One of the biggest attractions for tourists and shoppers to Dubai is its gold market. Dubai is commonly known as the Middle East’s ‘City of Gold’ thanks to the prevalence of its gold trading businesses. Unsurprisingly, Dubai is one of the world’s leading gold trading markets.
If you’d like to set up a gold trading business in Dubai, you’ll need to pay close attention to the options and regulations in the UAE to get a head start.
In this article, we’ll cover:
- An overview of the gold business in the UAE
- How do I get a gold trading license in Dubai?
- Cost of starting a gold trading business in Dubai, UAE
- Do you need a license to sell gold in Dubai?
- Is the gold business profitable in Dubai?
- Why is gold so cheap in Dubai?
- Working with Trade License Zone
An overview of the gold business in the UAE
Gold trading in Dubai is among the most profitable businesses in the United Arab Emirates. Dubai’s gold trading is heavily regulated, which means its gold price is one of the highest in the world, making investing in gold a solid business activity. Dubai’s managing authority overseeing the gold business provides highly-respected certifications. The city boasts more than ten gold refineries and a world-famous gold souk market that attracts tourists worldwide.
How do I get a gold trading license in Dubai?
To get a gold trading license in Dubai, there are six steps for you to follow.
Step 1: Partner with Trade License Zone
The first step in starting a gold trading business in Dubai is to partner with Trade License Zone. Our professional team will manage all aspects of your gold trading company registration, gold trading license application, and setup process to guide you on all the documentation required for the various government authorities and obtain external approvals on your behalf to begin trading as soon as possible.
Step 2: Choose your company name
Trade License Zone will help you choose and register your gold trading company name with the UAE’s Registry Office. You can use your name in the gold trading company name, but you must use it in full instead of just your surname or initials. The business name must adhere to the UAE’s naming policies, including that it cannot include offensive or profane language or references to Allah or Islam.
Step 3: Choose your business activities
Gold trading companies must choose their business activities for their gold trading license application in order to trade legally in Dubai.
Your gold trading license enables you to carry out several business activities – but only those listed on your business license. You can select the appropriate business activities you wish to pursue in Dubai from an extensive list of more than 2,000 on Dubai’s Department of Economic Development website.
Failure to list all your business activities on your gold trading license may result in penalties. It is best to partner with a company formation expert such as Trade License Zone to ensure that your gold trading license application and business activities are aligned.
Step 4: Choose a business jurisdiction
The types of business activity you have chosen will have a bearing on the kind of setup and gold trading license type most suitable for your gold trading company.
For example, if your business activity falls into the category of retail shops for gold jewelry, then you will require a specific license type. If your business is to start trading gold, such as gold bars, you need a different kind of gold trading license.
These are further determined by the business jurisdiction. There are two main business jurisdiction types in the UAE: Free Zone companies and Mainland companies. Each has specific benefits, regulations and requirements.
Free Zone companies are the most popular and cost-effective of the two types. While it offers foreign nationals 100% ownership of the companies, a Free Zone company must take additional steps (such as opening a branch or a distributor) to trade within the UAE legally.
A Mainland company setup allows you to trade within the UAE market without extra steps, but it means that a local sponsor must hold 51% of the company’s shares.
Selecting the correct business setup for your company might seem complicated. When you contact the highly experienced consultants at Trade License Zone, we will help you to choose the best gold trading company setup formation to start trading gold as soon as possible.
Step 5: Apply for your gold trading license
Once you have completed the documents for your business registration and company setup, you can submit those documents to the relevant government entities for your gold trading license application. For this critical step, Trade License Zone can streamline the process to avoid any errors or mistakes.
Step 6: Open your corporate bank account
After applying for your gold trading license to start your gold trading business, you can apply for your visa and open your corporate bank account. Your visa may enable you to sponsor the visas of family and staff, depending on your license’s conditions. Contact Trade License Zone‘s expert team to help you with this major step.
Cost of starting a gold trading business in Dubai, UAE
To start a gold trading business in Dubai, you would need AED 20,000 to AED 30,000 for the gold trading license. The cost depends on many factors, such as visa costs, government approvals, office space, and more. For a free and accurate quote, please get in touch with our consultants.
Do you need a license to sell gold in Dubai?
Yes, to start gold trading businesses in Dubai, it is necessary to have a valid gold trading license.
Is the gold business profitable in Dubai?
Gold accounts for more than 22% of Dubai’s non-oil industry exports, making it one of the most lucrative business sectors in the Middle East. Gold shopping in Dubai is a world-famous activity, with more than 400 shops trading in gold and gold jewelry. Investing in gold is considered one of the most stable investments as the price of gold is one of the least volatile in all markets.
Why is gold so cheap in Dubai?
The UAE government regulates the price of gold in Dubai. This means that, like with many other precious metals and other products, the government doesn’t place taxes on the price of gold. It makes the price of gold cheap in the UAE. For gold shopping, buyers are required to only pay for the price of gold.
Working with Trade License Zone
Business setup in the UAE is straightforward when you partner with a team of experts, such as Trade License Zone. Starting a business in Dubai, such as a gold trading company, can be tricky when it comes to applying for a trade license, business setup, and more.
When you partner with Trade License Zone, we will save you from unnecessary delays or rejections and streamline the entire process.
The specialists at Trade License Zone can get started once you provide us with some basic documentation and a little information about the nature of your company and business activities. Then, please sit back and let our team take care of the rest.
We’ll manage your gold trading license and visa applications, communicate with all relevant local departments and authorities and report when you’re ready to trade. It really is that simple.