Establishing a passive income stream is one of the best ways to generate wealth. Entrepreneurs the world over will lecture you about the pros of passive income – and one of the surest ways to do this is a vending machine business in Dubai.
As the leading cosmopolitan city in the Middle East, Dubai is home to a growing population needing staple goods any time of the day or night. What’s more, a vending machine business in Dubai doesn’t need staff, offices, or storage space.
In this article, we’ll cover how to start a vending machine business in Dubai:
- Vending machine business – the benefits
- Approvals required to start a vending machine business in Dubai
- Steps to start a vending machine business in Dubai
- Cost of starting a vending machine business
- Working with Trade License Zone
Vending machine business – the benefits
Starting a vending machine business in Dubai can be your golden ticket to generating a passive income. A vending machine business doesn’t cost much in the way of startup capital or maintenance costs. Restocking your vending machine will also cost you almost zero in terms of capital as you can replenish your inventory from your machine’s income.
A vending machine business is a lucrative one that’s also straightforward to manage. This makes it easy to scale your business to include more vending machines in more locations around Dubai. Another benefit of starting a vending machine business is that there are many types of vending machines you can buy: from foodstuffs, to travel essentials, to gadgets, and more.
Dubai offers foreign entrepreneurs and investors a 0% tax rate on personal and corporate incomes and a VAT rate of only 5%. The United Arab Emirates has also streamlined the business regulations to make it easier than ever before to do business in Dubai. From the heart of the Middle East, Dubai is also one of the top business and tourist hubs globally – with high levels of foot traffic to make your vending machine business idea all the more attractive.
Contact the business setup experts at Trade License Zone to help you make your business idea a reality. We will help you with your trading license process, registration, visas, and more.
Approvals required to start a vending machine business in Dubai
To start a vending machine business in Dubai, you must structure your business as a Mainland Company with a Commercial License. You will need to register your business as a Limited Liability Company (LLC) with the trade license activity as Vending Machines Trading: Selling Commodities by Automatic Vending Machines.
Additional approvals required to start a vending machine business in Dubai include a lease contract for the floor space to be used by the vending machine, a tenancy contract registered and approved by the Dubai Land Department in the Dubai Municipality, and a Local Service Agreement (LSA) approval from the Dubai Department of Economic Development (DED).
Steps to start a vending machine business in Dubai
Here are the six steps to starting a vending machine business in Dubai.
Step 1: Partner with Trade License Zone
The first step in starting a vending machine business 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 governing authorities and obtain external approvals on your behalf.
Step 2: Choose a company name
Trade License Zone will help you choose and register your vending machine business’s name with the UAE’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 any offensive or profane language, nor any references to Allah or Islam.
Step 3: Apply for Initial Approval
Once you have registered your trade name, the next step is to apply for Initial Approval from the DED. The DED issues the Initial Approval certificate. You will need to select your business’s activities from the approved activity lists regarding your business plan, activities, and license type.
Step 4: Choose the company’s legal structure
All vending machine businesses in Dubai require a Vending Machine Trading License to trade legally. As we have mentioned, the business activity falls under a Commercial License type. For this business type, a Mainland Company structure is necessary.
Applying for the license for your vending machine business in Dubai is a streamlined process – when you know what you’re doing, that is. That is why you should seek the services of company formation professionals at Trade License Zone to help you get set up quickly and efficiently.
Step 5: Submit your license application
When you submit your license application, you will need to attach the following documentation:
- Proof of ID and addresses for directors and shareholders (as well as local sponsors)
- Passport copies of shareholders and directors
- Copy of the company name certificate from the UAE’s Registry Office
- Copy of the LSA (Local Service Agreement)
- Copy of the tenancy contract
- Completed trade license application
Step 6: Apply for your visa
After applying for your vending machine business in Dubai, 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.
Cost of starting a vending machine business in Dubai
The cost of starting a vending machine business in Dubai is AED 20,000 to AED 30,000. Calculating the exact cost of starting a vending machine business in Dubai is complicated. There are many factors to consider, such as visa costs, government and municipal approvals, floor space rent, maintenance contracts, stock, inventory, and more. Additional permits may be required depending on the location, duration of tenancy contract, and type and products of the vending machine.
If you’d like an accurate quote, contact Trade License Zone’s dedicated team.
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 vending machine business, can be tricky regarding applying for a trade license, company structure, and visa regulations. 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 vending machine business’s trade 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.