Dubai boasts cultural diversity. The favorable business environment, world-class infrastructure, have made Dubai the most sought-after business and leisure destination. Thus, providing a suitable atmosphere for small, medium, and big enterprises. According to the 2017 report, Dubai topped the list of Gold and Precious Metal trading. Gold exports accounted for AED 41.2 billion. Besides, the UAE is ranked first in the Arab world and fifth globally for export and re-export of precious metals. The global pandemic has not had much effect on the economy of UAE as its economy is diversified. Amongst the non-oil exports, the Jewelry and precious metal trade have the major share. Therefore, setting up a gold and precious metal trading business would reap huge profits.
Dubai Multi Commodities Centre (DMCC), Dubai Gold & Park, and the mainland are the ideal places to set up a Precious metal trading in Dubai.
Setting up Precious metal trading business in DMCC
DMCC, located opposite Dubai Marina Beach and Emirates Mall, was established in 2002. Different kinds of ventures are set up in DMCC. However, Gold, Diamond, and other precious metals trade is major business here. The business set up in DMCC enjoys 100% ownership and repatriation of profits in addition to no taxations, 24-hour video surveillance, operational facility access, and superb infrastructure.
- To set up business in DMCC, initially, the owner has to submit the application to get a reservation for gold business in Free Zone Authority.
- Then the owner has to submit the following documents for the company to be registered in DMCC Free Zone.
- trade name proof
- shareholder’s passport copies
- initial approval
- business plan
- manager’s personal datasheet
- attested and notarized Memorandum and Articles of Association
- power of attorney of legal representatives
- agreement of lease
- After that, the owner can select the required license by paying the fees. The license permits you to trade in Free Zone and outside the country.
Setting up business in Gold and Diamond Park
Dubai Gold and Diamond Park was set up in 2011. The investors can choose leased buildings for manufacturing, gold, diamond, and other precious metals. Moreover, customized jewelry is also available in the gold park. It also includes the option of leasing an office. The owner enjoys benefits of 100% ownership, and repatriation of profits, and no taxation. It is a one-stop-destination for manufacturing, buying and selling gold and other precious metals. Moreover, the hallmarking facility is also available here. Expats can be hired easily here. Trading license, innovation license, retail license, manufacturing license, e-commerce, and service license are available here.
- To set up a business in Gold and Diamond Park, initially, the owner has to get into an agreement with Gold and Diamond rent payment.
- Secondly, the owner has to get the initial approval from Jebel Ali Free Zone (JAFZA).
- Thirdly, the entrepreneur has to submit a Memorandum of Association and partnership agreement to the JAFZA.
- JAFZA issues the certificate of gold trading. The owner has to furnish this certificate to open a bank account.
- After opening the bank account, JAFZA issues the gold and precious metal trading license.
Setting up a precious metal business in Dubai Mainland
Dubai government also provides opportunities for entrepreneurs to set up a precious metal trading business in Dubai mainland. Gold souks are the best destination to start gold trading business. Gold souks are traditional gold market in Deira district, where 300 retailers can trade in gold. The owner can conduct business in any part of the UAE and can hire employees easily. They enjoy exemption from VAT and profit tax. Moreover, there is no minimum capital requirement.
- Initially, the owner needs to get special approval from few departments.
- Next, the owner has to select the business activity and select a trading name.
- The owner has to then select a local sponsor.
- After getting the initial approval, the owner has to prepare a Memorandum of Association.
- The owner has to then select an office space and prepare a tenancy contract.
- After submitting the documents and verifying them, the DED issues the business license.
Please note, precious metal trading and gold trading license requires external approval from Security Industry Regulatory Agency in Dubai.
Are you considering setting up a gold, and precious metal trading business in dubai? Dubai provides ample opportunities to set up a precious metal trading business. Dubai ranks amongst the top nations in gold and precious metal trading. Therefore, setting up a business in Dubai is a great idea. Beyond View assists you in the registration and other legalities related to setting up of business. We provide professional help in company formation, registration, taxation, accounting, bookkeeping, and other PRO services. Contact us for more details.