When you think of trading in Dubai, your mind may conjure images of the financial sectors or other areas of big business. But there are many other businesses thriving away from the headline-making sectors.
One of these niches, leather trading, generates revenues of over a third of billion dollars every year. So, if you want to get started in this large and growing market, keep reading to learn about…
- Leather trading business in the UAE – an overview
- Leather trading license in Dubai – step-by-step
- Cost of getting a leather trading license in Dubai, UAE
- Advantages of starting a leather trading business in Dubai
- Requirements to start a leather trading business in Dubai
- How Worldwide Formations can help
Leather trading business in the UAE – an overview
The UAE’s leather market is benefiting from the growing demand for luxury goods post-pandemic as the country’s residents look to make use of their now increasing disposable income.
With footwear the leading player in the leather goods market, the sector offers a subtle and, in many cases, affordable way to showcase style and status – both of which are hugely important in this part of the world.
Interest in footwear contributes to a leather goods market that is expected to reach USD 378m in 2023 and grow annually by just over 4% per year to 2027.
The UAE also forms part of the larger Middle East luxury goods market, which was valued at USD 16.12bn in 2021 and is set to rise by a CAGR of over 7% up to 2029.
Leather trading license in Dubai – step-by-step
Before moving too far down the path of starting a leather trading business in the UAE, it is a good idea to speak with a local expert such as Worldwide Formations.
Our team will ask a few simple questions about your business before tailoring the company formation process to your needs and managing it on your behalf.
Step 1: Selecting business activities
Every business in the UAE must clearly set out the types of activities they wish to carry out before they can apply for a trade license.
While this is a relatively straightforward step when starting a leather trading business, you will need to specify exactly what you wish to do. For example, you may require different approvals depending on whether you sell directly to consumers or import and export leather materials wholesale.
As these details can impact the license and setup type that you require, our team will be keen to guide you through this step before advising on the best way forward.
Step 2: Choosing a company name
The next step is equally important – choosing your company name. While it’s vital that you choose a name that encompasses your business and sticks in the mind of your audience, you’ll also need to consider a few more factors when starting a business in the UAE.
As a guide, your business name cannot be the same as one used by an existing business in the UAE. In addition, it should not contain any blasphemous or offensive language or have any religious connotations.
Step 3: Appling for your license
Now for the most pivotal step in the process, applying for your trade license. This will differ depending on whether you are setting up in a free zone or the mainland. If you opt for the latter, you may also require additional permits and approvals before you can start trading.
Whatever your requirements, the team at Worldwide Formations will manage this process for you, liaising with all government bodies and relevant authorities on your behalf.
Step 4: Applying for visas
The next step is to ensure that you have all required visas needed to live and work in the UAE – that means yours, your family’s and your employees’, if required.
The visa process comprises four stages, from obtaining an entry permit and passing a medical examination to submitting your ID registration and getting your visa stamp from Immigration.
Once again, Worldwide Formations can guide you through this process.
Step 5: Opening a corporate bank account
You’ll need a corporate bank account to easily make and take payments in the UAE. There are many institutions available, and once we understand your needs, we can advise on the most suited to your business.
Cost of getting a leather trading license in Dubai, UAE
As is often the case, there are many costs to consider when starting a business in Dubai, UAE. One of the most integral is the license cost, which is between AED 10,000 and AED 40,000, depending on your specific requirements.
On top of this, you’ll need to consider several other significant costs, such as staff, premises, equipment and materials. Also, while there are still zero corporate and income tax rates in the UAE, you may be liable for customs taxes if you plan to import goods from overseas.
For a complete and personalised breakdown of the costs involved in starting your UAE leather trading business, get in touch with the team at Worldwide Formations.
Advantages of starting a leather trading business in Dubai
One of the main advantages of starting a leather trading business in Dubai is the large and demanding market. This year, Dubai’s 3.5 million residents are expected to spend an average of USD 37 per person on leather goods.
Then there is the UAE’s incredibly advantageous location. With direct links to every corner of the globe by land, sea and air, it is the perfect place from which to import materials and export goods to surrounding markets.
Entrepreneurs in Dubai also benefit from 0% corporate and personal tax on all income, as well as a flat and low rate of 5% VAT.
Requirements to start a leather trading business in Dubai
Due to the UAE’s open and welcoming business environment, there is minimum red tape when starting a leather trading business in Dubai.
In most cases, all you need to get started is a UAE trade license, visa, equipment and materials. However, if you are planning to import leather or raw hides, you’ll also need various certificates and permissions from the Animal Protection Office, among others.
If you’re unsure whether you’re ready to trade, get in touch with the team at Worldwide Formations for advice.
Are there any special regulations or restrictions on leather trading in Dubai that I should be aware of?
License and permits aside, the only restrictions to be aware of are those regarding the import of animal goods. For example, businesses are not permitted to import natural goods such as leather that may “affect the health of human, animal, plants and other species of the earth… or the environment.”
While these kinds of restrictions are unlikely to impact most leather traders in the UAE, it is important to be aware of such rules and regulations.
Can I apply for a leather trading license as a foreigner in Dubai?
Absolutely – both mainland and free zone licenses are available to foreigners in Dubai, provided that you are permitted to work here. For more information, call the team at Worldwide Formations.
How Worldwide Formations can help
Leather trading has the potential to be a rewarding and long-lasting business here in Dubai. However, ensuring that you start your enterprise on a stable footing is vital to its success.
That’s why it pays to work with Worldwide Formations. We can advise on and manage every step of the UAE company formation process, liaising with the authorities as required. Our local knowledge means you can take peace of mind that your application is always in safe hands.
For more information and a personalised quote, please visit worldwideformations.com/contact-us.