How to Get a Gold Trading License in Dubai – Process & Costs

Dubai remains an important gold trading hub. Many are keen to try their luck in this trade. However, to trade in gold, you need a local license. This is because it enables you to buy, sell, and trade gold legally. Without this, you cannot run a gold business.

First, you must know how it works. It is easy to obtain a gold trading license. You need to choose a business site, and then apply for the license. You should also submit the necessary documents. Upon paying the fees, you will get your license. Finally, you will be open for gold trading. Dubai offers great benefits opening its doors to gold traders.

Why Start a Gold Trading Business in Dubai?

Dubai traces its roots to gold trading. Powerhouse economies booming along with first-class infrastructures complement established businesses and business-friendly policies, making this arena the most attractive. Here are some of the reasons why a gold trading business could suit you in Dubai:

• Tax Benefits: Dubai imposes neither a personal tax nor a corporate tax. Since gold trading itself is tax-free in Dubai, businesses shall be saved from paying taxes. This means that the traders enjoy a larger profitability and faster growth.
• Strategic Location: Dubai is a major center for gold trading. It gives direct access to all major global markets, which are often hard to get from any other business hub. Hence, they can trade all over the globe. It also possesses good transportation facilities.
• Safe and Stable Economy: Dubai has a fair and stable economy. So the business environment is better. The security in such an area boosts the morale of investors. In addition, such a stability of safe business enables expansion without the accompanying risks.
• Simple Business Set-up: It is easy to get a trade license Dubai. The government supports business. The setup is quick, owing to the many supportive business consultants.
• Increasing Demand: Dubai receives numerous tourists and investors; therefore, there is always demand for gold. Also, Dubai is known for its superior quality, and that’s a big plus for profit-making.

How to Start Gold Trading Business in Dubai?

1. Registering Your Company

The first step is to register the company. It is important to determine the business that you are engaging in. So, determine whether your business is about wholesaling, retailing, or import-export of gold. After this decision is made, only then, go to the next step.

2. Choose a Business Location

There are three major areas in Dubai to set up a gold trading business:

• BMCC Freezone

The Dubai Multi Commodities Zone (DMCC) supports gold traders the best. They are offered tax benefits with no restrictions in currency transfers and allow full ownership of the business.

• G&DP (Gold & Diamond Park)

A hub for jewelry makers and gold traders. It contains world-class facilities and is located close to major markets.

• Gold Souk-Dubai Mainland

If you want to trade gold locally, the Gold Souk within Dubai Mainland is the best spot to hit. Thousands of customers also flock to the market on any given day.

How to Get a Gold Trading License in Dubai

To pursue the gold trading license Dubai, one has to follow the following steps:

Choose Your Business Activity

Decide on your business activity related to gold trading. You can choose wholesaling, retailing, or an online business. Based on that, each of them will have different advantages. You might dwell into import-export or gold refining as well. Plan properly to avoid problems in operating your business.

Select Your Company Name

Choose a name for your trade. Your name should comply with the name rules of Dubai. You also need to avoid names that would be confusing, derogatory, or cliché. This name also needs to be checked for availability; something that stands apart must be unique and must give clear insight into your business.

Apply for Your Trade License

Once a name for your trade has been selected, proceed to apply for your trade license. The process may be conducted through the DED or within the free zone authority. The procedure involves the approvals and submission of various documents along with payments. This step could be simplified for you by business set-up consultants in Dubai.

Get Office Space

To function lawfully, the business must have an address in Dubai. The free zones have those offices that gold traders use. You choose what is necessary for your business. Having the right place enables you to draw customers and ensure compliance.

Submit Documents

You have to submit the following while applying for a gold trading license:

• Copy of owners’ passports.
• Business plan.
• Trade name approval.
• Memorandum of association.
• Tenancy contract for office space.

Pay the Fees

You should check what it costs to get a gold trading license in Dubai. The charges depend on the location and type of business. However, free zone charges differ from mainland. Make sure you compare them before deciding.

Get Your License

After the complete submission of all the papers, now pay the necessary fees, and then the authorities will review your application. Upon approval of your application, you will receive your gold trading license. Now you can operate your business legitimately.

Costs of a Gold Trading License in Dubai

Cost is dependent on the business type and location. Here’s just an approximate figure: For instance, the Mainland Gold Trading License starts from AED 30,000 to AED 50,000. Additionally, DMCC Free Zone License costs about AED 20,000 to AED 40,000. However, the old & Diamond Park License ranges from AED 25,000 to AED 45,000. Additional costs may include office rent, visa fees, and bank account setup.

Opening a Bank Account for Gold Trading Companies in Dubai

Once you have obtained the license to trade, you need to set up an account with a bank. This is because it will help you fulfill payments easily. The transactions will thus be safe in any respect.

Select a bank that operates with gold traders. Some banks offer special services for gold firms. Then, submit the required documents for the same. Wait for approval, and then you may start trading seamlessly.

Benefits of Starting a Gold Trading Business in Dubai

• Geographical Advantage: Dubai allows traders to connect globally. With excellent transport facilities, it is easy for businesses to import and export gold. Besides, it offers good business networks and international buyers as well.
• Advantage from Tourism: Millions of tourists flock to Dubai each year. Many of them prefer buying gold as souvenirs. It gives the gold market a good stronghold all the time. Moreover, it enhances buyers’ involvement due to Dubai’s reputation for quality gold.
• VAT Refund Registration on Gold: Dubai has a refund system for tourists under VAT, which makes gold cheaper for tourists to buy. In turn, this means that many people will opt to purchase gold. Hence, businesses are likely to experience increased sales.
• Liquid Asset: Gold is worth its weight in gold. It will stand the test of time and is easy to sell or buy. Hence, a trader can feel secure in all financial transactions.
• Business-Friendly Policies: Dubai supports businesses with easy regulations. The licensing procedure is simple. Moreover, the organizations offer so many incentives. All in all, gold traders benefit from a smooth environment sufficient to do their business without restrictions.
• High Returns on Investment: Gold prices tend to go up. This tends to make the trade very profitable. Thus, the strong demand from the Dubai market leads to a constant demand for it. Thus, it gives investors good returns for a small risk.

Trade License Renewal Dubai

You must renew your trade license every year. If you fail to renew it, you cannot run your business legally. Hence, it becomes mandatory to accomplish this task on time.

First, take a look at the renewal criteria. Next, prepare the necessary documents. Thirdly, PRO Services Dubai can assist in the work. Lastly, a speedy process follows after the fee is paid.

FAQs

How much is the cost of a gold trading license in Dubai?

The actual price that may be charged revolves around the area. Given that free zone licenses start from AED 15,000, that might vary for a mainland license.

How long does one take to get a gold trading license?

It would take about 5 to 10 days to get due to approvals, paperwork, and paying the various fees.

Can a foreigner start a gold trading business in Dubai?

Yes, being a free zone business, foreigners may wholly own their gold trade business. The presence of a local service agent in the mainland business is a must.

Will I have to lease office space for a gold trading license?

Yes, office space is a necessity. While free zones provide shared office space, a mainland business will need a leased location.

What are the benefits of doing gold trading in Dubai?

There is no corporate tax in Dubai, moreover, there is a fairly strong demand for gold, a solid tourist base that translates to demand across foreign markets, ease of doing business, and global trade connections.

Conclusion

Starting a gold trading business in Dubai is an opportune endeavor. You need to get a gold trading license to legally trade in gold. The process is less tedious, and Dubai offers multiple benefits to any gold trader. If you need assistance, business setup consultants in Dubai and PRO Service Dubai will guide you throughout the process.