How to start a gold trading business in Dubai
Dubai has a long history of trading – from the early days of fish and pearls, until the modern-day where all manner is bought and sold from our shores.
One market that has thrived throughout much of our history is gold. And it remains that way today. The UAE government recently unveiled plans for a federal gold trading platform, and for the more traditionalists, the Gold Souk remains a bustling market, selling the precious metal in many forms.
Naturally, for anyone wishing to start a gold trading business in Dubai, the Gold Souk is a naturally appealing location. Furthermore, setting up in this area can be both affordable and straightforward – with the right support, of course.
Benefits of starting a gold trading business in Dubai
The best reason to trade in gold is its long and stable history. In its 3,000+ years of trading, the value of gold has never hit zero. It has always held, and for the most part, increased in value. Today gold is just as popular as ever both for investors and for individual consumers – both of which can be found in abundance in Dubai.
Set up near the Gold Souk, or in Deira commercial district and you can sell directly to UAE consumers at the heart of the UAE’s gold market. To do this, all you will need is a trade license, a residency visa, a retail space, and some stock. It could not be easier.
As a UAE mainland business, you can trade directly with the local market without the need for a local sponsor or agent. You will also benefit from the UAE’s 0% tax rate on both corporate and personal income.
Steps required to start a gold trading business in Dubai
Before starting any business in Dubai, the first thing you should do is engage with a local company formation expert. Business Incorporation Zone (BIZ) can guide you through every step of the process below, checking documents, managing applications, and liaising with all government and industry bodies on your behalf.
Step one: Decide on your company name
This is a hugely important step when establishing a business in the UAE. There are a few things to keep in mind when making this decision. You must abide by a strict, yet easy to follow, set of naming conventions. Once again, a company setup expert can help you with this step.
In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step two: Applying for your license
Now to the second and most important step – your license application.
You can make your mainland license application to the Dubai Department of Economic Development (DED) or the local equivalent if you choose to set up in another emirate.
We can handle this application for you to ensure your forms are present and correct. This could save you time and hassle further down the line.
Documents required to start a gold trading business in Dubai
When applying for a UAE mainland license, you’ll need to provide some basic documentation. This usually includes:
- Completed application form
- Passport copy of the proposed owner or owners
- Two colour passport size photos.
In some cases, you may also require submission of a business plan.
Step three: Applying for your visas
You will also need a residency visa to live and work in the UAE. Like your trade license, this process is very straightforward when you apply with the help of a local expert.
As the holder of a UAE business license, you can also sponsor visas for your employees and dependants. Dependants may include a spouse, parent or child, or a domestic worker such as a housekeeper.
The maximum number of visas you can apply for will depend on your company’s size, your chosen setup and, for dependant visas, your personal earnings.
How much does it cost to get a gold trading license in Dubai?
The cost of your trade license will depend on the jurisdiction you set up in, the size of your business, the number of additional visas you require, and more.
As a guide, you can usually expect to pay between AED 20,000 and AED 40,000 for a license to trade gold.
Start your gold trading business in Dubai with BIZ
If you’re armed with the right knowledge, getting a gold trading license in Dubai doesn’t have to be overly complicated.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a company formation specialist, such as Business Incorporation Zone (BIZ), when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts, and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services, and can handle all government formalities, permissions, work permits, and visa applications required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.