Foodstuff trading stands as a vital business activity in Dubai, serving as a cornerstone for the city’s economy over many prosperous years. The UAE’s emergence as a global trade hub in the Middle East has led to substantial volumes of food import and export. starting a foodstuff trading business in Dubai proves to be a lucrative venture, given its pivotal role in the city’s thriving economic landscape.
Dubai’s global recognition for its diverse food scene, showcased through numerous local and international restaurants offering a variety of cuisines, underscores the perpetual demand for quality food items. Facilitating this demand are the foodstuff trading companies in Dubai, playing a crucial role in sustaining the ever-growing food and beverage industry. Thus, the relevance and demand for foodstuff trading persist as an integral part of Dubai’s vibrant business environment.
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The Advantages of Starting a Foodstuff Trading Business in Dubai, UAE
Starting a foodstuff trading business in Dubai, UAE comes with various advantages. Being strategically located at the crossroads of Africa, Asia, and Europe, the UAE offers exceptional trading opportunities. The well-developed infrastructure, efficient customs procedures, and minimal bureaucracy make it an ideal trading hub.
Moreover, businesses in the UAE enjoy a 0% tax rate on both corporate and personal income. If you choose to set up your food trading business in a free zone, additional benefits include 100% customs tax exemption and the freedom to repatriate capital and profits. It’s a lucrative choice for food traders!
License Required for Foodstuff Trading Business in Dubai
To Start a foodstuff trading business in Dubai mainland, the Department of Economic Development (DED) issues the required business licenses. The registration process involves submitting essential documents directly to the DED. For this business activity, companies typically obtain a commercial license and register as a Limited Liability Company (LLC). The LLC structure follows a 51-49 per cent shareholding arrangement, adhering to UAE law.
As a foreign-owned company in Dubai mainland, you must have a UAE national, known as a local sponsor, who will hold 51% of the company shares, while you retain 49%. This partnership is a legal requirement according to UAE law. Submit all necessary documents to the DED for the registration process.
How can I Get Food Trading License in Dubai?
To start a foodstuff trading Business in Dubai, UAE. you need to follow a few specific steps that have been laid out by the authorities in the Department of Economic Development in Dubai. However, if this is the first time you are starting a business in the UAE, then it is highly suggested that you seek help from professionals.
Here are the steps you need to follow in order to start a foodstuff trading in Dubai:
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Register a trading name for your business.
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Obtain the initial approval from the Department of Economic Development (DED) in Dubai.
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Draft and sign the Memorandum of Association (MOA).
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Rent or lease office space for your business.
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Submit all the required documents to the DED.
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Complete the payment related to the payment voucher provided by the DED.
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Receive the foodstuff trading license from the DED.
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Register your food product in the Dubai Municipality.
What Activities are Under the Foodstuff Trading License in Dubai?
With a foodstuff trading license in Dubai, UAE, you can engage in various activities related to importing, exporting, and selling a wide range of food and beverages. These activities include dealing in cooking oils, flour, juice, malt, meat products, mineral water, soft drinks, and spices. It opens up a world of opportunities to trade and distribute these products in the bustling Dubai market.
Sub-activities under Foodstuff Trading in Dubai
Apart from the primary activity of foodstuff trading, you can include various sub-activities under your trade license in Dubai. These sub-activities include trading in eggs, flour, ghee & vegetable oil, grains, cereals & legumes, ice, juice, mineral water, potatoes, sugar, spices, snack food, soft drinks & carbonated water, and fruits and vegetables. Adding these sub-activities expands the scope of your foodstuff trading business, allowing you to engage in a diverse range of products within the bustling Dubai market.
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Free Zone Foodstuff Trading License
If you wish to setup the Foodstuff trading business in free zone, then you will be able to retain 100% ownership of the business. The exact business setup process may vary between different free zones, but the general procedure for setting up company in a free zone is as follows:
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Determine the type of legal entity
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Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
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Free Zone Establishment (FZE)
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Choose a trade name
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Apply for a business license
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Choose an office space
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Get pre-approvals, register your business, and get the trading license
Documents Needed to Start a Foodstuff Trading Business in Dubai
The Department of Economic Development in Dubai requires some mandatory documents to verify the information you provided in the application form. In addition to this, they also need a few documents for regulatory purposes.
Here are the documents that you need to provide to the DED in order to start a foodstuff trading business in Dubai:
- Copies of the passports of all the shareholders.
- Copies of the visa pages of all the shareholders.
- A No Objection Letter (NOC) if any of the shareholders has a resident visa.
- The tenancy contract and EJARI.
- The Memorandum of Association (MOA).
- The foodstuff trading license is provided by the Department of Economic Development in Dubai.
How Much is the Foodstuff Trading License Cost in Dubai?
Are you considering launching your food trade business in the UAE? Opting for a mainland food trading license in Dubai offers seamless trading across the UAE. Keep in mind that the foodstuff trading license cost varies between mainland and free zones.
Alternatively, you can establish your food business in a free zone, each governed by autonomous bodies, leading to more flexible business laws.
Starting a new foodstuff trading venture in the UAE involves an investment ranging from AED 15,000 to AED 25,000. This covers administrative approvals, the foodstuff trading license cost in Dubai, external certificates, and more. The total expense depends on factors such as your location, warehouse size, visa permits, and other considerations.
Since food is essential for maintaining a healthy life, the authorities regulate the foodstuff trading businesses in Dubai closely. However, this does not mean that starting and running a foodstuff trading business in Dubai is hard.
