Gold & Diamond Trading License in UAE
DUBAI is also known as the ‘City of Gold’. Business license for trading in Gold, Diamond or non-manufactured precious metal has become one of the most sought-after licenses in UAE. DMCC (Dubai Multi Commodity Centre) Freezone and SAIF Zone (Sharjah Airport Freezone) have become the hub of bullion traders from all over the world. DMCC is one of the popular Free Zones for Gold Traders to obtain a Gold Trading License in UAE.
The Gold Traders will bring gold from African countries like Ghana, Sierra Leone, South Africa, etc., and get it refined at the Gold refineries at DMCC. The Gold Refineries will transform the Gold Bars into Gold Ornaments and products for retail sale in UAE.
Gold Trading in UAE is a prospective and mature business sector with ample infrastructure support for investors. UAE offers sophisticated Gold Refineries for traders to process the Yellow Metal into attractive Gold Ornaments, business licensing, and regulatory support for enhancing gold trading in the region.
Investors can get a Gold Trading License in UAE from any of the following business entities.
- 1. DMCC Free Zone
- 2. The Gold & Diamond Park
- 3. Sharjah Airport International Free Zone
- 4. Mainland of Dubai
The DMCC and Dubai Gold & Diamond Park are the ideal choices for starting a Diamond Trading Company in Dubai. There are various business activities such as wholesale trading of gold, diamonds, and precious metals available in the Free Zones. The trader can become an intermediary in the Gold, Diamond, and Precious Metals supply chain or act as a mainstream trader. They can also be involved in sourcing gold and diamonds from the mines or refineries, conducting quality assessments and verifications, storage and transportation, and many more.
How to Start Gold Trading Business in Dubai?
Gold trading is a popular trade category in Dubai and it is seeing a rise due to the rise in local demand for gold from the expatriates and tourists coming to Dubai. Investors who are wanting to take the Gold Trading License in Dubai must decide on which business jurisdiction to choose for opening their company.
To start a Gold Trading Business in Dubai there are several options available for the investors. However, the DMCC Free Zone and the Gold & Diamond Park seem like the best options to choose considering the robust infrastructure and ecosystem they have in place to support the Gold Traders in the UAE.
In UAE, gold trading is a special category business sector with few specific business centers offering trade licenses for gold trading. In Dubai, there are three major choices for businesses to obtain the Gold Trading License in Dubai.
If looking at gaining a strong local presence and sell directly to the public. Being at any of the UAE Souks would be the perfect option. For gaining such a physical presence, the DED License would be the right choice.
Here are the 3 Major Business Centres where you can secure a Gold Trading License in Dubai
- Gold Trading License in DMCC
- Dubai Gold & Diamond Park
- Gold Trading from DED
1. Gold Trading License in Dubai DMCC
DMCC consist of an entire gold value chain. It has companies listed under various activities ranging from research and refining to trading and investment. DMCC provides top-class services and infrastructure for Gold Trading Companies to scale up easily. DMCC also has a Gold & Other Commodity Exchange (DGCX) for facilitating the Gold Trading & investments. Also, numerous ancillary services supporting gold Trading.
The DMCC Free Zone is a perfect choice for opening a gold trading business as it has the perfect infrastructure and support services. The Free Zone is well equipped with end-to-end services related to the Gold Trading business. Hence, DMCC is the right fit for starting a Gold Trading Business in UAE. The Commodities exchange, in-house gold refineries, supporting business infrastructure, etc., make it an investor's favorite Free Zone, especially for trading in Gold and Precious stones.
How to start Gold & Diamond Trading Business in Dubai DMCC?
Gold business can be successfully registered and operated from a Free Zone in Dubai. For starting a gold trading company in Dubai, the investor can register with the DMCC Free Zone. Following are the main steps in setting up a Gold Trading License in Dubai.
1. Gold Trading Company Registration & Pre-Approvals
The first stage involves company registration by submitting the trade name for approval to DMCC. The company registration form and all the required documents have to be reviewed by the DMCC authorities to issue the initial approval. Then the investor can choose the office space, warehousing facilities, etc.
DMCC has a wide range of Office types ranging from unfurnished (Shell & Core) to fully furnished office spaces. The tenancy agreement and rental contract must be prepared and submitted to DMCC to issue the final License documents.
2. Gold Trading Business Licensing
Finally, the investor must choose the office space and prepare the tenancy contract for the office. Submit the contract to the DMCC authorities for review and obtain the Gold Trading License. So, now the investor can legally trade gold in UAE and international markets. Gold Trading License from DMCC will enable the global investor to establish their Gold Trading Company in UAE and seamlessly start operating in the region. There are huge opportunities for gold trading in the UAE and the Middle East region.
