How to Setup a Company in Dragon Mart -Dubai
Dragon Mart is one of the fastest-growing trade relationships in the world and the largest Chinese trading hub outside of mainland China. A Grand opening of Dragon Mart1 in the International city, of Dubai in the year 2004, has turned out to be a tremendous success. It houses more than 4,000 shops mostly Chinese-owned shops selling a dizzying array of manufactured goods, garments, machinery, jewelry, electronic goods, food products, etc.
The lively mega-shopping mall attracts more than 65,000 retail visitors a day, according to the Dubai-based developer. Recently, it has expanded by adding another 1.3 million square meters of space to an already astonishing 1.6 square meters. It promises to transform the city’s vision for 2021 into a Smart & sustainable city, a pivotal hub in the Global Economy, Customer experience.
Dragon Mart is the largest Chinese product market in UAE. A large number of traders uses this platform for trading Chinese product in this region. There are various industries in dragon mart dealing with different product including electronics, furniture and other household products and it make it one of the biggest business hubs in UAE. With the residual increase of chinse trade, residents, and tourists in Dubai, dragon mart gives more opportunities for doing business. With the huge success of dragon mart, another expansion is going to dragon mart 2. Its offers more outlets for retail shops, dining and entertainment etc
If you are one of the fortunate people who are looking to take a shop in Dragon Mart, we are here to support your business requirements. It is very important to understand the licensing options and Ownership for your new business in Dragon Mart. There are two types of Licenses available in Dragon Mart, Free zone License and DED License.
Both Federal law and free zone law are applicable in Dragon Mart. For the free zone, the Chinese investor can hold a 100% share of their own company. UAE nationals will not hold the company shares. So it will come under the category of the free zone license. Apart from the Chinese, other nationals can also establish a trade license in Dragon Mart. But it should be a Limited liability company. A local sponsor is needed for forming the company
Physical office space or shop is mandatory for the trade license. Dragon Mart has a specific area for each product. Nakheel properties offer a wide range of office space or shops in Drang Mart. The investor can directly lease the office space from Nakheel. The leasing department strictly follows the rules of the Dubai government and the Dubai land department. once the investors finalized the office space or shop, the commercial division of tarkhees will issue the trade license. The licensing process will take approximately 2 to 3 weeks time
1. Free Zone
A legal entity registered in Dragon Mart will be called a Free Zone Establishment (FZE) or Free zone Company (FZCO) depending upon the number of shareholders. Free Zone companies enjoy 0% corporate and personal tax, and 100% foreign ownership. You do not need a UAE Partner to form a company at Dragon Mart. The approximate cost for a Normal trading License is AED 25,000 excluding the 7.5 % market fee for the shop. There are some activities which might require third-party / authority pre-approval – accordingly additional Costs and requirements might be applicable.
2. Dubai Mainland
Mainland Company is an onshore company licensed by the Department of Economic Development (DED) of the Dubai Emirate. Companies having valid registration and license in any Other Emirates are also eligible to open a branch Company in Dragon Mart. The main difference between Mainland and the Free zone is the ownership regulations.
Initial documents for the trade license process
– Investor passport copy
– Investor personal details
– Trade name details
– License Activity details
For all new entrepreneurs, it is always necessary to seek advice from their Business Consultants in order to choose the right type of License by minimizing the associated risks pertaining to Local regulations. We at Flyingcolour with a team of asset managers, and business consultants; have a sound knowledge of local laws and regulations, which will eventually help you to frame a suitable structure for your business.
This blog post is written by Mr Sajith & Senthil jointly. Feel free to call our Business Adviser today for a quality consultation relating to your queries. Please send an inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.
