Retail has one of the flourishing business industries in today’s global scenario. If we talk from the revenue perspective, the sector is expected to hold an amount of US$29.76 trillion by 2023. It can be stated that the future of the retail segment is bright and would fetch massive growth in the upcoming years. Understanding the capacity, that the retail sector contributes to boosting the economic growth of a nation, and the UAE Government has taken necessary steps to offer $13.7 Billion to the retail segment.
The Central Bank of UAE has extended a helping hand to boost the retail segment. During the first nine months of 2019, the value reached AED 50.4 billion, which was a spike of 5.4% as compared to the growth rate of 2018. Now, this move has paved out numerous business opportunities for the business investors and owners who want to start a company in the UAE, in-link with the retail segment. If you are planning to incorporate a retail business in the UAE, then this is the best time to give a kick-start.
This guide is going to give you a complete scenario regarding the processes that you should initiate to carry out the business operations.
Impact on the UAE’s Retail Segment
The financial move made by the Emirati Government would have a drastic effect on the existing retail segment.
- The retail segment would be a preferable option by global investors
- A smart choice to invest before Expo 2020
- Overall GCC sector is to grow by 22% by 2023
- Enormous opportunities for different industries to come forward with retail outlets
How to Start a Retail Business in the UAE?
Starting a retail business in Dubai can be done by following the necessary steps:
1.Draft your Business Plan
Make sure you have a clear framework regarding the business idea you have in your mind and is portrayed clearly.
2.Figure out a Local Sponsor- Corporate Sponsors are Preferred over Individuals
According to the corporate rules, a business entity must have a local sponsor that will hold 51% of the company shares. This is one of the mandates that every business entity needs to suffice for operating its business activities in the UAE.
3.Decide a Suitable Location for your Business
The next step is to decide an appropriate place for your business, as it plays a significant role in driving the right audience to your retail store.
4.Proceed towards Business Registration and Licensing Process
Once the location gets finalized, the business registration process needs to be initiated to avail the required business license. This license acts as a legal permit to carry out the business activities at ease.
5.Hire the Right Staff
Last but not least, your retail store needs to have the correct set of people who would convert every prospect to a full-fledge customer. The business investors in the UAE has got the flexibility to hire global employees suiting the business requirements.
Benefits of Starting a Business in the UAE
The destination of UAE serves out to be one of the booming business grounds and a highly preferred option among the global investors because of the numerous benefits it provides, which includes:
1.Strategic Location Options
Location is a high driving force that the global business investors are satisfied with when it comes to business setup in the UAE. The ground offers different options like Mainland, Free Zone and Offshore locations that are feasible for businesses ranging from One-Man Company to an MNC. Each of the sites has got their pros and cons, and so it is recommended to get clarity before you choose one for your business.
2.An Open Business Ground
The region of the UAE has turned itself to the profitable business ground that is suitable for different industries and sectors. Irrespective of the size and nature of the business, the region turns out to be an ultimate investment ground. Starting from a stationary store to selling of automobile parts, the business investors have got a wide range of options to come forward and invest-in.
The UAE is a ground of cooperation holding a count of the population over 200 nationalities, having a different set of taste and requirements. Be it food or fashion, Dubai is a profitable business ground when it comes to the retail business in different segments. By the end of 2024, the nation is expected to hold a count of 12.5 million inhabitants, which will be a significant driver to the retail business.
4.Exemption from Personal Tax Payment
Payment of tax is a nightmare for any business owner or investor, especially if you see your business growing. To avoid such unwanted pressures, the Emirati government has exempted the working professionals and business owners from the payment of personal tax. However, according to new VAT rules implemented on 1st Jan 2018, the corporate entities are entitled to pay a 5% VAT.
5.Complete Repatriation of Capital Invested and Profits Earned
The Government of the UAE provides the full flexibility to the business investors to repatriate the capital invested and the profits earned during the business cycle. This flexibility is significant in provoking the global business owners to come forward and incorporate a business in the UAE.
6.A Gateway to International Market
UAE serves to be one of the burgeoning business grounds that paves out flexible ways to reach the neighbouring countries. This helps to be one of the core reasons that the business owners prefer to enter the UAE market as they can capture the nearby market and smoothly expand their business. Expansion of retail industry is one of the profitable and smart options that would fetch high revenue.
7.Upcoming Expo 2020
The World Expo 2020, which will be held in the heart of the UAE, Dubai, is expected to be a game-changer that would fetch numerous business opportunities for different industries. The event, which is expected to last long for six months, will be grabbing the attention of more than 25 million visitors. This count is going to drive the hospitality, tourism, retail and other sectors to a massive extent.
Benefits of Availing Professional Services
Collaborating with business experts can help you to boost your business to the next level. Some of the core benefits that business owners and investors avail after hiring professional services are:
- Legal proceedings are sorted at ease
- Better utilization of time and available resources
- Experts can carry out the tasks in an error-free way
- In less time, quality-output can be fetched
- Streamlines the business processes
How Can Commitbiz Help?
With the core focus of providing the best business incorporation solutions, Commitbiz Consultants stands as one of the top ten business in the UAE. Our experts are well versed with the business incorporation process and can help you to grab your business license at ease. Apart from focusing on the business setup process, they also help you to understand and install the core pillars like accounting, audit, tax and VAT process etc.
As our business experts will deal with the legal proceedings, you can focus more on the core business activities. In case you hold any query or want to kick-start your retail business in the UAE, do have a word with our advisors. Contact us today-we’d be glad to assist.