How We Can Apply For Foodstuff Trading License In Dubai?
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How We Can Apply For Foodstuff Trading License In Dubai?
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Dubai has many industries, financial institutions, commercial centers, business centers, and other offices. In turn, the city increased in population. The concentration of such a big population of workers and migrants in the city opens up immense opportunities for the food business. But for the food business, you need a foodstuff trading license in Dubai. To know the process of obtaining a license in Dubai you can consult with the best business setup consultant in Dubai. They will surely help you and guide you every step throughout the process.

Foodstuff Trading License In Dubai

The foodstuff trading license in Dubai is measured among the most important business license in Dubai. And produce clear symbols of its prosperity and progress. You may license your business in Dubai in a free zone region. Or directly with the department of economic development (DED). Both regions have their pros and cons.

In a free zone, you own the business as a whole, but the set-up cost is high. And your channel must be within the scope of that free zone. But in the department of economic development, you must involve in Emirate citizens who would hold a 51% share. But you may work in any place of the local market without fear of 51% share. I know that sounds incredible, but you sign the MOU, so no one would be spoiled. For food trade licenses, the DED has an amazing and attractive formation process. 

Documents Required For Foodstuff Trading Business License In Dubai

You have to provide the DED and Dubai municipality with many documents while applying for a foodstuff trading license in Dubai. These include:

  • Passport copies for shareholders.
  • Memorandum of Association.
  • Ejari registered a tenancy contract.
  • Brief description of intended business activities.

Benefits Of Setting Up A Foodstuff Trading Business In Dubai

The following are the advantages of setting up a foodstuff trading business in Dubai: 

  • Global Events – The importance of food items trade in the economic growth of the region is undisputed. The upcoming Gulf food exhibition and expo 2020 is expected to be a main industry program in the UAE, which will significantly increase demand for foodstuff trading. Dubai has a large market for necessary foodstuff and agriculture production in the form of a growing population and huge export trade opportunities.
  • Skilled Staff – Dubai has an extensive labor market availability with low costs. Foodstuff manufacturing and trade is a labor-intensive region and Dubai is an ideal place to start a foodstuff trading business in Dubai. Dubai has the necessary infrastructure for large-scale storage, manufacturing, transportation of specialty foods and agricultural produce.
  • Easy Setup Process – Setting up a business in Dubai is an easy procedure with minimal documentation and necessary approvals.

Why Choose Foodstuff Trading License In Dubai

Dubai is one of the fastest-growing states in the Middle East. This allures investors from abroad to register its base in Dubai. This is due to its system of low tax and meets the repatriation of earnings with investment. And it has also the best stable economy. But some people are still hesitating because of the rule of 51% local sponsor share. A 49% shareholding is allowed for external ownership in the foodstuff trading license in UAE. And a local sponsor in place of a local service agent is required to create a food trading license.

In Dubai, a foodstuff trading license requires a local sponsor of the United Arab Emirates. The local sponsor’s job is to help in obtaining a license, visa, and labor card, etc. Dubai does not have the lowest capital obligation for a qualified company.

DM Approval For Foodstuff Trading License In Dubai

The circumstances applicable to every food business that sells, imports, a proposal for sale or distribution without charge, correspondence, prepares, manufactures, displays, serves and procedures, as well as delivering. Its major rules are in the form of a foodstuff trading license in UAE, on a broader scale, which includes:

  • DM approval is demanding for hotels, restaurants, and cafeterias.
  • DM approval is required for serving food functions in institutions, including hospitals as well as schools.
  • Approval from DM for bakeries.
  • Grocery stores in supermarkets, as well as departmental stores, require DM approval.
  • Food and warehouse factories also require MD approval.
  • Kiosks, permanent and temporary food programs, as well as mobile vending operations, also require MD approval.
  • Food packing material manufactures as well as suppliers require MD approval.

Also Read:- How to Start a Food Truck Business in Dubai

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