How to Open a Retail Shop in Dubai

Starting a retail business in Dubai can be a highly rewarding decision. Dubai, the center of worldwide trade, provides fertile ground for retail businesses of all kinds. The advanced infrastructure, central geographic location, tax-friendly atmosphere, and supportive government make the establishment and conduct of a retail business easier compared to other places.

The retail industry of Dubai is one of the most promising ones worldwide, and if you want to take advantage of it, simply start a retail business where you can sell, buy, and trade a variety of products including food, medical products, beauty and cosmetics, clothing, electronics and gadgets, and more.

However, starting such a business requires following the right legal steps and fulfilling the right regulatory requirements. This guide will provide you with a clear roadmap on how to open a retail shop in Dubai, the process, costs, and other details.

Dubai’s Retail Market Overview

Dubai’s retail market is one of the most promising in the region. Retailers in the city cater to a multicultural and affluent customer base with diverse and luxurious tastes. With a growing population and rising tourism, the demand for both everyday essentials and specialty retail products continues to increase. The widespread availability of high-tech internet, smart devices, and a highly literate population has also boosted the online and e-commerce sector.

Did you know? The volume of retail sales is forecasted to reach USD 121 billion by 2026!

With such strong and expanding demand, ample opportunities lie in Dubai’s retail economy, making it an ideal time to start a retail business. Keep reading to understand how to open a retail shop in Dubai.

How to Start a Retail Business in Dubai?

Here is how to open a retail store in Dubai:

Step 1 – Market research and activity selection

Dubai’s retail ecosystem is dynamic and vast. Therefore, to understand the local demands, trends, and competition, you should begin by studying the market. This will help you identify what people prefer to buy, how different retail products are performing, and which category you are most likely to succeed in.

Once you have this clarity, choose your preferred activity from the list of government approved business activities.

Step 2 – Choose jurisdiction

The next question would be regarding preferred jurisdiction. You can open your retail shop in Dubai mainland or freezone. Both these jurisdictions have benefits to offer and their own features. Mainland lets you operate through the entire UEA market whereas freezones lets you enjoy no-question 100% foreign ownership. Choose the one that meets your business requirements.

Step 3 – Decide the legal structure

Next, choose the legal form of your business. You can establish a sole proprietorship, an LLC, a partnership firm, a joint stock company, or branch of an existing foreign company. Different structures have different tax applicability, ownership patterns and operational framework.

Step 4 – Register trade name

Get a name registered for your business with the appropriate authority. There are naming rules in UAE meant for businesses. Therefore, make sure your selected name abides by those.

Step 5 – Get the necessary approvals

Get initial approval along with sector specific permits. Initial approval is mandatory for all types of businesses, and it is issued by DET or freezone. in addition to that, some products may require permits from specific departments, For example, pharmaceutical retailing needs approval from DHA.

Step 6 – Lease out commercial space

Find your business a suitable commercial space. While finalising a space, make sure it follows the zoning and safety requirements set out by Dubai municipality and local authorities. You may choose the space as per your business requirements. In case of online retail shops or ecommerce business, you may get the option of operating through a virtual address.

Step 7 – Registration and licensing

Finally, apply for the business license with the DET or respective freezone authority. Fill in the application form, attach the necessary documents and pay the required fees.

Step 8 – Get the necessary visas

If you are a foreigner here in Dubai planning to do business, then you must the appropriate visas for yourself. Similarly, for your foreign employees and your dependents. Dubai offers a 10-year golden visa for entrepreneurs who fulfil certain conditions!

Step 9 – Open a corporate bank account

To manage your business’s transactions, open a business bank account. Please remember that you cannot use your personal bank account for business.

Step 10 – Hire Staff

For a retail shop, you will mostly need a manager and sales assistants. Make sure they have all the necessary work permits and insurance coverage.

Step 11 – Market your business

Now that your business is all set up, it is time to talk about it. At this stage, your focus should be on devising a strong marketing strategy. Promote your brand through proper channels such as social media as well as traditional advertising.

