Grocery Business in Dubai

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Grocery License in Dubai:

The retail business in Dubai is an ever-growing and one of the finest businesses to start. The retail business is one of the primary revenue generating sector in the UAE and grocery business in dubai, is a key retail business used primarily by people for their day-to-day requirement. In 2018, the retail market of Dubai reached to AED 129 Billion (Source: Khaleej Times, June 3, 2018).
Moving on to the topic on hand, setting up a grocery license in Dubai is a fairly simple process, especially if it is done with the support of an expert business setup service provider consultant sand a good interior decoration/fit out company. To launch a grocery business in Dubai, one needs to understand the requirements and cost factors associated for licensing of the same.
The Department of Economic Development (DED) in Dubai has a set of guidelines and rules for a grocery business setup in Dubai. The business owners should follow all these regulations to get his/her grocery business registered and functioning in Dubai.

Activity Detail

The activity allowed for grocery business setup in DED, Dubai is as below:

Activity name: Grocery Store
License Type: Mainland (Commercial License)
Activity Description: Includes commercial firms whose activities are based on the marketing of certain consumer products and goods, such as fresh, preserved and canned foodstuff, household utensils, and detergents.

Important Factors for Grocery license in Dubai

• The Logo and Corporate Identity: There is a unique logo trademarked in favor of the Department of Economic Development (DED) Dubai which every grocery business owner must use. If you’ve stayed in Dubai, you may have seen the green and red ‘G’ logo used by groceries around you.
• The External Finishes: The grocery store should comply with the Dubai DED and Dubai Municipality external finishes regulations for appearance, facade, walls and entrance doors.
• The Interior Design: The fixtures and display units, storage units and equipment’s should comply with the Municipality regulations for the grocery set up. The municipality has laid down rules with regards to the reception/checkout stand, racking system, storage areas, refrigeration, etc.
• Operational Requirements: The operational requirements should comply with the requirements of Public health and safety department in Dubai Municipality.

External Approval

The procedure of setting up a Grocery includes licensing from Department of Economic Development, Dubai and an approval from Dubai Municipality.

Cost of Grocery License in Dubai

The license issued for grocery setup will be a commercial license. Dubai Govt. recently reduced the licensing fee and currently the grocery license fee in Dubai will be Approx AED 17,454 (US $4755). Also 2.5% of annual rent of the shop will be the market fees for the grocery license. The shop rental will additional cost and will depends on geographical area and size.

Time frame for Setting up Grocery License in Dubai

Approx time frame for setting up grocery license in Dubai will depend upon the clearance from the Dubai municipality relating to the shop fit out.

Municipality Guidelines for grocery License in Dubai

• Sales policy shall be declared to the consumer by a suitable means of declaration including the return, replacement or reparation of the goods.
• Any existence of fake goods or products in the local market should be informed to the concerned department.
• Placing the advertising sign boards on the front glass of the store shall be done after obtaining prior approval from the department.
• The actual business should be carried out at the location registered in the license. Should obtain prior permission before changing the business location.
• The grocery business set up should comply with the Dubai Municipality rules and regulations and Municipality has the rights to regulate it.
• The consumer should receive an invoice for the goods purchased.
• Any goods carrying a fake trademark should not be sold.
• Relevant permit is required from authority to install coin-operated machines.
• Groceries are allowed to sell cigarettes only and no other tobacco products are allowed. The sale of smoking equipment’s and gas refilling boxes are also excluded. Cigarettes are not allowed to see sold to people under 20 years of age and stores near to mosques.
• If the grocery is having a warehouse at separate location the sign board is required to be fixed containing the name of warehouse and grocery.
• Any changes or modification in the business license are not allowed until obtaining prior permission from the authority.
• The display, promotion and sale of fabricated goods are not allowed.
• The name on the signboard and the commercial name on the license should be the same.
• It is not allowed to sell or store any flammable or explosive goods.
• No stores are allowed to participate in promotional campaigns or carry out any private promotional offers unless they had obtained a prior permit from the authority.
• The source of goods to be displayed should be recognized and precautions to be taken if the goods are purchased from a vehicle with no commercial names and is not issuing any invoices.
• No sales for special offers and discounts are not allowed without permission from authority.
• The prices of the goods and commodities should appear on them.
• Relevant permit is required from authority to conduct business after 12 am.
• Wholesale of goods are not allowed to carry in groceries.
• The goods production date and expiry date should be mentioned on them.
• The trademark shall be registered for its protection at the Ministry of Economy.
• The groceries are not allowed to sell any herbal, medical, pharmaceutical or cosmetic products by law.
• The laws regulating the consumer’s rights should be considered in grocery business. For example on the invoice it should not contain that the goods are not exchangeable nor returnable.
• Not allowed to charge additional charges from consumers for using the credit card.

To understand the requirements from both the departments, the costing and the process, do contact Flyingcolour for detailed information and seamless setup process.
This blog post written by Mr. Sajeev, Business advisor at Flyingcolour Business Setup in Dubai, emphasize in providing the best advisory and customer satisfaction to clients. For any help with making any decision in choosing the right activity for your business setup in dubai, you can reach us at any time.Feel free to call today for a more detail. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.