How to Start Foodstuff Trading Dubai Mainland?

Start Foodstuff Trading Dubai Mainland

Foodstuff trading is among the most profitable ventures you may conduct in Dubai because of the lack of agricultural development and extremely hot weather. The United Arab Emirates (UAE) is a large importer of food products. All these factors make Dubai an excellent location to begin this kind of business.  When considering starting Foodstuff Trading in Dubai Mainland, you should get ready to follow the complex procedure. Today, we are going to explore an in-depth guide to starting this company. Plus, we will explore the necessary information you must understand to begin this company. 

Benefits of starting your foodstuff trading business in Dubai Mainland

You can enjoy countless benefits by starting your foodstuff trading company in Dubai Mainland. The top benefits of setting up this company are mentioned below:  

• You can enjoy countless trading opportunities because Dubai is strategically situated at the crossroads of Africa, Asia, and Europe. 
• Dubai is a hub with a well-established infrastructure, minimal bureaucracy, and efficient custom processes that make it the ideal location for your future business. 
•   You can enjoy 0 percent personal income tax in Dubai. In addition, you can enjoy 0% Corporate Tax (If you have taxable income up to and equal to AED 375,000) in this city. 

License needed for setting up your Foodstuff Trading Business in Dubai Mainland

The Department of Economic Development (DED) is the government department that is responsible for issuing licensing and registration of corporate entities in Dubai. The DED’s process of licensing and registering is streamlined to offer ease of registration based on certain business activities of corporate entities. The Commercial Company Law (CCL) is the federal law that governs all companies in the Dubai Mainland. You must obtain a commercial license if you intend to start your foodstuff trading.  Remember, these companies are registered as a Limited Liability Company (LLC) that follows a 51 to 49 per cent shareholding structure. As per the UAE law, it is compulsory for a foreign-owned company registered to partner with the UAE national or local sponsor in the Dubai Mainland. So, the local sponsor will hold 51 per cent of the company shares and you will have 49 per cent of your business.   

Documents required to start your foodstuff trading business in Dubai Mainland

If you want to start your organization in Dubai, you should gather some documents. However, the exact documents you want to start your foodstuff company might vary based on several factors. The following is the list of common documents you need to begin this business in this region:  

• The tenancy contract and EJARI.
• The Memorandum of Association (MOA).
• Passport copies of all the shareholders.
• Visa pages copies of all the shareholders.
• A No Objection Letter (NOC) if any shareholders have a resident visa.

  We are reminding you again that this document list is not completed. Therefore, we suggest you consult Flyingcolour Business Setup to acquire the exact documents list you need to start foodstuff trading in Dubai mainland.   

Steps to set up your Foodstuff trading in Dubai Mainland

As we discussed below, you need to follow some steps to begin trading foodstuff in Dubai Mainland. We have listed the essential steps that you must follow to begin this in this region:  

1. Prepare a business plan 

Initially, you must create a detailed business plan. To create this plan, you should consider the type of food items you want to trade. Then, you should prepare a business plan including your business’s vision, marketing strategies, and financial details.  

2. Decide your company name

Once preparing your business plan, you should choose an appropriate company name, as all companies are mandatory to have an authorized business name. Here, you should select and submit three to four business names to avoid any delay if your favourite business name is already registered. Plus, you should also ensure that your chosen name adheres to all naming convention guidelines.  

3. Get the warehouse

Next, you should rent an appropriate warehouse or physical space to store your imported products. However, you should ensure that your physical space meets all government requirements to avoid any problems in setting up your foodstuff business. The following are the top requirements for choosing an appropriate warehouse:  

• All containers must made from high-quality materials and free from contamination. 
• You should always examine or monitor the humidity, temperature, and other essential factors.
• Proper food composition partition 
• Sanitization of the warehouse regularly

4. Get the license

After completing the above-mentioned steps, you should acquire a commercial license from the DED. In addition, you have to obtain a foodstuff trading license to start this business in this region.  

5. Obtain external clearance 

You may need some external clearance if you want to conduct additional activities you want to conduct. In addition, you need to acquire clearance from the Dubai Municipality in order to obtain a food dealing license. Remember, the Department of Food and Safety evaluates all your submissions and your Food trading license will be issued.   

6. Get the visa

You must get a visa if you are a foreigner and want to reside in Dubai for conducting your company. Therefore, you should make sure that you have an appropriate visa to start your foodstuff business.  

How can Flyingcolour Business Setup help you?

The foodstuff trading in Dubai mainland can be profitable for you if you are looking to begin your business in this city. However, you need to ensure you are on the right path. Otherwise, you must face many problems while beginning your foodstuff trading. Therefore, you should work with Flyingcolour Business Setup, as our experts will ensure you obey the right process to start your business. Plus, our experts will also prevent you from meeting any problems while starting or operating your foodstuff business. To learn more about foodstuff trading in Dubai mainland, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  20/07/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.