Due to the lack of agriculture development and cultivated land and extremely hot weather in the UAE, Foodstuff trading is one of the most lucrative businesses you can start in Dubai mainland without thinking twice. Since food is an essential supply, there won’t be any shortage of demand and you can reap profits on the back of a sound business plan. However, foreign investors need to strictly adhere to the relevant regulations of business setup in Dubai to accelerate the licensing process. Business setup consultants in Dubai can help you obtain a foodstuff trading license without any hassle.
This article will enlighten you on how to obtain a foodstuff trading license in Dubai. You can get to know the process, rules and regulations associated with starting a foodstuff trading company in Dubai mainland. Read ahead to know further:
Foodstuff Trading License in Dubai Mainland
You need to obtain a commercial license in Dubai to start a mainland foodstuff trading company. The Department of Economic Development (DED) is the competent authority that issues all types of trade licenses for mainland companies. Business setup consultants in Dubai can assist you with applying for a foodstuff trading license.
How to Obtain a Foodstuff Trading License in Dubai?
You need to follow the steps of company formation in Dubai set out by the DED to obtain a foodstuff trading license. Some steps are simple but some can be complex. However, you can enlist the help of business setup consultants in Dubai to accelerate the process. The following are the mandatory steps for company registration in Dubai mainland:
1. Select an Activity
Foodstuff trading is a broad activity group comprising several business activities. You need to select which activity you are planning to carry out in Dubai mainland. Some of the key foodstuff trading activities in Dubai’s mainland include Snack Food Trading, Canned & Preserved Food Trading, Baby Food Trading, Frozen Fish & Seafood Trading etc.
2. Choose a Name for Your Company
Once an activity has been determined, you need to select a name for your company. You need to follow the DED’s naming guidelines while choosing a trade name for your proposed company in Dubai mainland. It is always advisable to submit three names to the DED so that you can easily manage the licensing process even if the other two names get rejected.
3. Select a Legal Structure
In the next step of business setup in Dubai, you need to choose an appropriate legal form or legal structure for the proposed company. The legal structure is determined based on the number of shareholders in the company. Business setup experts in Dubai can help you determine an appropriate legal structure for your foodstuff trading company.
4. Choose a Location for the Business
You need to rent a space for your company at an appropriate location. Be it a warehouse or a storage space, you need to meet the DED requirements to avoid the rejection of a trade license application in Dubai. After renting or leasing the space, you need to get the tenancy contract and get it attested (Ejari).
5. Obtain External Approvals
Certain business activities in Dubai mainland are categorised as special activities as they pose certain risks to the public or the country. In case of a special activity, you need to obtain approval from the relevant ministry or government department that regulates the specific activity. In the case of foodstuff trading activity, you need to get approval from the Food Control Department of Dubai Municipality.
6. Submit All The Documents
Once the approvals have been secured, you need to submit all the necessary documents to the DED to obtain a foodstuff trading license in Dubai mainland. The documents include the tenancy contract and external approval as well. Company setup consultants in Dubai can help you with the documentation.
7. Pay the Government Fee and Obtain the License
In the final step, you are required to pay the mandatory government fee to the DED. The DED will then issue the Dubai mainland foodstuff trading license to the applicant. Business setup consultants in Dubai can advise you on the government fee.
Advantages of Starting a Foodstuff Trading Business in Dubai
Dubai is often dubbed as a gateway to the most lucrative markets in Asia, Africa and Europe. The latest reports suggest that the UAE’s food imports are likely to reach USD 400 billion by 2025. Moreover, the emirate’s strategic location, modern infrastructure, efficient customs procedures, and minimal bureaucracy make Dubai the best place to start a foodstuff trading business. The foodstuff trading license in Dubai mainland comes with the benefit of 100% foreign ownership. This means you are not required to partner with a UAE national to start a foodstuff trading business in Dubai.
Consult with the Best Business Setup Consultants in Dubai, UAE
Starting a foodstuff trading business in Dubai may appear simple on paper. However, some requirements associated with the process of company incorporation in Dubai mainland may seem complex to foreign investors. You may struggle with Dubai Municipality approvals, visa process and bank account opening etc. However, business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can simplify the process for you.
JBC has more than 20 years of experience and we are one of the top providers of business setup services in Dubai. Moreover, we offer value-added services such as bank account opening, PRO services, and compliance services related to the UAE Corporate Tax, Economic Substance Regulations (ESR), Anti-Money Laundering (AML), and Ultimate Beneficial Ownership (UBO) etc.
