Easy Steps For Owning Property In Dubai
- By David Baker
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- 20 Mar, 2017
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To have a legal property ownership in Dubai is the dream of so many people but in fact getting that can be a nightmare. The process of owning a property is complicated but these easy steps can simplify the process even for investors who are unaware of what a legal process of owning a property in Dubai is.
All the phases that are part of the legal property ownership process in Dubai may require time, so staying patient during each phase is helpful. Getting advice from consulting firms is a better option because they have gone through all of those phases several times and are fully aware of the whole story.
1. Free-Approval Process:
The process of property ownership is initiated from applying for a pre-approval. It is necessary to apply for a pre-approval letter if the investor requires a mortgage from a bank.
In this regard, theBusiness Consultants in Dubai can help investors preparing the pre-approvals from bank, as most of the real estate agents require that before accepting the final offer to be accepted on a given property.
Life insurance is also the requirements for most of the banks that are organised mostly by those banks from which the mortgage is obtained. Minimum salary income is also required by banks that are different from bank to bank. The bank may also request a visit to his company if the owner is employed at a newly-established company. The bank also requires proof for down payment (25% of the property price) source that where it come from.
Pre-approval process requires a copy of the investor, his passport copy, labour card, salary certificate with 3 months statement of salary.
2. Right Estate Agent:
Observing as many properties and estate agents as one can is most important before taking the final decision. Once a dream property and right estate agent is identified, putting the formal offer for the property seller is then required.
Required documents for formal offer by a real estate agent are investor’s copy of passport, his visa copy and a copy of his pre-approval letter.
3. MOU Signing:
Memorandum of Understanding is signed between the owner and seller once the seller accepts his offer. Real estate agents require a cheque of security deposit and 2% of the property selling price commission cheque that are returned back by the agent on the final transfer of the property ownership.
4. Property Valuation
Valuation on the property is required by the bank when applying for the final mortgage offer letter. When the bank complete the valuation process, a satisfactory report outlining the bank’s value of property either equal to or more than the selling price of the property is put together.
5. Applying For NOC From Developer
No Objection Certificate (NOC) is required from the property developer for scheduling appointment of transfer. Once the final mortgage offer letter is received, the NOC is then obtained. A conveyancing Company will apply for the NOC which is mostly arranged by the real estate agents.
6. Manger’s Cheque Arrangement:
A cheque issued by the bank that is purchased by buyer of the property made payable to the recipient is known as manager’s cheque. A list of manager’s cheque required by the buyer is provided by Conveyancing Company.
Manager’s cheque consists of three cheques. The first cheque is from the buyer of the property to the seller. The second cheque contains 2 individual cheques worth 0.25% of buyer’s mortgage amount and 4% of the buyer’s purchase price to Dubai Land Department. The third cheque is from buyer of the property to the agent.
Transfer Of The Property:
Property transfer is held at any office of Dubai Land Department Seal. Bank representative meet the buyer there to present the cheque from bank to the seller. A cash fee worth AED 4,000 normally split between both the seller and buyer is required as well.
Business Consultants in Dubai familiar with the process of property ownership can guide the buyer well on required documents for the transfer day of the property. Documents required on the property transfer day include Emirates ID, Original NOC, Original MOU, Original copy of the Home Loan Agreement, Passport copy along with original passport as well and all of the manager’s cheques.
Dubai is one of the most favorable business hubs around the globe. In a recent survey, Dubai has the representation of more than 50% of well renowned international companies. It included a total of 101 international companies. The survey was carried out to know how many international companies are operating its business from Dubai, Bangkok, and Moscow. Because of its favorable business conditions, it ranked first among the two. Below is an easy step by step guide for starting a business setup in Dubai
Plan Your Business
The first step is to plan the nature of your business. A detailed planning is required, For instance, what kind of products or services you are offering? How much investment you want to make? What strategies will you adopt to compete for or in the market? Below are few other important factors to be considered.
- Number of employees
- Office space required
- analyzing the success factors
- knowing the market
- Devising Marketing strategy
Selecting the license type
This is a very important step. You need to choose between three types of licenses to operate from Dubai. The license will be issued according to the nature of your business activity. Three categories include, commercial license, industrial license and professional license. For opening a local company, you need a local sponsor who will own 51% of your company. You can own 100% of the business in Dubai by registering in one of the Free Zones.
Find the right sponsor
You need a sponsor for registering a local company in Dubai. There are three types of sponsors available to choose from. The first type includes people, who will just sign the documents so that you could proceed the registration yourself. The second type includes government functionaries, who are capable to provide help when you are stuck but they charge a high fee. The third type of sponsors includes well - established brand names. Their fee is higher. You can take advantage of their brand name.
