Gold Bullion Trading in Dubai is a valuable business idea for entrepreneurs. Investors who have experience in Bullion Trading can set up their company in the Dubai Free Zone or Mainland. There are specific Free Zones in the UAE that are offering the perfect infrastructure for the Gold Bullion companies.
The DMCC Free Zone in Dubai is one of the popular Free Zone that offers a wide range of business support and infrastructure facilities for Gold Bullion Companies. Gold Bullion is mostly comes from Ghana to Dubai.
Furthermore, there is the Dubai Gold and Diamond Park and then the Dubai Economy that offers ample infrastructure and governance for Gold Bullion Companies in the region. The Refineries in Dubai will help to convert Gold Bullion to sparkling Gold Jewelry, ornaments, rings, pendants, etc.
Gold Bullion Business in Dubai – Highlights
Dubai is a city where Gold is available in abundance through the wide network of retail gold jewelers. The consumer can buy gold at a cheaper rate due to the lower taxation. Also, there is a wide selection of Gold Jewelry in the Dubai Gold Souk, retail stores, and other shopping centers in the region.
Furthermore, the Gold Bullion distribution network in Dubai and the number of Gold Refineries in the region make Dubai the first place for the Gold Bullion business to thrive. The business ecosystem of the Gold Bullion sector in Dubai is growing at a faster pace.
Gold is always a safe investment for beating currency inflation. So, there is a constant demand for Gold Bullion. The Gold Refineries of SAIF Zone and DMCC consist of sophisticated practices to convert the Gold bullion into bars, coins, jewelry, etc.
Starting a Gold Bullion Trading Company in Dubai?
To start a Gold Bullion Trading Company in Dubai, the investor can set up their company in the DMCC Free Zone or get a Gold Trade License from the Dubai Economy. The Gold Trading License along with an office space is available at a lower cost from DMCC.
For Gold Trading there is special approval from the Securities Investment Regulatory Authority (SIRA) for the office space or the gold manufacturing facility. After the review, the Gold Bullion Company can start their business operations seamlessly.
Starting a Gold Bullion Trading Company in Dubai is a straightforward process. The investor has to submit their personal details, business plan, and requirements to set up a Gold Bullion Trading Company in Dubai.
The respective licensing authority will review and issue the Gold Bullion Trading Company License to the investor. They can now start the Gold Bullion Trading Company in Dubai. The Gold Bullion Trading Company can trade in Gold in a physical way or via Exchange Traded Funds, Futures, or as Gold Bonds.
In Dubai, mostly the Gold Bullion Trading Companies deal with physical gold Bullion and trade with refineries to convert it to Gold Bars, Gold Coins, or Jewelry. So, the investors can easily conduct the Gold Bullion Trading in Dubai without any hassle with their new company.
Frequently Asked Questions
Here are a few FAQs that investors in the field of Bullion Gold Trading must know. An investor must be aware of various aspects of gold bullion trading in Dubai, including business regulations, corporate and VAT applicability, and any other Taxes on Gold Imports.
What is Gold Bullion?
Gold Bullion is the purest form of physical gold available globally. Bullion is 99.5% pure gold. The gold content determines the quality of bullion and the measure is in Karats. 24 Karats is the most purest form of gold (99.99). The gold used in modern jewelry is 22 Carats and 18 Carats along with a mix of a variety of stones. For investment purposes, Gold with 22 and 24 carats is ideal due to the purity standards.
Similar to Karat, there is one more measure that will determine the Gold’s purity. It is the fineness of the Gold. Gold bullion is available in various forms including bars, ingots, and coins. So, when Karat is the measure of the purity of gold, fineness measures the amount of gold content in bars, coins, jewellery, or any form of gold.
What is the Import Export Code for Gold Bullion?
The import-export code for Gold Bullion is HS Code 71081200. This code is obtained from Dubai Customs. This code is required for the import and export of Gold Bullion in UAE.
How to Transport Gold from UAE to Other Countries?
Gold Transporting in and outside of the UAE can be facilitated by various Commercial Carriers. The finished items such as Gold bars and Coins from the Gold Refineries of DMCC and SAIF Zone can be safely transported with the help of the commercial logistics providers.
A few of the most trusted and popular logistics partners in the UAE are Transguard, Brinks, Emirates Sky Cargo, etc. All of these Commercial carriers have a worldwide presence. They also have third-party associates globally who will securely transport the Gold and other Precious Metals to the specified location.
These Carriers will securely transport Gold and other Precious Metals, Cash, or any valuable items to your desired location. The Logistics providers will help in inventory management, customs clearance, vaults & storage, secure transportation, and more.
Why Gold is an Investment?
Bullion is an investment instrument and many Governments and Central banks are keeping it as a reserve asset. Other than the physical form, Gold is available for sale in paper form or as exchange-traded funds or future contracts.
Bullion is a legal tender and countries, central banks, and institutional investors consider it a means to hedge inflation. There are various methods through which Gold can be an investment and will help investors to beat inflation.
What is the import duty for Bullion?
There is no import duty on the raw material of gold in the UAE. So, any form of gold bars, ingots, etc., The absence of import duty on gold makes it a convenient option for gold traders to bring gold to the country.
However, when you buy gold from UAE at a very low rate due to the minimum VAT (5%) and bring it to your home country, there is a custom duty payable at the port of entry if the gold carried is above the permissible limits.
What is VAT for Bullion?
For Gold bullions with 99% purity and higher the VAT Rate is Zero Percent. It will enable traders and investors to increase their cash flows and strengthen the UAE as an attractive destination for gold and precious metal purchases.
While regular jewellery purchases from a store will attract a 5% VAT on the item. The VAT for trading gold and other precious metals in the Commodities market is ‘Zero-Rated’.
What is Corporate Tax for Bullion Trading Companies?
Corporate Tax for Bullion Trading Companies operating in UAE will be levied at 9%. All ancillary services related to the actual extraction business will be in the scope of Corporate Tax.
Only if Emirate Level Tax is levied already then Corporate Tax will have exemptions. The natural resources should be from within the UAE and not be an import into the country for leveraging zero-rated taxation.
In the case of bullion, it is mostly an import from outside of the UAE. The manufacturing facilities in UAE will process the bullion into gold bars, coins, or jewellery.
What is the Tax on Gold export?
For Gold Imports there is a Customs Duty Payment at the Seaports or Airports when the Gold Carried is beyond the permissible limits. To carry gold from Dubai to India the permissible limit is up to 1 kg of gold in baggage.
Additionally, upon staying for more than 6 months in Dubai, the individual can carry 1 KG of Gold after payment of duty. Also, the Duty-Free Gold for men is 20 grams ( maximum amount AED 50,000), and for female passengers, it is 40 grams ( Maximum 1 lakh) respectively.
So, the passenger travelling from Dubai to India with more than the permissible limit of gold must pass through the red channel and pay the excess customs duty on the gold they are carrying.
In conclusion, Gold is a symbol of progress and prosperity. Indians are the No.1 buyers of Gold in Dubai. They buy gold during festival season as an investment for the future. Most gold purchase in Dubai is during Diwali, Dussehra, Danteras, Akshaya Tritiya, and the Shopping Festival time.
For Gold Bullion Trading Companies, Dubai is a perfect location to start their business and expand. The lower VAT, availability of gold retailers, growing customer base, growing gold supplier base, and more favourable Government policies are driving the growth for Gold Bullion Trading Companies in Dubai.
Connect with our expert team of Business Consultants to set up a Gold Bullion Trading Company in Dubai at the Lowest Cost and most hassle-free way.
