In Dubai, the trade of gemstones and minerals constitutes a substantial industry, engaging both prominent corporations and individual merchants. This sector involves the worldwide exchange of a wide range of precious materials, encompassing diamonds, emeralds, rubies, sapphires, gold, silver, and other valuable metals. These resources are procured from mines or various deposits, then meticulously sorted, cut, polished, and made ready for commercial transactions. Trading transpires through various avenues, including direct sales, auctions, online platforms, and trade exhibitions. Stringent regulations are in place to ensure the legitimacy of products, ethical sourcing, and adherence to mining and environmental standards.
Why Start Gemstones And Minerals Trading Business in Dubai, UAE?
Dubai is a place with lots of different cultures. It's great for businesses because it has good infrastructure and is a popular spot for both work and fun. This means it's good for small, medium, and big businesses. In 2017, Dubai was number one in the world for trading gold and precious metals. They made a lot of money, around AED 41.2 billion. Also, the UAE is the top country in the Arab world and fifth in the world for selling precious metals. Even when there was a global pandemic, the UAE's economy didn't have too many problems because it does lots of different things, not just oil. Jewelry and precious metals are a big part of what the UAE sells to the world. So, starting a business to trade gold and precious metals there could make you a lot of money.
Advantages of Starting Precious Metals and Gems Trading Business in UAE
There are many good reasons to start your own Gemstones and Minerals business in Dubai. Let's explain the most important ones for you.
- 1. Supportive Regulatory Environment: The sector follows rules to make sure things are real, people are fair in where they get stuff from, and they're doing their mining and environmental work in the right way.
- 2. 100% Ownership: Foreign investors can own 100% of their Business, granting full control
- 3. Global Business Hub: Dubai's global status opens doors to partners, investors, and clients worldwide.
- 5. Skilled Workforce: Dubai boasts a proficient workforce, skilled in technology, facilitating business growth.
- 6. Favorable Tax Regime: The UAE's business-friendly tax structure aids startups in saving money and accelerating growth.
- 7. Cultural Diversity: Dubai's diverse population offers opportunities for various market segments.
Business Structure for Gemstones and Minerals Business in Dubai, UAE
Choosing the right business structure is vital when launching a your Business in Dubai. Options include:
- 1. Free Zone Company: A free zone company provides foreign ownership, tax benefits, and simplified registration processes, ideal for global Gemstones and Minerals trading operations.
- 2. Mainland Company: Mainland companies adhere to UAE laws and regulations and are suitable for businesses targeting the domestic market.
Consider factors like your business activities, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.
Starting a Precious Metal Trading business in DMCC Free Zone
DMCC is a place where people setup different types of businesses. But, the main focus here is on trading precious metals and gems like gold and diamonds. The good thing about setting up a business in DMCC is that you get 100% ownership of your business, and you can take the money you make back to your own country. Plus, you don't have to pay any taxes, and there's always security with cameras. Operational facility access, and superb infrastructure.
To start a business in DMCC, first, you need to get permission to do a gold business in the Free Zone Authority. Then, you have to provide required documents to reservation for your company in DMCC. These documents are:
- Proof of the chosen trade name.
- Copies of shareholders' passports.
- Initial approval.
- Comprehensive business plan.
- Personal details of the appointed manager.
- Duly attested and notarized Memorandum and Articles of Association.
- Power of attorney for legal representatives.
- Lease agreement.
Starting a Precious Metal Trading Business in Gold and Diamond Park
Established in 2011, the Dubai Gold and Diamond Park offers investors the option of leasing buildings for the manufacturing of gold, diamonds, and other precious metals, along with customizable jewelry production. The park also provides office leasing, granting owners the advantages of 100% ownership, profit repatriation, and tax exemptions. It serves as a comprehensive hub for the production, purchase, and sale of gold and precious metals, including hallmarking facilities. Expatriate hiring is convenient, and various licenses such as trading, innovation, retail, manufacturing, e-commerce, and service licenses are accessible.
The business setup process in the Gold and Diamond Park involves the following steps:
- Entering an agreement for rent payment with Gold and Diamond Park.
- Obtaining initial approval from Jebel Ali Free Zone (JAFZA).
- Submitting a Memorandum of Association and partnership agreement to JAFZA.
- Receiving the certificate of gold trading from JAFZA, which is required to open a bank account.
- Upon opening the bank account, JAFZA issues the gold and precious metal trading license.
Starting a Precious Metal Trading Business in Dubai Mainland
Establishing a precious metal trading enterprise in Dubai Mainland is a viable option for entrepreneurs. Gold souks, renowned traditional gold markets in Deira, are prime locations for launching such ventures, accommodating up to 300 gold retailers. Business owners have the flexibility to operate anywhere in the UAE, hire employees with ease, and enjoy VAT and profit tax exemptions, all without a minimum capital requirement.
The Dubai Mainland business setup process entails the following key steps:
- Attain special approvals from relevant departments.
- Define the business activity and choose a trading name.
- Select a local sponsor.
- Upon obtaining initial approval, prepare a Memorandum of Association.
- Secure an office space and create a tenancy contract.
- After document submission and verification, the Department of Economic Development (DED) issues the business license.
Please be aware that obtaining a precious metal trading or gold trading license necessitates external approval from the Security Industry Regulatory Agency in Dubai.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Cost of Establishing a precious metals and Gems trading license.
In Dubai Mainland cost typically starts at AED 28,040. However, the total expense can varies based on factors such as office space, visa allocation, and location. To determine the precise licensing cost for your specific requirements, it's advisable to seek guidance from a Business Setup Advisory service in Dubai, UAE.
When deciding between a Mainland or Free Zone license for your gemstones and minerals trading business, consider your business goals. Mainland licenses allow trading within the UAE market and engagement with the government, while Free Zone licenses offer tax benefits and repatriation of profits. Your choice should align with your trading strategy and growth plans.
Starting a gemstones and minerals trading business in the UAE offers several benefits, including a supportive regulatory environment, 100% foreign ownership, access to a global business hub, a skilled workforce, a favorable tax regime, and cultural diversity. These advantages make the UAE an attractive destination for such businesses.
You can choose between a Free Zone Company, which provides foreign ownership and tax benefits, and a Mainland Company, which adheres to UAE laws and is suitable for domestic market operations. The choice depends on factors such as your business activities, target market, and long-term goals.
To start a precious metal trading business in DMCC Free Zone, you need permission from the Free Zone Authority, submit required documents including proof of the chosen trade name, shareholders' passports, an initial approval, a comprehensive business plan, and more. The process involves several steps, and it offers advantages like 100% ownership and tax exemptions.
To establish a precious metal trading business in the Gold and Diamond Park, you'll need to enter a rent agreement with the park, obtain initial approval from Jebel Ali Free Zone (JAFZA), submit a Memorandum of Association and partnership agreement to JAFZA, and receive the certificate of gold trading. This process allows you to operate in a hub for gold and precious metal production, purchase, and sale, with the benefits of 100% ownership, profit repatriation, and tax exemptions.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
