Dubai is home to a wide range of restaurants, cafes, and multicultural food markets facilitating the food industry to thrive and flourish. However, the key factor prompting the success of this industry is the high-quality products offered to residents and tourists. Foodstuff trading plays a crucial role in ensuring that the diverse population of Dubai has unparalleled access to high-quality foods and that all their demands are effectively met. This, thus, creates a wealth of opportunities for entrepreneurs to strive for a foodstuff trading license in Dubai.
Founding a foodstuff trading business in Dubai comes with multiple benefits. In addition, for entrepreneurs looking to establish their presence in a growing food market, the tax-free environment and business-friendly policies of Dubai can be an ideal choice.
Foodstuff trading business in Dubai
Foodstuff trading is the process of buying and selling food products, including ingredients, processed goods, and beverages. It also includes sourcing, importing, exporting, storing, and distributing food items.
Foodstuffs permitted for trade in Dubai
Food items that are permitted for trade are categorized into the following groups:-
Perishable goods – Products that have a limited shelf life and require special handling and storage conditions are known as perishable goods. For example,
- Fresh fruits and vegetables
- Meat and poultry
- Dairy products
- Seafood
Non-perishable goods – Products that have a longer shelf life and can be stored for extended periods without much putrefaction are known as non-perishable goods. Examples are –
- Grains and cereals
- Spices and herbs
- Canned goods
- Dry fruits and nuts
- Processed foods
The increasing population and cosmopolitan lifestyle have upsurged the demand for a wide range of food products. Driven by health-conscious lifestyles, people are opting more for healthy and organic food items. Besides, the convenience and accessibility offered through online food ordering and delivery services have also significantly impacted the demand for foodstuff trading license in Dubai.
Food safety standards and certifications in Dubai
When it comes to food quality and the well-being of people, Dubai has strict regulations that ensure that consumers have access to safe and healthy food products. Therefore, foodstuff traders are required to comply with these regulations while operating in the emirate.
Some of the notable food safety standards and certifications include the following:-
- Emirates Authority for Standardization and Metrology (ESMA) – establishes and enforces food safety standards in Dubai.
- HACCP (Hazard Analysis Critical Control Point) – a food safety management system that detects and controls potential risks in food production.
- ISO 22000 – an international standard for food safety management in Dubai.
- Halal certification – specifically for food products targeting Muslim consumers, ensuring compliance with Islamic dietary laws.
Foodstuff trading license in Dubai
A foodstuff trading license is necessary to operate a foodstuff trading business in Dubai. the business owner can obtain the required approvals and permits from the Department of Economic Development (DED) or relevant authorities, based on the jurisdiction they are operating in. In addition, the specific requirements may vary depending on the nature of the business and the types of food products you trade.
Nevertheless, to engage in a commercial activity, you will require a commercial license from the Department of Economic Development (DED). Furthermore, since your business involves importing or exporting food products, you will need an import/export license from the Customs Department.
Documents required for foodstuff trading license in Dubai
To set up a foodstuff trading business in Dubai, you need to submit the following documents:-
- Passport and visa copies of business owners and allied partners
- Company name approval
- Memorandum of Association (MOA)
- Lease agreement for office space
- NOC (No Objection Certificate)
- Food safety plan
- Health certificates for all food handlers
- Equipment and machinery list
- Bank statements
Starting a foodstuff trading business in Dubai
Here are some key steps to obtain your foodstuff trading license in Dubai:
Market research – Your first approach to starting a business in Dubai is studying the market to understand the current trends, consumer preferences, and competition. Identify the food products or cuisines that are high in demand. Also, acquaint yourself with the rules and procedures for trading food items within the region.
Business structure – Once you determine the specific food product you want to focus on, decide on the legal structure of the company that you want to set up in Dubai. Your selection will be primarily based on the jurisdiction you choose- Mainland or Free Zone. Nonetheless, while choosing a structure, consider factors like ownership, cost, location, and scope of business for effective functioning.
Trading name – According to the UAE law, all legal entities must have an authorized trading name. The same rule applies to foodstuff trading companies. To get a rational result, the company owner can list down 3-4 names and submit them to the appropriate authorities. The authorities will then review the names and approve them accordingly. The owner can then select the one that best expresses their company values and philosophy.
Trading license – A commercial license will allow you to trade in various food products in Dubai. In addition, you may also need to obtain an import/export license from Dubai Customs for trading food products across regions. The activities covered under a foodstuff trading license include the following:-
- Import and export
- Storage and distribution
- Wholesale and retail trade
- Trading of food ingredients and additives
- Food processing and packaging
- Trading of food equipment and supplies
Depending on your specific activities, you may further require additional permits.
Municipality registration – While starting a food venture in Dubai, you need to register your business with the Food Control Department of Dubai Municipality confirming your compliance with food safety regulations. To obtain the municipality certification, you need to ensure your business meets all food safety and hygiene standards set by the authorities.
Location and warehousing – Since your business involves trading, sourcing, and storing food products, you would require a physical office space that aligns with all regulatory requirements and Dubai Municipality’s guidelines. Get full details about these guidelines and protocols from the legal advisors of Shuraa.
Supplier relationship – For effective trading across regions, find reliable suppliers and establish strong and healthy ties with them. Discuss favorable terms like pricing, quality, and delivery schedules to ensure a regular supply of products.
Foodstuff trading license cost in Dubai
Forming a foodstuff trading business in Dubai and obtaining a license generally requires a significant amount of investment that includes administrative approvals, trading license costs, external certificates, and more. However, these overheads may vary depending on your choice of location, the size of the warehouse, the number of visa permits, and other major factors.
Get your trading license now!
In conclusion, securing a foodstuff trading license in Dubai can be a great opportunity for entrepreneurs and investors, considering the growing market and the position of the Emirate as a global trade hub. However, the overall company formation process can get anarchic if you don’t follow the rules and procedures.
Shuraa Business Setup will make this easier for you. They offer a wide range of services to clients worldwide helping them start their business projects in Dubai and other prominent locations in the UAE. Moreover, their experts provide bespoke guidance and support throughout the procedure and ensure that your business gets off on the right foot.
Get in touch with Shuraa – +971 4 4081900 | info@shuraa.com
