Do you think starting a general contracting company in Dubai is merely about securing a contracting office license and simply just start working?
It is far more nuanced than that. In Dubai, contracting is not a random business; it is a rigorous ecosystem built on technical competence and official accreditations. Only regulated and certified firms are permitted to operate on legitimate construction sites.
Securing a contracting license is just the starting point. The real challenge lies in meeting the stringent Dubai construction company licensing requirements. This involves choosing the right legal structure, hiring a certified technical team, and obtaining approvals from government agencies (such as Civil Defense approvals) to be listed among the Dubai Municipality approval services accredited firms. Following these steps provides your company with:
✔ A solid regulatory status for permit processing
✔ Flexibility for future expansion
✔ Accreditation from official authorities
✔ Enhanced credibility with major developers
Let’s step away from theoretical advice and dive with Contracting company into the actual requirements and mandatory certifications needed to establish a successful contracting firm in Dubai.
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Table of Contents
Step-by-Step Guide to Establish a General Contracting Company in Dubai
The process to start a contracting company begins with selecting the appropriate legal structure (whether a Limited Liability Company (LLC) or a Sole Establishment) based on your business scope, you must also decide between the Mainland or a Free Zone jurisdiction.
Next, in order to start a contracting company you must define your specialization; Your firm could focus on specific niches, such as specialized firefighting contracting company. For instance, DAEM Contracting specializes in construction/fit-out works in addition to firefighting solutions.
The technical phase follows, After reserving your contracting company name and leasing an office, you proceed to get Initial Approval which involves hiring Dubai Municipality approved engineers and obtaining NOCs (No Objection Certificates) from relevant authorities and finally, you submit the application for the final license to commence official operations.
Here are the key steps to establish a contracting company in Dubai:
- Choosing the Legal Structure for the contracting company
- Select the operation area
- Define Business Activities of the contracting company
- Reserve a contracting company Name and Leasing Office Space
- Secure the Initial Approval to establish a contracting company
- Secure Technical Requirements for starting a contracting company
- Securing Authority Permits needed to conduct contracting operations
- Obtain the Final NOC to start a contracting company
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1. Choosing the Legal Structure for the contracting company
Selecting the right legal framework is vital in starting a contracting company, Options include an LLC (Limited Liability Company), which is ideal for partners looking to scale, or a Sole Establishment for individuals handling smaller projects. International firms can also establish a Branch Office, allowing for 100% foreign ownership without the need for a local partner.
Here are the legal structures for contracting companies:
- LLC: The most common structure for contracting, requiring two or more partners.
- Sole Establishment: Owned by one individual, typically with lower setup fees.
- Foreign Branch: Allows global companies to expand into the UAE market with full ownership.
2. Select the operation area: Mainland vs. Free Zone:
The area in which the contracting company operates is selected, including mainland, as well as free zones that allow the company to conduct business within the free zone based on its scope of work.
The scope of areas for contracting companies operations includes the following:
- Mainland Company: The preferred choice for investors and Dubai engineering consultants, as it allows you to execute large-scale projects across the entire UAE without geographic restrictions.
- Free Zone Company: Often limits operations to the specific free zone territory unless a local distributor or a secondary license is obtained.
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3. Defining Business Activity of the contracting company: From Construction to Mega Projects
Your contracting company’s activity scope can range from residential and commercial buildings (like DM approvals for offices) to infrastructure works like bridges and roads, It also covers electromechanical works (MEP Approvals), plumbing, and Installation of a fire alarm systems.
The scope of the contracting company’s activities includes the following:
- Residential, Industrial & Commercial Construction: Executing warehouses, factories, and shopping malls.
- Infrastructure & Roads: Building road networks and drainage systems.
- Electromechanical (MEP): Design and maintenance of HVAC and water pumping systems.
- Firefighting Systems: Installation and design of a fire suppression system requiring Civil Defense certification.
- Interior Fit-out: Securing fit out approvals for renovations, flooring, and interior modifications.
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4. Reserving a contracting company Name and Leasing Office Space
To start a contracting company, you must reserve a unique Name for your contracting company through the Department of Economy and Tourism (DET), the name should not be offensive or have religious connotations. Once approved, a name reservation certificate is issued.
Simultaneously, you must lease a physical office. Having a verified address is a prerequisite for a Mainland license, and the lease must be registered in the “Ejari” system.
5. Initial Approval: The First Legal Milestone
The Initial Approval is the first green light to establish your contracting company in Dubai, you apply via the “Invest In Dubai” platform; this allows you to proceed with secondary steps like technical certifications. Required documents usually include passport copies, UAE IDs, and parent company documents if establishing a branch.
The initial approval fee for starting a contracting company is approximately 300 UAE Dirhams.
Here are the Documents needed to start a contracting company:
- A copy of your passport or UAE entry visa.
- Emirate ID (for UAE nationals).
