There are numerous incentives available in Dubai to large businesses as well as small and medium enterprises. An important factor that enhances the growth of small businesses in Dubai is low taxation. One of the most lucrative small business is a grocery store in Dubai.
Benefits of a Grocery Store in Dubai
A grocery store is extremely beneficial for small traders. One can expect to earn a huge income by investing little in this business. The grocery store sells necessary items to people. Dubai has a huge population (mostly foreign residents) and their numbers are increasing continuously. Most of the residents in Dubai are well off and can easily afford to purchase grocery items in large quantities. There is also not much problem for them to buy expensive items as well.
Therefore, it is almost certain that a grocery store in Dubai will provide economic benefits irrespective of its location. The only thing you need to care about is to provide healthy and fresh items and also to select a place with less competition.
Procedure to Set up a Grocery Store in Dubai
There are several steps you need to take before setting up your grocery store in Dubai. You need submission of all important documents to relevant authorities, register your trade name and get approval from related ministries and departments. But the most important part of setting up a grocery store is to obtain a grocery license.
Documents required for Grocery Setup in Dubai
Documentation is a necessary process for opening any type of business in Dubai including a grocery shop. Following are important documents that you will submit during registration and licensing process:
- Duly filled application form
- Copy of business plan
- Copy of visa and passport of shareholder
- NOC (No Objection Certification) from sponsor
- Tenancy contract
- Trademark registration from MoE (Ministry of Economy)
- Approvals from Dubai Municipality
Procedure to obtain Grocery License in Dubai
Licensing is the most important part of starting a grocery store in Dubai. Therefore, it is important to know and follow the procedure completely. You need a commercial license to open a grocery store in Dubai.
Following are important steps for obtaining grocery store license in Dubai.
- The first step is to make all the important decisions regarding your business formation according to your investment. It is important to decide about your business location, funds, company structure etc.
- The second step is to find an appropriate local sponsor for your grocery store. This local sponsor will own 51% of your business but you can deal with him/her about annual share.
- The next step is to submit application and all important documents to relevant departments.
- After submission of documents, DED (Department of Economic Development) will grant initial approval if there is no flaw in documents.
- In the next step, you will choose and submit trade name of your business. This trade name must comply all requirements of DED. It is also necessary to use the same name on the signboard of your grocery store.
- You can submit tenancy contract and your finalized location before initial approval. But if you could not do so at that time, then it is mandatory to fulfill these requirements at this stage.
- The 7th step is to obtain your grocery license from DED. This license will also mention all the grocery items that you will be allowed to sell in your grocery store.
- The last step is to apply for and obtain your investor visa for starting your business. You can also apply for employee visa and family visa according to your requirements and regulations.
Rules and Regulations for Grocery Store in Dubai
In order to create and maintain a healthy and business atmosphere, the government of Dubai lay a few responsibilities on all businesses. It is necessary to follow these rules completely. Failing in that can also result in the closure of your business.
Following are a few important rules for grocery stores in Dubai.
- You need pre-approval from DED for any type of advertisement, marketing, banners etc.
- Trademark of groceries should be registered with MoE (Ministry of Economy).
- Selling of medical, cosmetic, pharmaceutical and herbal products is completely forbidden under grocery license.
- Selling products with fake trademarks is prohibited.
- You will require a VAT registration number and file tax return. A proper invoicing system is also necessary for all purchases in grocery store.
- Business activity is not allowed after 12 am. A special permit from authority is required to open your grocery beyond this time.
- Prices must clearly be mentioned on all products.
- Date of production and date of expiry must also be present on required products
- Groceries are not allowed to announce any discount or special offer without approval from the authority.
- Only grocery items as mentioned in the license can be sold to customers
Cost of Grocery License in Dubai
The cost of grocery license depends on several factors. The size of your grocery shop along with its jurisdiction can increase or decrease the license fee and other important costs. You can easily find the total cost of your desired business through a reputed business consultancy firm like RIZ & MONA Consultancy.