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How to get a construction business license in the UAE

Open your construction business in the United Arab Emirates and you are guaranteed to be investing in the best performing profitable sector in a leading Middle East country.
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Driven by ongoing economic diversification, the lucrative UAE construction sector will need foreign construction companies for the foreseeable future. Licenses are state-controlled and the regulatory framework is fair but strict. As industry experts, SORP Group provides a head start for gaining entry to this market, providing efficient and reliable solutions to fast-track the legal procedures involved.

Major construction licenses available for business in the UAE and abroad

Construction of all types of buildings and facilities
Construction of residential buildings, villas, malls, production areas and warehouse premises and other types of buildings under a general license
Full range of construction works abroad
Making it possible to do tax-free business abroad, with the entire range of construction services, building operation and contract works being permitted
Maintenance of facilities on a turnkey basis
Supply of construction materials, furniture, equipment and decorative elements to already erected facilities, and facilities which are under construction
Foundation and concrete works
Wall and foundation construction, concrete casting of industrial and warehouse floors, reinforcement of cracks with concrete
Construction of special purpose facilities
Construction of electric power substations, sewage disposal plants, pipelines, also on seaport and airport sites
Construction of metal structures
Installation of frame structures, exhibition stands and / or pavilions, hangars, as well as steel and metal structures
Facade and finishing works
Internal or external wall covering of commercial, industrial and residential premises with any materials
Landscape gardening
Development, improvement and organization of parks and gardens, arrangement of villa and cottage grounds
Duct and air ventilation systems
Installation, maintenance and connection of ventilation systems to buildings and equipment
UAE regulations offer a wide range of highly specialized construction licenses that do not fit into any regular categories. They have varying licensing requirements and procedures, depending on the field of activity. These licenses are in high demand. Developers of large-scale projects strive to attract highly specialized and licensed construction companies for subcontracting.
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SORP solutions for licensing and support of construction businesses in the UAE

Business modeling
We will choose the right type of company and most suitable place of incorporation for the best fit
Company incorporation
Fast processing through the legal procedures based on of our trusted status with DM and DED
Local partner or agent
Nominee service from SORP Investment LLC with a waiver of rights in the Dubai court
Prestigious office address
SORP Business Centre provides our clients with the opportunity to rent an office under Ejari / Estidama license, rent flexi-desks or E-office
Opening a bank account
Cooperation with UAE banks, understanding of compliance procedures and assistance in passing KYC and interviews
PRO - business support
Representation of interests at the Ministry of Labor and other state authorities for visas and licenses with support always available 24/7

What’s involved in getting a UAE construction license

Construction companies are controlled by the state. Before starting incorporation, it is important to understand the unique aspects of licensing and obtaining approvals from the relevant UAE authorities: Municipalities, Construction Departments, Economic Departments of the Emirate or Free Economic Zone regulators.
Jurisdiction of incorporation
The first step to creating a construction company in the UAE is choosing the jurisdiction. This determines where you can do business and the requirements for incorporation. The only way to obtain a construction license for engaging in construction and installation works within the UAE itself is to register a local (mainland) company. To operate outside the UAE, you can use a special license offered by some FTZs as an exception to the general rules.
Terms of ownership
Obtaining construction licenses (excluding design work) in the form of LLC / SE / CC and incorporation of a Mainland company are available for 100% foreign ownership without the involvement of a local partner or an agent (Local Service Agent). However to simplify interaction with government agencies, as well as enabling participation in local tenders, we recommend appointing a professional Process Agent.
Control by the State
All aspects of construction activities are controlled by the UAE Building Department. Obtaining individual licenses requires additional approvals from the Department of road industry, the Department of Civil Protection, and other agencies depending on the field of activity. To obtain some licenses for construction works in the UAE, you need to provide technical personnel and pass a number of procedures for accreditation of experts.
License categories
Licenses for the construction of buildings and facilities are divided into categories that determine the maximum permissible height of structures that can be built. For example: G+1 (Ground Floor + 1 Floor) – construction of structures up to 2 floors high G+4 (Ground Floor + 4 Floors) – construction of structures up to 5 floors high G+12 (Ground Floor + 12 Floors) – construction of structures up to 13 floors high UL (unlimited) – there are no restrictions on the height of structures that can be built
Requirements for obtaining a specific license category
The higher the license category, the more difficult it is to obtain due to conditions imposed by the government agencies. During the registration process, the requirements for personnel that must be present in the company's workforce are set out. That includes engineering and technical experts accredited in the UAE, construction workers and administrative personnel. It is also necessary to confirm that the company has special construction equipment and cargo transport, that it rents an office of a certain size, proves the availability of fixed assets, and provides a bank guarantee.
Obtaining a high-category construction license
UAE legislation restricts the issue of high-category licenses to new construction companies. The process of upgrading the license category takes place on a phased basis over the course of operating the business. It takes completed projects into account and additional Building Department approvals need to be secured. To help expedite this process, the experts of SORP Group offer ready-made solutions for the purchase of a suitably-licensed existing construction company with subsequent accelerated promotion to a higher category
When operating an international construction business, it is essential to consider the key aspects involved in meeting the legal requirements for confirming Economic Presence (ESR) in the UAE through having a Management and Control Center (Decision Making Center) located in Dubai. International tax planning will reduce and optimize deductions. Obtaining Tax Resident status is required to protect against the exchange of tax information in accordance with CRS standards and to maintain the confidentiality of beneficiary data. SORP Group experts have developed comprehensive solutions for your construction business abroad.

Comprehensive SORP support services for doing business in the UAE

Construction activities in the UAE are regulated by the state and municipalities. Therefore, to choose the best model for organizing a construction business in the UAE, we have developed solutions that prevent you from making mistakes.
Individual business model
We integrate ideal development strategies for you based on the competition and the law. Then we choose the right operating license for doing local or global business
Business consultancy
We will ensure that all stages of starting a business are completed. We will build relationships with government agencies that regulate all activities
Business process outsourcing
It makes sense to use SORP’s professional help in administrative, recruiting, accounting PRO and tax competencies, saving the cost of employing highly paid personnel
Obtaining tax residency status
Enjoy tax resident (domicile) status shielding you from CRS requirements for sharing your tax details and preventing double taxation
International Tax Planning
We design optimized tax solutions for international business within the full scope of UAE legislation, drawing on our wide experience and successful cases in this field
Confirmation of economic substance
We help fulfil proof of economic substance based on the registered location of your company, with its localized decision - making and management, tax compliance
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