How to get license for gold trading business in Dubai, UAE (2023 Guide)

Herein, we're going to share information about how to get license for gold trading business in Dubai, UAE. With the help of this guide you'll be able to get a license for your gold trading business in Dubai, UAE.

Dubai, being one of the world's most rapidly expanding cities, offers an unrivalled setting for business success. Free trade policies, population growth, an influx of tourism, and improved living conditions have all contributed to the country's robust economy.

Dubai, known as the "City of Gold," is a major center for the trade of gold and other precious metals. It is therefore reasonable to assume that Dubai's gold trading companies are flourishing. As a result, gold traders in Dubai welcome investors from all over the world.

Therefore, let's discuss the booming gold trading industry in Dubai. It's been considered one of Dubai's best business chances for quite some time.

The demand for gold and other precious metals is consistent and considerable. Due to the city's stringent regulations and official stamps of approval, Dubai has emerged as a major hub for the jewellery industry.

Regardless, starting a physical or virtual gold business in Dubai is a fantastic idea.

Gold Trading Company Registration

If you're looking to start a gold trading business in Dubai, you should first be aware of the three main jurisdictions available to you:

• Dubai Multi-Commodities Center (DMCC) Free Zone
• Dubai Mainland
• Gold & Diamond Park

It's worth noting that there are a number of rules and requirements specific to these three industries that must be met before you can open your Dubai gold business.

To that aim, we have gathered together everything you need to know to set up shop as a profitable gold trader in Dubai.

DMCC Free Zone

Opening in 2002, the Dubai Multi Commodities Centre (DMCC) free zone has a prime location just opposite the pristine white sands of Dubai Marina Beach.

In Dubai, prospective gold traders will discover conducive conditions like as freehold property options, a robust infrastructure, a guaranteed 50-year tax holiday, and full ownership of the company.

Moreover, DMCC offers both warehouse and office space. If you plan on using the rented space for business reasons, you must complete and submit a signed lease or tenant agreement to DMCC.

Gold & Diamond Park

When it first opened in 2011, Gold & Diamond Park (GDP) quickly established itself as one of the world's premier hubs for the mining, processing, and marketing of gold and other precious stones like diamonds.

The Jebel Ali Free zone Authority manages the area, which includes a retail mall, warehouses, and huge, high-quality manufacturers.

All of GDP's 118 factories and 350 stores deal in some way with gold or other precious metals or stones.

This zone offers enticing conditions for starting a gold trading firm, such as reduced corporate taxes, a hallmarking facility offered by the Dubai Municipality, and protection from competition.

Plus, it has only recently begun providing high-end commercial leasing for companies with an interest in the gold trade.

Keep in mind that GDP recommends multiple licence options, each of which calls for a separate licence from a different government. A few examples are:

• Trading License
• Manufacturing License
• Retail License
• E-commerce License
• Service License

Dubai Mainland – Gold Souk

You can even start a trading company on the mainland if you choose.

The key benefit is its convenient location, the availability of more retail space, the absence of value-added tax and profit tax, the absence of a required minimum amount of initial capital, and the freedom to conduct business anywhere in the United Arab Emirates.

And if you want to start a gold trading firm in mainland Dubai, "The Gold Souk Market" is your best bet. There are already over 300 stores in this area, but you can open up shop there because locals will be your primary customers.

Additionally, the surrounding area is well-known for import and export, so this is a fantastic choice if you're interested in trading of any kind.

Investors in a Mainland business can hold 49% of the company, with a local Dubai partner owning the other 51%.

Acquiring your business license

In order to lawfully conduct business as a gold trader in Dubai, you must first obtain a gold trading licence. No matter the kind of the enterprise or its location, a valid business licence is essential.

If you wish to launch a gold trading business on the mainland, you should apply to the Department of Economic Development. Get in touch with the Jebel Ali Free Zone Authority if you want to open a business in the GDP. The administrator of a free zone must be contacted directly for an application to be considered.

Your organization's unique licensing needs will be based on the nature of its operations.

