With each passing day, the number of expats in UAE is increasing as living there has multiple benefits. It includes tax benefits, strategic location, advanced technology and much more. Starting your own business in UAE is a good idea, especially in the real estate business, and it can be more rewarding as more and more people are moving to Dubai.
Real estate brokers are professionals who help rent, buy, and sell properties. It can be apartments, houses, land, or commercial buildings. Like any other business, it also has some requirements that must be fulfilled to run the business smoothly.
To become a real estate broker, it is mandatory to have a real estate broker license in Dubai. It is a permit provided by the relevant authorities to operate a real estate business legally. This article will serve as a complete guide on how to start a real estate brokerage firm and how to obtain a license for it.
Real Estate Brokerage Firm
It is not easy to set up a brokerage firm in Dubai as there are multiple steps, and approval from various authorities and departments is required to set up a real estate brokerage firm. Following are the steps involved in setting up a real estate brokerage.
Choose Legal Structure
The first step is to select the legal structure; it can be a Limited Liability Company (LLC) or a Civil Company. If you are the only owner of the company, then you need a professional license, and in case of more than two shareholders, a local service agent is required.
Select a Name
The next step is to select a name for your firm by following the guidelines of the Department of Economic Development.
Initial Approval
Submit the required documents related to your business and get approval from DED.
MOA
Create a Memorandum of Association and notarize it as per UAE commercial law. The signatures of all the shareholders are required.
RERA Certification
It is the most critical and time-consuming step. Applicants have to apply for the Real Estate Brokerage Registration (RERA) exam. Dubai Real Estate Institute offers training related to laws and regulations of estate law in UAE. Enrollment in this training is mandatory, and after clearing this exam, you can appear in the RERA exam.
This training can be taken online to assist the applicant. The Dubai Land Department conducts the RERA exam to test your knowledge.
License Application
Submit your application to get a real estate license in Dubai. Along with the application, you also have to submit your training certificate, exam result card, good conduct certificate and initial approval from DED.
Payment
Collect the fee voucher and make payment.
Obtain License
A broker card valid for one year will be provided after the approval of RERA.
Documents Required at RERA and DED
Submit the following documents to the relevant department to get a license without any delay.
- Passport copy and ID of the applicant
- Recent photographs with a white background
- Initial approval from DED
- Memorandum of Association
- Trade name reservation
- Good conduct certificate
- Training certificate
Renewal of Broker License
To renew your real estate broker license Dubai online, you have to reappear for the RERA exam. It is mandatory to get 85% or above in the RERA exam. Without clearing the exam, it is impossible to proceed with the renewal of the license.
For renewal, you must submit the following documents.
- Copy of passport
- Residence visa
- Two recent photographs
- Degrees and certificates
The cost of renewal of a license is AED 520. You can apply for renewal on the website before your license expires. This application process takes 5 to 10 working days. After getting it, you can continue your real estate activities in Dubai.
Real Estate Broker License in Dubai Cost
The cost of a broker license depends on multiple factors but generally costs AED 10,000. The cost depends on the following factors
- RERA exam
- DREI training
- Application fee
- Renewal fee
The fee for the RERA exam is different for degree holders. If you hold a bachelor’s degree, the cost will be AED 3200; otherwise, it is AED 6300. If the applicant has no educational background, the fee increases to AED 15,750.
Benefits of Becoming a Real Estate Agent
Dubai offers several benefits to real estate brokers, and the main advantages are
High Earnings
Real estate businesses have high earning potential as you can get a commission on each property that you help sell or rent out. The rates of property are high in Dubai, which is why a small percentage of commission can be a significant amount.
Flexible Schedule
Another advantage of this business is that you do not have to adhere to fixed working hours. You are your own boss and can work for as long as you want. From the smallest task to the big decision of the company, you don’t have to get permission from anyone.
Zero Tax
The major benefit of being a real estate broker in Dubai is that your income is tax-free, it directly contributes to high profitability, and you can invest that amount in expanding your business instead of paying taxes.
High Demand
Dubai is an ideal location whether you are going to start your own business or want a good lifestyle. That’s why people are moving here.
This results in the need for real estate agents to buy and sell property. A greater number of people results in more chances of making deals, and you can easily build a successful career.
Incentives
Several estate companies offer incentives and bonuses to their employees holding real estate license in Dubai on achieving monthly sale targets. Each company has different goals and different bonus packages.
Conclusion
At the end of this article, we hope it has provided you with helpful insights into the real estate broker license in Dubai and how you can get your license. Although it is a challenging task to obtain a license after training and taking the RERA exam, being a real estate broker has several advantages and a high profit margin in Dubai.
The demand for brokers is high, and you can easily build your career without the need for a local sponsor. Get your broker license and start thriving in the real estate business market.
With hard work and the right guidance, you can achieve your dreams and goals of starting your business in the UAE. If you are still confused about starting a business, reach out to Al Riyady for guidance and get services to start your business. Our experienced consultants have solutions to all your business problems.
