Dubai opens its doors to everything luxury and fashion as there is no shortage of need for luxury products. In fact, the market for luxury goods is projected to generate US $386.9 billion in revenue in 2024 according to Statista, with an expected annual growth of 3.22%.
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So what do you need to start your own luxury shop?
1. A solid business plan:
Start with an idea, and progress that idea into a plan. Setting a business plan is not easy. Therefore, consulting with a Business Setup team is highly recommended. It is important to consider questions such as:
- What is the goal of my business?
- What items do I plan to sell?
- What is my target market?
- Who is my competitor?
- What is my competitive advantage?
2. Business Setup:
In Dubai, there is no minimum capital required to start your own shop. However, costs may vary depending on the location (free zone or mainland), business activity, and business size. Let us assume you are considering Dubai Design District, which is one of the newer free zone locations recommended for small and large companies and fashion or design-related activities, the license cost would start at around US $ 4000 with a recommended minimum capital of US $ 13,600.
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3. Requirements for incorporating a boutique in Dubai
Once you have chosen the location of your luxury store, you would need to get approval from the Dubai Municipality to rent a shop.
Taking into account the governing jurisdiction of your boutique business, a lot of paperwork, approvals and certifications are required. Documents required include copies of passport and visa, an NOC for initial approval, an MOA if you have a UAE national business partner, finalizing the store space and sign the lease and payment of all necessary fees to Dubai Economic Development Department (DED).
Regardless of the business activity, you must fulfill the criteria of the DED. Once the criteria is fulfilled, you could obtain your boutique business license from DED in Dubai.
In conclusion, setting up a business might be overwhelming and an appropriate knowledge of the relevant authorities and regulations is needed. It is highly recommended that you consult with a team of Business Setup experts to guide you through the process and help you analyze the best locations and strategies to make your way to success in the dynamic city of Dubai.
