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

Dubai ranks as one of the top platforms for gold trading. Therefore, many entrepreneurs and investors set up gold trading businesses in Dubai. A gold trading license is required to trade in gold. Once issued, it automatically makes one a legally entitled dealer in buying, selling, and trading gold. It is one of the licenses that ensure that your business acts according to the regulations of Dubai. It is easy to acquire. Also, there are huge advantages to being a gold trader in Dubai. With no taxes and a strong market, it is attractive.

It is, therefore, easy to see why many investors flock to Dubai: in this guide, we shall discuss the steps, costs, and benefits of acquiring a gold-trading license in Dubai.

Why Start a Gold Trading Business in Dubai?

Dubai is one of the best places to get into gold trading. Here are some good reasons to look into:

Tax-free

Dubai is a tax-free place for gold traders. There are no taxes to be paid on gold trading services. Taxable profits attract global investors. That is why the traders prefer Dubai. Keep always checking for policy updates.

High Demand

Gold is always in demand in Dubai. This is because the tourists and investors buy lots of it. Besides that, special occasions like festivals and weddings also stimulate sales. Many businesses are fast growing. Hence, Dubai is the perfect market.

Well-Balanced Market

Dubai’s gold market is well-stabilized. The prices are competitive all year round. On the other hand, the international investors trust the market of Dubai. Hence, gold businesses flourish, and traders value this advantage.

Good Location

Dubai is a pivotal commercial center. Asia connects to Europe with Africa. Moreover, top-of-the-line ports and airports provide business support. Thus, it gets easy and fast to trade commodities like gold. Something all of the businesses would appreciate.

Friendly Setups for Business

Dubai has simple setup procedures. Fast government approvals are a plus. Free zones offer additional benefits. So, this makes it easier for investors to keep their businesses running. Hence, the traders may opt for Dubai in starting ventures.

With a gold trading license Dubai, you can be far too certain of making a successful career.

Types of Gold Trading Licenses in Dubai

Primarily, there are two types of licenses to trade in gold:

Free Zone License

The free zone gold trading license allows the trade of gold from one free zone to another. Direct sales in the UAE market are not allowed. Nevertheless, international trading is possible. Some notable free zones in Dubai are:

• DMCC (Dubai Multi Commodities Centre)
• Gold & Diamond Park
• Sharjah Gold and Jewellery Park

Mainland License

A gold trading business based on a mainland license in Dubai may directly sell gold in the local market. A business is entitled to open a shop, an office, or a showroom at any place within the geographic boundaries of Dubai.

How to start gold trading business

Here are some steps about how to do gold trading business:

1. Choose the Location of the Business

First, shortlist either a free zone or a mainland setup. The free zones allow international trade while the mainland can sell locally. Also, the choice of location affects cost and regulation. Hence, it is important to choose wisely before applying.

2. Pick a Company Name

The next point is to choose a company name that complies with the rules of Dubai. Avoid any banned words. Further, it must fit the activity of trade. Approval before registration is also essential. Ensure that it is unique and professional.

3. Submit an Application for the License

Now apply to the Department of Economic Development or Free Zone authorities. Gather the relevant documents. Also, check for other necessary approvals. After submission, wait for the confirmation. Processing time may vary.

4. Provide a Business Office

A registered office is required for every kind of business entity. So, choose the location according to your wish. Free zones grant office options; a mainland business has to have a physical address. So get one even before final approval.

5. Obtain Initial Approvals

The authorities will scrutinize your papers. They make sure your activities comply with the law. Approvals also depend on correct documentation. If passed, you then go to the next step. Ensure that you follow the instructions given to you in every regard.

6. Pay the Fees

After the approvals, payments are made for the requisite license fees. Fees will come down to the location and business type. Further, other costs may be applied. Hence, check out the total expenses before the payment. Then submit your payments for final processing.

7. Receive Your License

Finally, once approved, you receive the gold trading license, allowing you to operate legally. You should also open a bank account for your trading transactions. You may apply for visas as needed. Then start your business right away.

