Dubai is famous for its gold market, the Dubai Souk. Jewelry business is big business. Starting a jewelry business in Dubai is a lucrative business opportunity. The gold business, diamond trading, and precious metals attract shoppers from around the world.
Strict government controls keep this market in check – making it a safe and sustainable industry for all. Recent changes to the United Arab Emirates’ business laws and visa regulations have seen an influx of applications for foreign nationals to live and work in Dubai. Our city’s famous for boasting a high standard of living, a government-backed business-friendly environment, and a zero-tax policy for personal and corporate incomes. Even more reasons to set up shop in Dubai.
Is it the right time to start a jewelry business in the UAE now? Undoubtedly so! Contact a local company setup specialist to guide and support you through starting a jewelry business in Dubai.
Starting a jewelry business anywhere in the world? Dubai is the perfect place. As we’ve mentioned, jewelry is big business – especially so in Dubai and the gold Souk market.
Jewelry sales in the UAE were recently reported to amount to AED 12 billion annually – and that figure’s climbing each year. Underpinning this lucrative market is the fact that over 85-percent of the UAE jewelry traders comprise specialist retailers and Dubai jewelry companies.
The large tourist market is a huge contributor to the growth of Dubai’s jewelry and gold sector. This city is a popular travel and shopping destination, with luxury and fine jewelry topping the shopping lists of many. As a jewelry company owner, Dubai also offers zero VAT (Value-Added Tax) on the sale of gold items. With tax-free shopping, jewelry is cheaper in Dubai than in their own countries.
The Dubai Souk is a world-famous gold market for a reason: the high quality of the precious metals and gold manufactured on offer. Strict quality control checks maintain Dubai’s beautiful 100-percent pure gold and fine jewelry. Importers of precious metals and jewels undergo rigorous checks and specifications for a market that prides itself on meeting – and exceeding – international standards of quality.
The benefits of starting your own jewelry business in Dubai are numerous. We’ll break down the most important ones here:
- Outright company ownership: Recent updates to the business regulations in the UAE mean foreign nationals can now 100-percent own their own businesses – whereas previously a UAE national partner was required to hold 51-percent of businesses.
- Innovative Free Zones: Dubai’s free zones allow an individual to set up a company; these free zones are dedicated to specific industries; these offer support centres, world-class logistics infrastructures, supporting business facilities, free zone incorporation, a customs code number, business licenses, a minimum authorized capital required, international channels for trade, and SME incubators and accelerators to support business development.
- Access to a large pool of highly skilled workers to get your business open and running as soon as possible.
The jewelry industry in Dubai carries certain industry specific regulations and exacting inspection procedures imposed. Selling imported gold jewelry, trading in precious metals, or creating a trustworthy supply chain for Dubai’s jewelry and gold sector will create a profitable business for you as well as for foreign and local entrepreneurs.
Dubai’s jewelry and gold sector businesses may also import and export precious metals or operate as a Dubai diamond exchange service. Strict inspection procedures imposed by the UAE’s Gold Office (the governing body regulating this industry) are requirements to get a customs code number necessary to operate.
As we’ve mentioned, partnering with a local company setup agency is the first step to opening any type of business in Dubai. Our experts at Trade License Zone will manage all aspects of your company formation process, business licenses, and guide you to trade as a jewelry company.
The UAE (and Dubai) is the first region to implement free-trade zones. These innovative free zones created special economic zones to offer more than just tax concessions and customs duty benefits. Each free zone is dedicated to a specific industry for trading, services, and licenses to investors and business people starting their own companies. They require no share capital up-front, are not audited annually, offer SME incubators and accelerators, and support centres.
Choosing the right business structure will allow you to apply for a business license in a specific free zone for maximum benefits and support. For example, a specific free zone such as the Gold and Diamond Park Free Zone is ideal for your jewelry company. It would also mean not having to partner with a UAE local sponsor.
The next phase of choosing the right business structure for your company is selecting the right dedicated company incorporation portal for your company. The two channels available to the jewelry business are the Department of Economic Development in Dubai (D-DED) or the Dubai Multi Commodities Centre (DMCC):
- The D-DED license will allow you to operate in the Dubai Souk market and to deal with customers directly or create an international trade business.
- The DMCC license will allow investors to open a jewelry company in a free zone. DMCC license holders also become members of the Dubai Diamond Exchange (DDE).
Trade License Zone will help you choose and register your company name with the UAE’s Registry Office. The business name must adhere to the UAE’s strict naming regulations. Business names cannot include any offensive or blasphemous language, nor any references to Allah or Islam. If you wish to include your name in your company name, you must use it in full rather than just your surname or initials. We’ll also check that your chosen name is available to be registered.
Once the company name’s approved by the Registry Office, you need to apply for notarization of the company’s Memorandum of Association (MOA) and Articles of Association (AOA) with the Department of Economic Development in Dubai (D-DED).
Along with your completed application form and initial business plan, you’ll also need to submit the following documentation to either the DMCC or the D-DED:
- Proof of ID and address for directors and shareholders
- Passport copies for shareholders and directors
- Copy of trade name confirmation
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Let Trade License Zone help you get a residency visa for you to live and work in the UAE. The steps are the same as the one above, from the application through to your passport stamp. With your jewelry business visa, you can sponsor your dependents for their visas, too. Again, this follows the same process whether you wish to sponsor domestic staff or a child or spouse.
Once you have your business license in hand, you can find the right premises for your jewelry company. We at Trade License Zone will guide you in selecting the right location to meet your business needs.
With access to a large pool of highly skilled people in Dubai, you will hire a manager that’s right for your company. As a requirement of your D-DED application, you’ll be required to hire a manager before registering your business. In fact, the D-DED’s regulations outline the hiring of staff.
As experts in this field, Trade License Zone has partnered with specialists in recruitment and manpower supply. We’ll assist you through each step in setting up your own jewelry business in Dubai.
Starting a jewelry business in Dubai is a lucrative opportunity for creative entrepreneurs and business investors. The UAE government has designed the company formation process and jewelry business license process in the UAE with simplicity in mind in navigating the legal requirements.
That said, it takes some hard work and in-depth knowledge of the region, its markets, its many customs and regulations.
That’s why it’s always advisable to sign up with the services of a UAE business setup company to guide you on your company’s license and setup based on your needs and budget.
When you work with Trade License Zone, we’ll guide and manage the entire incorporation process for you, and guide you through the latest government regulations regarding your jewelry business. Get in touch today for a personalised quote and competitive advantage.
We’ll give you peace of mind that your license and visa applications are free from errors and omissions – both of which can lead to delays and rejection.
All you need to provide is some basic documentation and some information about your business. Then, sit back and let the experts take care of the rest – managing your license and visa applications, communicating with all relevant government departments and authorities, and reporting back when you’re ready to trade. It is that simple.