Dubai, renowned for its diversified economy, has been a fertile ground for many multinationals. The emirate is famous for its cultural diversity and mesmerizing infrastructure, and these have made Dubai one of the most sought-after business and leisure destinations all over the world. Due to the increase in expatriates and tourists, there is always scope for trading activities in Dubai.
When it comes to gold, diamond and other precious materials, Dubai stands to be the number one place for business. As per a report, in 2017, gold exports from Dubai amounted to AED 41.2 billion, representing 30% of the total UAE non-oil sector imports. A tourist visiting Dubai would most likely not return without the purchase of gold. So, if you’re planning to venture into a business related to gold, diamonds and other precious metals, then business setup in Dubai is definitely worth a thought.
Where to Set Up a Gold Business in Dubai?
For a precious metals business in Dubai, the ideal places would be Dubai Multi Commodities Centre, Dubai Gold & Diamond Park or the Mainland.
DMCC Free Zone
Dubai Multi Commodities Centre (DMCC) was established in the year 2002. It is strategically located opposite Dubai Marina Beach and Emirates Mall. Being established in Jumeirah Lake Towers (JLT), DMCC is taking advantage of inbuilt infrastructure and other facilities. Although DMCC is well known as a trade and commerce hub making room for all kind of ventures, trading in gold, diamond and other precious metals is the major business here. The Dubai government offers incentives and world-class infrastructure to encourage people to set up their business in this free zone.
The advantages of establishing a gold and metals trading business in DMCC are:
- No corporate or personal taxes
- 100% company ownership
- Total repatriation of profits and capital
- A secure business environment with 24/7 video surveillance, fire alarm system and all-time security personnel
- 24/7 access to operational facilities
- Well-built infrastructure
Procedure to Set Up a Precious Metals Business in DMCC
Dubai government has simplified the incorporation process to facilitate the growth of traders in Dubai. You need to go through certain predetermined procedures to set up your gold business in DMCC:
In this stage, you need to submit the application form to get your name reservation for your gold business from the free zone authority, after which due diligence of investors or shareholders will take place.
In this stage, you need to submit the relevant documents to get your company registered in DMCC free zone. Following are the documents required to start your gold business in DMCC:
- Proof of trade name
- Copies of shareholder’s passport
- Initial approval proof
- Detailed business plan
- Personal data sheet of the manager
- Attested and notarized Memorandum and Articles of Association (MAA)
- Power of attorney for legal representative (notarized and attested)
- Agreement of lease
Once your documents have been reviewed, you can choose the required license paying a certain amount of fee. License in the free zone allows you to trade in the particular free zone and outside the country without any limitations.
Dubai Gold & Diamond Park
Established in the year 2011, Dubai Gold & Diamond Park is the go-to destination for jewelry lovers. The place of 90 leading retailers also sports custom-made jewelry work. The Dubai Gold & Diamond Park allows an investor to choose a leased building for manufacturing gold, diamonds and other precious metals. It also includes an option of office leasing where one can opt for a well-built quality-driven infrastructure.
Benefits of Setting Up a Gold Trading Business in Dubai Gold & Diamond Park
- Provision of 100% company ownership
- Negligible corporate taxes
- Hallmarking facilitated by Dubai Municipality
- 24/7 secured workplaces for gold traders
- A healthy working environment with proper ventilation and waste dumping area
- One-stop shop for manufacturing, trading and buying gold and other jewellery
- Easy hiring of expatriates
How to Set Up a Gold Business in Dubai Gold & Diamond Park?
Company formation in Dubai Gold & Diamond Park, like any other free zone, is done through following certain procedures set out by Jebel Ali Free Zone Authority. Following is the procedure to be followed to venture into your gold business in Dubai Gold and Diamond Park:
- Get into an agreement with Gold and Diamond Park rent payment
- Fill the initial approval application and submit to Jebel Ali Free Zone (JAFZA)
- Submit the Memorandum of Association and partnership agreement to JAFZA
- JAFZA will issue a certificate of gold trading in Dubai which has to be submitted to the bank for opening an account
- One needs to open a bank account for further proceedings
- After receiving the confirmation from the bank, the authority will release the final copy of your gold trade license in Dubai
Types of Licenses Available in Dubai Gold and Diamond Park
The following business licenses are available to set up a business in the free zone:
- Trading License
- Manufacturing Licence
- Retail License
- Innovation License
- Service License
- E-Commerce License
Apart from free zones, Dubai allows a businessperson to start one’s gold trading business in the Mainland of Dubai. When you’re choosing Dubai Mainland for gold business, it is always better to choose a gold souk as the business destination. A gold souk refers to a traditional gold market in the heart of the commercial district of Deira allowing 300 retailers to trade in gold.
Advantages of Setting Up a Gold Business in Dubai Mainland
- Exemption from VAT and profit tax
- A strategic location that attracts tourists
- No minimum capital requirement
- Easy hiring of employees
- Flexibility to conduct business in any part of the UAE
How to Set Up a Gold Business in Dubai Mainland?
One needs to conduct certain activities before setting up a gold or precious metal trading business in Dubai Mainland. Business in Mainland needs to get special approvals from a few government departments. The activities required to be followed are:
- Selection of local partner
- Selection of business activity
- Company name reservation
- Initial approval application
- Preparing court notarization and Memorandum of Association (MOA)
- Selecting office space and tenancy contract
- Submission for mainland company formation
- Finally, collecting the business license from the Department of Economic Development (DED)
If you are thinking of setting up a gold, diamond or precious metals business in Dubai, great choice! The proliferation of gold and jewelry business in the UAE is like nowhere else. As a first step, you can reach out to a business setup consultant in Dubai to guide you with the company best practices and legalities in Dubai. Commitbiz Management Consultants can help you with the drill. We provide customized business solutions for not only company incorporation and registration, but also accounting, bookkeeping, tax advisory, intellectual property protection, and other support services in the UAE. For business help or advice, do contact us – we’d be happy to assist!