Wholesale business in Dubai is the means of buying commodities in a huge amount from the manufacturers or distributors and then selling it further in bulk to the retailers. In return, money is earned. Wholesale business is the process of bulk buying and selling. The price per unit is low. This is why the wholesalers make profits.
Dubai is one of the most competitive economies all over the globe. It is easy and beneficial to set up a wholesale business in Dubai in multiple aspects. Foreign investors can easily register for this business in Dubai.
Its location is perfect for a shipping hub for global markets. There are zero corporate and personal income taxes. Furthermore, there is 100% ownership for the new wholesale investors in Dubai. The wholesalers in Dubai can have easy access to international ports. Hence, there is an effective mode of transportation in Dubai. This creates easiness for the wholesalers in Dubai.
What makes success for wholesale business in Dubai? Dubai has various powerful industries like shipping, IT, trade, and banking. It is one of the successful hubs of a business. Dubai is good for digital growth as well. Dubai looks more and more like a place to explore double-digit growth.
A Wholesale Business Plan in Dubai
Does this business require a strategy? Indeed, it requires a proper scheme to follow. When a suitable plan would be followed, it will lead to the success of the wholesale business in Dubai. To set up a wholesale business in Dubai, the subsequent steps must be followed:
- Selecting a business activity
- Pick out a trading name for your business
- Choose a business location
- Apply for the license
- Payment and collection of the license
- Apply for a visa
Step 1: Selecting a business activity
For the set-up of a wholesale business in Dubai, it is fundamental to choose a type of wholesale. It depends on your choice. There is a unique kind of distribution and sales channel in Dubai.
You can select any appropriate trading activities from a comprehensive extensive list of more than 2,000 on Dubai’s Department of Economic Development’s website. Wholesalers in Dubai include food, machinery, and clothes.
Hence, being a wholesaler, you can select any kind of wholesale. You will need to partner with a trading company in Dubai. They will guide you to legal activities. In this way, all your wholesale business activities will be aligned. After this, you can proceed to the next step.
Step 2: Pick out a trading name for your business
For good recognition, you have to choose a relevant trading name for your wholesale business in Dubai. Your trade must be properly specified and appropriate. They should match your wholesale business.
The selected name must be unoffending and relevant. The chosen names must be available and not be offensive. Furthermore, they must not be in short forms. This will not show the proper name of your wholesale business in Dubai.
Step 3: Choose a business location
The next step is to select a proper location for your wholesale business in Dubai. Choosing the right location for your business is essential. Similarly, it is good for a wholesaler to locate his business near the transport hubs.
Airports, seaports the well-connected road networks are the best mode of transportation. A wholesaler must make sure that his priority for the perfect location is near the warehouses, factories, and distribution centers. This creates easiness in terms of freight transportation. There are over 40 free zones to choose from in Dubai.
Choosing one of these types of wholesale business setups is also advantageous in Dubai. Each free zone offers specific business support for industries. It can provide you 100% ownership of your business and be entitled to a zero-tax rate for personal and corporate income. This is a good thing for a wholesale business setup.
Step 4: Apply for the license
Numerous documents are required to acquire a license for your wholesale business in Dubai. The following are the documents required to get a wholesale license in Dubai:
- A completed wholesale trading license application form
- A requirement for copies of the passports of all the partners and shareholders of the wholesale business
- Color photos of all the partners and shareholders
- Copies of all partners’ and shareholders’ residence visas (if applicable)
- Copies of all partner’s and shareholders’ Emirates IDs (if applicable)
- Company name approval from the UAE’s Registry Office
- Memorandum of Association (MOA) completed by all partners and shareholders
Step 5: Payment and collection of the license
Now, it is your turn to pay and collect the license. Upon submission of all the documents and an application form, a payment voucher is created. A specific time is given to pay the fee. After the payment, you can collect the license after the approval. The process of acquiring a license to initiate a wholesale trading business in Dubai takes 5-10 working days. The deviation in any document can increase the days for it. You must opt for experienced wholesale business specialists in Dubai. Hence, this will avoid errors.
Step 6: Apply for a visa
Now, you will have to apply for your visa and open a corporate bank account in Dubai. You can sponsor the visa for your family. Furthermore, you can purchase business insurance and hire employees as well. Hence, in this way, you can perform significant tasks after getting a wholesale trade license.
What is the cost of starting a wholesale business in Dubai?
Starting a wholesale trading business in Dubai can cost 12,500 AED with a free zone license. There are many additional costs such as visa costs, warehouse, and office rents, inventory, labor costs, transportation costs, and many more.
In conclusion, it is a lucrative idea to begin a profitable wholesale trading business in Dubai. This type of business can not face a loss. This is because Dubai hosts billions of ex-pats and tourists. Hence, there is a vast need for commodities. For this purpose, the retailers make their purchases from wholesalers in Dubai. The proper guidelines must be followed for the set-up of a wholesale business in Dubai.
For more details and queries, contact one of the top business consultants in Dubai – Masar Al Ameen.