When it comes to gold dear – the more the better! The UAE is the ideal place for Gold Trading Business Setup. The gold trading Business has an extensive and rich history in the UAE. In October last year, the UAE government laid out plans for a federal gold trading platform to increase and strengthen the nation’s status as a central hub for gold trading. Hence getting a License for Gold Trading in Dubai is indeed an excellent idea!
Conspicuously, the attachment we have to gold is nearly as old as the world itself! The treasured yellow fellow is desirable in any form! From small nuggets to bullion and bars to anything in between. People the world over have been swayed by flashy beads, glittering gold, and blingy gems throughout history, renouncing land, possessions and even their independence to take hold of a scintillating trophy. Gold is way more than just a precious metal to possess! It’s a symbol of prestige, affluence to show off, a friend in need, an investment for forever, a ritual to fulfil, a keepsake to cherish, a feeling of security, pride to wear, fame to win, a currency to spend, a gift to loved ones, a legacy to pass on to the next generations and of course, an ornament to not just adorn individuals and religious idols but buildings and gadgets (think 24-carat gold iPads offered by Burj Al Arab) as well. Maybe this is why the more gold you have the more it whets your appetite.
Why Setup Gold Trading in Dubai?
What better place than the “City of Gold” itself to set up a gold business in the UAE? When you are in Dubai you can’t keep yourself from going to Gold Souk (the emirate’s traditional gold market) and buying anything gold. Whether it’s due to the wider variety, affordability or purity, Dubai’s gold is the most coveted commodity worldwide. Imagine, those hundreds of thousands of tourists and residents who are obsessed with gold and flock to those dazzling gold shops to buy gold items of their choice. Need we say more? Investing in a gold business in Dubai is definitely a safe bet!
It’s not hard to see, why a host of wealthy foreigners including Russian investors are looking to establish their presence in the United Arab Emirates through a business of precious metals or gold trading in Dubai. Dubai, without a doubt, is one of the most expensive places in the world however when it’s about precious metals trading, the city is the cheapest. Thanks to the exclusion of taxes in the emirate and the thriving ports of the UAE. The country recently launched secured e-marketplace trade flow platforms and “Good Delivery Standard” for bullion and precious metals to reinforce its position as a trusted and sought-after global gold trade hub. Between 20 and 40 per cent of the global gold stocks pass through Dubai every year, according to experts. The goal-digger emirate of the UAE, remarkably, accounts for around 29% of the global gold markets, reveals the industry website bullion street. Let’s look at some commonly known reasons why Dubai is the best place to start a gold business in the UAE:
- Of the eleven gold refineries in the UAE, the majority are located in Dubai
- The world’s top large-scale gold refineries call Dubai home – PAMP, Gulf Gold Refinery, Nadir Metal Refinery/Nadir Gold DMCC, Emirates Gold and Al Etihad Gold, to name some
- Availability of low-priced home-grown bars, thanks to bigshots like PAMP, a leading Swiss gold manufacturer
- The smartest gold trading tools are now available to everyone
- Indian gold has been clubbed with other items that are eligible for zero import duty in the light of the trade pact signed lately by the UAE with India
- Ethical sourcing is being embraced by companies all across the UAE. For instance, DGCG and MCC free zone establishments
- Investing in the gold market is anyway one of the most rewarding business opportunities available in Dubai. The industry adds around 20% to the UAE’s overall GDP, with Dubai accounting for the majority of it
- Companies investing in the gold business in Dubai can relish myriad perks offered by the UAE Government and industry
- Registered dealers, with the VAT reversal charge system in place, don’t have to charge VAT when selling select articles to other registered dealers who intend to resell or create them
- Precious metals including gold and diamonds are traded for lead on various exchanges
Gold traders in Dubai can also make the most of economic zone-specific benefits and enjoy a host of benefits such as tax exemptions on imports and exports, 100 per cent repatriation of cash, full business ownership, consumer protection and hallmarking, amongst others
- Dubai is home to around 30 free zones offering a multitude of incentives to businesses such as Gold & Diamond Park and DMCC. Companies located in mainland zones like Gold Souk also can relish several benefits
- Gold is the most reliable commodity on earth which can protect one during times of economic stability. Investors can hedge against inflation by utilizing gold provided they are adequately leveraged as the gold prices keep fluctuating
- Investments in gold have a huge potential for profit and liquidity which simply means tremendous profit
- Gold accounts for a massive share of items imported into the Emirates
- Dubai gold investment can be trusted to guard against economic depreciation as it is one of the safest alternatives available which needs no research unlike other investment options such as equity, bonds, fixed deposits, etc.
