Dubai’s gold and diamond collection is one of the first things that come to mind when the emirate is mentioned because it is fashionable there. The area is known as the “City of Gold” and sells gold at a lower price than most visitors’ home countries. Given that Dubai is a well-liked international holiday spot, the influx of the wealthiest clients can be heavily taken into account if you wish to launch a gold company.
In Dubai, gold is a good investment since it attracts foreign capital. Unbeknownst to many, it is the most lucrative industry since the demand for precious metals has been steady year after year and the metals maintain their value. Even though Dubai has historically been a center for gold dealers, they continue to make up a sizeable portion of the gold trading industry in the UAE. Setting up a gold trading firm in Dubai is something you should absolutely think about if you’re an investor. This post will assist you in doing extensive research before starting your gold business if you are unsure how to proceed. With greater information and comprehension, you can begin turning a profit from gold in a variety of fields.
Precisely where is Dubai?
Different authorities and jurisdictions in Dubai strongly encourage the issuance of gold trading licenses. The majority of them are located in the Mainland and Free zone. There are a lot of jurisdictions in Dubai, but three stand out as having the biggest concentration of gold traders.
The gold trading license at Dubai’s Department of Economic Development (DED), where the UAE’s primary gold market is located, would be first on the list. The Gold Souk in Deira, one of the most well-known gold markets in the world, is where you incorporate a company using this authority. If an investor chooses to establish a retail outlet in this region, the mainland jurisdiction provides a local license via the DED. In Dubai’s busiest tourist destinations, there may be an opportunity for investors to set up a kiosk or even a small shop. Investors should be aware that they must locate a local partner who will own 51% of the company’s shares before filing for another commercial license for a gold business through the DED.
The Gold and Diamond Park on Sheikh Zayed Road would be the second option for starting a gold trading business in Dubai. This location is ideal for you if you are an expat who wants to control 100% of the firm because it is set up as a free zone corporation. Without paying taxes, you can own 100% of your business and keep 100% of the profits. One of the most well-known gold and jewelry retailers is The Gold and Diamond Park, which has over 90 stores, 118 manufacturing buildings, and 350 offices. Dubai City Center is in a convenient location with easy access to all areas. By obtaining a license from the Jebel Ali Freezone Authority, you can establish a gold business enterprise here (JAFZA).
Dubai Multi Commodities Centre (DMCC), another Free Zone Authority, is your third option for conducting your gold business in Dubai. The Dubai Gold and Commodities Exchange (DGCX), DMCC Trade Flow, and overall gold value chain are all well-known features of DMCC.
What are the procedures?
The next thing you must determine is how you will launch your Dubai gold business. It is difficult to have one because different bodies and jurisdictions have different procedures and standards. Although the gold and jewelry industry is well-known in Dubai, there are certain rules that must be followed. To provide a secure business environment, it requires thorough inspections of anyone bringing gold or other precious metals into the emirate. We have outlined some of the crucial actions you need to take to set up a gold business firm in Dubai in order to serve as your guide.
Think of a trade name.
A trading name is a statutory necessity before you may apply for a license. The government can learn about your planned commercial activity if you have a trading name.
Purchase a Business License
Without a business license, it is impossible to launch a firm in Dubai. As previously noted, you have the option of establishing your gold business in Dubai with one of the three authorities—DED, JAFZA, or DMCC. All of them demand that investors register their company before engaging in any business activity. In contrast to JAFZA and DMCC, which are located in the free zone, DED has a specific requirement that an applicant for a company license have a local sponsor who will control 51 percent of the shares. Typically, the following documents are necessary to obtain a license:
- completed a request form.
- a copy of the potential owner’s passport(s).
- colored passport photographs in duplicate
Select your Business Location
There are many locations to pick from, especially if you decide to open up shop in a free zone. They can provide you with a variety of offices or facilities to best meet your business needs. Once you have obtained your company license, you can begin this process.
Acquire a visa
With the assistance of your service provider, a visa can obtain. Visas are necessary, particularly if you need to recruit someone. You have the authority to sponsor others for their visas as the owner of a UAE company license. Depending on the size of your company or business, the kind of firm you select, and your income, you may be eligible for a certain number of visas.
It is reasonable to claim that beginning a gold company in Dubai is highly profitable and can generate growth for the business because Dubai has established itself as a healthy and sustainable environment for both local and foreign investors in the jewelry and gold market.