Cost of Gold Trading License in Dubai

The cost depends on several factors:

Free Zone License

Obtaining a gold trading license within a free zone entails AED 15,000 in fees; however, the final amount will depend upon the selected free zone. Discounts may also be acquired in some free zones, and business setup experts may help.

Mainland License

AED 30,000 is the starting fee for a mainland gold trading license, but it will vary based on your business location and the business size. Additional approvals and services might increase the total costs. Hence, choose wisely.

Office Rent

Office rent will vary based on area and larger sizes are more expensive than smaller spaces. Moreover, various free zones may provide shared office space. Always compare options before making up your mind.

Visa Costs

Each visa will cost around AED 3,000, but the total amount will vary based on the type of visa. There are different fees for investors, employees, and dependents. Annual renewal fees exist as well, so plan for it.

Trade License Renewal Dubai

The costs of renewing a gold trading license amount to about AED 10,000 every year. The fees differ between free zones and mainland authorities. A renewal after its expiration may incur potential fines. Hence, renew your license on time.

Documents Required for a Gold Trading License

You will require the following:

• Copy of passport
• Copy of visa
• Business plan
• Approval for the trade name
• Office lease agreement

Benefits of Obtaining a Gold Trading License in Dubai

100% Ownership

Foreign investors can own their gold trading business completely. Unlike in certain countries, Dubai provides unrestricted ownership, having no local sponsorship. This benefits the establishment of business considerably. This is also one reason why great numbers of entrepreneurs like this advantage.

No Tax

In Dubai, there are no corporate or personal taxes applicable upon gold trading. This saves businesses costs. In addition, tax-free profits attract businessmen from all over the world. That is why Dubai remains one of the most preferred destinations. Stay updated with the government orders.

Trade-Friendly

Dubai offers comfortable trading in gold. Gold is imported and exported almost without any hassle. Besides, world-class ports and airports fare well with trading. No very heavy impositions exist. Thus, Dubai is quite befitting for international traders.

Banking Support

Opening a bank account is an easy task in Dubai. Many banks provide help to gold traders. Furthermore, there are secure banking facilities too. Moreover, business accounts provide great facilities. Always choose a reputable bank.

Strong Market

Dubai is the world’s gold trading hub. Millions of trades are conducted daily. Strong demand further ensures the competitiveness of prices. Investors trust the Dubai market. Thus, it frequents successful business growth.

How Business Setup Experts Can Help

Starting up a gold trading business can be daunting. For this reason, many people usually hire business setup experts in Dubai. These experts will help with

• Choosing the right location to start a business
• Carrying on with the paperwork and approvals
• Handle the visa process for employees
• Renewal of trade license Dubai
• Finding you office space

Business setup consultants in Dubai greatly aid in easing the process.

FAQs

What is the cost of a gold trading license in Dubai?

The free zone license will cost around AED 15,000, and the mainland license will cost around AED 30,000. The charges depend on that particular locality.

Can foreigners fully own a gold trading business in Dubai?

Yes, foreigners are allowed to own 100% of their gold trading company. Full ownership is granted in the free zone and mostly in the mainland sections of Dubai.

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

Usually about 5-10 days. Business setup specialists can assist with the permits and paperwork which can vary in the time it will take.

What are the paperwork requirements for a gold trading license?

You will need a signature with an official stamp, a photocopy of your passport and visa, a business activity plan, trade name registration, and final office lease registration.

Do I need an office for a gold trading license?

Yes, an office space is mandatory. The office space must be rented in a free zone or mainland before finally being issued a license.

Conclusion

Starting a gold trading business in Dubai is a superb idea. It has so many advantages, such as tax-free trading, a well-established marketplace, and global connectivity. Just go through the simple steps to get hold of your gold trading license. Similarly, in case you need any help, you can easily reach out to the leading business setup experts in Dubai. They will work hand in hand with you through the whole process.With the right gold trading license Dubai, you can set about starting and growing your business in the international heart of the gold trade.