Starting a Chemical Trading Company in Dubai is a prospective business investment for global investors. There are various requirements from the manufacturing sector for chemical products. It is widely in use for the production of detergents, disinfectants, soaps, paints, and more.
To conduct a legal trade in chemicals there is a requirement for having a valid Chemical Trading License in Dubai. Also, the investors involved in Chemical trading in Dubai can easily facilitate international trade by getting an import-export code from the UAE Customs Department.
For starting a Chemical Trading Company in Dubai, the investor can obtain a Trade license from either the Free Zone or the Mainland. There are various factors that determine the right choice of business jurisdiction in Dubai.
Chemical Trading License in Dubai – The right Business Jurisdiction
The Trading License Cost is one of the main factors while choosing the business jurisdiction. The next is office and warehouse space availability, and logistic support. The Chemical Trading License Cost varies in Free Zone and Mainland.
In Free Zones, the Chemical Trading License Cost ranges between 17,900 to 25,900 depending on the visa quota requirement. Similarly, the initial cost of setting up a Chemical Trading Company in the Mainland of Dubai is around AED 29,000. The Cost will vary significantly depending on the office space location and area.
The investor must get initial approval for the chemical trading activity irrespective of the chosen business jurisdiction.
The investor profile, supporting documents – photograph & passport copy, and business plan must be submitted to the licensing authority for initial approval.
After obtaining the initial approval for the Chemical Trading License in Dubai, the investor must provide an undertaking letter to the Dubai Police. Share the following information with the Dubai Police along with the undertaking letter – The type of chemicals, quantity of import, business plan, shareholder details, etc.
Steps in obtaining Chemical Trading License in Dubai?
Depending on the business jurisdiction the steps in obtaining the Chemical Trading License in Dubai vary slightly. In general, following are the basic steps to obtain a Chemical Trading License in Dubai.
1. Choose the right Business Jurisdiction
The UAE Mainland is a favorable option for chemical Trading Companies looking for large warehouse spaces and expanding distribution to the local UAE market.
Alternatively, the Free Zones also offer top-class warehouse and storage facilities. It is ideal to take a Free Zone to coordinate international trade operations. The proximity to the Sea Ports will help reduce logistic expenses and the risk of carrying the chemicals for long distances by roads.
2. Submit the Documents for Initial Approval
The investor must submit their passport copy, photograph, investor profile, business plan, etc., to the respective licensing authority. As it is a chemical product, there is initial approval essential from the licensing authorities.
Depending on the type of chemical, the authorities will request the country of origin, sample collection test, business profile, etc. The officials will provide the initial approval for the Chemical Trading License after the review of the documents.
3. Submit the Undertaking letter to Dubai Police
The investor after receiving the initial approval from the Dubai Economy or the Free Zone in Dubai must submit an undertaking letter to the Dubai Police. For processing the Chemical Trading License in Dubai, submission of the undertaking letter is a mandatory requirement irrespective of business jurisdiction.
The letter must include all the details about the business process and the list of products that will be sold in UAE under the specific trade license. Considering the environmental and other risks involved in the handling of chemicals, the regulations are very stringent. It will help to ensure safety is maintained at every stage of operation.
4. Take the Office or Warehouse Space
Take an office area and warehouse space if required to store the chemicals stock for trading. Few traders open office space in Dubai and coordinate their international trade by not bringing in the products to UAE. Hence, for them taking a warehouse is not necessary.
So depending on the specific requirement the investor can choose the right office space or warehouse for their business. There are multiple office spaces ranging from Flexi-desk, unfurnished, fully-furnished, etc.
Also, the office area starts from 7 Sq.m to 25 Sq.m & 50 Sq.m offices are available in the free Zones. There are warehouses available ranging from 50 sq.m to 150 sq.m. Additionally, few Free Zones have availability of large warehouses above 150 sq.m for the investors to lease at competitive rates.
5. Obtain the Chemical Trading License in UAE
Make the necessary fee payment, and submit the tenancy contract of the office and the supporting documents to the authority. Get a Chemical Trading License and start operating the chemical trading business from Dubai.
Hence, the Chemical Trading License in UAE can be obtained by following the above steps. It is a prospective business license category for the investor. There are many business benefits to getting a Chemical Trading License in Dubai.
Why Get a Chemical Trading License in Dubai?
Dubai is a major industrial and Trade hub of the world. The industrial areas of Dubai are home to a wide range of business activities. There is a huge demand for chemical products for industrial applications in the region.
A chemical trading license in Dubai will enable investors to import, export, and distribute chemical products in the Middle East regions.
The Free Zones in Dubai offer high-end warehouse and office facilities for Chemical Trading Companies. The proximity to the Seaports makes it easy for the transport of chemical products to and from Dubai.
For tax savings and easy logistics purposes, international investors can set up an office in Dubai. They can manage the company accounts and invoices and also facilitate trade from the Dubai office.
The investors can also obtain an import-export license in UAE. Thereby, facilitate the international trade of chemical products. The Chemical products can also be traded via origin and destination seaports without entering the UAE. Read more about the import-export regulations here:
Starting an Import Export Business in Dubai – All you need to know
Hence, in a nutshell, There are many benefits to obtaining a chemical trading license in Dubai. To know more about the right Free Zone for obtaining the Chemical Trading License, Connect with our expert team right away!
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