Fantastic architecture, state-of-the-art infrastructure, modern lifestyle, and lax trade policies make Dubai company formation a lucrative option for both foreign and local investors.
The diverse and stable economy of the UAE draws many entrepreneurs from all over the world to explore the plethora of business opportunities it presents.
On that note, let us discuss one of the most profitable business setup in Dubai: Gold and diamond trading. The Gold and Diamond Industry of the UAE are one of the most prolific industries in the region.
Having said that, let us have a look at how you –an entrepreneur– can start a gold trading business in Dubai.
Where to do Gold Business in Dubai? And how?
Before we start anything, you should know that there are three (3) areas in Dubai and the rest of the UAE, where one can easily set up a gold trading business.
These zones or areas are as follows:
DMCC Free Zone:
Dubai Multi Commodities Centre (DMCC) was established in 2002, and it lies at the heart of the city. This free zone has over thirteen thousand (13,000) companies currently operating within its boundaries and is one of the largest free zones in Dubai.
The DMCC is crowned as the “ Global Free Zone of the Year” by the British financial magazine The Financial Times.
This zone is a trade and commerce hub for all kinds of businesses. Diamond, Gold, and other precious metals and stones trading are one of the leading businesses here.
Key Features of DMCC
The key features of DMCC that make it a prime spot for entrepreneurs looking to set up a gold trading business in Dubai are as follows:
- No tax on corporate or personal income.
- 100% business ownership
- Stunning, well-built infrastructure and top-notch business facilities
- Total repatriation of capital invested and profits earned.
- Round the clock (24/7) business security
- Trade within the particular free zone and outside the UAE without any restrictions.
- 50 year tax holiday
Company Registration Process in DMCC
The registration and incorporation process for setting up in DMCC is reasonably straightforward. In the following lines, we have made it even more forthright so that you can understand it a bit better.
This is the first stage, and it includes applying for the trade name reservation form to the DMCC authority. This step can take 7-8 working days. This is because, during this time period, the designated authorities are diligently vetting the investors to avoid any unpleasantness in the future.
Once the DMCC authorities have thoroughly vetted you, you are required to submit the necessary paperwork with the essential documents attached.
Keep in mind that you have to apply for company registration within six weeks of initial approval.
The required documents must include:
- Pre-approval Form
- Detailed Business plan
- Proof of Trade Name
- Your Passport Copy
- Proof of Residence
- NOC –No Objection Certificate– Certificate and other relevant documents that the DMCC authority names.
As soon as you complete the registration process, immediately enter the final stage of the Dubai company formation. To complete the process, you need to submit a tenancy contract. This in layman’s term means that you need to find an office space in DMCC free zone as the base of your operations.
Directly after finalizing, signing the lease, and then eventually submitting the tenancy contract as proof to the DMCC authorities, you can apply for the trade license in Dubai for your gold trading business.
The minute you receive your gold trading license, you can start your gold trading business within the confines of the DMCC free zone as well as outside the country’s international borders.
Dubai Gold and Diamond Park
Dubai Gold and Diamond Park were established in 2011 with the sole purpose of facilitating the jewelry business of the city.
Because of which this free zone has become one of the captivating spots for both the local residents and foreign visitors.
It is the only place in all of Dubai that provides an eclectic collection of precious jewels under a single roof for its customers. Besides that, it provides a convenient environment for merchants and entrepreneurs for trading Gold and diamonds.
Furthermore, the Dubai Gold and Diamond Park is home to a manufacturing block (G+2) and a Retail Center (G) only.
Key Features of Dubai Gold and Diamond Park
The local and foreign investors both can benefit from this Dubai free zone’s many perks. Some of those advantages are exclusive to this free zone alone.
The additional perks are:
- Full-on assistance for all government-related issues.
- The hiring of foreign expats as your possible employees is allowed
- The one-stop-shop for jewelry manufacturing, trading, buying and selling
- Hallmarking, inscribing and branding facilitated by Dubai Municipality
- Easily accessible transportation service that also includes a Shuttle bus service.
And finally, it should be noted that the business setup process is similar to that implemented in other free zones. Still, the difference lies with the regulatory authority, which is different in each free zone.
Company Registration Process in Dubai Gold and Diamond Park
- After procuring suitable office space, a contract that outlines the terms of your lease must be sent to the Gold and Diamond Park to get their approval.
- After getting the lease agreement from gold and diamond park authority, apply for a JAFZA license at the Jebel Ali office.
- Submit all the requisite documents with a filled application form to the Jebel Ali Free Zone Authority.
- After approving your application, the JAFZA authority will grant your license for the gold trading business in Dubai.
The Mainland of Dubai
If you choose mainland Dubai for setting up your gold trading business, then the best location for you, in this case, is The Gold Souk Market.
The most significant benefit you will reap from this is that the local population will be your target market as you will be able to sell directly to them.
Moreover, the area around Port Rashid in Dubai is a hot spot for import and export, so if you are interested in trading of other kinds, this is the best option for you.
What Kind of License can I Apply for Gold Trading?
The licenses required for legal gold trading in Dubai are:
- Trading License: To carry out any and all trading activities
- Retail License: For retailing the merchandise in The Dubai Gold and Diamond Park, you must acquire one of these.
- Manufacturing License: For carrying out any manufacturing activities by your Business, you need one of these.
- Service License: For providing any professional services
- E-commerce License: This allows you to sell your commodities online via an official website.
Get in touch with KWS Middle East if you are looking to set up your gold trading business in Dubai. With decades of experience in forming new companies in Dubai, we can take that stress off your shoulders. Our company formation consultants are well-versed in the art of incorporating Business in Dubai.
For any queries, contact us and book your commitment-free call with our capable team today!