Dubai is known as a shopping destination and opening a shop in Dubai can be highly advantageous as it is the hub of tourism, commerce, and investments. Moreover, retail business in Dubai is also considered less costly as compared to other cities of the world. Before discussing all of this the question arises, how to open a shop in Dubai?
Well, we are going to discuss that in detail here. There are several steps involved that need to be followed before opening a shop. It includes the determination of the nature of the shop, application for a trade license, selection of a local sponsor, and many more.
How to Open a Shop in Dubai? Step By Step Guide
Even if you are an entrepreneur or a seasonal businessman, the process of opening a shop in Dubai can be challenging and complex as they are unfamiliar with the local laws and regulations. Let’s discuss each step of the procedure in detail.
Type of Business
The first and foremost step is to decide what product you are going to offer because this step decides what type of license you require. Some products need further approval from the government authorities such as jewelry and food products. However, you have multiple options and you can decide on any product according to your choice. It can be flowers, electronics, perfume, stationery, and more.
Trade Name
After shortlisting the product, you have to apply for a trade name from the concerned department. It is an important step as the trade name gives the idea of the nature of your business. It might be possible that you come up with three to four different names. Ensure the trade name is not already in use and not starting with the words universal and international. The authority will compare it with the provided criteria and after that, you can choose your favorite one from the approved ones.
Business Location
In business, the location matters a lot and each place has its own rules that should be followed. A suitable location for your shop strongly contributes to making your business profitable as it is linked with the people’s reach and visits. Opening a shop near competitors have its positive and negative points.
You can select any location, it can be a shopping mall or Bazars to save money. With the change of location, the needs change so it is good to decide your location according to the service you provide and the needs of locals.
Registration and License
The next step is acquiring a license from the Department of Economic Development in Dubai (DED) and other authorities. It also includes submission of your documents such as your identity card, passport, and information related to your business such as what you are going to sell and what location you selected. After registration, a fixed amount is paid to get a license.
Jurisdictional Requirements
To run your business smoothly, it is necessary to adhere to the legal requirements, rules, and regulations of the selected area. It is like games that we play for enjoyment, but each game has different rules and we follow them to avoid problems. So is in the business world.
Selection of Local Partner
If your shop is outside the free zone, it is compulsory to have a local partner. The partner supports the business and holds 51% of it. It is important to select a local partner who possesses valuable knowledge related to retail shops in Dubai.
Shop on Lease
If you don’t have enough money and you are considering opening a shop on rent, you have to take extra steps along with the selection of location and local partner. You need the permission of different organizations and municipal committees. If everything is good to go, you get approval to open a shop on lease.
Hiring of Staff
After getting a shop, the next step is to hire staff for your shop. You need the manager and other staff to see the shops’ activity but there are some rules for this process as well. Hiring of staff is associated with the type of license you have. According to the authorities, owners with Intelaq license cannot hire staff but contractors only for specific tasks. The Intelaq license is to promote home-based businesses in which staff is not needed.
It should be understood that if you know how to open a shop in Dubai, you simply know how to open a shop in UAE because there are minute changes in regulations.
Tips to Make Your Shop Stand Out
Now that you know how to open a shop in Dubai, you may wonder what should be done to make your shop stand out and what it will cost. Here are some valuable tips that can be beneficial to attract customers.
Business Plan
Before you start anything, it is good to have ideas, goals, and how you’re going to ace it, whether it is business or daily chores, as planning is everything. Before getting started, it is important to do practical calculations regarding how much money is required, the monthly cost, and possible risks.
The Break Even Point (BEF) is a point where the net gain is equivalent to the expenditure. Insight of BEP can give an idea of when your business will start making a profit.
Offer a Unique Product
Offering a unique product and exclusive services are important points for attracting customers and maximize the chance of success.
Having rare products in a shop can make it memorable for visitors and they often choose your shop to purchase. Also, they share about it in their circles, increasing reach.
Targeting the Right Audience
By investing in marketing and branding you can attract customers. You can choose any effective method to reach your target audience such as content marketing, search engine optimization, and social media platforms. Also, providing the best customer service, listening to customers’ feedback, and knowing their demands can lead to a successful business.
Reliable Partner
As we know 51% of the business is held by local partners so while choosing a local partner look for an honest, expert, reliable, and experienced partner who has deep knowledge, the same visions, and goals.
Conclusion
At the end of this article, we hope that you understand how to open a shop in UAE or Dubai. Although the registration process is complex and challenging, it is worth it because of many benefits such as better quality of life, cooperative government, tax benefits, and free online promotions. There is always room for improvement. You can make a retail business in Dubai successful by trying new ideas and aligning with the demands and preferences of customers.