Engineering Consultancy is one of the most in-demand business in the UAE.
There is a never-ending demand for engineering consultancies in UAE due to the growing infrastructure requirements and the pace at which the construction is progressing.
Engineering Consultancy License in Dubai
In UAE, the Engineering Consultancy License can be obtained from the two major business jurisdiction.
- The Mainland of UAE (Limited Liability Company or Civil Company)
- The Free Zones of UAE
However, for setting up an Engineering Consultancy aimed at establishing a strong local presence, a mainland company is the best option.
Also, it allows to participate in government tenders, hire more staff, and locate office anywhere in UAE.
The Free Zones will offer 100% foreign ownership and a host of other investor benefits such as world-class office, Zero customs duty for imports to the Free Zone, etc.
The process of company formation is different when compared to a mainland company.
Engineering Consultancy in Dubai – Things to Know
The Engineering Consultancy in Dubai Mainland is regulated by the Dubai Municipality.
The Dubai Municipality Building Service Department Qualification team has listed down few classifications for Construction and engineering companies depending on their area of expertise.
So, the Engineering Company must be accredited from the Dubai Municipality Building Service department.
Categories of Engineering Consultancy in Dubai
Based on the level of expertise and scope of business operations, the engineering firms can be classified as:
- Associate Engineering Firm
- Expert Engineering Firm
- Foreign Engineering Branch Office
Type of Engineering Consultancy Licenses in the Dubai
- Architectural Consultancy
- Civil Engineering Consultancy
- Electric and Electronic Engineering Consultancy
- Mechanical Engineering Consultancy
- Mine, mining and Geological engineering consultant
- Chemical and Petrol Engineering Consultancy
Classification by Dubai Municipality for Engineering Consultancy
The engineering company based on their scale are classified into:
- First (Unlimited) Category – Projects of any height could be undertaken
- Second (G+12) Category – Projects up to 12 stories in height
- Third (G+4) Category – Projects up to 4 stories in height
Local Engineering Company
The Local Engineering Company can be owned by one or more UAE nationals entered in the Registry.
A foreign national is eligible to own 49% of the entity registered under a shareholding agreement and paying a yearly fee to the UAE national sponsor.
LLC Company Formation – How to Setup an Engineering Consultancy in Dubai?
- Company Formation in the Mainland of Dubai is governed by the Dubai Economy. LLC Company Setup is the most common company structure in the mainland.
- As Engineering Consultancy involves the construction of buildings as a business activity, it requires special permission from the Dubai Municipality to start operations in UAE.
- Dubai Municipality issues regulations to engineering consultancy to comply with while handling a construction project.
- The main requirement of an LLC Company is partnering with a UAE national. Since the company is in an engineering field, the Shareholder must be holding a BSc. Degree in engineering from a renowned university.
- The investor must be having 3-year experience in the specialized field after receiving a university degree. Also, be a member of the Engineers Association in the UAE.
Requirements to Start an Engineering Consultancy in Dubai
Starting a Branch of a Foreign Company
Branch of a Foreign Company can form an Engineering Consultancy in Dubai, but provide extensive details of the company and company’s work in the last 15 years to be classified the right way
The General Manager of the Engineering Consultancy business must have an experience of 15 years and must be the same nation as the parent company.
Starting a branch company in Dubai involves tremendous paperwork, clearance from authorities, and documentation. The best option is to start a new company here with the same credentials and experience.
Company Formation in Dubai – How to obtain an Engineering Consultancy License ( Steps Explained)
1. Sign Up with an Expert Business Consultant
As Engineering Consultancy is a strategic business service, it requires Government Approvals and clearances to proceed.
Talking assistance of expert business consultants such as AURION will help speed up the process of company formation in UAE.
2. Choose a Trade Name, Business Activities, and the Company Structure (LLC Company or Civil Company)
Most of the Engineering Consultants is registered as a Limited Liability Company with 2 to up to 50 Shareholders.
Also, along with choosing the company structure, the trade name has to be specific and the business activities under the specific engineering consultancy license must be chosen accordingly by the investor.
If it is a Civil Company, the Local Service Agent must be appointed for a yearly fee.
There will be no profit sharing or ownership rights for the LSA, but only to liaise with the government authorities during trade license renewals, contract amendments, or any legal requirements.
3. Obtain the Required Clearance from Dubai Municipality
For Engineering Consultancy, an approval from the Dubai Municipality is mandatory to register the company.
4. Prepare the required documents and submit to the Dubai Economy
Prepare the shareholder agreement, Sponsor Agreement, arrange for the shareholder documents, and submit to the DED.
5. Get a Physical Office location and submit the office layout to the municipality for approval
6. Get the Engineering Consultancy License from DED
Obtain the Engineering Consultancy License from the DED after submitted all the documents and paying the license fee. Then, proceed with the residence visa application and corporate bank account opening.
Aurion will assist you with the Company Formation process and our PROs will liaise with the Dubai Municipality and other concerned authorities to get the required clearances and guide you through the company formation process.
To know more about opening an Engineering Consultancy Company in Dubai, talk to our expert consultants right away!
Contact: Aurion Business Consultants