- Dubai is responsible for nearly 80 per cent of the total UAE gold imports and exports (measured either by volume or value) according to DMCC’s own statistics
- There are myriad ways you can plunge into the abysmal depths of Dubai’s most glitzy sector
- Dubai is gold galore! The collection you can have in your gold shop is sure to make the visitors and buyers gasp with admiration
What opportunities in Gold Business Setup in Dubai, UAE?
Knowing that Dubai’s gold is lauded all over the world and there is nothing you can’t buy here, it might dawn on you as a surprise that the city that is worldwide infamous for its overloaded gold markets, actually is gold-poor just like its partner emirates when it comes to commercial gold mines. Most of the gold that you see in the emirate is imported from gold-rich regions of Africa and Latin America. The catch is the scarcity of gold in Dubai only has opened the doors to myriad business opportunities.
How can an investor not think of gold, when it comes to setting up a business in Dubai? As they say, “He fishes well who uses a golden hook.” if you are looking to start a gold trading business in Dubai, the city of gold you are sure to roll in money. The best part? When you choose the gold industry to establish your presence in Dubai you have a wide range of business options such as gold sourcing & trading, trading, gold mining, gold refining, gold financing, and gold investment business. Not to mention gold bars and bullion trading in Dubai.
How to get License for Gold trading in Dubai?
The first step towards becoming a gold trader in Dubai is, of course, obtaining a gold trading license. Once your Dubai gold trading business is in place the second mandatory step is the company’s AML registration in Dubai. You must be aware of both the processes to ensure a smooth and flawless business setup journey and successful launch of the business operations while being compliant with the UAE Law. And the joy of joys is, you can consult business formation specialists in Dubai for the same. Probably the one like Adam Global that can help you every step of the way – from choosing the right type of business license to registering the business for AML to anything that might crop up later. Whether you take the route to gold trading in Dubai through a business advisor or decide to do it all in your own steam, knowing the process doesn’t harm.
Gold Trading Company Setup In Dubai- Complete Process
The process of setting up a gold trading company in Dubai involves a series of steps.
Decide the type of gold business activity you wish to carry out in Dubai
The type of business license you need for your gold business in Dubai depends on the type of business activity you opt for. For instance,
- Trading or Commercial License: To perform trading activities such as gold jewellery sourcing and trading and non-manufactured precious metal trading
- Retail License: To retail the gold merchandise
- Professional License: To provide professional services. This includes functioning as goldsmith and testing gold & precious metals in laboratory
- Industrial License: To engage in industrial activities such as manufacturing of gold & precious metal articles, casting and cutting of gold & precious metals, refining gold
- E-commerce License: To sell gold items online via an official website
After the new amendment to the UAE Commercial Companies Law more than 1000 commercial and industrial economic activities in Dubai, Ajman, Sharjah etc. offer full foreign ownership. This list is accessible to everyone through the DED website
Find a perfect location for your gold trading business setup in Dubai
When you are planning to do gold trading in Dubai, location wise you have two choices at your disposal:
- Dubai Free Zone: Some of the best free zone location options for gold trading in Dubai includes Dubai Multi Commodities Centre (DMCC), Dubai Gold & Diamond Park and Jabel Ali Free Zone (JAFZ)
- Mainland Dubai: One of the best mainland location options for gold trading in Dubai can be Dubai Gold Souk. Now you can get 100% ownership of your mainland gold business in Dubai as well just like its free zone counterparts
Both the economic zones bring with them their own set of advantages and disadvantages. You may pick one keeping your business needs and goals in view along with the limitations each have.
