Dubai: Due to recent regulatory update, specialist PRO service provider, PRO Partner Group, assists real estate brokers in setting up businesses in the UAE. Dubai has now announced that real estate brokerage can now be 100% foreign owned, along with a large number of professional activities in Dubai and Abu Dhabi.
Changing laws and regulations in the country can make establishing a business in the Middle East a long and complex process without the help and services of an experienced and trustworthy partner. The PRO Partner Group provides specialized PRO services and solutions for all types of businesses in Dubai, Abu Dhabi, United Arab Emirates, Oman, Qatar and Saudi Arabia to simplify the process and ensure businesses choose the right structure and location, while maintaining compliance to ensure future-proof operational growth.
The new real estate law and its risks
The structure of the real estate brokerage company and other companies doing business in Dubai requires the company to be incorporated as a single establishment or civil business, requiring a National Service Agent (NSA).
With a sole proprietorship or a civil company, the liability of the company is not limited and the owners/partners have unlimited liability for the activities of the company, which presents a much higher risk for individuals. An LLC structure is preferred as it limits liability by default within the business and creates a separate legal entity from the owners/partners.
There are ways to obtain a deferred limited liability structure for the real estate brokerage business and for other professional activities in the UAE.
One way to do this is to initially set up an LLC in a foreign jurisdiction or in a UAE free zone, and then set up a foreign branch or a free zone branch on the mainland, to get the real estate brokerage business. The liability of the branch would be transferred to the LLC, but the LLC would provide a limited liability structure at the secondary level to mitigate this risk.
The other option is to set up a mainland LLC first, either in Dubai or Abu Dhabi, with the business of “Commercial Business Investment and Management”. This LLC can then create a Local Branch in Dubai or Abu Dhabi with the activity of Real Estate Brokerage. This will then effectively mitigate the risks associated with using the single establishment structure.
“The real estate market in Dubai has seen significant growth and is a key industry in the UAE. As more foreign companies and investors seek to relocate to the UAE, a greater majority of the population is composed of different nationalities, with expats taking the opportunity to relocate and acquire assets in different regions and different Emirates,” said Nazar Musa, CEO of PRO Partner Group.
PRO Partner Group offers security, transparency, speed, efficiency and local knowledge to international companies and investors wishing to establish themselves within the GCC. PRO Partner Group aims to consistently meet and exceed the expectations of customers, businesses and investors in the region.
About the PRO Partner Group:
PRO Partner Group is the leading provider of company incorporation, corporate governance and secretarial services in the United Arab Emirates, Oman, Qatar and Saudi Arabia. Our services cover all aspects of business formation, ongoing administrative and support services. These include company incorporation, regulatory and compliance services, visas, immigration and secretarial services. Our mission is to provide our customers with unparalleled service that places the highest priority on safety, transparency, efficiency and satisfaction. At PRO Partner Group, we take tremendous pride in building strong and lasting relationships with our clients by removing the complexity of setting up a business in a new country and ensuring that our clients are, at all times, fully informed and have access to the support necessary to ensure the continued success of their business
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