Step by Step Procedure: How to Obtain an Engineering Consultancy License in UAE?

Engineering Consultancy is one of the most in-demand businesses in the UAE. There is a never-ending demand for engineering Consultancy Licenses in Dubai 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 jurisdictions.

• 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 offices anywhere in UAE.

The Free Zones will offer 100% foreign ownership and a host of other investor benefits such as a 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 by 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 companies 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 pay a yearly fee to the UAE national sponsor.

LLC 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 on 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 of 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

A branch of a Foreign Company can form an Engineering Consultancy in Dubai, but provide extensive details of the company and the 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 in 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 set up 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 unique. Similarly, the investor must select the business activities under the specific engineering consultancy license.

3. Obtain the Required Clearance from Dubai Municipality

For Engineering Consultancy, approval from the Dubai Municipality is mandatory to register the company.

4. Prepare the required documents and submit them to the Dubai Economy

Prepare the shareholder agreement, Sponsor Agreement, arrange for the shareholder documents, and submit them 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 submitting 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!