Decide the legal structure of the gold trading company in Dubai
The legal form of your gold trading company in Dubai must be structured carefully as it can be challenging to switch to other legal structure after registering your business. Plus, the legal form of your company determines your tax rates, management and paperwork requirements, fundraising abilities, and a lot more. There are various options to choose from – some easy and quick to set up but with limited benefits, some not that easy and time-consuming to establish but with a number of advantages. For instance, sole proprietorships and partnerships are relatively easy to start unlike corporations, but they lack liability protection. A sole proprietorship is the most popular business structures amongst investors worldwide though. You may opt for any of the following legal forms for gold trading in Dubai:
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole establishment
- Holding companies
Take into account your gold business’s financial needs, risk and ability to grow while deciding one. Other factors that should be considered while deciding the business structure are Licenses, permits and regulations, Control, Capital investment, Taxes, Liability, Complexity and Flexibility.
Choose an appropriate trade name for your gold business in Dubai & register it with the applicable authority
The chosen business name under which you will conduct the gold trading business activities in Dubai must be unique and in line with the UAE business name norms and other relevant factors such as the legal structure and location of your gold trading business in Dubai. You may apply for the trade name for your gold business in Dubai through the website or mobile application of the economic department in the emirate as per the chosen jurisdiction. For trademark registration you have to approach the Ministry of Economy. Be informed that trade name certificates are renewable.
Draft a MoA (or Local Service Agent agreement if applicable) for your gold trading company in Dubai
You must have a completed and signed Memorandum of Association (MoA) and/or a local service agent agreement (LSA) of the business to proceed with your gold trade license in Dubai if the legal form of your gold business demands. For instance, you need an MoA if the chosen legal form is either of the following:
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
This must be noted that mainland businesses owned completely by non-GCC residents require a local service agent from the UAE. Be informed, your gold business in mainland Dubai under professional license must have a Local Service Agent. Check out here to ensure whether your desired gold business activity need a local sponsor or not. For gold trading business setup in Dubai, you don’t need one though. However, you may need LSA depending on the opted legal structure. Appointing the local service agent will be under an agreement attested by the notary public or the court. FYI, for MoA or LSA preparation and attestation you may approach not just UAE-based law firms, courts and notary public but also business setup firms like Adam Global to get it done on your behalf.
Obtain special approval to get license for gold trading in Dubai
To incorporate a gold trading firm in Dubai, one has to acquire special approval from SIRA (Security Industry Regulatory Agency, a nodal agency that regulates trading in precious commodities in Dubai. SIRA-approved gold trading license ensures that your facility has a good market space and exposure and is equipped with all the required security measures.
Complete the trade license application, submit it online along with all the paperwork and pay the application fees
Have all the required documents in place to apply for the gold trading license in Dubai and submit them along with the application form duly filled. Your payment voucher will be generated after successful submission. Make the payment and duly collect your gold trading license.
Additional Steps for Gold Business Setup in Dubai
- AML Registration followed by AML Policy Fomation and Implementation and Risk Assessment
- Trademark Registration
- VAT Registration
- Visa Applications
- Buying Payment Gateway
Businesses or dealers that deal with precious metals and stones including gold, silver and diamonds (Gold and Precious Metal dealers or DPMS) must satisfy the requirements prescribed in the UAE Law for Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) because they belong to the category of Designated Non-Financial Businesses and Professions (DNFBPs), regulated by the Ministry of Economy (MoE). In the light of the risks involved in the business, the dealers of gold and precious metal must comply with specific predefined steps to ensure AML compliance and steer clear of the hefty penalties set out by the MoE.
This goes without saying that being a one-stop shop for all corporate services in UAE, Adam Global has got your back if you need expert assistance in any of the above-listed services.
Need professional assistance in getting a license for Gold Trading in Dubai?
Setting up a gold business in Dubai involves tons of formalities and paperwork in addition to taking big-small decisions. One of them is of course consulting a local company formation expert such as Adam Global so you can let go of the fear of choosing anything wrong or taking unfavourable decisions and completing the paperwork. Plus, the paperwork can be taken care of guide you through every step of the process below, checking documents, managing applications, and liaising with all government and industry bodies on your behalf. obtaining a gold trading license in Dubai.
To be precise, being a gold trading business owner in Dubai is no less than a dream come true! Give your entrepreneurial dreams that golden wings by working with the right business setup advisors in Dubai, UAE. Book a free consultation with one of our best Dubai business consultants in Dubai today to obtain your Gold Trading license in Dubai.