Vaping is a global phenomenon. It is growing to overtake traditional cigarettes in popularity as smoking cigarettes is being outlawed in more and more places worldwide. Increasing numbers of smokers are moving towards vaping as it is associated with far fewer health risks than smoking. If you’re considering opening a vape shop in Dubai, now is the right time to start.
In this article, we’ll cover:
- Advantages of starting a vape shop in Dubai, UAE
- Cost of starting a vape shop in Dubai, UAE
- Steps to open a vape shop in Dubai
- Approvals required to start a vape shop in Dubai
- Working with Trade License Zone
Advantages of starting a vape shop in Dubai, UAE
As the world crunches down on conventional tobacco products, including in the UAE, vape businesses are growing. Starting a vape shop in Dubai comes with many benefits. Being an entrepreneur, you’ll be able to take advantage of the booming vaping industry in the UAE.
What’s more, vaping is considered more socially acceptable, further driving its increase in popularity.
Entrepreneurs in Dubai are welcomed in the UAE with streamlined company formation setup processes, 0% tax rates for corporate and personal income, and other incentives from the UAE government.
Cost of starting a vape shop in Dubai, UAE
The cost of opening a vape shop in Dubai and getting your trade license ranges from AED 10,000 to AED 20,000. This cost depends on many factors, such as the size and location of your vape shop, the number of visas attached to your application, and other governmental approvals required. For a free, accurate quote, please get in touch with our consultants.
Steps to open a vape shop in Dubai
Entrepreneurs looking to start a vape shop in Dubai (or any other company for that matter) must first apply for a trade license. These trade licenses are issued by the UAE government’s Department of Economic Development (DED). A commercial license is the correct type of trade license for a vape shop in Dubai. You will also need to register for specific permits depending on the vaping products and vape accessories, cigarettes trading, electronic cigarette devices, electronic shisha, and other vaping starter kit products and safer alternative smoking products you wish to stock and sell through your company.
Step 1: Partner with Trade License Zone
The first step in starting a vape shop in Dubai is to partner with Trade License Zone. Our professional team will manage all aspects of your company registration, trade license application, and setup process to guide you on all the documentation required for the various government authorities’ procedures and obtain external approvals on your behalf.
Step 2: Choose a company name
Trade License Zone will help you choose and register your vape shop’s business name with the United Arab Emirate’s Registry Office. You can use your name in the company’s trade 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 a business name cannot include offensive or profane language or references to Allah or Islam.
Step 3: Choose business jurisdiction
There are two main business jurisdictions in the United Arab Emirates: Free Zones and Mainland Companies. Choosing either of these business types will affect how you operate your business. A Mainland Company means you can trade within the United Arab Emirates, and you’ll need to sign with a local partner who is an Emirati national. The local partner will own 51% of the company’s shares while you’ll hold 49%.
A Free Zone company means you’ll not pay personal or income tax. You’ll be able to repatriate your profits and wholly own your company, but won’t be able to trade within the UAE market. You’ll need to take extra steps to trade within the UAE market, such as opening a branch or a distributor.
If you’re unsure of the best business jurisdiction for your company registration, contact Trade License Zone to help you make the right decision. Our highly-experienced team can assist you with this crucial step.
Step 4: Choose your business activities
It is essential to outline your vape shop’s business activities and services for your commercial license application. Your trade license enables you to carry out several activities – but only those listed on your trade license. You can select the appropriate business activities you wish to pursue in Dubai on the DED’s website. Failure to list all your business activities on your vape shop’s business license application may result in penalties. That’s why it is best to partner with a company formation expert such as Trade License Zone to ensure that your vape shop in Dubai’s license application and business activities are aligned.
Step 5: Open your corporate bank account
After applying for your commercial business license in Dubai to open your vape shop, 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 critical step.
Step 6: Choose a location
Researching and scouting the different vape shop locations and spaces in Dubai is best. Consult with shop property rental experts to help set up your vape shop in the best location for your business’s growth. Your vape shop must be easily accessible and visible – it will help to attract foot traffic to your vape shop. It must also pass inspections by the relevant government and municipal authorities before you can trade legally from the premises.
Approvals required to start a vape shop in Dubai
If you are interested in manufacturing or selling e-cigarettes, liquid refills, electronic pipes, vape accessories, vaping products, premium e-cig solutions, nicotine salts, electronic shisha, and other similar products, you must first get approval from the Emirates Standardization and Metrology Authority (ESMA).
To manufacture your own vaping liquids or vaping devices, you must get a Free Sales Certificate, Product Analysis Report, and Lab Report from the Dubai Municipality and the ESMA. These UAE Government regulations guide and steer the vaping industry and e-cigarettes trading.
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 vape shop in Dubai 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 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.