The cosmetics trading in UAE is booming. One out of 10 people spends AED 60,000/- in a year on personal grooming products. The social impact of self-grooming is considered high in UAE. Also the growth of cosmetics industry is projected at 4% through 2017-24. All these and other factors as well are making many entrepreneurs take interest in starting cosmetics business in UAE.
Getting the Cosmetics License
The cosmetics business can include the importing, manufacturing and trading of cosmetics products. Getting the trading license is no different than any other trade license. The entrepreneur must apply for the new license to Department of Economic Development (DED) and also must provide the Ejari (Annual Rent contract for office/shop) during registration. Upon payment of the final voucher the license will be issued from the DED. The trading license needs to involve an UAE National as the 51% shareholder.
Public Health and Safety Department
All the traders, manufacturers and importers need to go through a process called cosmetics, personal care and perfumes label assessment application procedures. This is required to ensure the conformity of cosmetics, personal care products and perfumes to the conditions and specifications of the implemented standards. These allows importers, producers and traders of cosmetics, personal care products and perfumes to avoid the rejection of their shipments that arrive to Dubai’s ports or avoid withdrawal of their product from the domestic market. If the product is already registered in UAE, there is no need to register again.
Document Required for Cosmetics Business License in UAE
The company registration documents are very simple, including partners passport copy, visa copy (visit, residence or entry stamp). For product registration, it may require the certificate of free selling from the country of origin, analysis report, certificate of ingredients source etc. Once the eligible documents are provided, the license will be approved with no remarks.
For importing also the NOC from the Public Health and Safety Department is required. The manufacturing of cosmetics also will involve the Dubai Municipality Environment Department.
The trade license cost will be approx AED 17000/-* (this does not include any cost regarding the assessment from the Dubai municipality; if product registration is required).
The license is renewable every year. For introducing any new product in the UAE, it needs to be registered which is valid for 5 years, after which it again needs to go through few assessments.
Impressive appearance is an integral part in the society of UAE and with the coming EXPO 2020 this business is projected to grow faster. As people prefer good quality and international brands and now organic products, the forecast for this activity is really shining.
*The rates are subject to change as per UAE Government policy
This blog is written by Ms. Ananya, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. She specializes in helping clients to get all kind of business and trading license in Dubai as well as across anywhere in UAE. If you have any question regarding setting up a cosmetics business in UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.