How to open a grocery store in Dubai?
Opening a grocery store in Dubai offers several opportunities and multiple trading avenues. These little stores selling a range of general food products and small items can be found all over Dubai and the UAE. The lucrative UAE market and large foreign investments have always made business setup in Dubai appealing and profitable. This in turn attracts small entrepreneurs to open a grocery store in Dubai.
However, every business setup is different and must follow different sets of procedures. The Dubai Government has laid out an easy process for individuals wanting to start a grocery store in Dubai. Nevertheless, as a foreign entity entering the international market, opening a grocery store business in the UAE can require guidance and assistance. Therefore, you should get in touch with the business experts at Shuraa and we’ll help you obtain the grocery store license in Dubai.
Here are some factors that need to be taken into consideration when starting a grocery store business in Dubai.
Step 1 – Decision Making
Before you start a grocery store in Dubai, you need to decide your initial investments, reserve funds, business location, company structure, the type of license for your business, and study market trends. Furthermore, you also need to consider the cost of a grocery license in Dubai alongside other approvals that you might need to run a full-fledged grocery store in the UAE.
Step 2 – Documentation
Documentation is a mandatory requirement. The passport and visa of the owner(s) must be submitted along with the trade license application. It is followed by the tenancy contract, Ejari, approvals from the Municipality, trademark registration from the Ministry of Economy, and other submissions as required. It’s imperative to have all these documents handy to ensure hassle-free procurement of a grocery store license in Dubai.
Step 3 – Initial Approval
To start a grocery in Dubai, the documentation must be submitted as per the guidelines laid out by the Dubai government and the Department of Economic Development (DED) in Dubai. After all the documents are thoroughly vetted, the initial approval is granted by the DED. Getting initial approval means that the UAE government has allowed your business to be established in the UAE. If you do not receive this approval, you cannot go ahead with the next steps in the application process.
Step 4 – Trade Name
The trade name must be approved by the DED. It is extremely important that the trade name be the same on the license and on the signboard of the grocery store. The trade name, which is also called the commercial name, must be in accordance with the DED’s guidelines. Ensure that you don’t include any derogatory terms or controversial words in your official name as this can land you in legal trouble. Moreover, refrain from using any reference to gods and use a person’s full name if you wish to keep it as your professional business name.
Step 5 – Location
If you have already submitted the tenancy contract and finalised the location before the initial approval, you may skip this stage. However, if the location of the store is not confirmed or could possibly change, then a prior approval must be taken from the DED. Once you have the location finalised for your grocery store, draft the tenancy contract and get the Ejari.
Step 6 – License Issuance
Every business activity is grouped under a certain license type in Dubai. There are four categories of licenses: commercial license, professional license, tourism license, and industrial license. To open a grocery store in Dubai, a commercial license is a must. Under a grocery license, only things listed as grocery items can be sold. It does not allow the sale of any products related to medical, herbal, pharmaceutical, or even cosmetics. Don’t forget to pay the grocery license fee in Dubai within the specified time to ensure that the issued license is valid at all times.
Step 7 – Visa Processing
Visa processing takes place simultaneously along with getting a trade license. At this stage, you will get your investor visa and may also apply for subsequent family and employee visas under the company.
In addition to the above-mentioned factors, below are a few more points that you need to keep in mind if you want to open a grocery store in Dubai:
- Any amendment or changes in the license needs approval from the authorities involved, the municipality, and the DED.
- Any advertisements, promotions, banner ads, and wall stickers posted by the grocery store must have pre-approval from the DED.
- Products with fake trademarks are prohibited by law. Hence, ensure not to sell such products.
- To open a grocery in Dubai, you will need a VAT registration number and need to file tax returns as is mandated by the UAE government. Also, all sales must have a proper invoicing system. You don’t need to worry about the cost of a grocery license in Dubai, as you don’t need to pay any corporate taxes or customs duties. Moreover, the VAT rate is also 5%, which ranks among the lowest in the world.
Your decision to acquire a grocery store license in Dubai is the right one because of the booming economy, and lucrative business opportunities in this sector. Moreover, you also get appropriate support from the UAE’s government as they continue to introduce new reforms aimed at improving the existing business infrastructure and working environment for expats and locals.
To know more about how to open a grocery store in Dubai in the quickest and most affordable way, contact Shuraa Business Setup. Our expert business setup consultants will help you through the entire process. Get in touch with us today!
Click here to book a free consultation with our experts and know more about obtaining a grocery store license in Dubai, or call +971 44081900. You can also send a WhatsApp message at +971 50 777 5554. For email assistance, mail your query at [email protected]