Cost of Retail Business License in Dubai

The cost of a retail business license in Dubai starts from AED 20,000*. The cost depends on the type of activity, your selected jurisdiction (mainland vs freezone), and other business factors.

To get more accurate costing details, you can contact us.

Documents Needed for Retail Business License in Dubai

Here are the documents that are typically required for registering a retail business setup in Dubai: 

• Copy of valid passport
• Passport sized photographs
• Copy of residence visa and Emirates ID, if applicable
• Lease agreement or title deed of office space
• Trade name registration certificate
• Initial approval certificate
• Bank reference

Additional documents may be required depending on your business activity, scope of license, selected jurisdiction, etc. A business setup expert at Dubiz can help you with the entire documentation process.

Benefits of Opening a Store in Dubai

Among the various types of businesses in Dubai, retail remains a significant one because of its versatility and profitability. Here are the advantages enjoyed by retail businesses in Dubai:

1. Large customer base: The demand for products and services in the UAE is huge. From daily essentials and groceries to luxury items, there is a large market to cater to.

2. Expansion opportunities: The retail sector of Dubai is vast. There are so many products you can deal in – be it pet supplies, clothes, cosmetics, beauty, electronics, medical supplies, or other items.

3. Affluent and spending population: With high per-capita income, you can target customers who are willing and able to spend. This creates scope for premium pricing for certain products.

4. High-quality infrastructure: The advanced infrastructure, facilities, high internet penetration, and high technology adoption, all make the conduct of retail business easy and efficient. Especially with tech literacy, the demand for e-commerce is rising rapidly.

5. Strategic geographic location: Dubai is located at a prime global location, making it a perfect gateway to international markets. You can target international clients and build a global brand.

6. Taxation benefits: Dubai’s taxation policy is very liberal. There is zero personal income tax, corporate tax exemptions for small businesses, and import–export duty exemptions. Small, medium, and international ventures can retain more of their profits instead of paying them away as taxes.

7. Shopping destination: Millions of visitors come to Dubai every year, and there is little chance they will leave without shopping. Tourists from different parts of the world flock here to buy high-quality goods.

8. Easy business setup: The process of business licensing and incorporation has been streamlined by the government. You can apply for your license, visa, and essentials through online portals. Also, the minimal bureaucratic formalities ensure fast and cost-efficient processing.

Conclusion

Entering retail business in Dubai is a preferred choice for many entrepreneurs. The promising consumer base and excellent business choice provided by Dubai makes the conduct of retail business profitable and desired.

However, to operate your business legally, you will need to seek the appropriate permissions from the government authority including your business license, permits, and visas. Therefore, you must know how to open a retail shop in Dubai legally. By following the business setup process diligently, it should not be that difficult to get started quickly. And to accelerate the process further, you can get help from business setup experts in UAE.

How Dubiz can help with your Retail Business Setup in Dubai?

Dubiz Business Setup is a company formation consultancy based in Dubai, UAE. We specialize in company formation across the UAE, along with compliance and marketing services. To open a retail shop in UAE, you can get assistance from us, and we will ensure your business gets started exactly as you plan.

Complete business setup:

We will help you with every business setup need in UAE. We will get you your trade license, business visa, corporate bank account, office setup, and all other legal requirements sorted.

Visa and immigration:

Our experts will handle your visa and immigration-related matters as well. We provide assistance across all visa types in UAE including investor visa, golden visa, employee visa, family visa, etc.

Office solutions:

You may want your retail shop to be located in premium space, and we’ve got you covered. Our business centers are located in prime locations and offer every facility you may be looking for.

Tax and compliance services:

Businesses in the UAE must register for corporate tax. If your annual income is more than AED 375,000, you are required to pay tax. Similarly, your business may also need to register for VAT. Tax compliance is crucial in the UAE, and any mistake can cost you significantly. We handle every aspect of your business taxes so you can be at ease.

Banking assistance:

For businesses, we exclusively offer business bank account opening assistance. Your bank account gets operating fast, and you can begin your transactions without facing any issue.

To know more about our services or to speak to our consultant, use any of the below given channels:

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co