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How to start a facility management company in Dubai?

How to set up a facility management company in Dubai?
December 22, 2023

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Having multi-storied buildings, hotels, shopping malls, tourist attractions, construction projects, expert management services is an on-demand opportunity for the UAE. Dubai is home of the world’s tallest building Burj Khalifa, best skyline with state-of-the-art infrastructure, and popular real estate projects. So, setting up a facility management in Dubai is one of the fastest-growing smart business ideas in 2024.

The scope of business support services in Dubai is increasing day by day due to its multicultural business environment. Accordingly, facility management companies are now a necessity for any multinational company in the United Arab Emirates. These types of companies help to minimize downtime by providing round-the-clock service and support at the touch of a button.

They take care of the day-to-day operations, which means less work for you and your staff. Subsequently, they provide high-quality maintenance, functionality, safety, and productivity of the built environment. So that the residents can enjoy their stay in the property.

Defining the facility management

What is facility management?

In essence, facility management stands for any tools or services that support maintenance, safety, functionality, the efficiency of buildings. It covers many kinds of hotels, shopping malls, real estate, and many more infrastructure. Therefore, the facility management company is the biggest investment opportunity in Dubai for the local and expat business owners.

A facility management company provides services for commercial/residential buildings that focuses on the operational activity of the given services. As an example, if you hire or outsource any facility management services. It will provide management and maintenance regarding electricity, water supply, security fire security, plumbing, etc.

What is facility management?
What is facility management?

Types of facility management

Which are the types of facility management?

All the businesses in the UAE must know that facility management has two types.

Now, we take a look on these types of facility management.

Soft facility management

It caters to the maintenance of the property like cleaning, landscaping, pest control, and the security of the ground.

Hard facility management

It rolls out management service to the actual buildings, service management, and ensures smooth building operations & activities like these.

  • Maintenance work of elevators
  • Alarm security
  • Plumbing
  • Electric work
  • Engineering consulting

Kinds of facility management companies in Dubai

What are kinds of facility management companies in Dubai?

Here are the kinds of facility management companies in Dubai.

  • Security services
  • EHS (Environment, Health, and Safety)
  • Transportation
  • Business operational activity
  • Cleaning and fire safety
  • Space management

Rules for facility management services company formation in Dubai

Which are the rules for facility management services company formation in Dubai?

Real Estate Regulatory Agency (RERA) approved laws in 2010 to grade the facility management (FM) organizations on their experience. They let the authorities to assess whether a company meets the requirements, and continue providing all of their services. Likewise, this classification decides which companies can deliver facility management services to specific properties in the UAE.

  • To maintain the professional standards, the Middle East Facility Management Association, MEMFA, stated that facility management companies and facility management professionals will be provided with separate kinds of license. This is because small scale service providers may not be able to handle large scaled projects. Any minute mistake can cause fines for the service provider which may cause the business setup in UAE to suffer.
  • Providing appropriate kinds of licenses will help determine which services are better provided by the companies. The companies can then work on upgrading and strengthening their best qualities.
  • The three main issues identified for the facility management companies were sustainability, costs an transparency. However, work has been done to eradicate these issues. For example, a board member of MEFMA stated that the association has been working to increase the lifespan of buildings by 10 years from the current 30 years.

Over the years, the government of UAE is working on strengthening the different laws to streamline the business operations. UAE’s authorities are tightening the laws to eliminate loopholes in the business operating regulations. Also, it determines whether the health and safety standards, set by the appropriate departments are met.

These rules and regulations are to enable a better environment for the facility management companies in the industry. Due to the new framework, facility management companies can concentrate more on their good traits. Therefore, grow smoothly and make use of the business opportunities in UAE.

Rules for facility management services company formation in Dubai
Rules for facility management services company formation in Dubai

Responsibilities of facility manager

What are different responsibilities of facility manager?

These are different types of responsibilities of facility manager.

  • Completing all the tasks and duties maintaining industry standards
  • Identifying sectors for improvement
  • Cost calculation and arranging the equipment to do the task
  • Leveraging trending technology for task efficiency
  • Respond to emergency situations with proper backup
  • Coordinating facility management responsibilities in an effective way

Steps to start facility management company in Dubai

Which are the steps to start facility management company in Dubai?

