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construction company in Fujairah

How to Setup Construction Company in Fujairah – Ultimate Guide

Construction Business Setup in Fujairah

Fujairah is the 7th largest city in the United Arab Emirates and it has been slowly becoming a business hub in the region. This city is currently going through a development stage to re-modernize it and establish it as a top Emirate. Consequently, as a way of helping its growth, many investors are looking for ways to start a construction company in Fujairah.

In this article, we will talk about how to establish a construction company in Fujairah, the steps you should follow to do so, and more. This UAE city will soon become a worldwide staple, therefore, investors must see its potential now. Let us observe:

  1. How to start a construction company in Fujairah?
  2. Advantages of starting a construction company in Fujairah
  3. Benefits of construction company formation with Connect Group
  4. How can Connect Group help you with this issue?

1. How to start a construction company in Fujairah?

To start your company formation process for a construction company in Fujairah you must follow these steps:

1.1 Define the company’s location and structure

If you want to start a construction company in Fujairah or any other Emirate, the main thing you should consider is if you should register for a Free Zone business or a Mainland establishment. If you do not know what location will benefit you most, you can hire a consultancy agency like Connect Group to help you decide.

For example, to start Mainland construction companies in Fujairah, business owners must ally with a local partner. Consequently, this partner will own 51% of the shares of the business, obtaining ownership rights. On the other hand, to start a Free Zone construction company in Fujairah you will not need the support of a local sponsor. This means that you will own your company completely.

A business setup consultant in the United Arab Emirates will assist you to see the cons and pros of each alternative. Ultimately, helping you take the right decision in pro of your future expansion. These consultants have vast experience in the area and know what is best for you and your vision. They will take care of safeguarding your interests and help you thrive with your construction company in Fujairah.

1.2 Apply for the necessary licenses

Obtaining a business license is very important for construction companies in Fujairah. Free Zones have their particular jurisdiction authorities, consequently, if you want to apply for a construction license in this area you will need to do it with the pertinent authorities.

On the other hand, if you are applying for a Mainland license for your construction company in Fujairah, your business consultancy agency must help you do so with the Department of Economic Development. The cost of this license can go from AED 5.000 up, depending on the agency that you are working with.

It is important to note that the legal license for construction companies in Fujairah comes under the commercial type. Furthermore, depending on the activities that you will carry out you may be asked to issue different types of licenses for your business. Therefore, you must make a list of your activities with the support of your consultancy team before applying for the license.

1.3 Acquire the building permits

After you obtain your license for your construction company in Fujairah, you must obtain the building permits for different business activities. Nevertheless, you cannot do that by yourself as it is a complicated process. Subsequently, you should partner with property experts as they can help you with this operation. The licenses you may need are:

  • Wrecking and demolition license: with this license, you will be able to demolish buildings and other structures that are in poor condition and on the verge of collapsing or replace them using various techniques such as cranes for high-rise buildings, excavators, and manual labor for medium-rise buildings, and building implosion using explosives.
  • Building contracting license: you will be able to create a variety of structures under the terms of this license; including residential, hospital, airport, farm, business, school, industrial, public, and agricultural structures.
  • Building maintenance license: this license will allow you to maintain buildings without any inside equipment or extensions; such as roof restoration and repair, columns, walls, floors, and so on.
  • Steel construction and contacting license: with this license, you will be able to carry out all steel construction activities and install steel structures on sites such as warehouses, factories, sheds, storage areas, bridges, structures, tunnels, and more.

1.4 Apply for other approvals and certificates

Besides the required building permit, a construction company in Fujairah needs to obtain additional approval and certificates too. For example, Free Zone companies need to issue a G+1 permit, which is mandatory. You will need different approvals from the following departments:

  • Drainage and Irrigation Department: this is so you can handle liquid waste management and other disposable services.
  • Water and Electricity Department: obtaining their approval is crucial since it gives the owners access to certain basic facilities like electricity and water.
  • Building Department and Dubai Civil Defense Authority: this certification verifies that the construction standards and rules have been followed.

In addition, business owners must obtain:

  • The Roads and Transport Authority’s permission to use the road and internal road network for transportation purposes.
  • A permit from Etisalat for telecommunication needs.
  • Certificate of Completion allowing the building to be occupied.

1.5 Know your limitations and provisions

Any business must abide by the rules and regulations established by the government of the region that they are in. To empower the area’s working ecosystem, the UAE provides advanced infrastructure, lenient taxation laws, and business-friendly policies. However, you must be aware of the limitations of your construction license so you can avoid violating any regulations. The legal experts in Fujairah will assist you in understanding what you can do and what you should avoid to run a successful construction business in the city.

1.6 Open a corporate local bank account and manage visas

In Fujairah, obtaining an investment visa is simple if you are a high-end investor. If not, there is no need for concern. You only need to abide by the laws that have been established for visa issuing and submit your visa application. Depending on your needs, you can get visas for your family, domestic help, and more.

