Dubai is not just an abode for multiple opportunities and trading avenues but also home to a large and growing population. People hailing from every corner of the world come to Dubai in search of business and career prospects. However, these million-plus residents have different needs and wants when it comes to essentials such as clothes, food, and other necessities. To cater to these incredibly diverse needs, it is ideal to open a grocery store in Dubai and fulfil the varying demands of the people.
Since every business is different and every business structure follows different sets of procedures and guidelines, the UAE government has laid out an easy process for starting a grocery store business in Dubai.
How to open a grocery store in Dubai?
A grocery store in Dubai has a straightforward incorporation procedure. The essential stages mentioned below will help you get started with your business launch –
Do your research and planning
Starting a grocery business in Dubai requires in-depth research and detailed planning of the prime locations, the nearby communities, the products you will need in the store, the company structure, the business license, initial investments, reserve funds, and the feasibility of the projected venture.
Choose your business activity
The next step is to determine the kind of grocery store you want to open. Some of the options are a neighborhood convenience store, a specialty store with organic or imported goods, or a discount grocer. The specific activities you choose will determine the type of license you can apply for. Also remember, operating outside the listed activities in the license can lead to serious trouble.
Gather the required documents
Documentation is mandatory especially when you are setting out with a new endeavor. For a grocery store business, you would require the passport and visa of the owner along with the tenancy contract, Ejari, Municipality approvals, trademark registration certificate, and other documents. Make sure to keep these documents handy for a hassle-free procurement of a grocery store license.
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Get the initial approval
As per the guidelines laid out by the Dubai government and the Department of Economic Development (DED), the business owners need to obtain initial approval from the authorities to proceed with the incorporation process. It certifies that the UAE government has allowed the proposed grocery store to be established in Dubai.
Select a trading name
The DED approves the trade name and therefore, it should be in accordance with the DED’s guidelines. That means it shouldn’t include any derogatory terms or controversial words. It shouldn’t refer to any Gods or religious deities. Most importantly, it should be professional and unique. Also, ensure that the approved trade name must be the same on the license and the signboard of the grocery store.
Find a suitable location
Your location will define the success of your business. For grocery stores, residential sites and malls are the most feasible locations. Once you have finalized the location, draft the tenancy contract and get the Ejari.
Apply for a license
Every business activity is categorized under a specific license type. Basically, there are three types of business licenses in Dubai – Commercial license, Industrial license, and Professional license. A grocery business would be classified under a commercial license.
After obtaining a grocery license, the store owner can only sell things listed as grocery items. Any products related to medical, herbal, pharmaceutical, or even cosmetics cannot be sold under this license.
Open a corporate account
Before you start sending or receiving money for your grocery store activities, it is vital to open a corporate bank account to manage business finances separately.
Apply for the required visas
Once you get your trade license, the visa process must start simultaneously. You can apply for an investor visa along with subsequent family and employee visas.
Documents required for a grocery store license in Dubai
Individuals planning to start a grocery business in Dubai must meet a few requirements. This includes the submission of certain documents that are mandatory for the setup process. Below listed are the major documents that need to be presented before the concerned authority: –
- The tenancy contract
- Trademark Registration, approved by the Ministry of Economy
- Ejari, approved by the Municipality
- The application for the business license
- The owners’ passport and visa
Benefits of opening a grocery store in Dubai
The booming economy and diverse population provide a very attractive location to open a grocery store in Dubai. It is an alluring and liberal area where opportunities for growth and development are vast. Although there are endless reasons to consider Dubai for a new business, here are a few essential advantages of establishing a grocery shop in Dubai –
- High demand – The constantly growing population, where most of the portion is occupied by expatriates, creates a high demand for a wide variety of groceries.
- Ease of business setup – Business setup is relatively easy in Dubai. The Dubai government has outlined streamlined procedures and free zones that offer additional incentives to businesses.
- Lucrative market – The grocery sector in Dubai is already a multi-billion-dollar industry. Besides, it is projected for future growth. This proposes bringing in potentially high profits for business owners.
- Free zone opportunities – Setting up a business in the Free Zone has additional benefits such as full foreign ownership, simplified regulations, and exemptions from customs duties.
- E-commerce integration – Integrating online grocery delivery or pickup options in the thriving e-commerce sector of Dubai will not only expand your reach but also cater to the growing tech-savvy population.
Cost of starting a grocery store business in Dubai
The cost of starting a grocery store in Dubai depends on several factors. Here’s a breakdown of the major expenses involved in this process –
- Government fees
- Business structure
- Office rent (Prime locations cost more)
- Staff remuneration
- Visa fees
- Inventory
- Utilities bills
- Equipment (Refrigerators, cash registers, shopping carts, etc.)
- Technology (Point-of-sale systems and inventory management software)
- Marketing
Due to the varying factors, it might be difficult to determine the exact cost. However, to get a more accurate picture, you can consider contacting the business setup consultants at Shuraa. They can provide a customized quote for starting a grocery business in Dubai after thoroughly assessing your specific needs.
Things to consider before starting a grocery store business in Dubai
- For any amendment or changes in the license, the grocery store owner must seek approval from the authorities involved, the municipality, and the DED.
- The owners must take approval from the DED for posting any advertisements, promotions, banner ads, and wall stickers for their grocery store.
- Avoid selling products with fake trademarks, as it is prohibited by law.
- The UAE government has mandated businesses to register for VAT and file tax returns. The rule is applicable to grocery businesses as well.
- Grocery stores in Dubai must maintain a proper invoicing system.
Conclusion
In conclusion, the booming economy and lucrative business opportunities actively support the idea of opening a grocery store business in Dubai. Besides, the UAE government also supports this idea by introducing new reforms that aim to enhance the existing business infrastructure and working environment for expats as well as locals.
For more details on how to open a grocery store in Dubai in the most economical way, contact Shuraa Business Setup at +971 44081900 or WhatsApp at +971 507775554 or drop an email at info@shuraa.com.
