How to Start Foodstuff Trading Company in Dubai
Starting a foodstuff trading business in Dubai can be a smart choice because there is a high demand for food. However, if you are a foreigner looking to start a foodstuff trading company in Dubai then you need to go through some procedures. It can be beneficial to open a company in Dubai because Dubai provides the best environment for any kind of business startup. Known for its wide range of food options Dubai is a place where restaurants offer different options for dishes. So given the demand for food products, the idea of opening a food trading can be successful.
Easy Steps & Requirements For Foodstuff Trading Company in Dubai
License Required to Start a Foodstuff Trading Company In Dubai
Getting a license to start a foodstuff trading company in Dubai is necessary. The Department of Economic Development (DED) issues the license to do so. Most businesses in this field get commercial licenses and set up their companies as Limited Liability Company (LLC).
In Dubai’s mainland, it is important to have a local sponsor which is a rule set up by the government of Dubai. According to the rule the sponsor will own 51% of the company’s shares and you as a foreigner will hold 49%.
Required Documents
The process of opening a foodstuff trading company in Dubai requires some paperwork. It is important to submit these documents which are mentioned below:
- Passport copies
- Visa (Residential/Visit)
- No Objection Certificate from the sponsor (if you have a residential visa)
- The Emirates ID to confirm that you have a residential visa (The Emirates ID is given to residents and citizens as proof of identity)
- The Memorandum of Association.
- Trading license provided by the Department of Economic Development in Dubai.
Steps for Acquiring a Foodstuff Trading License in Dubai
To acquire a foodstuff trading license in Dubai requires some steps to be followed. The steps that explain how you can obtain a license for your business are mentioned below.
- Choose Between Mainland and Free Zone
First of all, you need to make your choice between the Mainland or one of the Free zones. Operating in these areas has its advantages and disadvantages. If you operate in a free zone then you get 100% ownership of your business, no matter if you are a foreigner. You also get tax benefits while operating a free zone. So you can make a decision that is according to your requirements.
- Select an Activity
You need to select your business activity. The food trading that you want to do in Dubai mainland needs to be specific. Having a food business includes snack food, preserved and canned food, baby food, frozen fish and seafood, etc.
- Choose a Name for Your Company
After selecting a specific activity for your food trading business, you need to choose a name for the company. Point to note that the name of the company name should be unique and make sure that no other company shares the same name operating in the same business.
- Select a Legal Structure
Selecting the legal structure is the next step for business setup in Dubai. It means it contains information about the ownership of the company whether it is going to operate based on sole ownership or have shareholders. If the company has shareholders then how many of them are there? There are so many business setup experts in Dubai whom you can consult with to choose the legal structure of your company.
- Choose a Location for Business
You need to choose a place where you can start your business. Choose a location that is appropriate according to your food business and rent a space for your business. You can choose a location based on some factors such as accessibility, visibility, competition, safety and hygiene, growth potential, foot traffic, budget, and many more.
- Obtain External Approvals
Starting a business contains risks and damages. To face them you need to prepare beforehand. For that, we need to acquire some external approvals. Apply for approvals from the relevant organizations.
- Submit All the Documents
Collect all the approved documents and submit them.
- Pay the Government Fee and Obtain the License
Finally, you have to pay the required fee set up by the government and acquire your license. It typically takes 1 to 2 days to obtain the license from DED after completing all the processes.
Advantages of Opening a Foodstuff Trading Company in Dubai
Dubai is known as a gateway for all the markets in Asia. Opening a business in Dubai can be very beneficial because you can get access to trade anywhere between Asian companies. You can be more profitable if you have a good market strategy with a big vision for your business. If you open a business in one of the Dubai free zones then you can open a business with full ownership without any need for a local sponsor.