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Business setup in Dubai UAE Guide

Easy Steps To Setup A Holiday Home Company In Dubai

Learn how to establish a successful holiday home company in Dubai with these easy steps.


Dubai, with its stunning skyscrapers, luxurious lifestyle, and booming tourism industry, is a prime location for a Holiday Home Rental business. The city's strategic location and world-class infrastructure make it an ideal destination for both leisure and business travelers. If you are considering entering the lucrative holiday home market, this comprehensive guide will walk you through the steps to set up a holiday home company in Dubai, including the necessary requirements, permit processes, costs, and benefits.

How to start holiday home company in Dubai ? 

Starting a holiday home company in Dubai involves several key steps and meeting specific requirements. Here’s a detailed guide in step wise.

1. Business Plan and Market Research

Before diving into the legalities, conduct thorough market research to understand the demand, competition, and potential profitability of a holiday home company in Dubai. Create a comprehensive business plan that includes a thorough analysis of your target market, a well-defined pricing strategy, an effective marketing plan, and detailed financial projections.

2. Legal Structure and Trade Name

Choose a suitable legal structure for your business. In Dubai, you can opt for a sole proprietorship, partnership, or a limited liability company (LLC). Once you have decided on the structure, select a unique trade name and get it approved by the Department of Economic Development (DED).

3. Initial Approval and License Application

Submit an application for initial approval to the DED. This approval indicates that the DED has no objections to you starting a holiday home rental business. After obtaining initial approval, you can proceed with the license application process.

4. Office Space and Tenancy Contract

Secure a physical office space in Dubai and obtain a tenancy contract. The office space is a mandatory requirement for obtaining a business license.

5. Holiday Home Permit

Apply for a holiday home permit from the Dubai Department of Tourism and Commerce Marketing (DTCM). This permit allows you to legally operate holiday homes in Dubai.

6. Compliance with Health and Safety Regulations

Ensure that your holiday homes comply with all health and safety regulations set by the DTCM. This includes fire safety measures, hygiene standards, and other necessary precautions to ensure the safety of guests.

Steps to get holiday homepermit in Dubai:

Obtaining a holiday home permit is a crucial step in setting up your holiday home company in Dubai. The permit process involves the following steps:

1. Submission of Documents

Prepare and submit the necessary documents to the DTCM. These documents typically include your trade license, tenancy contract, passport copies of the owners, and a no-objection certificate from the property owner if you are leasing the property.

2. Inspection

Once your application is submitted, the DTCM will conduct an inspection of your holiday home properties to ensure they meet the required standards. This includes checking the cleanliness, safety measures, and overall quality of the property.

3. Approval and Issuance

If your properties pass the inspection, the DTCM will issue the holiday home permit. This permit is valid for one year and requires annual renewal.

Cost for holiday homes rental business license in Dubai

The cost of setting up a holiday home rental business in Dubai varies depending on several factors, including the size of your business and the number of properties you intend to manage. Here are some of the primary costs involved:

1. Trade License Fee

The trade license fee is the initial cost for registering your business with the DED. This fee can range from AED 10,000 to AED 15,000.

2. Holiday Home Permit Fee

The DTCM charges a fee for the holiday home permit. The fee structure is based on the size and number of properties. For example, a permit for a single apartment may cost around AED 1,500, while a permit for a villa can cost up to AED 5,000.

3. Office Rent

Renting an office space is a significant cost. The rent varies depending on the location and size of the office. On average, you can expect to pay between AED 30,000 to AED 50,000 per year for a small office.

4. Insurance and Maintenance

Insurance for your properties and regular maintenance are additional costs that you need to consider. Insurance premiums and maintenance costs depend on the value and condition of your properties.

Other information :

Amending Permit

If you need to make changes to your holiday home permit, such as adding new properties or updating contact information, you can apply for an amendment. The amendment process involves submitting a request to the DTCM along with the necessary supporting documents. There may be a fee associated with amending your permit, which varies depending on the type of change.

Cancellation Process

If you decide to cancel your holiday home permit, you must follow the DTCM's cancellation process. This involves submitting a cancellation request along with the required documents, such as the original permit and proof of settlement of any outstanding fines or dues. The DTCM will review your request and, if approved, issue a cancellation confirmation. It’s important to note that you must cease all holiday home operations once the permit is cancelled.

