How to Get License for Gold Trading Business in Dubai, UAE?
Gold Trading Business in Dubai thrives within one of the world's most popular cities, known for petroleum and precious metals, offering abundant opportunities for entrepreneurs and business expansion. Studies reveal that Dubai facilitates 25% of global gold trade, and the UAE government's strategic plans for a federal Gold Trading platform aim to fortify the country's position as a major hub in this market. Obtaining a Gold Trading license in Dubai proves to be an immensely rewarding option.
Gold Trading business has always been considered as one of the most profitable business ventures in Dubai with a consistent and high customer base. Considering the great range of opportunities and growth prospects, Gold Trading could be a lucrative business option in the region. If you are planning to setup a gold or jewellery business in Dubai, there are many things you must understand and consider.
Where to start a Gold Trading Business in Dubai?
Before setting up a Gold Trading business in Dubai, you must have knowledge about the jurisdictions where your business can operate. There are three main areas where you can start your business.
1. DMCC Free Zone
The Dubai Multi Commodities Centre Freezone is a prominent location for conducting Gold Trading in Dubai. DMCC is one of the largest free zones in Dubai which was established in the year 2002. This zone is popular for trading gold, diamonds, precious metals, and stones. DMCC Freezone offers benefits like 100% business ownership, excellent infrastructure, a guaranteed 50 years tax holiday, office spaces and warehousing facilities, making it a perfect spot for entrepreneurs.
2. Gold and Diamond Park
Gold and the diamond park is a commercial complex based in Sheikh Zayed Road in Dubai. This complex has a range of retail shops, offices, and small manufacturing units. The shopping centre on Sheikh Zayed Road houses 90 retailers under one roof, offering gold, silver, platinum, and gemstones. Gold and Diamond Park continues to attract numerous tourists and residents from across the globe.
Gold and Diamond Park has various license options with each of these Iicenses having to be obtained from the concerned authority depending upon the choice. These licenses are
3. Dubai Mainland
If you are planning to start your Gold Trading Company in Dubai Mainland, the Gold Souk market is the ideal spot. You can directly sell your products to the public here. It is a traditional gold market located in the business district of Deira. There are about300 retailers who exclusively trade here.
The Gold Souk market has various benefits like strategic location, more retail space, no VAT and profit tax, and no minimum capital requirement. This location permits you to perform your business in any part of the UAE.
How to get Jewellery Trading License in Dubai, UAE?
The most significant step in starting a Gold Trading business is to get a Jewellery Trading license in Dubai which will give you the authority for operating your business. Depending upon your business activity and jurisdiction chosen, you have to apply for trade licenses.
The steps for obtaining your Trading license in Dubai are:
Find a Suitable Company Name
Selecting a suitable name for your company is a major step while starting a Gold business in Dubai. You need to avoid using any offensive or complicated language or words in your name. Also you must avoid using the names of already existing companies. If you are choosing a company name after the name of a person, you must ensure that you use the full name of the person.
Apply for Your Trade License
Applying for license is the second most important step to obtaining your Gold Trading license in Dubai, UAE. If you are starting your Gold Trading business in Dubai mainland, you can submit your application to the DED. If you are planning to start gold business in Dubai free zone, you must submit your application to the managing authority of the chosen free zone.
Whether filling your application, you have to provide details and some documents that include:
A completed application form
Passport copies of the owner and shareholders
2 coloured passport-size photographs
Apply for Visa
After you have applied for your business license, you need to apply for a visa for you and your employees. Once you get your UAE business license, you can sponsor others also. The number of visas you can apply for depends on your company size and your nature business activities.
What are the Documents Required for Starting a Gold Business in Dubai?
The documents needed to register your Gold Trading Company in Dubai are:
Completed application form
Two passport-size photos
Passport/visa copy of the owner or shareholders
Sponsor’s passport/Emirates ID copy
Proof of trade name
Initial Approval Certificate copy
Document of initial approval
Copy of notarised MOA or LSA agreement
Tenancy or Lease agreement (if any)
Opening a Bank Account for Gold Trading Company in Dubai
After getting your Gold trading license in Dubai, you have to open your corporate bank account for conducting financial transactions and payments.
Why Start a Gold Trading Business in Dubai?
Dubai is known as the City of Gold as one can discover the best gold bars ever manufactured in the Middle Eastern Region. Tourists flock the region to buy gold in the form of biscuits, bars, jewellery and precious metals.
While setting up a gold business, you can chose free zones, which offer complete ownership, unlike Mainland. Here, an individual possesses full ownership of the business and is free from the burden of selecting a local sponsor.
100% Tax Exemption
Whatever be the business, tax payment turns out to be a big concern for all. This region provides a complete exemption of tax for the business owners and investors who are indulged in gold businesses.
100% Repatriation of Capital and Profits
If you want to terminate your business at any point in time, you will get the total capital invested and the profits earned. This protects an investor from the fear of leaving the entire investment and incurring losses regarding the established business during company liquidation.
What is SIRA Approval?
Security Industry Regulatory Agency (SIRA) is the nodal agency that deals with the regulation of trading in precious commodities in Dubai. This government body ensures that your facility has the all the required security measures for setting up your gold trade in Dubai. The gold trading license which is SIRA approved comes with validity. So apart from providing approval for new gold trading business, the renewal of the gold trading license is also done.
How to Get SIRA Approval for Jewellery License in Dubai?
If you are planning to get involved in any Jewellery Trading business activities, it is a mandatory for you to obtain approvals from the Securities industry Regulatory Agency. Going through the process could be tiresome process for you. Depending on the model of business, the pre-approval process varies accordingly. This involves a lot of documentation and authorizations, which is quite a complex task. Also, in some cases, the NOC certificate process is involved as well. So the best way is to seek the help of a professional business consultant who is an expert in the business setup process and possesses in-depth knowledge of the UAE’s legal formalities.
Connect with Bizvise Business Setup to Start a Gold Trading Business
Starting a Gold Trading company in Dubai can be a great business option for you. With the right assistance from a business consulting company like Bizivse, you can make it happen. For an investor, the process may be quite challenging as it involves a whole lot of legalities. So, if you are planning to start a Gold Trading business in Dubai, then connect with Bizvise Business Setup now! Our team of professional business consultation experts are well-versed with all the legalities, from planning to completion of the final setup process. We can turn your dreams into reality.