HOW TO OPEN A COMPANY IN FMCG SECTOR IN DUBAI

Every year a large no. of foreign visitors land up in Dubai which lead to the creation of one of the largest wholesale and retail market.   A large number of products in the UAE come under the FMCG sector and are represented by foodstuff, cosmetics, and toiletries. A particularity of the FMCG sector in Dubai is that most of the cosmetics are sold by retail stores here from the luxury market; therefore, if you are interested in setting up a business in the FMCG industry you have plenty of products to sell. Foreign investors are also allowed to create companies in the FMCG industry in Dubai.

Registering and licensing an FMCG business in Dubai

At the moment, more than 20% of Dubai’s workforce is managed by retailers and wholesalers. A large no. of these employees are seen working in big lavished malls and some may be employed at supermarkets or small shops.   For starting a business in the FMCG industry in Dubai, you first need to register the company at the Dubai Department of Economic Development and apply for a commercial license.

To obtain a valid license there are a lot of requirements be it in the form of documents or the time that is needed to be spent to build up an FMCG company. Firstly, we need to set up a business activity, look for a company name and fill in the other details in the registration form. The other costs required for setting up an FMCG business in Dubai are:

1. Local sponsor fee
2. Labour and emigration fee
3. Trade license fee
4. Cost involved in Visa

Special requirements for FMCG companies in Dubai

According to the International Standards Industrial Classification, tobacco and alcohol are also considered FMCG products, however, special requirements apply for the retails of this type of goods.

Foreign investors establishing companies in the FMCG sector in Dubai must be aware that alcoholic beverages can only be sold in special places and require a permit. Even if UAE is more permissive than other countries in the region, one must pay attention to the laws related to the sale of alcohol.

The total sales of goods sold through discounts and special offers have reached 47% of total volume sales in the UAE, levying of the excise tax to reduce consumption of unhealthy/ harmful commodities such as energy drinks and carbonated drinks, cigarettes, etc.

All these steps might change depending on the type of license you want to issue and also the kind of business you are going to run. SO, before taking any step it is better to consider a company setup specialist.