How to Obtain a Used Furniture Trading License in Dubai

The used furniture trading business is gaining momentum in Dubai, driven by a growing demand for sustainable and affordable home furnishings. Whether you’re looking to start a small shop or a large-scale operation, obtaining a Dubai Trade License is the first essential step to legally trade used furniture in the UAE. Here’s a comprehensive guide on how to acquire your license, along with key costs, documents required, and visa options.

Inclusions and Exclusions of a Used Furniture Trading License in Dubai

When you acquire a Used Furniture Trading License in Dubai, your business can engage in more than just selling second-hand furniture. The license also covers a range of additional business activities, but there are some restrictions to be aware of. Here’s a breakdown of what you can and cannot do under this license.

Inclusions

Along with trading used furniture, your Dubai Trade License allows you to engage in the following:

Retail Sale of Second-Hand Books: You can sell a variety of pre-owned books, catering to a growing market for affordable reading materials.
Retail Sale of Other Second-Hand Goods: This includes items like electronics, home decor, and personal goods that fall under second-hand merchandise.
Antique Sales: If your inventory includes vintage or collectible items, you can legally sell antiques under this license.
Auction House Activities (Retail): You are permitted to run auctioning houses, but only for retail activities. This means you can auction items like furniture, books, and other second-hand goods in a traditional retail setting.
Exclusions

However, there are clear restrictions on certain activities that are excluded from your trade license:

Retail Sale of Second-Hand Motor Vehicles: This license does not cover the sale of pre-owned cars or motorcycles.
Internet Auctions or Non-Store Auctions: You are not allowed to conduct online auctions or other non-store auctions. Retail auctions must take place in a physical location.
Pawn Shops: The operation of pawn shops or engaging in pawn transactions is strictly prohibited under the used furniture trading license.

Steps to Set Up a Used Furniture Trading Business in Dubai

Choose Your Business Structure

Before starting, you’ll need to choose the right business structure, whether a mainland company or a Free Zone entity. Setting up in the mainland allows you to trade freely across Dubai and the UAE, while Free Zones offer benefits like full foreign ownership and tax exemptions but limit your trading activities to within the Free Zone.

Company Registration in Dubai

The company registration process includes:

Choosing a business name: Your company name must adhere to UAE naming conventions and cannot include offensive or religious terms.
Defining your business activity: Register your company under “Used Furniture Trading” with Dubai’s Department of Economic Development (DED).
Submitting documents: You’ll need to submit essential documents like the Memorandum of Association (MOA) and Articles of Incorporation.

Documents Required for a Used Furniture Trading License

To apply for your Dubai Trade License, you will need the following documents:

Completed application form from the Department of Economic Development (DED)
Trade name reservation certificate
Initial approval from the DED
MOA (Memorandum of Association)
Office lease agreement or Ejari (if applicable)
Passport copies of the company’s shareholders

Trade License Fee Breakdown

The cost of obtaining a Used Furniture Trading License can vary depending on your business structure and location (mainland or Free Zone). Here’s a general fee breakdown:

Trade License issuance fees: AED 10,000 to AED 15,000
Name reservation fees: AED 620
Initial approval fees: AED 1,200 to AED 1,500
MOA notarization fees: AED 2,000
Office rent or co-working space fees: Starting from AED 15,000 (for shared office space)
Government service fees: AED 1,000 to AED 3,000

Trade License Renewal Cost

Your Dubai Trade License needs to be renewed annually. The renewal cost generally includes the following:

License renewal fee: AED 8,000 to AED 12,000
Ejari renewal (office lease): Varies based on the property size and location
Government service fees: AED 1,500 to AED 3,000

Office Options for Your Used Furniture Business

To operate legally, you’ll need to lease or own office space. The options range from:

Physical office space: Typically required in mainland setups.
Co-working spaces: Popular in Free Zones, co-working offices offer more affordable rental options and flexibility for new businesses.

Office space in Dubai can start from AED 15,000 for a small shared office or co-working space and range up to AED 50,000 or more for larger offices in premium locations.

Visas for Investors, Dependents, and Employees

After obtaining your Used Furniture Trading License, you can apply for visas for yourself, dependents, and employees. Here’s a breakdown of visa costs:

Investor Visa Fee

An investor visa is required to live and work in Dubai while managing your business. The cost typically includes:

Investor visa application fee: AED 4,000 to AED 5,000
Medical test: AED 500 to AED 700
Emirates ID fees: AED 370
Residence visa stamping: AED 1,000 to AED 1,500

Dependent Visa Fees

If you plan to sponsor family members, you’ll need a dependent visa. Costs include:

Dependent visa application fee: AED 1,000 to AED 2,000 per person
Medical test: AED 500 per person
Emirates ID fees: AED 370 per person
Visa stamping fee: AED 500 to AED 1,000

Employment Visa Fee

If you plan to hire employees, you’ll need to apply for their employment visas. The costs typically involve:

Employment visa application fee: AED 1,500 to AED 2,000 per employee
Medical test: AED 500 per person
Emirates ID fees: AED 370 per person
Visa stamping fee: AED 500 to AED 1,000 per person

Timeframe for Setting Up a Used Furniture Trading Business

The entire process of setting up a used furniture trading company in Dubai, from registration to receiving the trade license, generally takes 2 to 4 weeks. This can vary depending on the speed of document preparation, approvals, and any additional licenses required.

Conclusion

Starting a used furniture trading business in Dubai offers significant opportunities, especially with growing demand for sustainable living options. With a clear understanding of the trade license requirements, visa costs, and office options, you can successfully establish your business. By adhering to Dubai’s business regulations and working with professionals to expedite the process, you’ll be able to enter Dubai’s dynamic trading environment efficiently.