Perfume is about more than smelling good: it is an expression of personal identity. For those seeking to combine business know-how with creative flair, starting a perfume business in Dubai offers a real opportunity for success. In this article, we will discuss the advantages, processes and costs of setting up a perfume business in Dubai. We will take a deep dive into the following topics:
- Perfume business in Dubai – overview
- Benefits of starting a perfume business in Dubai, UAE
- Steps to start a perfume business in the UAE
- Documents required to start a perfume business in Dubai, UAE
- Cost of starting a perfume business in Dubai, UAE
- How Worldwide Formations can help
Perfume business in Dubai – overview
Perfume-making has a long, illustrious history in Dubai. Once upon a time, people would make it by hand and sell it at the local market, but international demand is rising fast. How it is made and sold may have changed shape over the years, but one thing has stayed the same – its popularity.
Perfume is one of the UAE’s most profitable industries, with many major perfumery businesses operating in the region. Perfumes have a wide-spanning demographic too, encompassing all ages and genders.
Like elsewhere in the world, perfumes in Dubai are classified by scent. These include floral, fruity, amber, musk and herbaceous. Amber, musk and oriental scents are particularly popular in the UAE. In fact, the region is well known for its ‘Attar’ aroma, a distinctive essential oil made from plants.
Benefits of starting a perfume business in Dubai, UAE
Perfume is a thriving industry that is only set to grow in Dubai. According to recent research, the UAE fragrance market is currently valued at USD 913.7 with a CAGR of 6.6% by 2030. As well as a booming industry, entrepreneurs can benefit from:
- Strong network and transport facilities
Dubai has a renowned infrastructure, with world-class road systems, telecommunications, harbours and airports. This means you can tap into lucrative opportunities on the international market, as well as across the UAE.
- Tax benefits
Dubai offers a wide range of generous tax incentives for entrepreneurs from all over the world. For instance, the VAT rate is set at just 5% and is only levied when you sell your perfume within the UAE. Whether you choose to set up on the mainland or in a free zone, it’s easier to maximize your profits and increase your margins in Dubai.
- Flexible location
When it comes to choosing a suitable location for your business, there are thousands of options to choose from in Dubai. Thanks to an ever-growing expatriate community, relocating to Dubai is easy and relatively pain-free too.
- Low startup costs
Unlike many countries, business owners in Dubai and the UAE can set up a business with little upfront capital.
- Strong government support
Startups and SMEs form an essential part of Dubai’s economy, and the government is committed to ensuring that the UAE remains a global hub of entrepreneurship. As a result, the authorities have set up various funding programmes and incentives for aspiring international business owners.
Steps to start a perfume business in the UAE
Starting up a perfume business in the UAE is a relatively straightforward process, but ensuring it stays successful is another matter. We’ve broken down the process into six simple steps to help.
Step 1: Create your business plan
Like all industries, setting up a perfume business requires careful forward planning. A well-executed business plan should be central to this process. You should include your perfume business mission, short-term and long-term objectives, an outline of the products you wish to sell, estimated business capital and budgets.
Step 2: Create your product
Creating beautiful scents requires creativity and research. You might want to enlist the help of researchers and experts to enable you to develop unique products that will resonate with your customers. Once you have established the most popular perfumes, you can set about producing them at scale.
Step 3: Purchase your bottles and start the design process
Packaging is important. At this stage, you will need to take a deep dive into the local wholesale landscape. Most will be able to provide testers, samples and bottles and many can also help with the final designs.
Step 4: Create and consolidate your brand
Now that you have your product, you need to refine your brand identity. This involves creating a logo for your company and registering your trademark with the authorities. To ensure your logo resonates with your audience, you might want to outsource its creation to a designer.
Step 5: Get your business licence
No business can operate in the UAE without a valid licence. In this case, you will need a perfume trade licence. The Department of Economic Development, or relevant Free Zone authority, will issue this to you and your business.
Step 6: Confirm your perfume manufacturing facility
Finally, you will need to find, rent or acquire a manufacturing facility or unit.
Documents required to start a perfume business in Dubai, UAE
In order to set up your perfume business in Dubai, you will need to ensure that you have the right documents in the correct order.
To legally operate your business, you require a trade licence, issued by the Department of Economic Development or the relevant free zone.
You will also need to provide:
- Perfume laboratory test reports
- Registration certificate for your company
- Detailed reports on the perfumes you plan to sell
- Free sales certificate
Our friendly business advisors at Worldwide Formations have helped countless entrepreneurs set up their businesses and can help you navigate your way through the paperwork.
Cost of starting a perfume business in Dubai, UAE
The average cost of starting a perfume business in Dubai starts at around AED 40,000. However, this price can differ significantly, based on a variety of factors. For instance, prices will vary depending on the makeup of your fragrance, assembly and packaging, as well as other factors such as visa allowances and whether you need a shopfront or not.
For a more accurate idea of how much setting up a perfume business in Dubai will cost, reach out to Worldwide Formations. Our business advisors will be happy to provide a bespoke quote tailored to your specific business needs.
How Worldwide Formations can help
Setting up a perfume business in Dubai offers lucrative opportunities but navigating the setup process can be a daunting process for international entrepreneurs. That’s where Worldwide Formations can help.
We are a one-stop shop for company formation and other value-added services. Our business advisors can help you get your business up and running in no time, with services ranging from opening a bank account to VAT registration. We advise clients from more than 90 countries across the world, with experience in both Free Zone and Offshore Company Formations in the UAE. Our offices are conveniently located at Fairmont Dubai and DNATA Travel Center, too.
For more information and a personalised quote, please visit Worldwide Formations.