cigbusinesssetup.ae

Step 1: Choose the Jurisdiction

In Dubai, you can establish your construction business either in the mainland or a free zone.

  • Dubai Mainland (DED – Department of Economy and Tourism): Best if you plan to work on government projects, high-rise buildings, and large developments.
  • Free Zones (like Dubai South, JAFZA): Better if you want cost-effective setups with fewer restrictions, but project scope may be limited.

Step 2: Decide the Business Activity

Construction licenses fall under commercial activities and cover:

  • Building contracting (residential, commercial, industrial)
  • Infrastructure works (roads, bridges, utility networks)
  • Specialized contracting (electromechanical, foundation works, steel works)

Step 3: Obtain Initial Approval

Apply to the Department of Economy and Tourism (DED) or the relevant free zone authority for initial approval of your construction activity.

Documents usually required:

  • Passport copy of shareholders
  • UAE residence visa/Emirates ID (if applicable)
  • Trade name reservation certificate
  • No-objection letter (if already employed in UAE)

Step 4: Engineering Qualification & Local Requirements

To operate legally, construction companies must meet additional requirements:

  • Appoint a qualified civil engineer (approved by Dubai Municipality).
  • Meet technical staff quota depending on the size of projects you’ll handle.
  • Get Dubai Municipality approval for building contracting activity.

Step 5: Office & Local Partner (for Mainland Setup)

  • You must lease an office space or warehouse to issue the trade license.
  • For some construction-related activities, a Local Service Agent (Emirati) may be required.

Step 6: Apply for the Trade License

Once initial approvals and municipality clearances are ready:

  • Submit documents to DED (Mainland) or the Free Zone Authority.
  • Pay the license fee (ranges from AED 15,000 – AED 50,000, depending on activity, office size, and visa quota).
  • Receive your Construction License.

Step 7: Additional Approvals & Permits

After getting your license, you’ll need:

  • Building Permit – for every new project, from Dubai Municipality.
  • Environmental & Safety approvals – depending on the project scope.
  • Dubai Civil Defense approval – for safety compliance.


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