How Can One Open a Grocery Store in Dubai?

There are thousands of grocery stores in Dubai, and entrepreneurs find investing in food distribution companies a good idea. But, you need to know certain things before you start a business. These are:

  • Research and make a plan.
You need to research the type of business you want to conduct. For example, a grocery store is a retail shop that primarily focuses on selling a variety of food items. The size and type of these stores vary according to the demographic need and your investment capacity.

When you complete research on your local region, customer base, and demand for products, you need to create a business plan. This includes deciding on initial investments, finding a business location, making a company structure, noting the type of licenses you need, and studying marketing trends.
  • Get an initial approval for the grocery store.
The most common type of license in Dubai is a local license, issued by the Dubai Department of Economic Development. When you submit the trade license application, you need to provide the passport and Visa of the owners. After all the documents are checked, the initial approval is granted.

Next, the DED approves the trade name that you can use as a signboard of the grocery store. The name should not include any controversial terms that may result in legal troubles.
  • Find a location.
Most of the top food distribution companies have a permanent location. The location must be finalized before the initial approval of the trade license. If not confirmed, or you want to change it, ask for approval from DED beforehand. After finalizing the location of your grocery store, you can draft the tenancy contract.
  • License issuance
There are four categories of license types in Dubai depending on the categories of business activities. These are commercial license, tourism license, professional license and industrial license. When you open a grocery store in Dubai, you need to have a commercial license. The grocery license mentions the type of grocery items that you can sell and restricts the selling of products that are related to herbal, pharmaceutical, medical or even cosmetics.

A few more things to remember:
  • Any changes in the license need prior approval from the authorities.
  • Any promotion, banner ads, advertisements or wall stickers posted by the grocery store must ask for prior approval from the DED.
  • The Dubai government prohibits any product with fake trademarks and doesn't allow grocery stores to sell such products.
  • Before you open a grocery store in Dubai, make sure you have a VAT registration number. It is important during tax returns filing as mandated by the UAE government.
  • All the sales conducted in the store must have a proper invoicing system. A business owner doesn't need to worry about the cost of a grocery license in Dubai as they don't need to pay any corporate taxes or customs duties. Also, the VAT rate in Dubai is 5%.

To know more about how to open a grocery store in Dubai and make a successful business here, you can learn from the success stories of Al Maya Group. They are ruling the UAE market for years and have a great customer base.

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