How to start a facility management company in DubaiBlog
Dubai is home to some of the most imposing skylines and ambitious construction projects on the planet. Beneath those imposing skylines and headline projects is a vast array of commercial and residential buildings – with new ones popping up seemingly every week.
This backdrop makes Dubai one of the best locations to see success in facilities management – further evidenced by the prediction that the UAE’s total facilities management industry is expected to be worth an incredible USD 6.6bn by 2022.
Naturally, such a strong market presents opportunities for those within Dubai and the UAE with the skills and drive to see success. If that’s you, here’s your guide to starting a facilities management company in Dubai.
How to start a facility management company in Dubai
The first steps to starting your facilities management company in Dubai are relatively straightforward providing you are armed with the right knowhow.
The first step is to decide on your company name. This is a little more complex here in Dubai as you’ll need to keep in mind that the UAE has a set of somewhat idiosyncratic naming conventions.
As a guide: Your company name should not include any offensive or blasphemous language or make reference to known organisations and corporations.
If you are going to include your personal name in your business name, it must be in full – no abbreviations or initials. You must also check that your chosen business name is available to be registered. A company formation expert can do this for you as part of the license application process.
You also need to decide early on whether you wish to set up in free zone or in the Dubai mainland. If you establish your business in the mainland, you are free to trade directly with the local market, without using the services of a local agent. You can also bid for government contracts – which can be lucrative in the field of facilities management.
On the other hand, if you set up in a free zone, you can take advantage of 100% exemption from customs tax. UAE free zone business owners also have full freedom to repatriate all invested capital and profits. There are also no foreign exchange controls and currency restrictions.
Applying for your facility management license in Dubai
There are a couple of stages to becoming a fully-fledged facility management company in Dubai. The first is to apply for your trade license.
If you are setting up in a free zone, you should make your license application to the relevant managing authority. If you have opted for the mainland then you can apply to the Dubai Department of Economic Development.
In both cases, the application process follows the same basic steps. Whether making your application yourself, or through a company formation agent, you are usually only required to provide a few details and some standard documentation, including:
- Completed application form
- Passport copy of the proposed owner or owners
- Two colour passport size photos
You should also apply for your visas at this stage, including those of your employees and any domestic staff or family members that you wish to sponsor. The final step is applying for a corporate bank account. A company formation specialist can handle all applications for you, liaising with relevant authorities on your behalf.
Following a pilot scheme, your facilities management company may also need to be graded by the Real Estate Regulatory Agency (RERA). The grading will give an indication of the company’s specialisation and level of expertise. Only companies of a certain grading can take on certain projects. For example, only a large company with an expertise in buildings over a certain size could pitch for the facilities management contract of Burj Khalifa.
Facility management license cost?
The total costs of launching a facilities management company in Dubai will vary depending on where you choose to setup, how many visas you require and so on.
When it comes to the facility management license cost, it is possible to get a clearer indication. Set up in a free zone such as Fujairah Creative City, for example, and you can expect to pay in the region of AED 22,200 including the cost of one visa. If you also wish to use the free zone’s coworking facility, that figure rises to AED 24,775.
Setting up your facility management company in Dubai
As it’s home to such a vast market, there are a few better opportunities available than in the facilities management industry of Dubai. And the best part is, if you’ve got the right skills and are armed with the right knowledge, setting up a facilities management company in Dubai doesn’t have to be overly complex.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you to ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone (BIZ) when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visas applications that are required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.