The Gold and Diamond Trading License from DMCC will allow the trader to conduct a wide range of permissible business activities. The DMCC Free Zone offers all required infrastructure facilities for a Gold and Diamond Trader in UAE. The Free Zone houses the Dubai Diamond Exchange (DDE), a logistics and transport facility dedicated to Diamond Transport, a Secure Vault for Diamond storage, a grading lab and Boling facility to test the purity of Diamonds and many more.
Advantages of Establishing Gold and Metal Trading Business in DMCC
There are a few advantages for business investors in obtaining a trading license in Gold and Metals from the DMCC Free Zone. Following are the benefits of setting up a gold trading business in the DMCC Free Zone.
For investors in Gold Trading Business, the supporting infrastructure is an important aspect. The Dubai Gold & Diamond Park provides the right platform for gold trading business investors. For the trading in gold, there are several operational elements the investor will be coordinating and managing.
The gold and diamond park offers the investors all the support system for successfully trading the gold and precious metals in Dubai. The Free Zone in UAE offers many benefits and a one-stop shop for Gold and Precious Metals trading, manufacturing, and retailing. The complete value chain of the Gold Trading sector is present in the Free Zone.
- 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
2. Dubai Gold & Diamond Park
The Dubai Gold & Diamond Park is a Retail plus Manufacturing ecosystem governed by the Jebel Ali Freezone Authority. The Free Zone has 118 custom-built manufacturing units and 350 offices and retail shops that are involved in Gold and Precious Stones trading and manufacturing.
Steps involved in Obtaining Gold Trading License in Dubai from the Gold & Diamond Park
To obtain the Gold Trading License in Dubai from Gold and Diamond Park there are certain steps to follow. The investor must take a physical office space within the Free Zone for retailing, manufacturing, or trading the Gold. Gold Trading is a lucrative business in UAE as there is a growing requirement for jewelry from the end consumers. For various occasions, the end consumers look for jewelry to match their event requirements.
Hence, the investors in Gold Trading Business can easily scale up their supplies to source the gold for the retail manufacturers to meet the growing demand. So, for legally sourcing the gold from abroad to UAE and conducting Gold Trading, having a specific gold trading license as well as office space is mandatory for the investor.
- Finalize the office space, manufacturing unit, warehousing facility, and prepare the tenancy contract agreement.
- Apply for a gold trading license from Jebel Ali Freezone Authority by submitting required documents.
- Prepare the required MOA & partnership deeds, NOCs, to obtain the license.
- Apply for a corporate bank account to receive payments and conduct other transactions.
Documents Required for a Gold Trading license in Gold and Diamond Park
To apply for a Gold Trading License from Gold and Diamond Park there are certain document requirements. The investor must submit the following supporting documents to the Gold and Diamond Park authorities to obtain the Gold Trading License.
- Gold Trading license application form
- Company name approval form to be submitted to the Freezone authorities
- Passport Copy of the partners / respective shareholders
- Other required documents ( Shareholder resolution, MOAs, NOCs) as required
Type of Licenses available in Gold and Diamond Park
Various business license types are available in the Gold and Diamond Park Free Zone for investors. Depending on the business activity, the investor must choose the right business license for their company.
- Gold & precious metals Trading License
- Manufacturing License
- Retail Licenses
- Innovation License
- Service License
- Ecommerce License
Advantages of Setting up a Gold Trading Business in the Dubai Gold & Diamond Park
There are many advantages for the investors in setting up their company in Gold & Diamond Park. Obtaining a Gold Trading License from the Free Zone is beneficial for the business owner in multiple ways as it will contribute to the long-term business growth of the company.
- 100% Foreign Ownership
- Low corporate taxes
- Hallmarking facility from Dubai Municipality
- 24/7 secured workplaces for gold traders
- All-in-one Freezone area with manufacturing units, trading, retailing for gold & precious metals
- Easy availability of skilled Labour
3. Gold Trading License from the Dubai Economic Development (DED)
For a more retail space and easily penetrate the local UAE market, the DED gold Trading License is the perfect option. The Gold Souk Market in Deira is the perfect place for setting up a retail shop in Dubai for gold and precious metals.
Dubai is known as the city of gold. The enormous demand from the local UAE & GCC market as well as India, China, etc, is making Dubai a top-class shopping destination for gold and precious metals. Also, quality products with certifications from the Government are adding up to the credibility of Gold Shopping in Dubai. Hence Gold Trading in Dubai is a lucrative business investor for investors across the world.
