A Comprehensive Guide on Retail Business Setup in Dubai

by Zaara 09, Apr 2020

A Comprehensive Guide on Retail Business Setup in Dubai

The retail sector in the Middle East is witnessing a fast transformation as customers become more conscious of value and quality while also expecting the convenience of eCommerce. Shopping is the fundamental part of the economy in Dubai and accommodates amazingly well to the rich and wealthy. There are around 100 malls in Dubai which cater to the shopping needs of the people and tourists of the UAE.

Retail shops prove to be the thriving business in the majority of the areas with significant population because they offer every day necessary items. If you intend to set up a retail shop in Dubai, you need to consider the area where the majority of the population is economically stable.

Retail Shop in Dubai Mainland

Dubai is well-known as the Middle East’s shopping capital, and the same creators who created malls of astonishing proportions on the site of Silk Road souqs are now looking to renew and expand, creating new opportunities for investment and unique experiences for shoppers. Dubai mainland is the ideal location for setting up a retail shop. Though the mainland retail shop registration comes with a few regulations, it is the most lucrative one to venture into.

Here are the steps you need to follow to register a retail business in Mainland of Dubai.

1.Set up a Business Plan

Prepare a business plan which should be carried out after extensive market research is done. A business plan is very vital to get success in the business. Dig into your idea and fine-tune it as much as possible. Why do you want to start a retail business? Who will your consumers be? What makes your idea or concept exclusive in Dubai?

2.Type of Business Activity

This will help in determining the kind of business license required for establishing a retail shop in Dubai. Certain products like operating a jewellery and food business require further approval from a particular government department.

3. Get a Local Sponsor for Your Business

For setting up a business in Dubai mainland, it is mandatory to have a local partner. The local sponsor supports the industry and has a 51% share in the market. A local business provides the freedom to locate a business anywhere in the city. For a company in Dubai, this is a boon because it affords the best choice of locations to suit your budget.

4.Business License and Registration

The next step is to apply for a trade license and registration and other certificates and approvals from government authorities. The Dubai Department of Economic Development (DED) is the government regulatory body that grants permission to open a retail store in the Emirate.

5.Hire Employees

In most cases, you will have to employ a manager to oversee the processes in your shop. However, if you obtain the Intelaq license, you are not permitted to hire staff. You can, at the most, engage contractors for the work.

The documents required to register a retail shop in Dubai is –

  • Passport copies for all managers and shareholders
  • Copy of the UAE residence visa
  • No Objection Certificate (NOC) from the current Emirati residence visa sponsor
  • Proof of address for each shareholder
  • Lease agreement or title deed for the official site

The paperwork can vary slightly depending on the nature of the business of your retail store.

You can get a shop on lease by taking permission from Dubai Municipality and other associated organisations to run a business in the Mainland of the UAE.

Retail Shop in Dubai Free Zone

Most of the Dubai free zones offer recreational and shopping facility to the employees and business visitors. As free zones in Dubai are always high in demand with more and more investors venturing into the UAE region for company incorporation and indulge in international trade. There is an assured footfall in all the free zones of Dubai, and hence it is an ideal location for a retail business.

The steps to set up a retail business in Dubai Free Zone is –

  1. Select the free zone of your choice in Dubai
  2. Get an initial approval for registering your business
  3. Apply for a trade license depending on the business activity
  4. Register your business with the free zone authorities
  5. Pay fees and obtain Certificate of Registration and Business License

Dubai Mainland or Freezone, there are different benefits of every jurisdiction. Hence, taking help from a professional can smoothen the process. We at Commitbiz are business setup consultants in the UAE who help entrepreneurs start a company in the Emirates. Our experts are legally sound and can make the procedure hassle-free. Contact us today for more information.