Chinese English

Starting a Gold Trading License In Dubai

MEDIA / Articles / 2021 / Starting a Gold Trading License In Dubai
Over a century, the Emirate of Dubai became known as the ‘City of Gold’ and is one among the world’s major gold trading hubs. According to World Gold Council, UAE significantly increased its gold reserves in the year 2020 and has become the world’s third largest buyer of the yellow metal. As late as 1996, the UAE did not even appear among the world’s top one hundred gold-importing countries. Now, two decades later, UAE ranked among the top four, above Hong Kong and the United States of America.
Why is Dubai an emerging gold trading hub?
UAE has a total of eleven gold refineries with a majority located in Dubai. Investors have several options while looking for a Gold Trading Business in Dubai. Considering the robust infrastructure and ecosystem that support Gold Traders in the UAE, below are the best given choices for gold investors seeking gold trading license in Dubai:
  • Gold License from Dubai Economic Department (DED)
  • Gold Trading License in DMCC Free Zone
  • Dubai Gold & Diamond Park
Gold License from Dubai Economic Department (DED)
The first preference for most of the investors, DED allows the investors to penetrate into the Dubai local market without any restrictions. There are around 300 retailers in the traditional gold market which are located in the centre of commercial district in Deira. Equipped with all amenities, Port Rashid is a well-recognized PORT to facilitate all import and export. This license on Dubai Mainland is subject to the approval of “Security Industry Regulatory Authority (SIRA)”. Some of the unique offerings of DED under GOLD & Precious Metal Trading License as below:
  • Exemption from VAT and Profit Tax
  • A strategic location that attracts tourists
  • No Minimum Capital Requirements
  • Flexibility to carry out business anywhere inside UAE
 
Procedure to obtain Gold Trading License under DED
The process includes initial approval including five proposed trade names. All government & related authorities’ fees are approximate costs. The exact government fees will be determined at the time of submitting applications.
Gold Trading License in DMCC Free Zone
Dubai Multi Commodities Centre (DMCC) was established in 2002 and has been crowned as the “Global Free Zone of the Year” by the British financial magazine ‘The Financial Times’. Since DMCC began investing in world-class infrastructure and services, the volume of gold traded in Dubai has been rising. It now accounts for around 25% of global trade. DMCC has its prime features which makes it a best spot for entrepreneurs looking to set up a gold trading business in Dubai:
  • No corporate or personal taxes
  • 100% foreign ownership
  • 100% Repatriation of profits and capital
  • A secure business environment with CCTV surveillance, fire alarm system, 24/7 security
  • 24/7 access to operational facilities
  • Well-built infrastructure and easy business setup
 
Registration, Pre-approvals and Licensing under DMCC
The preliminary stage involves company registration by submitting the trade name for approval to DMCC, including applying for the trade name reservation form to the DMCC authority. The DMCC authorities will review all the relevant documents in order to issue the initial approval. DMCC has a wide range of Office types ranging from unfurnished (Shell & Core) to fully furnished office spaces.
Dubai Gold & Diamond Park
Established in 2011, Dubai Gold and Diamond Park’s sole purpose is facilitating the jewellery business of the city. Of all the places in Dubai, Dubai Gold and Diamond Park provides an eclectic collection of precious jewels under a single roof for its customers. Both local and foreign investors can benefit from this Dubai free zone’s many perks. Some of those advantages are exclusive to this free zone alone. Dubai Gold and Diamond Park has advantages are exclusive to this free zone alone:
  • Full-on assistance for all government-related issues
  • 100% Foreign Ownership
  • Low Corporate Taxes
  • 24/7 secured workplaces for gold traders
  • The hiring of foreign expats as your possible employees is allowed
  • The one-stop-shop for jewellery manufacturing, trading, buying and selling
  • Hallmarking, inscribing and branding facilitated by Dubai Municipality
  • Easily accessible transportation service that also includes a Shuttle bus service.
 
Company Registration Process in Dubai Gold and Diamond Park
Earlier JAFZA (Jebel Ali Free zone Authority) was the governing authority to issue trade license for setting up in Gold and Diamond Park. However, all the current and new entities are being issued license under Dubai Economic Development (DED) and JAFZA no longer.
 
 

Do you wish to stay informed?

Thank you for your interest in Freemont Group, the specialists in company formation, asset protection and legal and advisory . Feel free to contact us with any inquiry you might have. We will provide you with a free initial consultation, and a customized solution for your personal situation.