Hiring a professional business consultant
Do you know there are more than 2,000 activity licenses with more than 28 business jurisdictions to choose from? Few business zones don’t offer certain business activities. Do you know the right type of license and location for your business? To make the right choice, it is recommended to seek professional help. There are several experienced business consultants in Dubai that can help you through the process. This is a quick way to register your company and start the operations.
The UAE is one of the best destinations in the world if you’re looking to set up a new business. Thanks to the ever increasing tourism in Dubai and its neighboring cities, and the massive oil reserves available to the Arabs, the UAE economy has boomed over the last two decades.
The most important thing to remember when considering a new business venture in the UAE is that the UAE business districts have been divided into two categories:
- Mainland
- Free
Zones
Both of these districts have their own set of rules that you need to be familiar before you decide which one is better suited to your needs.
Mainland
Mainland entails all of the business districts that are located within and around the main city centers. Setting up here has the following benefits:
- You
have freedom to set up shop anywhere in the UAE;
- There
are no taxes on you or your business;
- There
are more business activities that are available for licensing;
- There
is no limit on the number of visas on your passport;
- Access
to the large customer base within the main city center.
There is however a catch; business setup in UAE mainland as a foreigner requires you to get into partnership with a local from the region. This partner will own at least 51% of the business, and so will have the final say in all business dealings.
Only UAE nationals can open the following types of companies:
- Joint
liability companies (partners must be UAE nationals)
- Simple
commandite companies
- An
industrial or commercial type sole proprietorship
- Licence
for home-based businesses
- SME
licence (in Dubai).
Free Zone
In the UAE, free zones are specifically designated business districts where foreigners can set up businesses without having to involve a UAE national. This ensures that 100% of the ownership remains with one individual.
There are many benefits to setting up within a free zone:
- You
will have 100% ownership of the business;
- There
is full exemption from import/export, corporate, and personal taxes;
- It’s
easier to start up and licensing procedures are fairly simple.
If you’re looking for a company setup Dubai is the place to be, as a foreigner is allowed to own an unlimited number of licenses.
An important point to consider here is that free zones are usually located next to seaports, so while you may have 100% ownership of the business, your customer base is limited due to the distance from the city center.
It is recommended that you familiarize yourself with the UAE laws, and talk to a business consultant before embarking on this journey. Setting up a new business can be a risky venture, so make sure you know all the details before you make your decision.
Every
entrepreneur would love to make it a fine start and ensure that he/she get
hands on success during each and every move that has been intended or taken by
him/her. In complex markets like UAE, such tasks may get into complicated zone
even before one realizes the situation.
Introduction:
Going for a new venture in one of the world’s most promising markets like UAE is always an exciting experience. The chic and elite nature associated with markets here plays a key role in deriving the attention of entrepreneurs from all over the globe.
Dubai is the present and possibly future as well, for the businesses. It has made a huge impact and image all around the world in the last couple of decades. Previously it was a barren desert land, but now it has become a well-established territory where hundreds of businesses are functioning right now. No one would have thought it to become as important business sector, as it is right now.
Dubai has evolved comparatively from an unknown position to a multicultural region at a remarkable speed around Gulf. The city is situated in the heart of a fast developing metropolitan. Such an extraordinary growth and noticeable position is helpful for the productivity of both existing and new business entities.
In most
cases when an entrepreneur is about to setup a new venture there are many
highly critical tasks that are overlooked by them deliberately with a thought
that they will be dealt with at some later point in time.
This is where things go totally in the opposite directions, especially when one has opted to launch the new venture in highly promising yet very complex and fast pace markets of UAE. Things changes here in minutes, a business doing good may be not even present in the market in the next few minutes if its management has failed to comply with what was expected from them.
A business plan is the first thing to start a business setup. Whether you are going to establish a small, medium-sized or a big enterprise, the business plan holds the key importance in getting things started. If you have got a sound and effective plan, then you are going to flourish certainly.
Modern
trends for business in developed countries like UAE opt for smarter and
authentic shortcuts. There is nothing cheeky about it, the idea is to save time
and focus on the growth factor. This enables entrepreneurs to define and follow
paths that can help them in taking over the leader from their competitors.
Transforming into a business centre at UAE is an impressive activity even more than its current architecture. The government as well has been appeared to be a key supporter of technology environment of the country. That’s why they are administering friendly policies and affordable business taxation for everyone.
Dubai Chamber of Commerce has issued a report that all of the existing entrepreneurs have launched around 16,198 businesses in 2014. While a recent survey on business setup in UAE is showing 18-20% increase in businesses in the past few years.
Based on all those available opportunities discussed above, this is the favourable time for foreigners to locate there with a business idea. However, Here we have a few points worth consideration for foreign investors as well. They are:
