Dubai offers its companies an operating environment that is amongst the most liberal and attractive in the Middle East region. Therefore, starting a small business in Dubai is a key to its future growth. And businesses like Grocery or a retail shop are the key pillars who promote such small sectors. But, to establish your small company in Dubai you need to look through a few components that can probably affect the profitability and stability of your startup.
Let us look at three important components for starting small business in Dubai like a grocery/retail store:
1. Know Your Business
Success of every business depends on huge knowledge of the local region, research into the viability and demand for your product and a business plan that is likely to attract investors.
2. Find a Local Partner
It is important to have a local partner when you set up your business in mainland Dubai. Local partners can be individuals or companies who own a major part of shares of your business.
3. Financial Viability
If your business is registered at the Ministry of Commerce, then you need to provide them with a proof that states you are financially sound to set up a company. And if you are new to the region then you have to get support from any local banks or sponsors.
Having said that, let us now come to the crux of the matter. Dubai retail sector is one of the profitable businesses in the UAE. It provides entrepreneurs with humongous opportunities and is specifically growth-oriented. With the Dubai shopping festival and other such similar events at boost- opening a grocery store could be advantageous to the investor. But to open a grocery store, there are a few requirements that you need to adhere to.
Requirements to Open a Grocery Store in Dubai
To know how to open a grocery store in Dubai, listed below are the few procedures that you must look through before taking necessary measures.
1. Local Sponsor
As mentioned earlier, getting a UAE national to support the business is a must. According to the rules set up by the authority, a local sponsor will own 51% of the shares in your company, while the remaining 49% will be owned by you. Thus, to open a store this procedure is a must unless you sign an investor protected contract or start this business in a free zone.
2. License and Registration
Getting your Grocery License in Dubai for your business and other required certifications from the authority is also an important step. The Department of Economic Development (DED) is the authority that provides permission to open a shop in Dubai under a mainland jurisdiction.
3. Business Jurisdiction
You may open your grocery store in Dubai Mall or in Meena Bazar, but understanding the jurisdiction where you think your store will be successful is important. Like any other shop in the UAE, a grocery store is also scrutinized in terms of jurisdiction and need to follow a proper shareholding structure.
4. Paperwork and PRO Services
Opening a grocery store in may further mandate paperwork, certifications, taking approval from various departments, visas and permissions from various entities considering the shareholding strutted and the jurisdiction.
The second point i.e. getting your Grocery License needs a lot of paperwork and rules to follow. The authorities have mandated a set of rules that one must look through before getting hold of the license.
Rules for Grocery License in Dubai
- The policy of sale will be acknowledged to the customer through a suitable means of declaration together with the commodities replacement, return or reparation.
- If the location of the store is supposed to change, a prior approval must be taken
- The DED must have complete knowledge of the existence of any bogus products or supplies in the local market.
- It is the duty of the customer to acquire invoice of the goods purchased
- The machine for coin operation must be installed only after getting the permit
- Sale of products with fake trademark is prohibited by law
- Any amendment must not be carried out without the approval of the authority
- The commercial name must be same on the license and on the signboard
- To sell as well as promote the counterfeit goods is not allowed
- One must not display the advertising sign boards on the front wall of the store until and unless the prescribed permit is not obtained
- Pots, vegetables, electric devices, fruits, clothing, and toys of kids must not be over display
- Products must have date of production and expiry
- The groceries in the store must not have sales, discount, and special offers without proper approval
- Prices must be clearly visible on all the goods
- No business activity will be entertained after 12 am until and unless the applicable permit is obtained
- The trademark of the groceries must be registered with the Ministry of Economy for its security
- Under the grocery license, one is not allowed to sell any products related to medical, herbal, pharmaceutical, or cosmetic
- No store must involve themselves in any promotional campaigns until and unless the parent company gets the permit
These rules must be strictly followed while getting the license and starting a grocery store in Dubai.
The Department of Economic Development is introducing new standards as a part of its efforts to improve the quality of services available to the public in Dubai, particularly in the retail sector, thereby reinforcing Emirates position as a preferred shopping destination, nationally and internationally.
If you are interested in opening a grocery store, we at Commitbiz can help you with all the requirements, right from getting the license to approval from the Municipalities to rent a store for you. Contact us today, we’d be happy to help.