What is the process for opening a retail shop in Dubai?KWSME
United Arab Emirates continues to be the most attractive market in the region for retailers with strong growth opportunities especially in Dubai.
According to 2017 A.T. Kearney Global Retail Development Index, UAE ranks 5th in global retail. Retail sales in UAE exceeded $73 billion in 2016 thus remaining as a firm pillar underpinning economic growth.
Dubai is well known as the Middle East’s shopping capital and the same developers who created malls of astounding proportions on the site of Silk Road souqs are now looking to innovate and expand, creating new opportunities for investment and fresh experiences for shoppers.
Setting up a business in Dubai in retail sector could be very advantageous and growth oriented for you. There are few requirements for businessmen to adhere to while opening a retail shop in Dubai. For example, if you are looking to start a coffee shop, let’s look at the procedures that are mandatory for your startup in Dubai.
Step 1: Business Plan
Prepare your business plan which should be carried out after you have done extensive market research. A business plan is very vital to get success in the business. Coffee retail is a high volume, low transaction business; and a big coffee houses may require huge amount of money in startup costs. Figure out if it’s feasible for you to start a coffee shop or preferably find some business setup consultant such as KWSME to write a business plan for you.
Read More: 6 steps to start business in Dubai
Step 2: Find Local Sponsor
If you are going for mainland business setup, you will need a UAE national to support your business plan. As it is mandatory to start Dubai mainland business with local sponsor – a UAE national who will own not less than 51% share in your business.
Thus to open a coffee shop, this step is a must unless you sign an investor’s protected contract or start a business in Dubai free zone.
Step 3: Business License and Registration
The next step is acquiring trade license and registration and other certificates and approvals from government authorities. Department of Economic Development (DED) is the government regulatory body that grants permission to open a coffee shop in Dubai under mainland jurisdiction.
Step 4: Select a Good Location
Selection of a suitable business jurisdiction will play a key role towards success of this type of business setup. Choose an area that people can come conveniently and more often.
You can also go for shop on rent. It is quite a challenge but again finding the right location is the key. Renting in Dubai comes with series of permissions that you will need from Dubai municipality and other concerned bodies.
Step 5: Decide Your Business Name
Decide your shop name that is different and unique; not too long and also memorable.
Step 6: Added Paper Work and PRO
Opening a coffee shop in Dubai under retail sector will require PRO services and further documentation, certification, visas, trademark registration and permissions from numerous entities depending upon your business structure and jurisdiction.
Do not have excess product on hand which you won’t be able to sell and don’t have little product in order to avoid building a reputation that your shop is always running out of things.
Promotion of your shop:
Attract your consumers by placing ads such as discounts, coupons and weekly deals.
Staff of your shop:
Hire friendly staff whose prime purpose should be going above and beyond for customer satisfaction.
Upkeep of Coffee shop:
Create a clean and welcoming environment for your customers so that they keep coming back. Manage products carefully, remove bad produce immediately. Also keep bathrooms and floors clean, fresh and well stocked.
Read more: How to open a restaurant in Dubai?
It is advisable to take professional guidance to open a retail shop in Dubai. KWS Middle East offers you best guidance for your business setup in Dubai and across UAE. We offer complete company formation and support services for new startups in Dubai.
Contact us for detailed guidance and support.