Shopping is fundamental to the people in Dubai and it can accommodate the wealthy. In the majority of areas, retail shops prove to be thriving businesses with a significant population. Retail shops get additional benefits in those areas where the majority of the population is financially strong and growing rapidly. There are plenty of opportunities coming for retail shops in Dubai. So, how to open a retail shop in Dubai?
Most of the population in Dubai is a mixture of foreign people and locals. They are relishing a slightly stable income. Also, tourists from all over the world visit Dubai every year. This makes the retail sector in Dubai rapidly grow. This makes the retail
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industry a major part of the economy.
Retail Shop in Dubai Freezone and Mainland
Any small businessman can open a retail shop in Dubai. They are permitted to set up their businesses in the Dubai mainland or the free zone. UAE offers residential facilities to employees and their dependents in most of the free zones. This makes it advantageous to a retail business setup in uae free zone.
Dubai mainland is the best place for setting up a shop in the emirate. But, there are some restrictions before establishing a shop on the Dubai mainland. The first and foremost thing is to find a local sponsor. It is necessary to get a local sponsor with 51% shares just like the formation of other businesses before opening a shop on the mainland.
The next and most important step is to get the registration of the business from relevant authorities. A commercial license is required to establish a retail store in the city of Dubai. The person is required to submit all the relevant documents and acquire permission from the authorities. The business person should also select the right jurisdiction.
Starting a retail store in Dubai can open doors of success for small investors. It is not a simple process and requires the services of a reputed consultancy firm to accomplish all the tasks. UAE is a favorite business spot for investors who wish to start new ventures. A&A Associate are well informed about the rules and regulations of company formation.
Steps to Set Up a Retail Shop in Dubai
As compared to other parts of the world, the process of setting up a shop in Dubai is straightforward. The following are some of the steps to be done before setting up a retail shop in Dubai:
To decide the funds required to set up the business, the individual should come up with a solid business plan. Practical calculations and monthly operating costs to manage the store should be included in the research conducted for opening a retail store. The individual would get a thorough idea about the finances required for the businesses after a carefully assessed business plan.
The business owners should have a clear idea about the target audience and their demand, existing competitors in the market, future possibilities, and the overall market scenario.
The business idea will be required to show to the become to make them understand that it is a sustainable one. They should also be made sure that the business plan is formulated after considering all the costs and risks.
Choose the Jurisdiction
The location of the shop is one of the most important factors that should be taken into consideration. The business owners who need to set up a retail shop should make sure that it is located in a highly populated area. This is because the shop would then attract plenty of customers.
The second factor to be considered after selecting the location is whether to rent or buy the store. The individual should make sure that the lease agreement isn’t too expensive if they are planning to rent a shop. They should also make sure that it doesn’t restrict their freedom when running the business.
Get a Local Partner
Finding a local partner that the business owners can trust with their success is one of the biggest challenges that they are facing. If the business owners want their shop to stand out from others, they must choose their partner wisely. A partner can either make or break the reputation of the company. It is therefore essential to choose a good partner to succeed in the business.
Choose a Trade Name
An important step in the process of business formation is choosing a trading name. The business owners should make sure that the name is not already taken. The name should reflect the business and should fit the goals of the company. It is the most important part of the process.
Depending on where the business owners live and what type of business they are starting, the rules for trade names vary. The common thing found is that the trade names must be unique in all.
Complete All the Paperwork
Before starting a business in Dubai, three major documents need to be completed. The first one is the trade license. It permits the person to set up a business in Dubai. After completing the trade license, a personal trade license is given to the business owners. The third most important document is the resident visa. Every new year, the business owner can get a new visa.
Get Permission from Dubai Authority
It is not an easy task to get a retail shop on rent. The process of starting a new business is not as easy as it looks. To get a retail shop on rent, there are several legal and technical formalities. The first and foremost thing is to get the shop allotted to the business person by the concerned authority or landlord. The landlord in Dubai can be anyone from private or government individuals.
NOC (No Objection Certificate) is the key document that is needed for getting a retail shop on rent. Before renting the building to the general public, it is mandatory to have a NOC from the concerned authority. The business person should make sure that they have NOC from their landlord while looking for shops to rent.
MOA ( Memorandum of Association) is another important document. Before a person can set up their own business in Dubai, this document is also needed. MOA describes the company’s purpose of establishment. With MOA, a copy of the commercial license must also be attached.
Get a Retail Establishment Licence
Applying for a trade license from the Dubai Chamber of Commerce and Industry is the first major step. They will be asked to submit the person’s social security number or VAT number. If not, they will ask for the passport number and place of birth. The application would be available on their website.
The person will be asked to provide details about the business that they are opening after submitting the application and paying the fees. They will also ask about the location that is chosen. First, the government officials review the license request. Next, the Chamber of Commerce representative makes an appointment with the person to review the application.
If the application has been approved, they will ask for more documentation and information before granting the license.
Registration of Trade Name
This step is optional for opening a retail shop. However, it is recommended to register the trade name as it allows the person to open bank accounts with ease. They can also open other financial options later.
Get a Commercial Establishment Licence
The person must have a clear intention of what they intend to do in the shop. They should be a registered trader in the Dubai Chamber of Commerce. This is important and the person wouldn’t get the license without it. The person needs to get a trade license from the Dubai Chamber of Commerce as per the commercial shop’s license.
The person can then begin their work on getting the Commercial Establishment Licence after completing these formalities. The shop must be located in a commercial area to get this license. For this license, the person is required to pay an annual fee and security deposit. The person need not pay an annual fee and security deposit if they are selling non-perishable food items.
Open a Business Account
Both foreign and local businesses should open a bank account. This is equally important for any business with a cash flow. It is not a difficult task to open a bank account in Dubai. The person just needs to provide some identification and fill out an application form. They are allowed to open accounts in either U.S dollars or Dirhams.
Benefits of Starting a Retail Shop in Dubai
In Dubai, retail has been one of the most viable business opportunities. Retail requires a willingness to work hard and enough knowledge but doesn’t necessarily require a lot of capital. Indian entrepreneurs, business owners, and investors enjoy a lot of benefits from opening a retail store in Dubai.
Dubai provides mainland locations and more than 30 free zone areas to open a shop for Indian businessmen. The free zone provides zero taxation, complete profit repatriation, and full ownership of the company. Apart from zero taxation and complete ownership, mainland owners will have more freedom to run businesses both outside and inside UAE local market area. There is flexibility in a business location that permits the Indians to open a retail shop in Dubai.
Many business expansion opportunities are also offered to Indian entrepreneurs in Dubai. Tech-savvy people in Dubai also support the growth of online selling and several other e-commerce businesses. Business persons are also free to conduct any sort of digital advertising and other online promotions.
To investors from all over the globe, the government of Dubai offers continuous support and cooperation. Throughout the year, the government offers profitable business schemes and prime facilities. Long-term residency is also offered to entrepreneurs, investors, and Indian business owners by the government of Dubai.
For all investors and entrepreneurs, Dubai has one of the best cooperative legal structures in place. All the paperwork for retail licenses in Dubai can be easily managed within a few days. Moreover, a high-quality life is also offered in Dubai apart from opening a retail business. They have the best infrastructures, hospital facilities, and talented people. The business person gets to live with people belonging to different communities, cultures, and regions.
To seek more investments from India, the government of India offers many tax benefits to Indian entrepreneurs. It is quite simple for Indians to open a retail business in Dubai as many liberalist policies focus on Indian entrepreneurs. The business person is free from paying personal tax, import-export duty, and income tax.
A&A Associate eases the business setup in dubai with dedicated services. They launch the people’s business dreams into action.