After everything else is completed, you can open a business account in the bank that best suits your activities and transactions for your construction company. To do so, you can obtain the support of a banking services provider to guide you through this particular process.

2. Advantages of starting a construction company in Fujairah

One industry that the government is focusing on to aid in the diversification of the economy is the building industry. Starting a construction company in Fujairah has several advantages; including simple access to construction licenses, government backing, an increase in tourist traffic, and more. Let us observe:

2.1 Increasing prospects

The UAE government is actively working to diversify the nation’s economy by launching initiatives in many different fields. These initiatives are anticipated to gradually promote foreign investment in the nation, including the city of Fujairah.

The government has made numerous steps to ensure that the building industry in the nation has a highly favorable outlook, including the National Strategy for Higher Education 2030, The Energy Strategy 2050, Sheikh Zayed Housing Program, and the local tourism strategy.

2.2 Diversification of the economy

The economy’s diversification has a big part to play in giving people new opportunities to invest in the nation’s building industry. Consequently, they are encouraging foreigners to come to the region, obtain their Emirates ID, and start working to establish their construction companies in Fujairah.

2.3 Low construction prices

Construction expenses have decreased as a result of the economy’s diversification. In comparison to other developed cities around the world like New York, Doha, Paris, San Francisco, etc., the UAE has some of the lowest construction expenses. This decrease in prices is the result of heightened rivalry in the building industry as well as between the various GCC nations. Low wages are also crucial in bringing down construction costs.

2.4 Available labor

In any aspect of construction, the availability of labor raises serious concerns. Although there is a global scarcity of skilled and productive labor, the Middle East region appears to defy this global deficit. The UAE is an extremely beneficial location to launch a construction company due to the low labor costs there.

2.5 Easy access to licenses and permits

It is now easier to obtain the appropriate licenses and permissions for the building industry. In the same way, once your construction company in Fujairah is up, you can easily find a business center to be the headquarters for your operations.

3. Benefits of construction company formation with Connect Group

These are the benefits of creating your construction company in Fujairah with our support:

  • Building maintenance: this refers to the duties performed to restore and maintain the functionality of a property.
  • Interior decoration: this particular service will allow you to have perfectly decorated spaces within your construction.
  • Landscaping works: this is necessary to keep a gardening area clean and provide your construction with green areas and more.
  • Scaffolding contracting: we offer the necessary resources, such as scaffolding, for your construction site.
  • Pre-fabricated wooden houses contracting: hiring our services will allow you to have access to pre-fabricated wooden houses to quicken your construction process.
  • Concrete works and restoration: we have experts that will work alongside you to create new concrete works or restore the ones that are already on the construction site.
  • Exhibition stands fitting and execution: this service will guarantee the necessary accessories to build exhibition stands for your work.
  • Electrical fitting contracting: we can provide you with the most professional electrician workers to help you with this type of work.
  • Historical site restoration: with professional assistance, you can focus your construction business on restoring historical buildings with the care they deserve.
  • Advertising billboards contracting: with our support, you can put up advertising billboards to market your work.

Other benefits include:

  • Land draining, digging, filling, and leveling works.
  • Sand compacting and controlling works.
  • Coastal reclamation contracting.
  • Solar energy systems contracting.
  • Central gas distribution networks contracting.
  • Exterior building cladding contracting.
  • Reinforced carpentry and steel works contracting in a building.
  • 3D printing building construction contracting.

3.1 Business opportunities for construction companies in Fujairah

The construction field in the UAE is operating at full capacity. This is due to a variety of large projects and the number of foreign investors seeking residency in the Emirates by investing in real estate. Consequently, this has resulted in a rapid expansion of the Emirate’s construction sector, given the high value of properties dedicated to such purposes. It is safe to confirm that the construction sector in the UAE has seen phenomenal growth.

A construction company in Fujairah, regardless of the type of construction business, is a profitable venture. Many of these construction projects and opportunities are expanding daily. If you make the most out of these opportunities, your construction business will undoubtedly have a bright future.

4. How can Connect Group help you with this issue?

When looking for a consultancy firm that can support you while going through the process of establishing a company formation in Fujairah, we are your best option. We have been working closely with many top companies in the UAE to help them achieve their goals. Our services include but are not limited to:

Our company has more than 20 years of experience providing business consultancy services to businesses in the United Arab Emirates. We have a dedicated team that takes care of offering their expertise to help companies succeed and reach new levels. Our business services are proven to be effective and support the development of any type of organization.

Do you want to hire our services to help you start your construction business in Fujairah? We can help you do that and more. Contact us via email at contact@connectgroup.co. Our agents will make sure to answer all of your questions. Moreover, you can call us at +971 43 316 688 and request a formal meeting with one of our agents.

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