Today in this post here we are going to inform you in detail about how to get license for gold trading business in Dubai, UAE. If you are seeking to start a gold trading business in Dubai, UAE, then this ultimate guide will definitely help you get started easily.
Dubai, one of the world’s fastest-growing cities, provides an unbeatable environment for commercial success. The country’s thriving economy is a result of its free trade policies, increasing population, influx of tourists, and rising living standards. As the “City of Gold,” Dubai is a major trading hub for the precious metal.
So, it’s safe to say that Dubai’s gold trading firms are doing well. Therefore, investors from all over the world can find success in the gold business in Dubai.
Dubai’s gold trading industry is expanding rapidly, therefore let’s talk about that. It has a long history of being regarded as one of Dubai’s most promising commercial opportunities.
Gold and other precious metals have a reliable and sizeable market. As a result of the city’s high standards and official approvals, Dubai has become a popular jewellery buying destination.
In any case, opening a brick-and-mortar or online gold business in Dubai is a brilliant plan.
Registration of Gold Trading Company / Business
To begin, you need know that there are primarily three key jurisdictions from which to choose when establishing your gold trading firm in Dubai, and they are:
- Dubai Multi-Commodities Center (DMCC) Free Zone
- Dubai Mainland
- Gold & Diamond Park
It’s important to note that in order to launch your Dubai gold business, you’ll need to comply with a variety of regulations pertaining to all three of these sectors.
To that end, we’ve compiled all the details you’ll need to launch a successful gold trading business in Dubai.
DMCC free zone
The Dubai Multi Commodities Centre (DMCC) free zone, which opened in 2002, is conveniently situated directly across from the beautiful Dubai Marina Beach.
Those looking to open a gold trading business in Dubai will find favorable conditions, including full ownership of the company, a robust infrastructure, a guaranteed 50-year tax holiday, and freehold property options.
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Additionally, DMCC provides both office and warehouse space. Tenant agreements and rental contracts are required when using rented space for commercial purposes; these should be completed, signed, and presented to DMCC.
Gold & Diamond Park
Among the best locations for the production and sale of gold and other precious stones, including diamonds, is Gold & Diamond Park (GDP), which opened in 2011.
It is overseen by the Jebel Ali Free zone Authority and features large, high-quality factories, a shopping mall, and storage facilities.
It’s worth noting that all of GDP’s 118 production units and 350 retail outlets produce, sell, or otherwise deal in gold and precious stones.
With perks including reduced corporation taxes, a hallmarking facility provided by the Dubai Municipality, and protection from competition, this zone is a tempting place to launch a gold trading business.
In addition, it has just recently started offering premium commercial leasing to businesspeople interested in the gold trade.
It’s important to keep in mind that GDP suggests a variety of license choices, each of which necessitates a separate license from a different government. Among these are:
- Trading License
- E-commerce License
- Retail License
- Manufacturing License
- Service License
Dubai Mainland – Gold Souk
You also have the option of setting up your trading business on the Mainland. The main advantage here is that it is strategically located, offers you more retail space, no VAT and profit tax, and no minimum capital requirement along with permitting you to perform your business in any part of the UAE.
And well, if you decide to set up your gold trading business in Mainland Dubai, then undeniably the top location for you is ‘The Gold Souk Market’.
Abode to around 300 retailers, the key benefit for setting up your business here is that local people will be your target market and you will be directly able to sell to them.
Moreover, the area around is well-known for import and export, so if you are interested in trading of other kinds, this is indeed a great option.
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A business set up in Mainland offers investors to have 49% ownership of the company while the other 51% is owned by a Dubai local partner.
Acquiring the Business License
First and foremost, you’ll need to have a gold trading license in Dubai before you can legally operate as a gold trader in the city. Business licenses are required regardless of the type of business or the location chosen.
Apply instead to the Department of Economic Development if you want to start a gold trading enterprise on the mainland. The Jebel Ali Free Zone Authority is the one to contact if you’re looking to set up shop in GDP. In addition, to apply to a free zone, you must contact the zone’s administration directly.
Business activities determine the specific licensing requirements your organization must meet.