Benefits of setting up a holiday home company in Dubai:

1. High Demand and Occupancy Rates

Dubai's thriving tourism industry ensures a steady demand for holiday homes. With millions of tourists visiting the city annually, holiday homes often achieve high occupancy rates, especially during peak seasons.

2. Lucrative Rental Income

Holiday homes in Dubai can generate substantial rental income, particularly if they are located in prime areas. Short-term rentals typically yield higher returns compared to long-term leases.

3. Flexible Business Model

Operating a holiday home company offers flexibility in terms of property management. You can choose to manage the properties yourself or hire a property management company to handle the day-to-day operations.

4. Low Entry Barriers

Compared to other business ventures, setting up a holiday home company in Dubai has relatively low entry barriers. The initial investment is manageable, and the regulatory requirements are straightforward.

How we help as a business setup consultancy in Dubai

Setting up a holiday home company in Dubai involves navigating various regulatory requirements and processes. Our business setup consultancy offers comprehensive services to simplify this process and ensure compliance with all regulations. Here’s how we can help:

1. Business Registration and Licensing
We assist you in registering your business with the DED and obtaining the necessary trade license. Our experts handle all the paperwork and ensure a smooth registration process.

2. Holiday Home Permit Application
Our team guides you through the holiday home permit application process, helping you prepare the required documents and coordinating with the DTCM for inspections and approvals.

3. Property Compliance and Inspections
We ensure that your properties meet all health and safety standards set by the DTCM. Our consultants coordinate property inspections and address any issues to ensure compliance.

4. Cost Management
We provide a detailed breakdown of all costs involved in setting up your holiday home company, helping you budget effectively and avoid unexpected expenses.

5. Ongoing Support and Renewal
Our support doesn’t end with the issuance of your permit. We offer ongoing assistance with permit renewals, amendments, and any other regulatory requirements to ensure your business operates smoothly.

6. Market Insights and Strategy
Leverage our market insights and expertise to develop a competitive pricing and marketing strategy for your holiday home rental business. We help you maximize occupancy rates and rental income.

Setting up a holiday home company in Dubai can be a highly profitable venture, given the city's booming tourism industry and high demand for short-term rentals. By following the steps outlined in this guide and leveraging the expertise of a business setup consultancy, you can successfully navigate the regulatory landscape and establish a thriving holiday home rental business in Dubai.Contact PLAN MY FIRM today !

Can foreigners own holiday home companies in Dubai?

Yes, foreigners can own and operate holiday home companies in Dubai. However, they must comply with local regulations and obtain the necessary permits and licenses.

Do I need a separate license for each property?

No, you can manage multiple properties under a single holiday home permit. However, each property must meet the DTCM's standards and be listed in the permit application.

How long does it take to get a holiday home permit?

The permit approval process typically takes a few weeks, depending on the completeness of your application and the time taken for property inspections.

Can I convert my residential property into a holiday home?

Yes, you can convert a residential property into a holiday home, provided it meets the DTCM's standards and you obtain the necessary permits and approvals.

What types of holiday homes can I operate in Dubai?

 In Dubai, you can operate various types of holiday homes, including apartments, villas, townhouses, and penthouses. Each type must meet specific safety and quality standards set by the Dubai Department of Tourism and Commerce Marketing (DTCM).

What is a DTCM license, and why do I need it?

 The DTCM license is a permit issued by the Dubai Department of Tourism and Commerce Marketing, allowing you to legally operate holiday homes in Dubai. It ensures that your properties comply with local regulations and safety standards.

Can we arrange visas for guests booking through our holiday home company using current license?

Generally, holiday home company activity is and visa service provider activity are different ,to provide so you need have a seperate license. However, you can partner with travel agencies or visa service providers to facilitate visa arrangements for your guests.

What documents are required to register holiday home units in Dubai?

The required documents include:

  • Emirates ID of the property owner or operating tenants.
  • Commercial license copy for professional operators
  • Tenancy contract 
  • No-objection certificate from the property owner 

What are the requirements for registering holiday home units?

The requirements differ for operators, owners, and tenants:

  • For operators: The trade license activity should be Vacation Homes Rental.
  • For owners: The name on the account must match the name on the unit title deed.
  • For tenants: The name on the account must match the name on the tenancy contract. Tenants can register only one unit and need prior landlord approval.

 

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