According to the rules and regulations in the U.A.E., every onshore and offshore business is subject to renewal every year. Usually for a lesser sum of money than you paid for the establishment of the business. The agency that helped you set up your business in the UAE will call you a month or so in advance to inform you about renewal.
The economic meltdown due to the novel coronavirus is real. People are losing jobs, and businesses are losing money. However, amidst the pandemic, there is one sector that continues to thrive—like it has always been—the retail industry. A grocery store business in the UAE will be a very astute investment because people can live without phones, cars, and hangouts—but not without essential goods. Having said that, to set up a grocery store business in the UAE, you need to keep a few things in mind, which we are going to discuss in this blog.
1. Form A Business Plan
As with every other business, you need to form a business plan that outlines your short- and long-term goals as well as revenue targets, expansion plans, exit strategy, etc. Grocery stores face a lot of competition, so you need to be a step ahead of the competition.
2. Get A Local Sponsor
There are two options with regards to the location of your grocery store: the UAE mainland and the free zone. Opening the store on the mainland requires an Emirati sponsor, all while providing a greater scope for doing business.
A free zone business, on the other hand, might restrict you in terms of certain business activities, but it provides excellent savings and gives you complete ownership of your business.
3. Documentation and Licensing
In this phase, you approach one of the many government-authorized business-setup organizations to help you see through all the legal requirements and the documents as deemed necessary by the government.
Usually, as the founder of the business, your passport and visa are required by the municipality, after which they grant you approval to run the business. Also note that every business in the Emirates falls under the bracket of certain licenses; which include commercial, professional, industrial, and freelance.
4. Maintain Fruitful Relationships With Key Stakeholders
Once you have set up your grocery store in the UAE, you need to maintain sustainable ties with key stakeholders. This includes your sponsor, the supplier, vendors, employees, and other entities linked to your business.