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.
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.
There are many good reasons to start your own Gemstones and Minerals business in Dubai. Let's explain the most important ones for you.
Choosing the right business structure is vital when launching a your Business in Dubai. Options include:
Consider factors like your business activities, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.
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:
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:
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:
Please be aware that obtaining a precious metal trading or gold trading license necessitates external approval from the Security Industry Regulatory Agency in Dubai.
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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.