Applying for your Gold Trading Company License
The following pieces of standard documentation are necessary in all instances when applying for a license:
- Company registration form from the respective trading zone
- Two passport size photos
- Document of initial approval fee payment
- Tenancy or Lease agreement (if any)
- Completed application form
- Passport/visa copy of the owner or shareholders
- Copy of sponsors passport/Emirates ID
- Application fees
- CV of the manager
- Proof of trade name
- Copy of Initial Approval Certificate
- Copy of notarised MoA or LSA agreement
How to start a gold trading business in Dubai?
Make sure you’ve finished the following before submitting your application to the appropriate bodies:
- Select the nature of your business venture
- Select a partner or local sponsor
- Registering a valid trade name
- Getting a legal status for your business venture in Dubai
- Detailed business plan
Minimum capital requirement:
In addition to rent to gold park management, a start-up fee of AED 150,000 is possible within Dubai’s free zone for a gold enterprise. Only free zones meet this criterion.
In addition, you’ll need to make a security deposit equal to 15 percent of the unit’s annual rent. It’s important to note that this does not account for the yearly upkeep cost.
- Drafting and signing of MoA or LSA agreements with your partner or local sponsor in Notary Public Court
- Attested company name approval letter for the authorities
- Leasing and tenancy contract (Tejari) for your business
Opening a bank account for gold trading companies in Dubai
Opening a business bank account in Dubai is mandatory following the acquisition of a gold trading license.
Benefits of investing in gold trading business in Dubai?
Considering the high cost of a rollback, it’s best to proceed with caution while deciding on a business type or structure. The gold dealing business in Dubai is risk-free and lucrative for the following reasons:
1. Location benefit
Gold trading businesses can be set up by foreign investors in Dubai, either in one of the city’s free zones or on the mainland. Gold exchange platforms like the Dubai Gold Souk make trading gold in the currency market simple and convenient for mainland enterprises.
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Depending on whatever free zone you enter, you can take advantage of a variety of privileges not available in the rest of the country. There are many benefits to operating in the DMCC and Dubai Gold and Diamond Free Zones. These items are:
- 100% return of invested funds and profits earned
- Safe and secure
- Zero percent corporate and personal taxes
- Exemption of tax on imports and exports
- Shuttle transport for consumers
2. Tourism Advantage
Because of its status as a popular tourist destination, Dubai’s gold industry has plenty of promising prospects. Many tourists flock to Dubai specifically to shop for gold at the city’s famous Gold Souk.
Beautiful gold ornaments are on show, piquing the interest of any onlooker. The online gold and diamond trade in Dubai has been bolstered by the city’s abundance of gold stores and innovative designers for gold jewellery.
3. VAT on Gold Trading
There are several opportunities for success for gold trading companies and their owners in Dubai. People travel from far and wide to shop for gold decorations and jewellery in Dubai’s enormous market. In addition, the region provides gold goods at a cheaper gold price compared to the rest of the world. This is due to the value-added-tax exchange system.
4. Liquid Asset
This system ensures that dealers who intend to resell or manufacture gold items are not subject to VAT from listed and registered manufacturers. While retail customers are subject to VAT, the rate is quite low (5% of the purchase price).
Gold is a liquid asset because it can be quickly and readily changed into cash. The gold trade becomes safer as a result. During this time of crisis, you can quickly and easily exchange some of your gold for cash. Gold’s unique quality of not significantly impacting a company’s liquidity sets it apart from other business models. For this and other reasons, gold is a popular investment choice.
What documents are required?
The following is a list of the paperwork you’ll need to register a gold trading business in Dubai:
- Pre-approval form
- Proof of trade name
- No Objection Certificate and any other relevant document as demanded by the concerned authority
- Residency proof
- Precise business plan
- Passport copy
Documents required to get the gold trading license in Dubai:
- Notarized memorandum and articles of association
- Copies of passport of the shareholders
- Initial approval proof
- Tenancy contract
- Proof of trade name
- Lease agreement
Connect with ReCorporate Business Setup to get license for gold trading business in Dubai
Considering making Dubai the site of your new gold trading business. Starting a gold trading business in Dubai is a feasible and potentially lucrative option. However, this can be achieved with sufficient preparation and effort.
In addition, the procedure may appear daunting to an out-of-country investor because of all the paperwork involved. So, get in touch with ReCorporate Business Setup experts right away if you want to launch a gold trading company in Dubai.
Our professionals are familiar with the procedures involved. Let us handle every step of opening a gold trading business in Dubai for you.
If you have any further questions or queries on how to get license for gold trading business in Dubai, please feel free to get in touch with ReCorporate Business Experts.