Retail start-ups in Dubai are aplenty, and so is the number of merchandise trading businesses. Thanks to Dubai Shopping festival and other such events, opening a retail shop in the city is highly advantageous. There are some requirements that a businessman needs to adhere to start business in Dubai. Given below are a few of the procedures compulsory for that purpose.
Understand the Type of Business That You Want to Open
The type of goods you deal with in the shop determines the kind of license that you need. Certain activities like trading in jewellery and food need further approval from specific government departments. The Department of Economic Development in Dubai (DED) has a list of over 2100 activities for you to choose from. Contact the DED if you are unable to find a specific one there.
Get a Local Partner as a Stakeholder in the Business
In the city and all other parts of the emirate, it is compulsory to have a UAE local partner. The local partner will support the business and have not less than 51% share in the business. However, you do not need the partner if you start the shop in a free zone or sign an investor’s protected contract.
Complete the Formalities of Business Registration and License
The second step in the procedure is to get the trade license and other important certifications from the authorities. The DED is the government body that sanctions the permissions to open a shop in Dubai.
Know the Jurisdiction-under Which You Shop Falls
Understanding the jurisdiction is important, regardless of whether you open a store at Meena Bazaar or a shop in Dubai Mall. Retail shops get scrutinised under the terms of jurisdiction similar to any offshore company formation. You need to have a proper shareholding structure to show the authorities.
The Special Permissions Required for Getting Shops on Rent
Opening a shop on rent in Dubai comes with certain extra steps. It is not just about finding the right location for the shop. You will also need to have the permissions from the Dubai Municipality and other associated bodies.
The Laws That You Must Know Regarding Hiring Employees
In most cases, you will need to hire a manager to oversee the operations in your shop. However, if you hold the Intelaq license, you are not allowed to hire staff. You can, at the most, engage contractors for the work.
The process of opening a shop in Dubai is easy compared to other parts of the world. Just follow the simple steps, and you can get your shop up and running in a week.