In the last few decades, UAE has projected an unprecedented growth in the construction sector. Recently, it is ranked 2nd in the construction sector all over the world, and reaching at the top is not far away. The real estate sector is developing at a rapid pace and there is a need to construct residential workplaces to meet the demands of increasing expats. There are bountiful opportunities in this sector and it would be a great investment in setting up a construction company in the country. In this article, we will explore various facets of setting up a construction company with the inputs of best company formation lawyers of UAE.Setting up a construction Company
For company formation, it is essential to follow some steps, which are discussed below-1. Register a trade name
For company formation in UAE, the first step is to choose a trade name of the company to distinguish it from other business entities. The name of the company is registered with the Economic Department of the Emirates. For deciding the name, you can take help of company formation lawyers and company formation law firms, having specialised expertise in the area.
However, it is suggested to keep in mind some restrictions while choosing the name of the company. The name shouldn’t be offensive; the words referring to Allah, religious groups, political groups, etc should be strictly avoided. Further, the name shouldn’t be identical or in resemblance with any existing company.
2. Take Initial approval
For proceeding ahead in company formation in UAE, it is essential to take the approval of the government that it doesn’t have any problem with the setting up of a construction company.
The top lawyers of Dubai have suggested that for a foreign investor, it is essential to obtain the approval of the General Directorate of Residency and Foreigners’.
3. Memorandum of Association (MOA) and Local Service Agent
The MOA is the constitution of the company containing all the essential information about its objective, functioning, share capital, etc. For drafting MOA, you should approach best company formation lawyers of UAE. It is also essential to appoint a local service agent. While drafting the agreement, it is essential to comply with all the applicable legal requirements. The MOA must be attested through a notarized public or the court.
4. Submit documents and get business license
The last step in company formation in UAE is getting the trade license from Economic department. For getting a license, following documents should be submitted before the department-
- Receipt of the initial approval from the government;
- Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai;
- Attested Memorandum of Association and Service Agent Contract.
You need to make a payment within 30 days of receiving the payment voucher to get the license. In case of failure, your application may be cancelled.
In Short
The formation of a construction company in UAE is a quick, convenient, and transparent process if you’re as well-versed with the process. BSB Legal is the best law firm of Dubai with top lawyers engaging in company formation, drafting documents, and obtaining necessary approvals. To register your company with BSB Legal, contact us below.