Dubai is said to have the most liberal and desirable environment for budding entrepreneurs. Many people across the world plan forbusiness setup in Dubai due to various reasons. Among the various business plans that people make, the most prominent is to open a grocery store in Dubai. However, before rushing into anything, let us look at some advantages of the plan and things beyond that.
Benefits of Setting Up a Grocery Store in Dubai
- Necessities for sale– Food is a vital requirement of any state/country. It is neither a seasonal thing to sell nor something whose sale can go down due to that pandemic. In fact, the pandemic has increased the profit numbers of supermarkets around the world. People need groceries throughout the year.
- Value for Money-Any business is called a value for money if it qualifies for two parameters. One is income covering the investment and loans. The other is profits above the investment level. Hence, grocery stores in Dubai are a good value for money as they help you earn a lot of profit.
- Easy to start- Any business needs to undergo a step-by-step process as guided by the government of that area. The government of UAE has made it very easy to set up a supermarket in Dubai. The process is less time-consuming and simple.
Requirements of Opening a Grocery Store in Dubai
There are specific conditions to start a grocery business in UAE as specified by the government.
- Get Support– It is very important that you convince a local business in Dubai to sponsor your store. As per the guidelines set by the UAE government, a local sponsor is supposed to have a 51% share in your business and the rest 49% can be owned by you.
- License is a must- The Department of Economic Development handles all the business operations including grocery store setup in Dubai. You need to contact the authority to get a license and other registration papers for your business.
- Visas and Permissions- You need to study all the rules and regulations as mentioned in the registration papers and complete all the formalities related to visas and permissions from various organizations.
Apart from the above-mentioned requirements, there are certain rules that you need to follow which apply after your store opens. For example, you are not allowed to keep pharmaceuticals and cosmetic products in grocery stores in Dubai. You need to be acquainted with all such rules before you set up a store.
Steps of Opening a Grocery Store in Dubai
Although it totally depends on how you plan to get things done, yet there are specific steps that are necessary. Following are the steps that one should follow if they are planning on opening a supermarket in Dubai:-
- Research all the factors- Doing anything new requires you to study the procedures and all the other factors that come with it in detail. Study the location, products, existing stores, rules, etc., and then come up with a genuine plan.
- Look for a sponsor- A local sponsor is already mentioned as a necessary requirement above. A UAE national will support your business and hold it back. The sponsor holds the maximum share in your business.
- Arrange funds- It goes without saying that you need funds to start a business. The cost of opening a grocery store in Dubai can be covered with the help of local banks or sponsors as well.
- License and Paperwork- The last step is to approach the authority and get your grocery store license in Dubai. Along with it, there is other paperwork that you need for registration purposes and you are all set!
How much does it cost to open a grocery store in Dubai?
Dubai has claimed to be a business hub and hence the cost of company registration in Dubai is expensive. A resident visa would alone cost you something around 12000 Dirham. Apart from this, license, registration cost, paperwork, etc will cost you around 30000 Dirham. Overall, it can cost from around 1,00,000 to indefinite Dirham to start a grocery store.
In terms of time, official work can take from three months to one year.
How to choose the right location?
Choosing the right location is very important before starting any kind of business. It affects the working of the business in various ways. For example, a location that is free from restrictions has more people living nearby, has fewer stores is likely to give you profitable results. After you access the taste and preferences of the people of a particular area, you can modify the variety of products in your shop and Hence, you must keep these obvious factors in mind while choosing a location for your grocery store in Dubai.
How Avyanco can help you to set up a grocery store in Dubai?
A grocery store set up in Dubai requires a lot of things to look after and can cause confusion too. To resolve these situations, business consultancy firms have come up. Avyanco is one of them and is specially designed to give consultancy or advisory services to businesses in Dubai. The firm provides consultancy services for all aspects of setting up a store from VISA and sponsorship to VAT registration. It can give you the best advice keeping all the factors into consideration and hence result in getting you more profits. There are several packages available on the official website of Avyanco. You can choose one according to your requirements.
Setting up any business requires a lot of physical, mental, and financial investment. It does not happen in a day. The process is lengthy, expensive, and exhausting. However, if you have the right knowledge and decision-making ability, nothing is tough for you. Grocery stores also need good interior planning. The way things are arranged, their sequence, and posture affect a customer’s mind. Hence, take your time, think it through, arrange all the required things, and prepare a perfect plan for your store.