Steps in obtaining Gold Trading License from Dubai Economic Development (DED)
When it comes to the Dubai Mainland, the Licensing Authority is the Dubai Economic Development ( DED). They offer a wide range of business activities under the broad category of Gold Trading License in Dubai. Investors can easily obtain a Gold Trading License from the Dubai Mainland with minimal documentation and approvals. There are a few steps in obtaining the Gold Trading License from the Dubai Economic Development.
Also, there are few documentation and approvals for processing the Gold Trading License in Dubai. The process of obtaining the Gold Trading License starts with the following steps:
- The investor must choose a suitable trade name for their Gold trading Business and get the name approval from the DED
- Finalize the gold trading-related business activities. For example, there is gold manufacturing, gold bullion refining, retail gold trading, gold trading in bullion, ingots, etc, gold imports, and more
- Submit the application form along with shareholder documents - photograph, passport copy, business plan (optional), to the DED for initial approval
- Having a physical office space is a mandatory requirement for the issuance of a Gold Trading License in Dubai Mainland.
- Arrange for the office space and perform the customizations (office desk arrangements, CCTV Camera installations, gold purity measuring devices, and more)
- Get the Security Industry Regulatory Agency (SIRA) Approval for the office premises. There will be a physical inspection of the site by the SIRA Authority.
- Prepare the lease agreement for the office premises and obtain the Ejari from the Dubai Land Department. (Details of the office space, location, rent value, specifications. etc., will be specified in the Ejari Document)
- Submit the SIRA Approval, Ejari copy, and other supporting documents (if any) along with the fee payment for obtaining the Gold Trading License in Dubai.
- The DED authority will review the application form, supporting documents, and approvals; and issue the Gold Trading License in Dubai Mainland.
- The investors can proceed to apply for a bank account for the newly set up Gold Trading Business in Dubai's Mainland
Cost of Gold Trading License in Dubai
Dubai Mainland is the perfect choice for obtaining a Gold Trading License in UAE. The Cost of a gold trading license in Dubai Mainland is AED 28,040. Our expert Business Consultants will guide you to setup a Gold Trading Business in the most cost-effective way. By obtaining a Gold Trading License from the Dubai Mainland, the entrepreneur can set up their Gold Trading Business anywhere in Dubai.
The cost of a Gold Trading License in Dubai Mainland varies with the office space, visa quota allocation, location, and more. Gold Trading License in Dubai Mainland enables the company to trade in the physical form of Gold such as Ingots, Bullion, Biscuit, or any shape.
| Descriptions | Cost |
|---|---|
| Trade Name Reservation (one time) | AED 750 |
| Initial Approval (one time) | AED 340 |
| Electronic MOA (one time) | AED 450 |
| License fee Payment Voucher (this is approximate cost only the actual cost will determine upon issuance of PV) (yearly) | AED 14,000 |
| Virtual office with Tenancy & Ejari Certificate- eligible to apply up to 10 (visa quota) | AED 10,000 |
| Security Industry Regulatory Agency (SIRA) Approval | AED 2,500 |
| Total Cost of Gold Trading License | AED 28,040 |
Note:-
- All government & related authorities’ fees are approximate cost. The exact government fees will be determined at the time of submitting applications.
- 2.5 % of office rent needs to paid additional at DED- (applicable for physical office)
- Receipts of all government fees along with supporting documents will be provided.
To know more about Obtaining Gold Trading License in Dubai, talk to our experts!
TIME SPAN: 7 to 10 days depending on the government approvals.
REQUIRED DOCUMENTS: (For Individual Shareholder)
- Proposed Name - 5 options
- Passport copies of Shareholders
- Copy of Emirates ID (for UAE resident)
- No Objection Letter (NOC) from the sponsor on company letter head signed and stamped (for UAE resident)
How to Start Gold Trading Business in Sharjah Airport Free Zone (SAIF Zone)?
SAIF Zone is a popular choice for obtaining Gold Trading License in UAE, it has two refineries for processing the Gold brought in by the traders from various parts of the world. The Free Zone has two Gold Refineries in the premises for the traders to import Gold from suppliers around the world and process the Gold into ornaments or other products.
Gold Trading License in SAIF Zone is preferred among global traders for the easy company setup and access to allied facilities of the Free Zone. The warehouses and office spaces are ideal for the Gold Traders to set up and run their business from the Free Zone seamlessly.
SAIF Zone has an in-house Customs Department to regulate the import-export to the Free Zone. The Strategic location adjacent to the Sharjah International Airport makes it the right choice for Global Traders. It will enable easy transport of goods to and from the Free Zone.
AURION, the best business setup consultants in Dubai will guide investors through the end-to-end process of obtaining the Gold Trading License in Dubai without any hassle.
