Dubai is an interesting place to start a jewelry business because the city is famous for luxury goods and a dream economy. This article will help you understand the entire process, costs, and requirements for opening your company.
Advantages of Starting a Jewellery Business in Dubai
- Global Market Access: Owing to the Dubai location, it serves as a gateway to the Asian, European, and African markets.
- Luxury Demand: The local, expatriate, and tourist population is highly interested in luxury jewelry.
- Affordable Taxation: There is an absence of personal income tax; moreover, it has a very business-friendly environment regarding tax.
- Strong Infrastructure: Businesses operate with state-of-the-art infrastructure support in storage, transport, and exhibition.
- Cultural Demand: Jewellery represents a significant part of cultural and celebratory occasions in Dubai, ensuring its continued demand.
The potential of the Jewellery Business in Dubai
- A boon to Expatriate Drivers: Dubai’s rapidly expanding expatriate population translates directly into high demands for custom, cultural, and premium jewelry.
- Tourists Footfall: Shoppers rejoice–gold and diamond jewelry shopping in Dubai wakes up paradise for tourists.
- Events and Festivals: Events such as the Dubai Shopping Festival and other cultural festivals present great platforms for business vibrancy.
- Sweeping Premium Pricing: Buyers in Dubai are prone to premium pricing in exchange for quality and exclusive designs.
Do I Need a Shop?
No, opening a jewelry shop to start a business in Dubai is unnecessary. Instead, you can rent office space for your business and operate from there. This allows you to manage the operational costs based on your available budget. However, regardless of whether you choose a shop or an office, your premises must comply with the licensing requirements stipulated by the DED.
The cost of launching a jewelry company
This is how one breaks down the significant expenditures:
- Initial Processing Fee: AED 1,350
- First-Time License Fee: AED 15,000 + 5% of the total rent
- SIRA Approval: Estimated at AED 4,500
Significant: A registered service provider ought to carry out CCTV installation. SIRA must approve within two months, or a fine shall be imposed by way of AED 2,500-4,000.
Corporate Tax Registration
All businesses in the UAE must register for corporate tax. Make sure that your jewelry business is registered as per the tax regulations. Get registered to avoid penalties.
Note: Corporate tax compliance signifies credence and ease in day-to-day financial operations.
VAT Threshold
All jewelry businesses must be registered for VAT if they make a taxable supply of goods and services exceeding AED 375,000 a year.
Implication: VAT compliance allows you to collect input VAT back, lower your expenditure, and stay legal.
Bank Account Setup
Opening a business bank account is essential for tracking company finances aptly. It also augments the transaction process and builds trust among customers and suppliers.
Tip: To get detailed instructions on opening a business bank account, read our dedicated guide on Business Bank Account Setup.
RAS Corporate Advisors: Your Trusted Partner
Setting up a jewelry business in Dubai requires work with various regulatory requirements for approvals and adherence to compliance. RAS Corporate Advisors assist entrepreneurs in establishing their businesses smoothly while ensuring adherence to the necessary legal and financial norms.
You are welcome to reach out today and start this long journey of setting up a jewelry business in Dubai.