How can I start a car business in Dubai?

When talking about Dubai, their gold and diamond collection is one of the first things that comes to mind as it is a trend in the emirate. Nicknamed the 'City of Gold', the place offers a cheaper cost of gold than most tourist home countries. As Dubai is a popular international holiday destination, the influx of wealthier customers can be taken into account significantly if you want to start a gold business.

Indeed, gold is an investment in Dubai as it attracts foreign capital to the country. Unknown to many, it is the most profitable business as precious metals retain their value, and demand has been continuously worked each year. While Dubai has always been a hub for gold traders, they also continuously contribute to a significant portion of the UAE gold trade. If you are an investor, you should definitely consider starting a gold trading business in Dubai. If you don't know how, this article will help you delve deeper before you start your gold business. With more knowledge and understanding, you can start profiting from gold even in different departments.

Where exactly in Dubai?

There are various authorities and jurisdictions that strongly support gold trading licences in Dubai. Most of these are in mainland China and the free zone. Although there are many, there are three jurisdictions that stand out in Dubai where the highest concentration of gold traders are located.

First on the list would be the gold trading license from the Department of Economic Development (DED) in Dubai, where the heart of the UAE gold market is established. This authority is how you integrate a business into the world's most famous gold markets, the Gold Souk in Deira. The mainland jurisdiction in Dubai offers a local license through the DED if an investor chooses to set up a retail outlet in that area. They may have the option for investors to open a stand or even a kiosk in the most popular tourist areas of Dubai. Investors should bear in mind that before applying for another business licence to trade in gold via the DED, they must find a local partner who will hold 51 per cent of the company's shares.

The second choice for setting up a gold trading business in Dubai would be the Gold and Diamond Park located along Sheikh Zayed Road. If you are an expatriate who wants to hold 100 % of the business, this place is perfect for you as it is a free zone business setup. You can hold 100% of your business tax free and have full relocation of profits. The Gold and Diamond Park is one of the most famous gold and jewellery retailers with over 90 shops, 118 specially designed manufacturing blocks and 350 offices. It is a convenient location in downtown Dubai, with easy access to all areas. You can set up a gold business in this area by obtaining a licence from the Jebel Ali for Automobile in Dubai Freezone Authority (JAFZA).

The third choice for your gold business in Dubai is the Dubai Multi Commodities Centre (DMCC), another free zone authority. DMCC is famous for its Dubai Gold and Commodities Exchange (DGCX), its DMCC trade flow and its global gold value chain.

What are the steps?

The next thing you need to know is how you are going to conduct your gold business in Dubai. Different authorities and jurisdictions require different processes and requirements, so it is not easy to get one. Although gold and jewellery trading is popular in Dubai, the government has created specific regulations. It imposes stringent controls on those bringing gold or other precious metals into the emirate to ensure a safe trading environment. To guide you, we have listed some of the essential steps you need to take to set up a gold trading company in Dubai.

Finding a business name

Before you can get a licence, part of its legal requirement is to have a business name relating to the automobile in Dubai. Having a business name is a way for the government to know what business you will be doing.

Obtaining a commercial licence

There is no way to start a business in Dubai without having a business license. As mentioned above, you can choose to start your gold business in Dubai with the three different authorities such as DED, JAFZA and DMCC. They all require investors to register their business before operating their business. Unlike JAFZA and DMCC, which are in the free zone, DED has a specific requirement to have a local sponsor who will own 51 per cent of the shares before a business licence can be obtained. Usually, obtaining a licence requires some of the main documents:

Completed application form

Copy of passport of proposed owner(s)

Two copies of colour passport photos

Choose your business premises

You have a choice of different premises, especially if you opt for a free zone facility. They can offer you different offices or facilities that will best suit the needs of your automotive business in Dubai. This process can be done right after you get your business license.

Get your visa

Obtaining a visa can be done with the help of your service provider. Visas are mandatory, especially if you need to hire an employee. As a UAE business licensee, you also have the power to sponsor others for their visas. The number of visas you can apply for will depend on the size of your company or business, the type of business you choose and your income.

As Dubai has proven to be a healthy and sustainable environment for jewellery and gold businesses, both for local and international investors, it is safe to say that starting a gold company in Dubai is very profitable and can generate growth for the business.

Considering all the above information, you may think that starting a gold business in Dubai is not too complex. Doing it on your own can still lead you to awkward situations and unforeseen expenses, which is why it is essential to seek professional help. At IBG Consulting, we guide you based on the knowledge of legal procedures and business structuring in Dubai. We have a pool of talented consultants who will help you start your gold business in Dubai or anywhere in the UAE. If you would like to know more about starting a gold business in Dubai, contact us or visit our website for a consultation.

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Mickael ibers

Manager Usa and Dubai Motorimport at Motorimport

Car enthusiast Mickael has become an expert on vehicle imports from Dubai and the United States. He knows the costs, transportation and regulations for each vehicle.