Start a Vending Machine business in Dubai
Vending machines aren’t a popular choice among many who looking for a unique business to start. Many don’t have an idea about the growth and scope of Vending machine business in Dubai. Why?
The vending machine market is growing with an impressive 6.7% growth rate globally. One can start a Vending machine business in Dubai with less capital and can reap high profits.
As Dubai is a popular tourist destination, you got a favorable environment to start a vending machine business. The automated machines that provide snacks, drinks, cigarettes, etc to customers after they pay by inserting currency or credit into the machine have higher demand in places where foot traffic is high like Dubai. Vending machine business is a good one to start minimally and it can later be expanded into a much bigger business.
The perk of starting a vending machine business is that, once you did the groundwork and set up a vending machine in Dubai, it can generate revenue for the rest of the time. Do you wish to know how? Read the full article to know more about setting up a vending machine business in Dubai.
What is your first query related to starting a vending machine business in Dubai? It must be about the capital or budget to set up the business.
The total cost to start a vending business is depended on many factors. A vending machine business license costs around AED 23,000. Apart from that, one should also consider other costs including ground rent, visa applications, and any additional permits that may be required to trade. Being said that, a single vending machine can generate $30 to $60 profit a week and if you place your machine in a crowded place you can earn up to $400 in a month. With multiple machines working, your rewards will exponentially grow. The point is, the expense to set up vending business is not that high compared to the profit it makes.
Talking about benefits other than what we have already shared is how easy it is to handle the business. Once you set up your business right, it doesn’t require much of your time and effort to keep going. Setting up a vending machine business requires a lot of work initially but once your business is up and started running, your machine will work itself and the only thing you need to get your hands on is the maintenance, restocking, and marketing only. Let’s look at some potential benefits vending business offers in Dubai.
- You will benefit from the emirate’s 0% tax rate on both corporate and personal income
- You will get a low and flat VAT rate of 5%.
- Importing goods from every corner of the world for resale is easy in Dubai, with its exceptional land, sea, and air links.
- The UAE provides ease of doing business, with easy procedures, and minimal administration processes to enter the market.
Now let us dive into the five steps to start a vending business in Dubai and they are;
Step 1 – Business Plan
Define your intended business activities or plan which includes every detail from the services you provide, budget, targeted customers, etc.
Step 2 – Choose a trade name
While choosing a trade name you need to abide by the strict naming rules in Dubai, UAE. Avoid offensive or blasphemous language, names of well-known organizations, and abbreviations if naming your company after yours.
Step 3 – Register the trade name
Register your trade name with the Dubai Department of Economic Development [DED] to get approval for your business and start operating.
Step 4 – Submit your license application
After name registration, you can submit your license application. You will require a mainland commercial license to start a vending machine business. This application should be made directly to the Dubai Department of Economic Development [DED].
You will be required to provide some documents that include,
- Completed Application form
- ID proof and Address of shareholders
- Passport copies of shareholders
- Copy of trade name confirmation
Step 5 – Apply for your visa
You need a residency visa to live or stay in Dubai. You can apply for Visa by submitting an online application and supporting documents. You can also apply for visas for your family and domestic staff.
For easy incorporation and setting up procedure of your vending machine business in Dubai, you can consult a trusted, experienced business consultancy like Bizvise. Bizvise can make these tough business setup procedures easy for you in less time and cost efficiency. Connect with Bizvise to know more about the business setup procedures.