The “City of Gold’ as it is called, Dubai is one of the main hubs for Gold trading in the middle east. It has developed a huge market for gold that caters to different nations. Besides the migration of ex-pats, population growth, tourist inflow, infrastructure development, better way of living are some of the factors that have led to the massive growth of this market. A gold trading license can be established inside or outside of Dubai. However, the location will not affect the tax parameters of the business. Let us see the conditions to set up Gold Trading Business in Dubai:
Steps To Get Gold Trading License in Dubai
Dubai has the most business-friendly environment due to its government and its liberal policies. Therefore, establishing a gold business firm is a hassle-free process in Dubai if we follow the rules and regulations correctly.
The foremost step is to choose from the areas entitled for gold trading in Dubai:
- Dubai Multi Commodities Center(DMCC) Free Zone.
- Dubai Mainland
- Gold and Diamond Park.
It has become one of the largest free zone areas in Dubai. The free zone was established in 2002 in order to provide a well-built financial hub for the global community’s trade. Besides the site offers various advantages like 100% foreign business ownership, high-end infrastructure, 50 years tax holiday, ease to own properties, etc. Therefore making it one of the sought-after places to start a gold trading license in Dubai.
DUBAI’s GOLD AND DIAMOND PARK
Established in 2011, it is the most prominent location for jewelry shopping in Dubai. Millions of people come here to buy high-end jewelry, precious gems, stones, gold, diamond, and other accessories. Besides the location has a combination of retail, manufacturing, and trading units which is beneficial for the success of a gold enterprise. In addition to that this park holds 350 offices and retail shops along with 118 manufacturing units.
Advantages of Gold and Diamond Park License
- The site offers various benefits like low corporate tax,100% foreign ownership, leasing opportunities, etc.
- We can easily employ foreign ex-pats in our units.
- Hallmarking is made available by the municipality.
- The premier location allows easy access to all places.
- It has also started to lease premium commercial space to entrepreneurs trading in gold.
- 100% security of share capital and profits.
Gold Trading in Dubai Mainland
Dubai mainland is one of the traditional business environments for a gold trading license in Dubai. Unlike free zones, the mainland provides the freedom to trade anywhere within UAE. Furthermore, it grants advantages like no VAT and profit tax, no minimum capital requirement, more retails space, etc.
The main center for Gold trading on the mainland is the GOLD SOUK MARKET. It is one of the oldest business markets which is located in the commercial business district in Deira. Being one of the oldest markets, it is an ideal spot for gold trading in Dubai. Moreover, the site provides the advantage of selling directly to the local people without the involvement of middlemen.
PROCUREMENT OF GOLD TRADING LICENSE IN DUBAI
Gold Trading is a very profitable but risk-taking business. Therefore before starting a gold trading license in Dubai you should procure a proper license sanctioned by the government. Let us see how to procure license in the above-mentioned jurisdictions :
Dubai Gold and Diamond Park
- A lease agreement should be taken from the Gold and Diamond park.
- After obtaining a lease agreement, apply for license at the Jebel Ali free zone authority along with the necessary documents and fees.
The trading license for gold trading in Dubai is issued by the Department of Economic Development. Moreover, you can also visit the DED website for procuring a license.
Dubai free zones have separate authority for issuing the trading licenses. Therefore you need to contact the concerned authority of the chosen free zone for procuring a license.
Steps to follow while obtaining license
The steps and documentation required for obtaining Gold Trade License at different jurisdictions are the same. Firstly let us see the documentation required:
- We must fill the application form and submit the required fees carefully.
- Two passport size photographs
- A copy of the owner’s or shareholder’s visa/passport.
- A copy of sponsor’s passport/ emirates id
- Resume of the manager
- Proof of trade name reservation
- A copy of the Memorandum of Association issued by a notary.
- A copy of the initial approval certificate.
- Tenancy of Lease Agreement.
Subsequently one must ensure to complete the following steps before applying for license
- Reserve a trading name and select the nature of the business activity.
- Submit an elaborate business plan.
- Furthermore, decide on a legal entity for your company.
- A proper Memorandum of Association should be made with the help of a local sponsor.
- We must obtain a tenancy contract or lease agreement from the owner of the site.
- We also need to get external approval from SIRA (Security Industry Regulatory Agency).
Opening a Bank Account
After procuring the license you need to open a corporate bank account for doing company-related transactions.
Thus if you are planning to open a business in Dubai, the gold trading business is a very good option.