Buying Property in the UAE Through a Company? A Licensing Detail That Often Gets Missed

Real estate activity in the UAE continues to grow, with investors increasingly using corporate structures to purchase, hold or manage property assets. While this approach offers flexibility and structuring advantages, it also exposes a recurring compliance issue that is frequently overlooked: company licensing alignment.

In many cases, property transactions are carried out through companies that do not hold the correct licence for real-estate-related activities. This mismatch can lead to regulatory, operational and immigration complications that only become apparent once a transaction is already underway.

Where problems typically arise

A common scenario involves companies licensed for activities such as management consultancy or general commercial services being used to purchase, hold, rent or sell property. Under UAE regulations, only licences that explicitly include real estate activities permit these operations.

Investors often assume that property holding is a passive activity that does not require specific licensing. In practice, authorities assess the actual activity carried out by the company, not just its intended purpose. When a discrepancy is identified, issues can arise.

The consequences of misaligned licensing

Using an incorrect licence for property-related activities can result in:

• Regulatory fines or penalties• Delays in corporate approvals or amendments

• Complications with residency visas linked to the company

• Difficulties in opening or maintaining bank accounts

• Increased scrutiny during audits or compliance reviews

In many cases, investors only become aware of the issue when attempting to renew a licence, process a visa application or complete a subsequent transaction.

Getting the structure right from the start

Ensuring that a company’s licence accurately reflects its real estate activities is a key element of sound corporate governance in the UAE. This includes assessing whether the company should operate under a mainland or free zone licence, and whether the licensed activities fully cover property acquisition, holding, leasing or disposal.

At Swiss Group, clients are supported in aligning their company structures and licences with their actual business activities. This includes reviewing existing licences, advising on appropriate amendments, and guiding investors on the most suitable setup for holding property assets in compliance with UAE regulations.

A compliance issue that is easy to avoid

Licensing mismatches are rarely intentional, but they can be costly if left unaddressed. A proactive review of corporate licences before entering into a property transaction can help investors avoid unnecessary delays, regulatory exposure and operational disruption.

As real estate investment in the UAE continues to expand, attention to these technical details is increasingly important for ensuring smooth, compliant and future-proof transactions.