- residence permit.
- Business details (including company name and business activity).
- Documents for the parent company if it is an international branch (such as a copy of the parent company’s business activities and a resolution from the parent company to open a branch in Dubai).
- Office lease agreement.
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6. Technical Requirements: Qualifying Your Firm
One of the steps to start a contracting company is appointing a Qualified Technical Manager.
All engineers must be members of the UAE Society of Engineers and pass the DM technical qualification exam. Having a certified Engineering approval consultant Dubai ensures your project designs meet the Dubai Building Code.
Here are the technical requirements to start a contracting company in dubai:
- Qualified Technical Manager: The Technical Manager must be a certified engineer in one of the following disciplines.
- Hiring technical staff: employing engineering consultants accredited by the Dubai Municipality, with the presentation of practical experience.
- Membership in the Engineers Association: Engineers working in the company must be members of the Emirates Society of Engineers and obtain an engineer’s card.
- Passing the Dubai Municipality Engineers Exam: It is necessary to ensure that the company’s engineers have an engineering classification certificate and are accredited by Dubai Municipality.
7. Securing Authority Permits Efficiently
You must obtain approvals from various regulatory bodies. This includes the Dubai Municipality for contracting activity In addition to enrolling the contracting company in the system of accredited agents of Dubai Municipality, clearance from Civil Defense for structural, safety and fire protection compliance is also necessary.
approvals from the Roads and Transport Authority and the Telecommunications Authority are also necessary for infrastructure works for construction projects (such as connecting the communications network to the facility).
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8. Issuing the Final Contracting License
Securing the contracting company license is the final step in the establishment phase, it allows the company to conduct its business and employ contracting engineers in construction projects. Applications for a contracting company license are submitted to the DET (Directorate of Investment and Trade) through the “Invest In Dubai” online platform, and the required documents must be completed, including:
- Payment receipt for initial company approval.
- Company Memorandum of Association (MOA).
- No Objection Certificates from relevant authorities (such as Dubai Municipality and Civil Defense).
- Office lease agreement registered with the Ejari system.
- Notarized agent agreement if the agent is local.
Licensing fees typically start around AED 25,000, depending on the activity and number of partners, after these operations are carried out, a license is obtained for the contracting company and it can begin its business.
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Advantages of General Contracting Companies in Dubai
General contracting companies in Dubai are characterized by their ability to execute large-scale projects throughout the UAE (such as building preparation works), they also facilitate the establishment of contracting companies by international investors and employ qualified technical personnel to undertake contracting projects in Dubai.
Furthermore, contracting companies in Dubai are characterized by their capacity to expand into various specializations (such as fire systems contracting and building construction projects) and are accredited by developers due to their adherence to Dubai Municipality’s building standards (Dubai Building Code).
Here are the advantages that contracting companies in Dubai can benefit from:
- The ability to execute projects throughout the Emirate of Dubai and the UAE without geographical restrictions.
- 100% foreign ownership, allowing investors to establish fully owned contracting companies without the need for a local Emirati agent.
- A clear and legal framework for contracting operations, with organized and expedited licensing procedures to obtain approvals from relevant authorities (such as DEWA approval).
- Accreditation and inclusion of contracting companies within Dubai’s government accreditation system, enabling them to undertake projects requiring official approvals, such as Dubai Municipality building permit issuance.
- The flexibility to expand contracting activities and add new specializations, such as finishing contracting, electromechanical systems, and maintenance .
- Contracting companies are trusted by developers due to their qualified technical staff, engineers accredited by Dubai Municipality, adherence to the Dubai Building Code, and ability to execute engineering projects according to approved standards (such as green building regulations).
Establish a general contracting company in Dubai and enter the world of entrepreneurship!!
Establishing a general contracting company is the most common investment in Dubai , given that the UAE’s construction sector is valued at approximately 90 billion US, Such companies are essential for Dubai’s development.
Setting up a contracting firm in Dubai is a smart investment decision when properly established by meeting technical requirements, accrediting engineering staff, and being listed among the approved contracting companies by Dubai Municipality, these companies adhere to building standards (Dubai Building Code, Green Building Regulations). The strength of a contracting company is measured by:
✔ Number of projects executed ✔ Approvals that can obtain ✔ Number of government agencies relied upon as an approved contractor
Frequently Asked Questions:
1-Why does a contracting company need DCD approval?
2-Can I add new specializations to my existing contracting license?
Yes. You can add activities like fit-out or firefighting without starting a new company, provided you appoint the required technical staff and secure the necessary Approval services in Dubai (like DEWA and DCD approvals).
3-What are the factors that affect the cost of contracting companies set-up process?
The main factors that affect the costs of contracting companies’ set-up process are the license type (LLC vs. Sole), the jurisdiction (Mainland vs. Free Zone), office rent, and the cost of hiring a DM-certified technical manager and staff.
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