Which format fits
Construction activity is licensed and usually requires a mainland format. For large projects, membership of relevant registers and bank guarantees matter. Requirements depend on the type of work.
What to pay attention to
- The licence for construction work and the contractor’s approvals are obtained separately.
- Guarantees, insurance and work with subcontractors affect the structure.
- Machinery and real estate are best held separately from the contracting company.
Structure and asset protection
The contracting company takes on project risks, while machinery and land are placed in other companies. The holding company owns the shares and accumulated funds.
The overall logic of the structure is described on the page “Asset protection and ownership structures”.
Bank account
The bank is interested in contracts and project experience. For guarantees, financial statements and confirmed orders will be useful.
More: bank account opening.
Common mistakes
- Machinery and real estate sit in the same company as the contracting business
- The time needed to obtain approvals is underestimated
Where to start
Tell us about your business. We will review your situation and propose a company format, a jurisdiction and an ownership structure. You can compare the options in the article “Free zone or mainland”, and costs are covered in the article “How much does it cost to open a company in Dubai”.
Regulations and licensing requirements change. Current conditions must be verified before launch. The decision to open an account is made by the bank. Tax consequences depend on your residency.