The UAE is a popular travel destination, and a place to buy the essentials and the luxury items. Let us say that shopping malls are transforming Dubai into the top tourist spot of the world. You can start a retail business in Dubai to fulfill the needs of both basic and high-end purchasers.
The retail and shopping industry of the UAE is the backbone of its economy. Moreover, the retail sector of Dubai has proven to be a thriving industry contributing around 22.85% to the GDP of the UAE. Because of this, it is witnessing a rapid transformation as the customers become more conscious regarding their wants and needs.
Presently, customers demand more value for their buck without having to compromise on the quality of both the product and the services. Typically, the retail shops in the populous areas of Dubai have better sales. Because, their presence within the dense locations provides easy access to the customers.
In case, you plan to establish a business in the retail sector of Dubai. Then, you need to consider such an area for it, where the bulk of the local population is residing. Also, make sure to get a foothold in the locality, where the everyday consumer-base is economically stable.
Importance of the retail sector of Dubai, UAE
Many foreign investors are now looking at the United Arab Emirates with a new interest. They are building shopping malls of startling proportions in the heart of Dubai downtown. Dubai is well-known as the shopping capital of the Middle East and the North Africa (MENA) region.
Proprietors of the global retail chains are investing to expand their existing business to Dubai, Abu Dhabi, Sharjah, and Ajman. Thus, it is enabling new business and investment opportunities for aspiring entrepreneurs. Also, it is creating novel experiences for shoppers in Dubai and the nearby UAE cities.
Process to set up a retail store in Dubai Mainland
Dubai mainland is the perfect location for setting up a retail business in Dubai. The retail store registration in Dubai mainland comes with a few bumps in the road like adhering to strict regulations. However, it is still the most lucrative place for business owners to venture into the retail industry.
Here is the set of steps you need to follow if you want to register a retail business in Dubai.
- Choose business activity
- Draft business plan
- Arrange local sponsor or supplier
- Prepare legal documents
- Register trade license
- Hire retail staff
Now, we briefly look upon the steps to begin a retail business in Dubai.
Choose business activity
Selecting the type of business activity will assist in determining the sort of business license necessary for establishing a retail business in Dubai. Specific products, like running a jewelry store or launching a food business, need additional approvals from sometimes different government departments.
Draft business plan
Draw up a business plan which should only be carried out after complete and thorough market research is done. It should be meticulously prepared because the success of your business setup depends on it. Dissect your idea thoroughly and get rid of all the messy details that need to be taken care of. Answer all the important, yet nagging questions like these.
- Why do you want to really start a retail business?
- Who will your target demographic be?
- What makes your idea different from others?
- How will your business cater to the culturally diverse residents of Dubai?
Arrange local sponsor or supplier
For setting up a business in Dubai mainland, there is no requirement to have a local business partner. However, you can appoint a UAE citizen as a local sponsor for better liaison with the regulatory authorities. Similarly, you can on-board local suppliers for procurement of the retail commodities.
Retail sector in Dubai mainland provides the freedom to the entrepreneurs to locate their business anywhere in the city they deem fit. For a company in Dubai, this is a blessing because it provides the best selection of locations to accommodate your budget.
Prepare legal documents
The legal paperwork can vary somewhat depending on the nature of the business activity of your retail store. You need to submit this to Dubai Municipality (DM), Department of Economic Development (DED), and other regulatory bodies in Dubai. These are the legal documents for registering a retail business in Dubai.
- Copies of the passports of all managers and shareholders
- Photocopies of the UAE residence visa of the business owners
- No objection certificate (NOC) from the DED
- Proof of residence for each part-owner
- Lease agreement or ownership deed for the official site for the retail shop
Register trade license
The next move is to petition for a trade license in Dubai and apply for company registration. Plus, put in a request for acquiring any other certificates and endorsements from concerned government authorities. The Dubai Department of Economic Development (DED) is the government regulatory body that gives the approval for opening a retail store in Dubai.
Hire retail staff
You can appoint a professional manager to oversee the everyday operations of your Dubai retail shop. In most instances, you can hire staff for your retail setup in Dubai. This way, your retail store can better serve the needs of the shoppers across the UAE.
Normally, the residents of Dubai get the Intelaq license to run the business operations. Dubai law prohibits its resident retailers to hire any staff. However, they are able to employ the contractors for the work of the Dubai retail store.
Procedure to open a retail shop in a Dubai Free Zone
Almost all Dubai free zones offer engaging leisure activities and extraordinary shopping facilities to the visitors. Free zones in Dubai are invariably in high-demand with business owners and foreign investors venturing into the rewards of international trading. Hence, they can follow this procedure to begin a retail business in Dubai free zones.
- Pick the free zone according to your preference in Dubai
- Get an initial approval from the requisite authority for your business
- Apply for a trade license depending on the type of business activity
- Submit the rent/lease agreement for the retail store premises in the free zone
- Pay the dues for the license and other essential permits
- Obtain the Certificate of Registration for the retail business in Dubai free zone
Conclusion
Dubai Mainland or its many Free zones, there are various advantages of each jurisdiction. Consequently, taking help from a professional can smoothen the process immensely. We at KWS Middle East are elite business setup consultants in the UAE who assist entrepreneurs in starting a business in Dubai.
Our specialists are masters of their craft and thus can make the entire business setup procedure hassle-free. Do not hesitate to give us a call-in case of any doubts or queries. Contact us today and book our commitment-free consultation call today.
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