Those wishing to start a business in Dubai will find a plethora of investment and commercial prospects. Opening a small or medium-sized shop where numerous things can be sold is one of the easiest methods to start a business in Dubai. Household items are among the most sought-after items by residents of Dubai, as the number of foreigners migrating here continues to climb.
Our Company Formation agents in Dubai can walk you through the process step-by-step if you want to start a business selling domestic goods in the emirate.
Concept of Selling Household Goods
Many residents in Dubai sell their handcrafted handicrafts. From artists and painters to decoupage, woodwork, and pottery, Dubai's crafting sector is vibrant and mostly made up of women; there's a whole host of skilled craftsmen living across the emirates who produce exquisite, handmade things.
It's incredibly easy to find and discover the works of said craftspeople in the country if you're on social media. They frequently post advertisements on Facebook and may request that clients pick up their stuff from their homes.
However, not everyone is aware that the UAE has regulations and processes in place that govern the sale of handmade goods.
In reality, operating a business without the proper papers and licences is prohibited.
According to UAE law, any small business, including hobby firms, operating within the country must have a Trade Licence.
Crafters who operate a business unlawfully face fines of up to AED 50,000 or possibly imprisonment if they do not have it.
Selling handmade items from home in Dubai
Individuals selling homemade things in Dubai from a residential residence are subject to the same penalties as those listed above. If the law is broken, hobbyists and housewives face steep penalties and maybe jail time. Crafters can promote themselves online, but they must only sell through an online platform or market that has the appropriate vendor licence... As described farther down.
In Dubai, social media is being used to market products.
Naturally, the crafting community is active on social media platforms such as Facebook, which, with its Store and Marketplace app, has made selling products much easier. Instagram is another famous social media network.
Selling homemade items at events/markets in Dubai
Small home companies without a trade licence are allowed to sell their wares at an event, a market, or online - as long as the company behind it is officially licenced.
Sellers can sell their handmade things in Dubai without having their own trade licence if they sign up to sell online or at one of Dubai's regular crafters markets.
Obtaining a Crafter's Trade Licence
If you want to do business on the mainland of Dubai, you must register with the Department of Economic Development (DED). The Dubai Economic Department (DED) is the government organisation in charge of issuing licences in the emirate.
The DED issues three different types of licences in Dubai:
- Commercial
- Industrial
- Professional
Based on your registration and application, you will obtain the one that is best appropriate for your business and craft.
In Dubai, there are more than 20 economic Freezones, each with its unique set of benefits and advantages, based on your business type and activity.
E-commerce licence in Dubai would be ideal for artisans
An E-commerce Licence is perhaps the easiest – and cheapest – option available for any crafter or artisan intending to sell their handmade products in Dubai.
The DED will provide this if you are registering your firm on Dubai's Mainland. This would be obtained from your competent authorities if you were registering with a free zone.
You will be needed to register a physical office in Dubai as part of your e-commerce licence; authorities have made it obligatory for a firm to have an office in order to be considered a legal organisation.
Read More: Start your Online Business with an E-Trader License in Dubai
Licence available to UAE nationals
You are an exemption to the rule if you have a UAE passport. With a specialised trade licence, you can conduct a business and sell homemade things from your private home as a UAE citizen.
This type of business licence is known as a "Intelaq Licence," and it is only available to UAE passport holders who want to start a home-based business. The application fee for this licence is AED 1,000, which is fixed on an annual basis.
The Intelaq Licence will be converted to a commercial licence after three years.
What are the most in-demand home items in Dubai?
There are many possibilities available to people who wish to start a business selling household items, but Dubai is an excellent market for the following things:
- Furniture pieces for homes and offices - both modern and historical furniture items are popular among Dubai residents.
- Large household appliances, such as refrigerators and washing machines, are replaced every 2 to 3 years by Dubai residents.
- TVs and air conditioners are examples of technological equipment used in homes.
- Electrical plugs and outlets, for example, are examples of items with short lifespans.
Regardless of the sort of items offered in the Dubai shop, the proprietor must adhere to specific regulations imposed by the authorities.
Regulations for selling household products in Dubai
When starting a firm to sell household goods in Dubai, a businessman must follow a number of rules, the most essential of which are:
- Apply for a trading licence, allowing them to sell any of the above-mentioned products.
- Ensure that the products they sell adhere to intellectual property rules and that they only sell original items (where applicable).
- They must advertise the products they offer in compliance with the legal standards for the commodities in question.
- ensure that when it comes to the prices of the items, they adhere to the competition regulations - prices must be shown accurately.
- give an invoice and a warranty certificate for each household item sold (where applicable).
Conclusion
Household goods are the most popular and rapidly growing items worldwide, especially in Dubai, where you can benefit from the enormous number of individuals who have chosen to live here. Furniture, appliances, and technological equipment are only a few examples of household items, which is one of the most popular in the UAE. Choosing a business to sell home items in Dubai is not only a fantastic idea, but also a good place to start if you want to expand your operations on a larger scale later.
If you want to start a business in Dubai and don't know what you need to know, we urge you to contact Dhanguard for detailed information and support.