Steps Involved In Gifting Property to A Company In Dubai: Everything You Must Know

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Dubai is a city that is known for its fast-paced growth and innovative mindset. The property market in Dubai is no exception, and many people choose to invest in properties in the city. One way to invest in Property in Dubai is to gift it to a company. It can have many benefits, such as tax advantages and greater property management flexibility. However, gifting Property to a company can be complex and seem daunting to beginners. That's why we've put together this guide to make the process easy to understand and to help you navigate the legal and administrative requirements of gifting Property to a company in Dubai. We'll cover everything you need to know, from the types of companies that can receive property gifts to the documentation you need to prepare. Whether you're a first-time or experienced property investor, this guide has everything you need to know about gifting Property to a company in Dubai.

1. Understand the legal requirements in Dubai

Before gifting a property to a company in Dubai, it is essential to understand the legal requirements involved. The process can be complex, and several legal considerations must be considered. 

• Firstly, ensuring that the Property in question is free from any legal disputes, claims, or liens is essential. It can involve obtaining a certificate of non-encumbrance from the Dubai Land Department.
• Additionally, it is crucial to understand the different types of companies in Dubai, such as free zone companies or mainland companies, and the legal requirements for each type of company. For example, free zone companies may have different ownership restrictions than mainland companies.
• It is also necessary to draft and sign a gift deed transferring the Property to the company. This deed must be signed by a notary public and registered with the relevant authorities. It is important to note that fees may be associated with the registration process.

Understanding the legal requirements in Dubai is essential before gifting a property to a company. Seeking the advice of a property lawyer can help ensure that the process is completed correctly and without any legal complications.

2. Determine the value of the Property

Determining the value of the Property is the next crucial step when gifting the Property to a company in Dubai. It's essential to understand the Property's market value, as it will be used to calculate the transfer fees and taxes that must be paid to the Dubai Land Department.

 The value can be determined through various methods, such as engaging a professional valuer, consulting with a real estate agent or checking the latest market prices of similar properties in the area. The valuer will also consider any unique features of the Property, such as location, size, condition and any recent renovations, which could impact the valuation.

 It's always a good idea to seek professional advice from a real estate lawyer before proceeding with property gifting. They can guide you through the legal and financial requirements and help ensure a smooth property transfer to the company in Dubai.

3. Choose the type of company to gift the Property to

Choosing the right kind of company to gift the Property is one of the most critical steps when gifting Property to a company in Dubai. There are several types of companies in Dubai, each with advantages and disadvantages regarding property ownership. The most common types of companies in Dubai are:

• Limited Liability Companies (LLCs), 
• Free Zone Companies, and 
• Offshore Companies.

It is necessary to consult with a real estate lawyer to determine the best type of company to gift the property to base on your specific needs and circumstances.

 4. Prepare the necessary documents

Preparing the necessary documents is essential to gifting Property to a company in Dubai. The transfer of property ownership requires a lot of legal formalities, and it is crucial to have all the documents needed to complete the process smoothly.

 Before proceeding with the transfer, you must obtain the necessary approvals from the relevant authorities, including the Dubai Land Department. The documents required for this process include the following:

• A No Objection Certificate (NOC) from the developer, 
• The original title deed, and
• A valid ID of the property owner.
• In addition, you will also need to provide the company's trade license, memorandum of association, articles of association, and a resolution from the company's board of directors approving the transfer. 

It is vital to ensure that all the documents are correctly filled out and signed by the relevant parties to avoid delays or complications.

5. Submit the documents to the Dubai Land Department

After completing all the necessary documentation, the next step is to submit them to the Dubai Land Department. It is a crucial step in gifting Property to a company in Dubai. The documents that need to be submitted include the following:

• The original title deed.
• A copy of the company's trade license.
• A copy of the passport of the company's legal representative.
• A no-objection certificate from the mortgage provider (if applicable).

It is essential to ensure that all the documents are complete and accurate before submitting them to the Dubai Land Department. Any errors or discrepancies may cause delays in the processing of the application. It is also recommended to seek the assistance of a property lawyer with experience handling property transactions in Dubai.

Once the documents are submitted, the Dubai Land Department will process the application and conduct the necessary checks to ensure all requirements are met. If the application is approved, the Property will be transferred to the company's name, and a new title deed will be issued. It is important to note that transferring property ownership can take several weeks, and patience is essential during the process.

 6. Pay the fees and taxes

When gifting a property to a company in Dubai, paying the necessary fees and taxes is essential to ensure a smooth and legal transfer. Some fees and taxes need to be paid, so it's required to understand what they are and how much they will cost.

Working with a real estate lawyer who can help you navigate the fees and taxes associated with gifting a property to a company in Dubai is essential. They can help you understand what needs to be paid when it needs to be paid, and how much it will cost. By paying the necessary fees and taxes, you can ensure a smooth transfer of ownership and avoid any legal issues.

7. Wait for approval from the Dubai Land Department

Once all the required documents have been submitted to the Dubai Land Department, it is time to await approval. During the approval process, the Dubai Land Department will thoroughly review all the submitted documents to ensure everything is in order. They will also perform due diligence on the individual transferring the Property and the company receiving it to ensure they are legitimate entities. Once approval has been granted, the Property will officially be transferred to the company, and the new owner can begin to enjoy the benefits of owning the Property. It is essential to keep all the relevant documents safe as they may be required for future transactions.

9. Update the property ownership documents

Once you have successfully transferred your property ownership to the company, updating the property ownership documents is essential. It is crucial to ensure that the company legally and officially owns the Property. The Dubai Land Department (DLD) is responsible for updating property ownership documents in Dubai. You must submit the necessary paperwork to the DLD and the proof of property transfer to the company. The documents required for updating the ownership include the following:

• The original title deed.
• The new company trade license.
• The original copy of the Memorandum of Association (MOA).

Once the documents are submitted, the DLD will verify them and update the property ownership records accordingly. 

Gifting Property to a company in Dubai can be a complex process, but it can be done smoothly and efficiently with the proper guidance and support. Consult with an HHS property lawyer in Dubai with experience in property transfers and to guide you through the process. Don't hesitate to contact experts for any query about Gifting Property in the UAE.