Dubai, the “City of Gold,” is one of the easiest places to do business. If you want a share in its $75 billion gold market and start a gold business, you must first get a gold trading license in Dubai. Scroll through to learn how to obtain this document.
What is a gold trading license?
Like the rest of the United Arab Emirates (UAE), the Dubai government requires you to get a trade license before you can legally do business in the city — no matter what sector you want to be in.
A gold trading license permits you to run a gold-related business. In Dubai and the rest of the country, gold trading is a shiny, lucrative sector. The city is home to 10 gold refineries and the world-popular Gold Souk. One of the oldest gold markets globally, it has hundreds of retailers selling the yellow metal in various forms.
Apart from having ample infrastructure and demand, the government also heavily regulates this niche. This allows gold to have some of the most competitive prices. Additionally, gold is a prized trading commodity, comprising 17.6 percent of UAE’s non-oil foreign trade for the first half of 2023.
How to get a gold trading license
Follow these steps to get your gold trading license.
Step 1: Name your company
Choose an appropriate name for your gold trading business, considering the naming policies of the UAE. Avoid references to religious entities or the use of offensive language. From a branding perspective, select something easily recognizable and memorable.
One-stop shops that offer business setup services can assist you in checking the name’s availability.
Step 2: Decide which business activities you’ll do
Dubai’s Department of Economic Development (DED) lists over 2,000 business activities you can pursue. Among these are gold-related endeavors such as gold manufacturing, retail gold trading and gold imports.
When applying for a trade license for your business, carefully select all the activities you wish to carry out. The license you’ll get will only allow you to do the activities you included. Doing things that are not covered by your license can result in penalties.
Read: Expanding businesses: How to add activities to a UAE trade license
Step 3: Choose where you’ll conduct your business
After identifying what type of business you’ll do, you have to determine where you’ll do it next. You have two main options: To base your operations in Dubai Mainland or a Free Zone. The most notable locations in the Free Zone category are Dubai Multi Commodities Center, Dubai Gold & Diamond Park and Jebel Ali Free Zone.
Each type has specific requirements, regulations and perks. For instance, if you set up a Free Zone company, you must open a branch or get a distributor before you can trade. One good advantage is you get to own 100 percent of the company. On the other hand, you can operate your business without these extra steps if you choose to be a Mainland company. However, remember that you need a local sponsor who will have a 51-percent share in your company.
Step 4: Secure and submit the requirements
As stated, the requirements will depend on your business jurisdiction. But, typically, it includes the following:
- Completed application form
- Application fees
- Copies of valid passports of all individuals involved in your company
- Passport-size photos
- Updated resume of the manager
- Documents, permits and certifications from relevant entities (e.g., proof of residence, legal document proving your legal trade name, special approval from the Security Industry Regulatory Agency)
After securing the requirements, you must submit them to relevant government entities based on your jurisdiction. It can be the DED for the Mainland or the respective Free Zone authority.
Step 5: Set up a corporate bank account and apply for visas
After applying for a gold trading license, you must also set up a corporate bank account where you can conduct your financial transactions and manage the financial aspects of your trading business.
Moreover, you must also apply for a visa — for yourself and all your employees. Once you get a trading license, you can sponsor other individuals wishing to visit Dubai.
Tips for getting a gold trading license
Think you’re all set to get a gold trading license in Dubai? For a smoother experience, below are some tips to follow.
- Ensure compliance. Applying for a trade license is a delicate process. Fortunately, the UAE has a rather straightforward set of local regulations and statutory requirements. Make sure you adhere to these every step of the way to avoid conflicts and penalties.
- Be financially ready. In addition to the initial capital required for your business, you must consider the costs of securing a trading license. While the final cost will depend on several factors, a good benchmark is $5,500 to $8,100.
- Seek professional assistance. If you want a hassle-free trading license application process, many recommend teaming up with a team that is well-versed in gold trading company registration in Dubai. From adhering to regulations to getting the required approvals, they will guide you from start to end.
Final thoughts
Getting a gold trading license in Dubai is crucial in getting into the lucrative gold market in the City of Gold. However, it’s only the beginning. After you set up your business, you still have a lot of things to tick off of your checklist. These include getting your business insured and completing VAT and trademark registration.
And remember: No matter what aspect of your business you’re dealing with, the key is to remain compliant with laws and regulations.
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