Usually, a facility management company is responsible for maintaining, cleaning, and providing security for the property. To set up a facility management company in Dubai, you need to acquire the necessary licenses and permits. For establishing a facility management business you need to follow the following simple steps.

Steps to start facility management company in Dubai
Steps to start facility management company in Dubai

Next, we look upon these straightforward steps of incorporating a facility management company in Dubai.

Step 1: Decide the business activity

The facility management company is about catering services like maintenance, social housing & support, health & safety, recruitment & training. Thus, choosing your niche through proper market research is a vital part of this whole process. Because this industry is blooming, and there are already strong players, you have to make your business move carefully.

Select an activity that gives you the advantage to select the right economic zone, and easily obtain a trade license. To avoid any kind of cancellation of license or fine, take advantage of business setup services in Dubai. Most importantly, you have to make a good profit while staying apart from the competitors.

Step 2: Select a trade name

In the UAE, there are certain rules and regulations while deciding your business name. Your business name must be a legal entity or structure to follow the next business registration process. Opt for a suitable legal entity like Free Zone Establishment (FZE), Free Zone Company (FZC) or Limited liability Company (LLC).

Choose a catchy trade name that has the essence of your business that indicates your business activity which you are going to carry out. Rules you need to follow while selecting a business name are the following.

  • Your chosen business name is still available for registration
  • Not related to any religious or political name
  • Don’t indicate any abusive blasphemous name
  • Name that is legally relevant to the specific business activity
  • The name shouldn’t have any reference to a well-known organization
  • Name that doesn’t hurt any public moral
  • An abbreviation of your name can work

Step 3: Decide on the business jurisdiction

Mostly, the success ratio of your business in Dubai depends on the economic zone. Every economic zone has its own pros and cons. You need to decide the business jurisdiction which compliments your business activity and helps to reach your customer conveniently.

If you set up business in Dubai mainland, you can trade in any area of the UAE. Moreover, you can become a part of the projects of the UAE government. For Free zone company setup, you get 0% income tax with no currency restriction. Lastly, offshore company setup provides 100% full company ownership to expatriates.

Step 4: File for facility management license

Acquiring a trade license for the business depends on where you want to set up your facility management company. For mainland company formation in Dubai, you have to get the license directly from the Department of Economic Development (DED). Through a business consultant or on your own you can apply for the licensing with these documents.

  • Copies of passports of owners and shareholders
  • NOC for foreigners who wish to conduct business in Dubai
  • 2 passport size photographs
  • Proof of relevant experience

Step 5: Apply for UAE visa

People wishing to live in Dubai and intending to open a business, have to apply for residency visa permits. Applying for a visa includes some steps including medical tests and bio-metric verification. Obtaining a visa in Dubai is not that complex and you can get it in less than a week.

You can apply for a visa for spouse, family members, employee to hold a trade license in Dubai. Furthermore, you have to follow other steps according to the requirements of your business. With the help of an expert business agent you can complete the process without facing any potential difficulties.

In case, you are wondering to start your first facility management business in Dubai. Hopefully, you have got some basic ideas about the business environment of this growing sector. You must have got some valuable knowledge through our step-by-step guide to set up a facility management company in Dubai.

Conclusion

Obtaining the appropriate kind of license is very important for a new business setup in Dubai. Consequently, the license gives a business a professional standing, and grants it permission to provide specific services. It creates a trustworthy aura for the business, which appeals to the clients and creates more business opportunities in UAE.

However, acquiring a license is difficult for people who are new entrepreneurs or side-business owners. To register a business in Dubai, there are several procedures that you have to go through. Professional business consultants make license registrations for new company owners an easy task.

Business advisors work closely with both governmental and non-governmental departments. They are well-aware of the regulatory guidelines for executing business operations. Hence, they make the process of obtaining the license more efficient and inexpensive.

We at KWS Middle East can help you begin your facility management business in the UAE. As a leading business consulting service, we provide 360-degree company setup services, especially offshore company formation in Dubai. Connect with us to avail business support for trade license, visa service, trademark registration, company liquidation, finding local sponsors, etc.

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