Guide on Obtaining a Gold Trading License in Dubai, UAE
Gold Trading License in Dubai, UAE
Dubai is the perfect place to materialize your Gold business idea. It is known as the city of gold because of the wider opportunity for entrepreneurs to execute their marketing skills there. To start with, you have to obtain a Gold License in Dubai and fulfill other formalities in establishing your business.
Entering the shining yellow metal market in Dubai can be a complex act, but worth investing your time, effort, and money. There are multiple ways of expanding your gold business in the UAE.
What is a Gold Trading License Dubai?
The Dubai authorities require an official trading license to carry out gold business in the country. You need a trading license in Dubai not only for gold businesses but across all sectors and trading spheres. By acquiring a gold trading license, you can carry forward gold-related trade. The city has a lucrative global market for the yellow metal, with over a hundred retailers in various forms in the profitable business.
Given the vast competition in the gold market, the government has strict rules for every retailer and beneficiary to follow when obtaining a license. The Flyingcolour Business Setup and Services will help you understand the country’s rules and protocols and assist you in establishing your company’s name in the gold sector.
How to Obtain a Gold Trade License in Dubai?
You should follow the regulations set by the Gold License Advisory for Dubai, UAE, and get your legal validity to operate in the field. Here’s how-
Step 1. Give a Company Name
To appropriate the Gold License Dubai, you have to formally provide a company name. But do adhere to the naming policies of the UAE. That is, avoid any religious names or the use of abusive language. Not only for the sake of formality but for branding perspective too, a company’s name will prove helpful. Flyingcolour Business Setup Services will guide you in shortlisting the company names and help you ultimately pick a name following the setup rules.
Step 2. Specify your Business Type
Within the broader gold business sector, specify the business activity you choose to perform. The Department of Economic Development (DED) has listed over 2000 activities to carry out throughout the nation. Some of the gold-related practices include gold retail, manufacturing, or gold imports.
It’s important to decide on the activities your company wishes to conduct before applying for the trading license. Once the license is issued by the Gold License Advisory for Dubai, UAE, you can’t include additional activities other than the allowed set of activities. Doing anything beyond the purview of your license will cost you penalties from the authorities.
Step 3. Area of Carrying Your Business
Once you think about the type of gold business, it’s important to decide on the operation area. In Dubai’s context, you have two options. That is, you can choose between Mainland Dubai and the Free zones. As a free zone company, open a branch and get a distributor before you trade. Otherwise, you can carry your business without this extra trade if you choose to function as a mainland company. But it would be best if you tied up with the local sponsor having a 51% share of your company.
Each area has its regulations, restrictions, and perks. For example, when operating in the Free zones, you may have some tax relaxations and other related provisions. Flyingcolour Tax Consultant will break down the technicalities for you and can be your right hand in deciding the best option for you.
Step 4. Submit the Required Documents
The document requirements also depend on the business jurisdiction you selected earlier. Generally, the following documents are needed-
- Application fees.
- Passport-size photo.
- Fill up the application form.
- Completed resume of the manager.
- Photocopies of the passports of all individual members of the company.
- Relevant documents related to your company, such as the approved company name, approval from the security industry regulatory agency, etc.
Finally, when you gather the prerequisite documents for the gold trading license in Dubai, UAE, could you submit them to the relevant authorities? The application fee for DED for Mainland and Free Zone regions can be different.
Step 5. Set up a Corporate Bank Account
As per the Gold trading regulations in UAE, every practicing business company must set up a corporate bank account for fulfilling financial transactions. The newly created bank account will be based on the financial aspects of your trading business. If necessary, apply for your visa as well as visas for your team members and wider the operation base of your business.
Types of Gold Trading Business
Dubai has a friendly environment for various business structures to develop and flourish freely. Here are some types of Gold trading Businesses in the UAE-
- Owner or Sole Proprietor of your gold business
- Public or private joint stock company. You can issue shares to the public through an IPO, also known as an Initial Public Offering.
- Partnership where you tie with a partner and have shared financial duties and privileges.
- Limited Liability Company is a flexible corporate firm providing members with limited liability.
- Free Zone Company, which operates in the Free Zones, has full ownership rights to foreign investors.
Tips for Obtaining a Gold Trading License
Some of the tips for obtaining a gold trading license in Dubai are as follows:
- Getting a license in Dubai is easier when you strictly comply with the rules and regulations laid out by the authority.
- Some basic capital is required for securing the trading license. Be ready to spend between AED 5,500- AED 8,100 if required.
- To avoid any hassle, consult an experienced professional consultant like the Flyingcolour team.
How Can Flyingcolour Help You?
FlyingColour Business Setup Services will help you in every step of your gold trading business setup in Dubai. The team of experienced professionals will guide you with the company name, deciding on the area of operation between the free zone and the mainland area, and clearing the tax formalities. In this competitive market, you can consolidate your base in Dubai with consistent help from the Flyingcolour team.
To learn more about Starting a gold trading business setup in Dubai, book a free consultation with one of the Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.
Please note that this article was published on 29/04/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