Applying for your gold trading company license

All license applications must include the following items of standard documentation:

• Application fees
• Completed application form
• Two passport size photos
• Passport/visa copy of the owner or shareholders
• Copy of sponsors passport/Emirates ID
• CV of the manager
• Proof of trade name
• Copy of Initial Approval Certificate
• Document of initial approval fee payment
• Company registration form from the respective trading zone
• Copy of notarised MoA or LSA agreement
• Tenancy or Lease agreement (if any)

How to start a gold trading business in Dubai?

Before you send your application in, double-check that you have completed the following.

• Registering a valid trade name
• Select the nature of your business venture
• Detailed business plan
• Getting a legal status for your business venture in Dubai
• Select a partner or local sponsor

Minimum capital requirement:

Within Dubai's free zone, a gold business may pay rent to the gold park management and a startup fee of AED 150,000. This condition is true just of free zones.

There is also a security deposit requirement of fifteen percent of the yearly rent. Keep in mind that this does not include the regular maintenance expense.

• Notary Public Court Agreement or Memorandum of Understanding Drafting and Signature with Your Business Partner or Local Sponsor
• Letter of registration of business name with authorities, duly notarized
• Your company's lease and rental agreement (Tejari)

Opening a bank account for gold trading companies in Dubai

After getting your gold trading license, you must open a business bank account in Dubai.

Benefits of investing in gold trading business in Dubai?

Choosing a business type or structure should be done with prudence due to the significant expense of a reversal. For the following reasons, doing business as a gold trader in Dubai is a safe and rewarding venture:

1. Advantages of the Location

In Dubai, foreign investors have the option of establishing gold trading firms in one of the city's free zones or on the mainland. Businesses on the mainland benefit greatly from the ease and convenience of trading gold on gold exchange platforms like the Dubai Gold Souk.

When you enter a free zone, you gain access to benefits that aren't available elsewhere in the country. The DMCC and Dubai Gold and Diamond Free Zones offer a number of advantages to businesses. This list includes:

• Complete recoupment of all capital spent and all earnings made
• Surety and protection
• Taxes on businesses and individuals are 0%.
• Hallmark
• Import and export taxes are waived.
• Consumer shuttle service

2. Several Benefits from Tourism

Dubai's gold sector has a lot of potential because it is a well-known tourist destination. Shopping for gold at Dubai's renowned Gold Souk is a major draw for many visitors. Any onlooker would be captivated by the stunning gold ornaments on display.

Due to Dubai's many gold shops and cutting-edge gold jewellery designers, the city's internet gold and diamond sector has flourished.

3. Value-Added Tax in Gold Transactions

Gold trading businesses and its owners in Dubai can take advantage of a number of lucrative options. Gold ornaments and jewellery can be found at bargain prices in Dubai's massive bazaar, which draws shoppers from all over the world.

As an added bonus, the region offers gold products at a lower global gold price. The exchange rate for the value-added tax is to blame for this.

4. Easily Converted to Cash

To avoid paying value-added tax (VAT), this scheme exempts wholesalers who buy gold from registered manufacturers. VAT is applicable, but at a relatively modest rate (5% of the purchase price) for consumers buying from retailers.

Gold is considered a liquid asset due to its ease of conversion into currency. As a result, dealing in gold is safer.

You can quickly and simply convert part of your gold into cash during this crisis. Gold is unlike other business strategies in that it has little to no effect on a company's liquidity. Gold is a preferred asset class for this and other reasons.

What kinds of paperwork / documents are required?

The documents required to set up a gold trading company in Dubai are as follows:

• Pre-approval form
• Precise business plan
• Proof of trade name
• Passport copy
• Residency proof
• No Objection Certificate and any other relevant document as demanded by the concerned authority

Documents required to get the gold trading license in Dubai:

• Copies of passport of the shareholders
• Proof of trade name
• Initial approval proof
• Notarized memorandum and articles of association
• Tenancy contract
• Lease agreement

Get your Dubai gold dealing license with UPS Business Setup

You should look at starting your gold trading business in Dubai. It is possible, and even lucrative, to launch a gold trading enterprise in Dubai. But with the right amount of work and planning, it is possible.

An international investor may be put off by the extensive documentation required to participate in the process. If you are ready to start a gold trading company in Dubai, contact UPS Business Setup today.

How to get license for gold trading business in Dubai, UAE (2023 Guide)

Our experts are used to carrying out these steps successfully. If you want to start a gold trading firm in Dubai, we can do it all for you.