Are you an entrepreneur thinking about starting a perfume business in Dubai? Then there are many things you should know before jumping into the business.
The perfume business is one of the success-guaranteed and profitable businesses in Dubai as perfumes are deeply rooted in their culture and traditions. Perfumes symbolize the status of power and the sign of wealth, and luxury, similar to Dubai. The quest for perfumes will never settle in Dubai, which means there is an active market throughout, which is an added advantage for new investors.
The UAE perfume industry has reached a value of 579 million US dollars in 2021 and expects the market to reach 1,039 million US dollars by 2027. The perfume industry is a global business that will navigate you to an international market of profits and luxuries.
In this article, we will analyze the terms and conditions which you need to follow to start a perfume business in Dubai. But before, don’t we need some assurances regarding the business?
So, Let’s start with the benefits.
There are several benefits entrepreneurs, businessmen and investors can enjoy in opening a perfume business in Dubai.
You can make exotic perfumes with exotic ingredients.
Products using popular ingredients like oud, amber, exotic flowers, and musk have a greater number of admirers in Dubai. You can produce luxurious perfumes with them, to succeed, as most of the customers in Dubai prefer rich and natural fragrances.
Tax Rates are the lowest.
The best part of doing perfume business in Dubai is the low tax rate, and the VAT rate is also cost-effective. Moreover, there is no need for foreign investors to pay any of those corporate taxes. The VAT is applied when you sell perfumes within the UAE and you pay 0% VAT when you sell perfumes outside the UAE.
Business Location anywhere in Dubai.
You can rent a workplace anywhere in Dubai to start working on your business and can later shift to places where your business seems fit.
Dubai is a multicultural place that witnesses a high inflow of foreigners every year. The Dubai government encourages making new policies to empower investors to set up and run perfume businesses in Dubai.
Dubai has one of the most updated digital facilities. With the help of technology and the internet, using eCommerce and social media, you can increase brand awareness for your perfume business.
Next, is the Steps we should take care of while Starting a Perfume Business in Dubai. So, what are the steps to start a perfume business in Dubai?
The first step is to make a Business Plan.
Starting a perfume business in Dubai needs planning. A business plan involves a business strategy, that constitutes the vision and mission of your business, its objectives, and the products you wish to sell. You will also need to plan your business capital and budget.
Innovating unique and exclusive fragrances.
Research and innovate new and exclusive fragrances that you think the best suit your brand with the help of experts and professionals. After finalizing the best from your research, start production on a large scale.
Build a brand.
Get a trademark registration done from the assigned authorities in Dubai. Design a creative logo that best delivers your vision and attracts the target audience.
Obtain Business License.
The most important part to start this business is to get a perfume business license from the Department of Economic Development, Dubai. Starting a perfume business is simple, as the approvals and licensing methods are easy and cost-effective. Getting a perfume business license in Dubai becomes easier when you connect with a business consultancy. Bizvise will help you get a perfume trading license and help you set up your company in UAE.
Set up A Manufacturing Facility.
In Dubai, there are many free zones available for you to run a business. Dubai free zone and Jebel Ali Free Zone offer essential facilities to establish perfume manufacturing units.
Besides a perfume trade license, the investor needs to have a few more documents to set up a perfume business in Dubai. Such documents are:
Laboratory Test Report of Perfumes
The registration certificate of your company
Analysis report on the perfumes you wish to sell
Certificate of free sales
The cost of Opening a Perfume Business in Dubai is important for you to know.
A perfume business in Dubai will cost approximately AED 40,000 and more. The cost depends on fragrance creation, assembly, filling, designing, and packaging for your perfume brand. You should also consider the additional expenses such as the rent and salaries to employees. You may also require to pay one-time & recurring costs as a section of the establishment costs.
You need not worry about all these formalities when Bizvise got your back. We are committed to serving you according to your needs, to set up a business in Dubai. We promise to take care of banking, licensing, and transaction work according to your convenience.