Legal Requirements for Starting mainland construction company.

Commencing a business in UAE, provides a wide range of opportunities amongst the rapidly growing infrastructure development. The highlights of UAE like Dubai, Abu Dabi, Ras Al-Khaimah, and so on generate a lot of scope in the construction section. As cities in middle east are inclined towards evolving the infrastructure, it leaves an open field to the construction industries. If you are wondering how to start a mainland construction company in UAE or what legal requirements are of UAE, then you are at the right place.

Legal Requirements to start a Mainland Company

1) Business Activity Specification

Before starting a business, it is required to specify the business activity. As construction activities in UAE are classified under specific categories, it becomes important to specify the kind of business activity you are willing to perform whether it is urban development or real estate development or both.

2) Choose a Legal Structure

Depending on the choice of business, specify the legal structure you are choosing. It could be a sole proprietorship, partnership, and limited liability company (LLC). Sole proprietorship stands for a single person owning a whole business whereas a partnership contains two or more owners of the company. LLC is commonly used by foreign investors to have a certain percentage of ownership.

3) Choose a Location

Choosing a Mainland location will allow you to do the trade within the UAE. A local partner of the UAE in the business should own at least 51% of the business and a foreign partner can have 49% of the business share.

4) Register Company’s Name

Every company needs a name. So, choose a unique trade name and get it approved by the Department of Economic Development (DED) in the chosen emirate where you are planning to establish your business.

5) Trade License Application

To get a trade licence, you need to apply through the Department of Economic Development for Mainland Company. The documents required for the process are Memorandum of association, a site lease contract, and a passport of the director.

6) Register with Chamber of Commerce

After obtaining a physical office space and completing the documentation, you can register your company with the local Chamber of Commerce and Industry. The documents required for proprietorship are a copy of valid license, passport copy, a copy of duly attested Power of Attorney whereas documents required for local companies are a copy of license, copy of passport, copy of MOA, a copy of duly attested Power of Attorney.

7) Apply for employment VISA

After getting all the registrations done, you can apply for employment VISA for yourself and for employees under you. To get it done you need to take a medical test, you need an Emirates ID application, and visa stamping.

7) Compliance with Regulations

To start a construction company, it is important to take care of the compliance that you are going to use. Make sure that the compliance is with relevant laws and regulation. Follow building codes, labor laws, and safety regulations.

8) Open a bank account

Make sure to open a bank account in UAE to avail financial transitions for your company’s transitions.

9)  Financial Guarantees

 It is required to provide financial guarantees as per the requirement of the clients.

Conclusion

So, if you are willing to open up a construction business in Mainland UAE then above mentioned are the legal requirements that should be completed. Before applying specify your business and your business plan then move forward to take steps towards a new construction journey. During the process of registering a construction company in mainland UAE, take careful consideration of the activity specification that aligns with your company’s services and capabilities. Ensure smooth and compliant establishment of your construction company.

Also read: How to Start your Construction Company in Dubai, UAE

Popular FAQs

Q1.  What are the main legal requirements to start a construction business in Mainland UAE?

Key requirements include specifying your business activity, choosing a legal structure, selecting a location, registering your company’s name, obtaining a trade license, and complying with regulations.

Q2.  Do I need a local partner to start a construction company in Mainland UAE?

Yes, a local partner must own at least 51% of the business, while the foreign partner can hold up to 49% of the business share.

Q3.  What documents are required for registering a construction company in Mainland UAE?

Necessary documents include Memorandum of Association, a site lease contract, passport copies of directors, and other relevant paperwork.

Q4.  How do I obtain a trade license for my construction company?

Apply through the Department of Economic Development (DED) and submit required documents like Memorandum of Association and a site lease contract.

Q5.  What is the process for applying for employment visas?

After completing registrations, apply for employment visas by undergoing medical tests, Emirates ID application, and visa stamping.