How to Setup an Engineering Consultants Business in DubaiKWSME
An engineering consultant business is a company that is engaged in engineering activities in Dubai. Dubai Municipality regulates the engineering industry in Dubai whose objective is to regulate the industry, ensure excellence, quality control and make certain that both national and foreign companies safely and competently carry out the work they are tendered for.
If you want to start an engineering consultancy business in Dubai and are going to apply for a permit to practice in the area of engineering or construction, make sure that your company has correct classification and is accredited by Dubai Municipality Building Service Department Qualification team.
Local Engineering Firm
Local engineering firm is a company owned by one or more UAE nationals entered in the Register. A foreign national can have share in the possession of the organization provided that they are entered in the Register and a maximum of 49% ownership will be given to expatriate.
Local engineering company is classified as follows,
- Category I- Ten years of UAE Nationals or fifteen years for others (expatriates)
- Category II- Five years of UAE Nationals or ten years for others
- Category III- Three years of UAE Nationals or five years for others
An engineering consultancy firm can be classified in three categories,
- Associate Engineering Firm
- Expert Engineering firm
- Foreign Engineering Branch office
Dubai Municipality Classification for Engineering Consultancy
The engineers are classified for starting the company formation in Dubai in the following manner:
- First (Unlimited) Category- This enables participation in projects of any height
- Second (G+12) Category- This enables participation in projects up to 12 stories in height
- Third (G+4) Category- This enables participation in projects up to 4 stories in height
Before initiating business setup in Dubai, you must decide whether you want to set up in Dubai mainland or free zone. If you want to go for Dubai Mainland Company Formation, it is mandatory to have a local sponsor. If you opt for Dubai Free Zone Company formation, you will have 100% ownership but very free zone procedure is different as set by its authority.
According to Dubai Municipality regulations issued on regulating the practice of engineering consultancy profession, engineering or architectural consultants are required to appoint a local partner that must possess the following attributes,
- To be a UAE national
- Holder of BSc. Degree in engineering from a renowned university in one of the recognized engineering fields
- To have minimum 3 years of experience in this specialized field after receiving university degree
- Be a member of Engineer’s association in the UAE
These requirements apply to the following engineering, architectural, and consultancy activities,
- Architectural Consultancy
- Civil Engineering Consultancy
- Electrical and electronic engineering consultancy
- Mechanical engineering consultancy
- Mine, mining and geological engineering consultancy
- Chemical and petrol engineering consultancy
Requirements to Start an Engineering Consultancy in Dubai
- If the company is registering as branch of oversees company in Dubai, it must provide comprehensive details of parent company’s work activities for the last 15 years in order to be correctly classified.
- General Manager of the engineering consultancy business must be an engineer with an experience of minimum 15 years and also be a national of parent company’s country.
- The engineer who is taking responsibility of each activity listed on trading license must have,
- 15 years’ experience
- Be a member of Society of engineers in the UAE
- In case of Dubai LLC company Formation or Civil Company, local partner is required who is,
- an Emirati Architect or Civil Engineer having minimum 10 years qualified experience
- must hold a minimum of 51% of shares in the firm
- Oversees company are required to appoint a local agent to handle the business setup application on their behalf. The local agent should be Dubai born and resident.
- Proof of technical competence in the form of project completion certificates which will require to be notarized, legalized and translated for use in Dubai.
KWSME can act as a liaison here to ensure the Dubai Municipality understands clearly which areas need to be covered and you are correctly classified. If your business meets the criteria mentioned above, you will be issued a temporary permit which will allow you to start employing staff before finalizing commercial license.
The process of setting up an engineering company in Dubai is complex and quite challenging, and as such it always beneficial to seek professional advice as early as possible. Our Dubai business setup consultants at KWSME will use their expertise to guide you through the process of company formation in UAE so that you can operate safely and legally as quickly as possible in the UAE.
Contact us or just send us an email today.