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Retail Business in Dubai

Start a Tea, Coffee, and Spices Business in Dubai

by Zaara 30, Jun 2020

Retail is one of the most successful business sectors in the UAE. The population in the Emirates is made up of locals and foreigners with excellent purchasing power. 

Retail is also powered by a large number of visitors interested in local habits, including purchasing traditional products like tea, spices, and coffee. This is the reason why Dubai Spice Market, known as the Dubai Souk, is one of the most visited places in the Emirate. 

Here, vendors sell all sorts of spices, tea, coffee, and herbs from large baskets. Starting a coffee, tea, and spices business in Dubai is one of the oldest kinds of trading that still exist in the UAE. 

The archaeological surveys have proven the UAE to be an essential trading junction in ancient times as well, with Dubai being an essential hub for spices and tea trading. Today, Dubai has a population of more than three million, which is comprised of just 15% native residents and 85% of ex-pats. 

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Spices, Coffee, and Tea Business in Dubai

About 85% of the ex-pat population, or 71% of the total population, is made up of Asians. Coffee has been one of the most preferred beverages of Arabs, tea for South Asians, and spices, more or less, have been an essential part of cuisine for both Arabs and Asians.

It is a great time to start a tea, coffee, and spices business setup in Dubai, which is an iconic and cosmopolitan place. 

Products to Be Considered for Tea, Coffee, and Spices Companies in Dubai

Some of the products under this to be considered are –

Specialty Coffee- Roasted, green, organically sourced coffee from certified producers.

Tea Varieties – Green tea, black tea, and a variety of herbal teas.

Spices – Indian, Chinese, Mexican, Thai, or any special spices which could attract the ex-pats living in Dubai, where the population comprises the highest number of foreigners than the locals.

Trading Details for Spices, Coffee, and Tea Companies in Dubai

All three types of products can be traded under one license as they fall in the same group and type.

  • Coffee Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling coffee beans, whether in bulk or consumer packs.

  • Tea Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling tea, whether in bulk or consumer packs.

  • Spices Trading

Activity Group: Roastery

License Type: Commercial

Activity Description: Includes reselling of dried, packed, or preserved spices, whether raw or after having been roasted, ground, blended or packed.

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How to Register Tea, Coffee, and Spices Trading Companies in Dubai?

The process mentioned below should be followed:

 1. Select a Trade Name and a Corporate Entity

Select and register a trading name to obtain the trade license. There are two types of corporate entities recommended when incorporating a coffee, tea, and spices business in Dubai, i.e., Sole Proprietorship and Limited Liability Company. 

 2. Choose a Suitable Location

Foreign investors can open their shops in Mainland Dubai or any of the free zones, in which they can have total control over the business. Foreign enterprises are also allowed to set up their shops in Dubai Spices Souk. However, they are recommended to purchase the goods they want to sell from locals.

 3. Get the Registration Done

The business registration procedure for tea, coffee, and spice shops must be completed with the Department of Economic Development and can be carried out by the advisors from Commitbiz if set up on the mainland. 

 4. Obtain a ‘No Objection Certificate’

Obtain a NOC from the Dubai Municipality for which layout drawings of the shop must be submitted. Next, you must provide the NOC to the Department of Economic Development (DED) for initial approval. 

Upon receiving the same, the MOA can be signed by the stakeholders of the company in the Dubai Courts.

 5. Pay Fees for Obtaining the License

Another important thing is obtaining a license. Businesses wanting to sell coffee, tea, and spices must get a  trading license in Dubai to start their shop. 

Once the license is issued, there will be remarks on the license, and to remove that, approval from the Dubai Municipality is required.

 6. Obtain a Code for Spices, Coffee, and Tea Trading Companies in Dubai

An import and export code needs to be obtained from Dubai Customs to buy and sell coffee, tea, and spices products from any part of the world.

The process is simple, but if you are new to Dubai and want a consultant to do it for you, then we at Commitbiz can help you with it. For more information, contact us today.

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FAQs

Which license is required to start a tea, coffee, and spices business in Dubai?

Trading license.

Which authority’s approval is required after getting the trading license in Dubai?

Dubai Municipality.

Which authority is responsible for business registration on Dubai mainland?

Department of Economic Development.

What are the two types of corporate entities recommended for a tea, coffee, and spices business in Dubai?

Sole Proprietorship and Limited Liability Company.

Which is the ideal place for starting a tea, coffee, and spices business in Dubai?

Dubai Spice Market, also known as the Dubai Souk, is an ideal place.