Dubai has always been at the top of the list when it comes to the property market. Owning a property as an asset in this emirates city is extremely fruitful for both individuals as well as companies in terms of investment. However, there are separate sets of rules and regulations for companies for purchasing property in Dubai.
A free zone company gets various advantages when it comes to buying a property in Dubai. However, there are only certain designated-areas where they are permitted to own land here.
Let us understand the underlying conditions for the same.
Designated areas for free zone companies to hold property in Dubai
Earlier, offshore companies registered with the Dubai MultiCommodities Center or the Jebel Ali Free Zone were permitted to own a freehold property in Dubai legally. But, the reformed laws of the UAE government permit even the free zone companies to purchase freehold land in Dubai.
The free zones in Dubai include the following designated areas:
- Dubai Health Care City
- Dubai Multi Commodities Center
- Dubai Internet City
- Dubai South, etc
Rules for Free Zone Companies to purchase property in Dubai
Even though the Dubai government has granted consent to free zone companies to invest in real estate, there are certain legal conditions which these companies need to follow strictly before going ahead with it.
- Only a ‘Residential Freehold Property’ in UAE can be owned by a free zone company in Dubai.
- The residential freehold property purchased by the free zone company should be utilized only for self.
- The free zone company cannot put the property, bought by it, to extract rental income from it.
It should be noted here that free zone companies registered in other Emirates are not permitted to purchase property in Dubai.
Documents required to own and register a property by free zone companies in Dubai
Free zone companies with a 100% foreign ownership entrusted in Dubai have the authority to own property in Dubai. However, they need to submit the following documents to get the property registered:
- A NOC (no-objection certificate) issued by the Free Zone authority to own property, which the company wants to register
- Original copy of the NOC from the developer to sell the property
- A valid trade license issued by the designated Free Zone in Dubai.
- A certificate of incumbency that (recent for three months) that shows the names of all the managers and owners of the free zone company
- Memorandum/Article of Association of the company that wants to purchase the property
- A Good-Standing certificate acquired from the Free Zone where the company is registered