How to Start A Facility Management Company in Dubai, UAE: Step By Step Guide

The UAE is an ideal location to launch a facilities management company due to its vast and growing market, ample growth opportunities, and favorable business environment. Reach out to Smart Zones® UAE for assistance in obtaining your business license.

  • 100% Foreign Ownership
  • Easy Business Setup
  • High Demand
  • Government Support
Start your Facility Management Business in Dubai, UAE - Smart Zones UAE

Engaged in an array of services, a facilities management company plays a pivotal role in ensuring the optimal upkeep of buildings and grounds. Responsibilities encompass not only the maintenance of facilities but also the coordination of external contractors offering supplementary services. The scope of facilities management spans from overseeing office buildings to the maintenance of healthcare facilities.

Why Setup a Facility Management Company in Dubai, UAE

Dubai's remarkable skyline is host to some of the world's most awe-inspiring skyscrapers. Additionally, it features exquisite hotels, resorts, entertainment venues, and a variety of commercial, industrial, and residential buildings—all of which necessitate top-tier facilities management services.

According to the recent UAE Facility Management Market Research Report, the country's facility management market is anticipated to reach USD 39,680 million by 2030. Acquiring a facility management license in Dubai brings numerous advantages, given the emirate's diverse portfolio of hotels, shopping malls, office buildings, and tourist attractions. With new construction projects emerging daily, the opportunities for facility management services continue to expand.

The utility of facilities management services extends to companies of varying sizes. Whether the client is a start-up or a Fortune 500 company, entrusting a specialized team to oversee the property can enhance productivity and reduce costs.

Advantages of Establishing a Facility Management Business in Dubai - Smart Zones UAE

Benefits of Establishing a Facility Management Company in Dubai, UAE

Rapid Increase of Multinational Companies:

The success of facilities management companies in Dubai is largely attributed to the substantial presence of multinational companies in the city. Achieving a favorable evaluation from RERA ensures a steady influx of clients and projects for your company.

Prospects for Expansion:

Facilities management companies in Dubai can seamlessly extend their operations to other parts of the UAE by delivering exemplary services. Opportunities abound in all Emirates, and the demand for facilities management services is pervasive.

Tax Advantages:

One inherent advantage of initiating a business in Dubai is the absence of personal taxes. This implies that no taxes are levied on the drawings made by your company, and your employees are exempt from taxes on their wages.

Availability of Sole Proprietorship:

Recent changes in government regulations regarding foreign ownership in the country allow foreigners to have 100% ownership of companies on the mainland that are not deemed strategically important to the UAE.

Types of Facility Management Companies in Dubai, UAE

Facility management companies engage in two overarching types of activities:

Hard Facility Management (FM)

This category pertains to services addressing the actual building structures and systems essential for seamless facility operations. It encompasses fire safety, alarm systems, plumbing, and other maintenance tasks such as corridors and elevators.

Soft Facility Management (FM)

Conversely, soft services are those that complement primary property management. This includes pest control, premise cleaning, grounds maintenance, and ensuring security.

Guidelines and Regulations for Accessing Facility Management Services in Dubai

RERA has established specific rules and regulations essential for the establishment of a facility management company, with a grading system for organizational evaluation. This evaluation ensures that facility management companies are assessed for their expertise.

Subsequently, a determination is made regarding the firm's eligibility to continue offering its comprehensive range of services. Moreover, this classification plays a pivotal role in identifying which companies are authorized to deliver facility management services for particular properties.

In adherence to professional standards, the Middle East Facility Management Association, MEMFA, has stipulated distinct licenses for facility management companies and professionals. This differentiation is crucial as smaller service providers may lack the capacity to handle large-scale projects.

Given the stringent consequences for even minor errors, including potential fines, a meticulous approach to licensing becomes imperative for the sustained success of business setups in the UAE. The issuance of relevant licenses aids in determining the optimal services that companies can provide.

This strategic approach enables companies to focus on enhancing and expanding their core competencies. Among the primary concerns identified by facility management companies are sustainability and cost transparency.

Nevertheless, concerted efforts have been made to address these issues. For instance, a board member of MEFMA mentioned that the association has been actively working towards extending the lifespan of buildings by ten years, surpassing the current 30-year benchmark.

Business Structure and Planning in Dubai, UAE

Choosing the right business structure is vital when launching a firm in Dubai. Options include:

  • 1. Free Zone Company: A free zone company provides foreign ownership, and simplified registration processes, ideal for global operations.
  • 2. Mainland Company: Mainland companies adhere to UAE laws and regulations and are suitable for businesses targeting the domestic market.

Consider factors like your business services, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.

