How to setup a jewellery business in Dubai, UAE

 

Dubai is famous as the most luxurious Emirate in UAE and for the best reasons! It boasts of an unmatchable market for gold and jewellery. These jewels range from the most affordable to the most prized possessions that you can find anywhere in the world. Dubai features a huge collection of pearls of all sizes available in the rarest of colours. The gold market especially is the richest and blooming market, given its affordable prices that are lesser than anywhere else, and the designs, and the gold buyers and enthusiasts that you will find here is remarkable. As for other precious stones, and metals, it sources its jewels from all over the world and jewellers invest here globally. All of this is a tax-free zone, and an easy-to-do business environment makes it a deeply and rapidly flourishing market.

The gold and jewellery market in Dubai accounted for approximately 12 billion dirhams of revenue last year and is likely to grow even higher in the coming years. Investment in the jewellery business in Dubai therefore can never be a bad idea for any investor from anywhere in the world. A jewellery business in the Dubai Souk could be your dream-come true…. And we’ll tell you how!

Key benefits of setting up a jewellery business in Dubai/UAE:

• Quality of metals: the quality of precious metals and jewels is famous globally, and there has a very high demand which means it will always flourish without any shortage of customers
• Home to HNIs: Dubai is home to some of the richest and most affluent people in the world, or the HNIs (High net-worth Individuals) which ensures a high demand for precious jewellery
• Safe Place for Jewellery Business:the local government has laid rules and regulations to ensure that rigorous checks are done on how and where the gold and other jewels such as diamonds are brought into Dubai, which ensures that only the most authentic jewellery is sold in the Dubai souk, the biggest gold market in Dubai.
• Business Growth: the factors that make the jewellery market flourish in Dubai, making it beneficial in the long run as it attracts global customers can there are good ways to expand your market globally.
• Free zone benefits: there is a 100% ownership for a jewellery Business in the free zones to help you get the maximum benefits of business
• Tax Benefits:there is no value-added taxation on the sale of gold in Dubai, along with maximum government assistance and a good amount of exemption on corporate and income tax. You can pull all your profits with no taxes or minimal pay taxes.
• Open 24/7: It is a 24/7 operational business with no time constraints. You can operate at any time with an ‘ all-time open’ shop/business
• Security:the jewellery business in Dubai is provided with a great amount of security with high-quality surveillance, fire alarms installed in all units

How proposed FTA can boost jewellery business in Dubai/UAE?

The FTA that was that was sent recently suggests the abolition of import duties in the UAE on exports of gem, jewellery and precious metals. The FTA focuses on enhancing the exports of various sectors, including gem and jewellery, engineering, chemicals and others to the Emirates as a part of the FTA pact. It aims to enhance the competitiveness of these markets at a global scale along with fostering growth in the domestic markets amongst the traders. India, which stands as the third largest trading partner to Dubai and UAE has already started its negotiations for the agreement with the UAE.

Abiding the FTA, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between the two nations. Also, these norms can liberalize trade and boost investments. Gems and Jewellery Export Promotion Council (GJEPC) Chairman Colin Shah stated that the need of the hour was to enhance trade and exports of gem and jewellery products to the Emirates, and the UAE is one of India’s top three major markets for jewellery products.

Requirements to start a jewellery business in Dubai/UAE:

• For a jewellery business in Dubai, you can opt for retail or wholesale of gold business, as both of them are allowed. Whether you want to own a shop in the Dubai Souk or have a jewellery store in Dubai malls in Dubai, you are free to choose. Both have their perks and advantages. You need to take care of the requirements for each of them, depending upon whichever you opt for.

• You can also opt for import and export of precious metals or sell ready-made jewellery pieces which are passed through inspection procedures by the Gold office. And to ensure that it is done, a company needs to acquire a customs code number.

Process of starting a jewellery business in Dubai, UAE

The process for staring a jewellery business in Dubai is different for different jurisdictions. Below mentioned are the processes for each:

• DMCC Free Zone: The Dubai Multi-Commodities Centre (DMCC) falls in the free zone jurisdiction. It serves the whole gold value chain from R&D to trading finished jewellery products.

  Process to setup a company in DMCC Free Zone is:

  • Registering a name reservation from DMCC (5-7 days)

  • Once DMCC does the preliminary due diligence, submission of documents is required for company registration within 6 weeks. This includes passport copies, residence proof, NOC certificate etc.

  • The final stage is the licensing of the company, which requires the tenancy contract to be submitted. After this, you can receive your trading license and begin trading gold within the DMCC free zone, or outside the country.

• Dubai Gold and Diamond Park: If you are not looking for the traditional trade setup for gold, then the Dubai Gold and Diamond Park is ideal for you. It has around 90 retailers located in a commercial complex on Zayed Road on Umm Suqeim. It has over 118 manufacturing blocks and office space to around 350 Jewellery stores in Dubai Gold and Diamond Park.

  Process to setup a company in Dubai Gold and Diamond Park is:

  • Acquire a contract agreement after paying the rent of office space that is leased

  • Post this, apply for JAFZA license at Jebel Ali Office

  • On obtaining a receipt of your application, toge5ther with the documents of partnership and a copy of lease contract, the JAFZA will grant you the permission for gold trading.

• Dubai Mainland: Gold trading in Dubai Mainland is generally pursued for its famous Gold Souk. It is the best location to opt for in Dubai. You can directly sell to the public here, and it has a huge tourist footfall at all seasons, and is home to over 300 retailers. Tourists from all over the world flock here to shop gold and jewellery.

  Process to setup a company in Dubai Mainland (Gold Souk) is:

  • The process for setting up a jewellery Business in Dubai Mainland is the same as above, such as registration of company name and submission of documents, and contract agreement.

  • You get a 100% ownership for trading gold in the Gold Souk post permission from legal authorities on company setup.

Documents required to set up a jewellery business in Dubai

• Submission of passport copies of all business partners and owner

• Update and submit the resume of the manager of the business

• Registration of trade name and acquiring all legal documents as a proof

• You need to obtain all certifications, documents, and permissions for initial approval from the legal departments

• Draft a memorandum of association signed, along with an article of association

• Prepare and get in touch with a power of attorney for the legal representation of business for any lease agreements

• A capital of AED 150, 000 is required to set up a business in the Free Zones of Dubai. Also, there might be a rent levied by gold park management and a 15% of annual unit rent, which is refundable. Also, keep in mind the license and the permit fees required by concerned authorized legal bodies for your type of business activity

How to get a gold trading license in Dubai, UAE

• Decide your company name: the first step is to decide a company name for your entity. Avoid using any offensive, or already used name. Check the availability of the name registration.

• Apply for your license: the second step is applying for a license for gold trading in Dubai. You can submit your application to DED, or the authorities of jurisdiction you are planning to set up the company in. these include: a completed application form, passport sized copies of owners and shareholders, and 2 coloured photographs- passport sized.

• Apply for Visa: visa applications need to be made for you and all your employees. It is a simple, straightforward procedure. Once you receive your license, you are entitled to sponsor other too.

How MBG can help

Over the past 2 decades, MBG has honed its expertise in all types of business advisory services and has a large client base. Our Experts can help you with types of business setup services in Dubai, right from the initial stages to the very end, along with the proper guidance and consulting that you require for your particular business. We fully understand your business needs for Business setup in Dubai and do most of the legal and technical work for you so that you can focus on the business idea.

We, therefore, have customized our services and made them available at affordable rates with the best consultation that you can find anywhere else on How to setup a jewellery business in Dubai /UAE.

For any queries related to business setup in Dubai or any other UAE emirate, click here:-Business setup in UAE