Are you thinking of having a business setup in Sharjah? Well, you are lucky since the UAE offers a favourable business environment for retail business owners with its strong economy, diverse population, and growing consumer market.
The country offers 100% foreign ownership and a variety of free zones that provide additional benefits. Additionally, the UAE has a well-developed infrastructure, including many shopping centres and malls, making it an attractive location for retail businesses.
With various opportunities and benefits available, it can be wise to consider starting a retail business and Get your Trade License in 45mins with SPC Free Zone Today! in the UAE.Â
If you are interested in learning more about free zone company formation in the retail sector, read on. In this blog, we will explore the following;
- Scope of retail business
- What’s included in the retail
- Requirements for a retail businessÂ
- How can SPC Free Zone help?
Scope of retail business in the UAEÂ
The retail industry in the United Arab Emirates (UAE) is a rapidly growing and dynamic sector with a wide range of business opportunities. The UAE has a large population of expatriates, tourists, and a growing local population, which creates a high demand for a wide range of products and services.
Dubai, UAE, is the main hub for retail business in the UAE due to its strategic location and strong tourism industry. The city has several large shopping centres and malls, such as the Dubai Mall and the Mall of the Emirates, attracting millions of visitors annually.Â
Sharjah is great for retail business owners because of its growing population and a strong economy. The emirate has a diverse population and is home to many expats, making it a prime market for various goods and services.Â
Additionally, Sharjah’s economy is growing steadily, which helps to support the growth of retail businesses. The emirate also has several shopping centres and malls, which provide ample space for retailers to set up their businesses. Furthermore, the Sharjah Government has implemented policies to attract investors and business owners, which increases the ease of doing business.
Overall, the retail industry in the UAE is a diverse and rapidly growing sector with a wide range of business opportunities. The country’s large population, strong tourism industry, and supportive government policies create a favourable environment for retail businesses to thrive.
What’s included in retail?Â
The retail industry in the United Arab Emirates (UAE) is diverse and encompasses various business types. Some of the most common types of retail businesses in the UAE include:
- Department Stores: Large retail stores that sell a wide range of products, including clothing, electronics, home goods, and more. Department stores are typically found in shopping centres and malls.
- Supermarkets and Hypermarkets: Large retail stores selling food and household items. Supermarkets and hypermarkets are typically found in shopping centres and malls, as well as in standalone locations.
- Speciality Stores: Retail stores that specialize in a specific product or product category, such as electronics, books, or sporting goods. Speciality stores are typically found in shopping centres and malls, as well as in standalone locations.
- Convenience Stores: Small retail stores that sell a limited selection of products, such as snacks, drinks, and household items. Convenience stores are typically found in residential areas, gas stations and other high-traffic locations.
- Fashion and Apparel Stores: Retail stores that specialize in clothing and accessories. Fashion and apparel stores are typically found in shopping centres, malls, and standalone locations.
- Luxury Stores: Retail stores specialising in high-end luxury products, such as designer clothing, jewellery, and watches. Luxury stores are typically found in shopping centres, malls, and standalone locations.
In addition, the UAE has a rapidly growing e-commerce market. Online retailers offer various products and services, including clothing, electronics, home goods, and more. They also offer home delivery and pick-up services.
Another retail business type in the UAE is the Souk or traditional market, where you can find a wide range of products such as spices, textiles, gold, and other traditional items.
Overall, the retail industry in the UAE is diverse, and there are many opportunities for businesses of all types, whether it be traditional brick-and-mortar retail, e-commerce or traditional markets. The country’s large population, strong tourism industry, and supportive government policies create a favourable environment for retail businesses to thrive.
Requirements for a retail businessÂ
To start a retail business in the UAE, several prerequisites must be met. These include:
- Obtaining a trade licence: All businesses operating in the UAE must have a valid trade licence, which can be obtained through the Department of Economic Development (DED) or the municipality.
- Registering for VAT: All businesses with an annual turnover of more than AED 375,000 must register for Value Added Tax (VAT) and file regular returns.
- Registering for Commercial Register: All retail businesses need to be registered with the local chamber of commerce.
- Obtaining necessary permits and approvals: Depending on the type of business, additional permits and approvals may be required. For example, businesses selling food or other consumable goods will need to obtain a food safety permit.
- Having a Local Service Agent (LSA): Most of the retail businesses in UAE need to have a local service agent who is a UAE national and will act as the business’s legal representative.
- Compliance with UAE Labor Law: Retail businesses must comply with the UAE Labor Law, including providing fair working conditions, insurance and benefits to the employees.
It’s also important to note that the process of establishing a business in the UAE may vary depending on the emirate and type of business. It’s always recommended to consult with a legal expert like SPC Free Zone to ensure compliance with all necessary regulations.
How can SPC Free Zone help?Â
Sharjah Publishing City (SPC) Free Zone can help retail business owners secure a licence by providing a streamlined process for setting up a business. The free zone offers 100% ownership for foreign investors and easy access to a variety of business support services. Additionally, the free zone’s strategic location in Sharjah provides easy access to markets in the UAE and the wider GCC region.
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