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Important things you should know if you are planning on setting up a construction company in UAE

Amid the new tax regulations in the country, UAE continues to advance as a blooming business-venue in the region. Entrepreneurs and investors alike can benefit from tax advantages of a business set up and investment opportunities in UAE.

Many free zones in the country provide a tax-free position to companies with moderate business regulations. Areas like as residential properties, bare land, and local passenger transport are maintained tax-exempted. The country is an industrial haven for businesses like trade and construction companies, with the upcoming expo 2020, establishing a construction company will be a profitable venture in UAE.

Setting up a construction company, however, requires approval from Department of Economic Development  (DED) and permits are issued by DED in association with the municipality of each emirate.

Approvals from other authorities:

  1. Dubai Electricity and Water Authority
  2. Irrigation and Drainage Department
  3. Civil Defence Authority of Dubai
  4. Building department

Licenses are categorised as professional and commercial

Professional License – entitled activities: design, engineering, and project management.

Commercial License – entitled activities: physical construction activities

  • A commercial license in Dubai is equivalent to a business permit for the setting up of a business in Dubai
  • After obtaining a business permit, the company should acquire a building permit.  The company can then commence building activities
  • Consultants and engineers are eligible to apply for the building permit and have to be hired by the organisation
  • Soil evaluation is carried out by a consultant at the site of construction to evaluate the properties of the soil

Any activity affecting the environment and civil work requires special permission from the Municipality and the Authorities at the free zone