Every block of apartments, hotel, office block and warehouse in Dubai needs furniture of some description. For furniture companies, Dubai is the number one business location. You can make your dreams a reality today with your own business in the UAE.
In this article, we’ll cover the following:
- Furniture business in Dubai – an overview
- How to start a furniture business in Dubai
- Cost of starting a furniture business in Dubai
- How to grow a furniture business in Dubai
- Business setup in Dubai with Trade License Zone
Furniture business in Dubai – an overview
Dubai’s real estate sector is one of the fastest-growing in the world. Every completed site will need to be furnished, whether it’s an office park, mall, hotel or residential apartment.The Middle East has a burgeoning furniture industry, and the import/export sector is booming in this regard.
Dubai is a global business destination, and one of the markets growing in double-digit figures is high-quality furniture. Economic development in the Middle East sees continued demand for office furniture, new interior decorations and furniture for industrial applications, along with a market for neighbouring countries to buy from Dubai’s furnishing industry.
Recent changes to business regulations in Dubai make it easier than ever to set up a business, obtain business licenses and participate in Dubai’s booming sectors.
Is a furniture business profitable in Dubai?
Yes, a furniture business in Dubai can be highly profitable. The high growth rate of the city means that furniture production and supply increase at the same rate to keep pace with demand. Furniture companies in Dubai simply can’t keep up with demand right now!
How to start a furniture business in Dubai
These six steps will guide you in starting a furniture business in Dubai.
Step 1: Partner with Trade License Zone
The first step you should make when launching a furniture company in Dubai is to partner with Trade License Zone. Our specialist team will manage all aspects of your business license application, including company registration and liaising with the relevant authorities, guiding you through the entire setup process.
Step 2: Choose a name for your furniture company
Part of the application process for trade licenses entails choosing an appropriate business name. The UAE government has set strict naming rules, including that a business name cannot contain offensive or profane language or references to Allah or Islam.
As with other regions of the world, you can use your own name as part of the company name, but you must use your name in full instead of just your surname or initials.You will need to submit three different names, in order of preference, to the UAE’s Registry Office.
If your preferred name isn’t available, they will use the second one, and so on. Trade License Zone’s experienced business consultants will register your selected company names with the UAE’s Registry Office and notify you when you can proceed to the next step of the company registration process.
Step 3: Select your business activities and business jurisdiction
Every business in Dubai must apply for a business license. There are many types to choose from, and depending on your business activities and business plan, you must select the appropriate one by specifying and selecting your business activities.
There are over 2,000 business activities to choose from, but you must only select the ones specific to the furniture industry. If you fail to list all your business activities on your trade license – and conduct those business activities – it may result in severe penalties.The UAE has two main business jurisdiction types: Free Zone and Mainland companies.Free Zone companies are the most popular type of business setup in Dubai, as they allow entrepreneurs 100% ownership of their businesses. However, a Free Zone company must take additional steps to trade within the UAE’s domestic market, such as opening a branch or a distributor.A Mainland company setup allows you to trade within the UAE market without extra steps.
Don’t feel overwhelmed by all this, though: Trade License Zone will help you choose the most suitable option. Contact us to help you with this critical step.
Step 4: Apply for initial approval
When applying for a trade license with the Department of Economic Development (DED), you must submit documentation for initial approval to continue with the application process. These are the documents required for this stage of the application:
- Copy of the business owner’s passport and visa
- Copy of shareholders’ passports and visas
- Completed Memorandum of Association (MOA) and Articles of Association (AOA)
- Copy of the business plan
- Copy of office space and/or retail store lease agreements
- Dubai municipal approvals and other external approvals
- Company name approval from the Registry Office
Step 5: Submit your trade license application
Once you’ve completed the above steps, you can submit your business license application to the DED. Trade License Zone’s consultants can help you with this critical step to avoid errors, delays or rejections.
Step 6: Final approval
Once your trading licence has been approved and you’ve paid its issuance, you can apply for your UAE residency visa to live and work in Dubai. This trade license may entitle you to sponsor the visa applications of family and staff, depending on the conditions of the specific license. You can also open a corporate bank account at this step, which means you can begin trading as soon as you’re ready.
Cost of starting a furniture business in Dubai
Starting a furniture business in Dubai costs between AED 25,000 and AED 50,000. The cost depends on several factors, such as government bodies’ fees, office space and retail space, business licenses and other legal procedures.
Contact the experts at Trade License Zone for a free quote and a breakdown of the costs and steps required to start a furniture business in the UAE.
How to grow a furniture business in Dubai
While the furniture industry is one of the most booming sectors in Dubai, you must still have a sound business plan to take advantage of the market. Here are a few key considerations on how to grow a furniture business in Dubai:
1) Market research:
Identify your target markets. Many factors determine your target market, such as location, types of furniture, etc. Explore and understand the market you wish to serve and then focus on the types of furniture, service and business activities required to be the best furniture business in that market sector.
2) Pro services (such as complete solutions):
Another idea is to create complete solutions for customers: they can rent or purchase your furniture products and change the interior decorations to suit their needs. Other pro services, such as free delivery, are also popular.
3) Low prices:
Dubai is one of the fastest-growing regions in the world, and it is home to hard-working people who search for low prices. Being competitive in Dubai means having high-quality furniture products and low prices. Make sure you can offer the best prices.
4) Robust network:
Whether you are an import/export sector furniture business or sourcing your furniture from raw materials, establishing a robust network for your business will enable it to grow sustainably.
Business setup in Dubai with Trade License Zone
Business setup in the UAE is simplified with an experienced partner such as Trade License Zone. When starting a furniture business in Dubai, we help you with all formalities required, including trade licenses, government approvals, company registrations, local sponsor dealings and more.
The specialists at Trade License Zone can get started once you provide us with some basic documentation of your business and a little information about the nature of your business. Then, all you have to do is sit back and let our team take care of the rest. We’ll manage your business license application and business activities, communicate with all necessary authorities and handle all the formalities. All you have to do then is open your furniture business