Starting a Tea, Coffee and Spices Business in Dubai

Retail is among the most successful sectors of the Dubai market, since its population is composed of locals and tourists with tremendous buying power. Retail also attracts a huge number of visitors interested in local customs, including the purchase of traditional products such as tea, spices and even coffee. That’s why the Dubai Spice Market, recognized as the Dubai Souk, is one of the most popular locations in the Emirate. All kinds of foods, vegetables, tea and coffee from large baskets are available here. Trading of tea, coffee and spices is one of the oldest kinds of businesses that still exist today. UAE, the way it stands out as one of the major business destinations in present times, has been no different in olden days.

Overseas investors can also set up shops and sell different products, including coffee, spices and tea, by cooperating with state regulations and obtaining the relevant licences.

Market Opportunities for Coffee, Tea and Spices Trading

Coffee and tea are popular beverages in different forms around the world. The inclination of people towards the consumption of coffee or tea is increasing day by day for all age groups. However, with growing health awareness among youngsters, we see people looking for options like green tea and herbal tea which in turn are creating new business opportunities in the Dubai.

Similarly, various spices and herbs, especially Indian spices are gaining popularity worldwide, because of their distinctive flavors, aroma and medicinal attributes. All these and many more trends proves that it’s a great time to setup a tea, coffee and spices business in iconic and cosmopolitan place like Dubai.

Some of the products to be considered for trading are as below:

1. Specialty Coffee- Roasted, green, organically sourced coffee from certified producers
2. Tea Varieties – Green tea, black tea and a variety of herbal teas
3. Spices – Indian, Chinese, Mexican, Thai or any kind of special spices which could attract the expats living in Dubai where the population comprises of highest number of foreigners then the locals

Registering a Coffee, Tea and Spices Shop in Dubai

There are two types of recommended structures that should be used when setting up a coffee, tea and spices business in Dubai:

• The sole proprietorship
• The limited liability company (LLC).

The business form should be chosen based on the size of the company and the share capital the owner is willing to invest.

Foreign investors can set up their shops in Dubai mainland or one of the free zones, in which can they have total control over the business.

The company registration procedure of the coffee, tea and spices shop must be completed with the Department of Economic Development (DED). For your ease, our company formation experts in Dubai can help you with this.

Licenses for Selling Coffee, Tea and Spices in Dubai

The most important license which must be obtained by companies selling coffee, tea and spices in Dubai is the trade license which must be obtained when registering the business. Following that, import or export licenses are required only if the products are meant for these purposes. Foreign enterprisers are also allowed to set up their shops in Dubai Spices Souk, however they are recommended to purchase the goods they want to sell from locals.

Steps for Acquiring a Coffee, Tea and Spices License

All the 3 type of products can be traded under one license as they fall in the same group and type

1. Coffee Trading
   • Activity Group: Roastery
   • License Type: Commercial
   • Activity Description: Includes reselling coffee beans, whether in bulk or consumer packs
2. Tea Trading
   • Activity Group: Roastery
   • License Type: Commercial
   • Activity Description: Includes reselling tea, whether in bulk or consumer packs
3. Spices Trading
   • Activity Group: Roastery
   • License Type: Commercial
   • Activity Description: Includes reselling of dried, packed or preserved spices, whether as raw or after having been roasted, ground, blended or packed

This license needs to be an LLC where the 49% will be held by the expat and the 51% held by the UAE National. This license can be obtained only for a shop/office of minimum 100 sq. ft which needs to be approved by the Dubai Municipality.

Given below are the steps to be followed for obtaining a license before you start your tea, coffee or spice business:

1. First the trade name of the company needs to be selected and reserved to obtain the license
2. Second, the NOC from the Dubai Municipality (DM) needs to be obtained; for which layout drawings of the shop requires to be submitted at DM. It is designed by the DM authorized Engineer
3. Third, we need to submit the NOC to Department of Economic Development (DED) for the initial approval. Upon receiving the same, the Memorandum of Association (MOA) can be signed by the shareholders of the company in the Dubai Courts
4. Final Payment Voucher will be generated in order to obtain the license
5. Once the license is issued there will be remarks on the license and to remove that an approval from the Dubai Municipality is required
6. An import and export code need to be obtained from the Dubai Customs to buy and sell the coffee, tea and spices products from any part of the world

Open a Business in Dubai’s Free Trade Zones

The UAE hosts numerous businesses in the food and beverage sector and the success is based on the diversity of tourists in this country. Dubai is a world-leading hub for spices, coffee, and related products, with annual profits of millions of dollars. Most foreign entrepreneurs start a business for selling coffee, tea and spices in Dubai’s free trade zones for several benefits among which no taxation and 100% ownership on the business. Grand Souk Deira is a large market which can be chosen for your spice, coffee and tea shop in Dubai, a business that needs to respect the local regulations regarding the free trade zones and the business environment.

Riz and Mona Consultancy

If you have decided to enter the prolific retail sector in Dubai, and particularly with a business for selling coffee, tea, and spices, we recommend you solicit expert advice from our team of consultants in Dubai. Different licenses and requirements need to be considered at the time you wish to register the coffee, tea and spices shop in Dubai. Company formation experts at Riz and Mona Consultancy can guide you about the licenses and company structures well-suited for you according to your resources, needs and demands. Contact us today to book an appointment with our consultants.