Commercial Brokerage License in Dubai
Dubai is a great city for real estate brokerage due to its strong and rapidly growing economy, attracting many businesses and individuals to the region to conduct business. The city’s real estate market has seen significant growth recently, with a high demand for residential and commercial properties.
This demand, coupled with a limited supply of properties, has resulted in a competitive market with strong potential for real estate brokers.
But if you’re planning to buy and sell properties in the UAE, you’ll need to obtain a commercial license. A commercial license in Dubai allows you to legally represent buyers and sellers in purchasing and selling commercial properties, such as office buildings and retail spaces.
In this blog, we’ll explain the process of getting your commercial brokerage license in Dubai, including the requirements, application process, and average costs you can expect to pay along the way. And since time is money, let’s get right into it!
Who Should Apply for a Commercial License in UAE?
Under a commercial business license in Dubai, prospective entrepreneurs can engage in a wide range of business activities, including:
1. Import and Export Activities
A commercial license covers the import and export of products, including importing raw materials, exporting finished goods, and distributing a variety of commodities within the UAE and internationally.
2. Sale of Electronic Products
The sale of electronic products is a popular business activity in Dubai. After all, the region is home to many electronics retailers and distributors and features a high demand for electronic products, such as smartphones, laptops, and other consumer electronics.
3. Real Estate Services
Real estate services are an important business activity in the UAE. Dubai’s strong economy and growing population have fostered a high demand for residential and commercial properties, making operating a real estate brokerage quite lucrative.
4. Supply of Brokerage Services
The Department of Economic Development (DED) provides commercial brokerage licenses in Dubai for brokerage services in real estate.
5. Sale of Construction Materials
The city’s construction industry is a significant contributor to its economy, and there is a high demand for a wide range of construction materials, including steel, cement, and other building supplies.
Logistics is an important business activity in Dubai. As a major hub for international trade, the city is home to many logistics companies that manage the flow of goods in the region.
7. Auto Vehicle Rental Businesses
Auto vehicle rental businesses are a common sight in Dubai. Between the city’s robust tourism industry and the high number of ex-pats, there is a steady demand for rental cars and other vehicles here.
8. Travel and Tourism
Travel and tourism is a major industry in Dubai, and there are many business opportunities in this sector, including hotels, restaurants, and other tourism-related ventures.
9. General Stores, Shops, and Retail Storefronts
Retail shops are an everyday business activity in Dubai, with many retailers offering a wide range of products to meet the needs of the city’s diverse population.
What’s the Difference Between a Broker and a Brokerage?
In Dubai, a broker is an individual who is licensed to facilitate the buying and selling of properties. On the other hand, a brokerage is a company that employs one or more brokers to provide a range of financial and real estate services.
To become a broker in Dubai, you must obtain a commercial broker license from the Department of Economic Development (DED). This license allows the broker to legally operate as an independent contractor, providing real estate services such as helping buyers and sellers find properties, negotiating deals, and facilitating the transfer of ownership.
Brokers will often conduct activities such as
- Completing financial transactions for clients using customers’ funds.
- Acting on a client’s behalf in trades, purchases, or sales.
- Help traders understand market conditions and provide updates on price fluctuations and other pertinent data.
- Funding margin trades
- Safekeeping client info
- And more!
Different Forms of Brokers
1. Real Estate Brokers
A real estate broker is an individual who is licensed to facilitate the buying and selling of properties. This may include helping buyers and sellers find properties, negotiating deals, and facilitating the transfer of ownership.
2. Financial Investment Brokers
A financial investment broker is an individual or firm that acts as an intermediary between buyers and sellers of financial securities, such as stocks, bonds, and mutual funds. Investment brokers may work with clients to develop investment strategies, research investment opportunities, and execute trades on behalf of their clients.
3. Insurance Brokers
An insurance broker is an individual or firm that acts as an intermediary between insurance buyers and insurance companies. Insurance brokers work with clients to assess their insurance needs, research coverage options and help clients select the most appropriate insurance policies.
The Documents Required for a Commercial License in Dubai
To secure a commercial license in UAE, you’ll be required to provide several pieces of information. You’ll need to have these documents handy to ensure the application process goes smoothly. The required documents include the following:
• Completed application form
• The lease contract for your company’s registered address
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Office permit from the Dubai Municipal Building Department
Documents Required for Commercial License Renewal in Dubai
A business license from the Dubai Department of Economic Development (DED) grants you the authority to conduct business for one year.
After that year, you will need to submit documentation for a renewal. The documents required for this renewal include the following:
• Original copy of trade license
• Copy of office lease contract
• Approval from any relevant authorities
• Details of employees, including their accommodations
• Once renewed, a commercial license is valid for a period of 5 years.
The Procedure to Obtain an Instant Commercial License in Dubai
Obtaining an instant commercial license in Dubai is a straightforward process that allows you to quickly and easily set up your business in the city. Here is a step-by-step guide to the process:
1. Decide on your business activity
The first step in obtaining an instant commercial license in Dubai is deciding on the business type you want to operate. This will help you determine the type of license you need and ensure that your business complies with local laws and regulations.
2. Select a legal structure for your business
Once you have decided on your business activity, the next step is to select a legal structure for your business. Options include a sole proprietorship, a partnership, or a limited liability company (LLC).
3. Choose a trade name with the DED
After selecting your legal structure, you must choose a trade name for your business. This trade name may not be previously used by another entity and may not include profanity. Requesting a trade name can be done through the Department of Economic Development (DED).
4. Apply for a trade license
The next step is applying for a trade license, which is required to legally operate your business in Dubai. You can apply for a trade license through the DED.
5. Apply for a visa
If you are not a citizen of the UAE, you will need to apply for a visa to work in Dubai. In many cases, entrepreneurs will seek the assistance of business formation consultants to help with this process.
6. Secure office spaces
Once you have obtained your trade license and visa, securing office spaces for your business is next. There are a variety of options available, including serviced offices, co-working spaces, and traditional office rentals.
7. Pay fees and receive license
You will need to pay any fees associated with your commercial license in Dubai. Once these fees are paid, you’ll receive your license after a short processing period, allowing you to start operating a business in Dubai.
The Cost of a Commercial Brokerage License in Dubai
The cost of obtaining a commercial brokerage license in Dubai can range between AED 12,500 and AED 15,000 or USD 3,400 and USD 4,000.
The total cost varies depending on several factors, including the type of business you are operating and the legal structure you choose. Some of the main costs associated with obtaining a commercial brokerage license in Dubai include the following:
• Trade license fees
• Office rental costs
• Legal fees
• Visa costs
How MSZ Can Help Your Company
For years, MSZ Consultancy has helped investors and entrepreneurs handle the most critical aspects of their business, including applications, licenses, and timely renewals. We’re skilled at organizing legal structures, securing visas, obtaining office spaces, and even helping businesses obtain a commercial broker license in Dubai.
These services make MSZ Consultancy an indispensable resource for investors and entrepreneurs looking to set up their real estate brokerage company in Dubai.
If you are considering starting a business in Dubai, or if you are an existing business owner looking to streamline your operations, look no further than MSZ Consultancy! Our team of experts will work with you to ensure that your business operates smoothly and efficiently and is set up for success! Give us a call today at +971 52 544 1248 for a free quote!