Steps to Launch a Facility Management Business in Dubai, UAE

Establishing a Facility Management Company in Dubai involves several steps:

Embark on the journey of opening a business in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.

The selection of a trade name is a crucial step in the legal process. It is imperative to opt for an appropriate and professional-sounding name while adhering to the UAE’s stringent naming conventions, which prohibit the use of harmful or disrespectful language.

The United Arab Emirates comprises three economic zones – Mainland, Free Zone, and Offshore. Each jurisdiction offers distinct business-related laws tailored to various company requirements. Your company’s specific needs will determine the most suitable jurisdiction for you.

Several legal structures are available for your business in the UAE. The chosen legal structure significantly influences your operations, tax obligations, and resource organization. It is crucial to determine the type that best aligns with your business needs before applying for the license.

After finalizing your company name, undertaking, and location, complete the necessary paperwork and submit it to the Department of Economic Development (DED) for endorsement. The DED is responsible for issuing the required licenses and permits for establishing a business in the country. The licensing and formation of the company occur simultaneously.

Upon approval of your business activities by the DED, you will receive essential documents such as the Memorandum of Association and Certificate of Incorporation. Subsequently, you can apply for additional documents, including visas, leases, and work permits.

Complete the process by opening your corporate bank account for your Dubai Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.

Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.

Operating since 2013, Smart Zones® UAE provides on-going support to obtain Business Services License in Dubai, UAE including Facility Management Businesses.

Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.

Documents Required to Start a Facility Management Business in Dubai, UAE

When submitting an application to the Department of Economic Development (DED), whether through a business formation agent or independently, it is necessary to furnish the following information and documentation:

  • A copy of the investor’s passport
  • A copy of the local sponsor’s passport (if required)
  • No Objection Certificate (NOC) if any shareholder is employed in a UAE company
  • A copy of Emirates ID for the shareholder(s)
  • DED registration application form
  • An attested Memorandum of Association from a public notary
  • A certified tenancy contract for the office premises (if applicable)

Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.

Cost of Establishing a Facility Management Company in Dubai

The initial registration cost for your company starts from AED 20,000 onwards. The total expenditure varies based on the nature of your business and the range of services you offer. Furthermore, an investor visa incurs a fee ranging from AED 4000 to AED 5000, and for employee visas, the charges range between AED 5000 to AED 7000 per visa, depending on the quantity needed.

For a precise quotation, reach out to Smart Zones® UAE to obtain an updated estimate tailored to your specific requirements. This ensures that you are securing the most competitive rate for the services essential to your business.

Asked Questions (FAQs)

A facilities management company is involved in a variety of services aimed at ensuring optimal upkeep of buildings and grounds. This includes maintenance tasks and coordinating external contractors for additional services, spanning from office buildings to healthcare facilities.

Dubai's impressive skyline, featuring skyscrapers, hotels, resorts, and commercial buildings, creates a demand for top-tier facilities management services. The UAE Facility Management Market is projected to reach USD 39,680 million by 2030. Establishing a facility management company in Dubai offers advantages due to the diverse portfolio of properties and the continuous growth in construction projects.

The benefits include a substantial presence of multinational companies, opportunities for expansion within the UAE, tax advantages with no personal taxes, and recent regulations allowing foreigners 100% ownership of mainland companies. These factors contribute to a favorable business environment for facility management services.

Facility management companies in Dubai engage in two main types of activities: Hard Facility Management (FM), addressing building structures and systems, and Soft Facility Management (FM), which includes complementary services like pest control, cleaning, and security.

RERA has established rules and a grading system for organizational evaluation, ensuring facility management companies are assessed for their expertise. MEMFA has stipulated distinct licenses for companies and professionals, critical for ensuring compliance and capability, especially for handling large-scale projects.

Choosing the right business structure is crucial. Options include Free Zone Company, providing foreign ownership, and Mainland Company, adhering to UAE laws. The choice depends on factors like business services, target market, and long-term goals.

The steps involve partnering with Smart Zones® UAE, choosing a company name, deciding on the jurisdiction, determining the legal structure, submitting necessary documents to the DED, obtaining licenses, and opening a corporate bank account. The process may vary based on jurisdiction and business activities.

Essential documents include copies of investor and local sponsor passports, NOC if a shareholder is employed in a UAE company, Emirates ID, DED registration form, attested Memorandum of Association, and a certified tenancy contract for the office premises. Accurate documentation is crucial to avoid complications.

The initial registration cost starts from AED 20,000 onwards, with variations based on business nature and services. Investor visa fees range from AED 4,000 to AED 5,000, and employee visa charges range from AED 5,000 to AED 7,000 per visa. Consulting with Smart Zones® UAE provides a tailored estimate for specific business requirements.

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