As long as you follow a few rules that have been set in place by the authorities, your foodstuff trading business in Dubai will flourish. Owning to the fact that you will receive the suitable resources after you obtain the foodstuff trading business license in Dubai.
Here are the rules you need to keep in mind when running a foodstuff trading business in Dubai:
- The containers need to be made of materials that keep contaminations away.
- The mover transporting the food needs to be free from germs.
- The food products need to be arranged in proper partitions.
- You need to maintain the proper conditions (temperature, humidity, etc.) for keeping the food items fresh.
- The containers need to have a temperature monitoring device.
Frequently Asked Questions About Foodstuff Trading in Dubai
How can I start a food trading business in Dubai?
There are various types of trade licenses available in Dubai. However, you will need to specifically obtain a commercial trade license if you want to start a food trading business in Dubai. To do this, you will need to apply for a license from the Department of Economic Development in Dubai. This is because they are the governing body in Dubai that is responsible for handling the registration of new businesses in the city.
You will need to follow a few steps in order to obtain the commercial trade license and start your food trading business in Dubai:
- Select a trading name for your food trading business in Dubai.
- Apply for the commercial license from the Department of Economic Development in Dubai.
- Acquire a warehouse or a storage space according to the guidelines for starting a food trading business in Dubai.
- Get the external approvals from the relevant government agencies.
- Submit the required documents and complete the payment voucher.
You need to submit a few mandatory documents to the officials at the Department of Economic Development in Dubai. Here are the documents you need to submit to the relevant authorities for starting a food trading business in Dubai:
- Passport copies of all the shareholders in the business.
- Copies of the visa page of all the shareholders in the business.
- No Objection Certificate from the sponsor of the business.
- The Emirates ID of the shareholders with a residency visa.
How can I start a food trading business in UAE?
The procedure of starting a food trading business in the UAE will depend on the location where you want to set up your new business. For example, if you want to start a food trading business in Dubai then you need to obtain a commercial license from the Department of Economic Development in Dubai.
However, if you want to start a food trading business in one of the free zones in the UAE then you need to obtain a license from the relevant free zone authority.
No matter where you want to start your food trading business in UAE, you need to follow a few rules that were set by the government of the UAE for health and safety reasons.
However, these rules are very easy to follow so you do not really worry about them if you are properly running your food trading business in the UAE. Here are the rules you need to follow in order to start a food trading business in UAE:
- The containers need to be made of appropriate materials that will keep the contamination away.
- You need to properly sanitize and ensure everything is clean and free from germs.
- Different food products need to be arranged in different partitions to avoid contamination.
- You need to maintain proper temperature and humidity to keep the food items fresh.
- The containers for storage of the foodstuff must have a temperature monitoring device.
How can I start a vegetable business in Dubai?
Vegetable falls under the foodstuff category in the UAE. This means that if you want to start a vegetable business in Dubai then you need to follow all the steps for starting a foodstuff trading business in Dubai.
For example, if you want to start a vegetable business in Dubai, then you need to obtain a commercial trade license from the Department of Economic Development in Dubai. Additionally, you will need to rent or lease a warehouse or other storage space to store your foodstuff.
If you want to start a vegetable business in Dubai, then you need to follow the standard rules of starting and maintaining a food trading business in the UAE.
In addition to this, the steps of starting the vegetable business in Dubai are the same as the process of starting a food trading business in Dubai. Lastly, the documents required for the vegetable business in Dubai are also the same as the requirements for the food trading business.
How do I start a food supply business in Dubai?
If you want to set up a foodstuff trading in Dubai, then you will need to obtain a business trade license from the Department of Economic Development in Dubai. However, if it is your first time starting a business anywhere in the UAE, then it is completely normal to feel the need for assistance.
Thankfully, the experts at Company Setup Consultants are always ready for your service. In short, they will start the food supply business in Dubai for you, so that you are free to make more important decisions for your business.
How do I start a food trading business?
The Department of Economic Development in Dubai is responsible for handling all the new business registrations on the mainland of the city. On the other hand, the free zone authorities are responsible for new businesses in their respective free zone.
After you have decided where you want to start your food trading business in Dubai. The next step is to obtain the business trade license from the respective authority.
How can I get a food license in Dubai?
To get a food license in Dubai, you will have to apply for it from the Department of Economic Development in Dubai. Firstly, you will have to fill up an application form to receive the initial approval from the DED.
Secondly, you will have to obtain the external approvals from the authorities that will be mentioned by the DED. After that, you will need to submit the required documents and pay the fees for the food license in Dubai.
How do I register my food product in Dubai Municipality?
To register your food products in the Dubai Municipality, firstly you will need to have a UAE business trade license. Secondly, you will have to register your business with the Dubai Municipality through their online portal.
After that, you can access their online services from anywhere you want. The last step is to fill up the application form with the required information and upload the required documents. The Dubai Municipality will take a few days to verify everything and then your food product will be registered.
How we can help to Start a Foodstuff Trading in Dubai, UAE
If you want to set up a foodstuff trading business in Dubai mainland or free zone but do not know where to get started, then you are in the right place. Our experts have helped entrepreneurs and investors from all over the world start various businesses in Dubai as well as the rest of the emirates. Contact us today and hit the ground running.
For further information and assistance on how to start foodstuff trading in Dubai, UAE? To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
