction in the UAE
When you’re starting the construction business, you will need specific permits and approvals. Given below is the list that you must follow:
- The environmental license from the respective authority.
- The permit from the Roads and Transport Authority for using the internal road network for transportation purposes.
- NOC from Dubai Civil Defence.
- Building Completion Certificate to ensure the building can be occupied.
- An approval from the respective authority to dispose of any hazardous waste.
- Permits from Dubai Electricity and Water Authority sewage.
- The permit from Etisalat for telecommunication
- Civil work permit
- Building permit
- Building Completion Certificate