Which format fits
Real estate brokerage is licensed and requires the registration of the broker and employees. Property ownership can be considered through a company, but the rules depend on the area and the type of property. The choice depends on whether you are an agency or an investor.
What to pay attention to
- Brokerage requires a company licence and the registration of brokers with the relevant authority.
- For an investor, it is useful to separate each property into its own company or hold them through a holding company.
- The tax and registration consequences of a purchase should be assessed with an adviser.
Structure and asset protection
For an investor: a holding company owns the property companies, and each is liable only for its own property. For an agency: an operating company with a licence and a separate holding company where profit accumulates.
The overall logic of the structure is described on the page “Asset protection and ownership structures”.
Bank account
The bank asks for confirmation of the sources of funds and transaction documents. For agencies, contracts and the procedure for accounting for client deposits are important.
More: bank account opening.
Common mistakes
- Brokerage is carried out without a licence
- All properties are registered to one legal entity
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.