{"id":4036,"date":"2022-03-14T12:53:24","date_gmt":"2022-03-14T08:53:24","guid":{"rendered":"https:\/\/jupiterbusinessmentors.com\/blog\/?p=4036"},"modified":"2022-03-14T12:53:24","modified_gmt":"2022-03-14T08:53:24","slug":"how-to-set-up-foodstuff-trading-and-penalty-for-violation-of-food-safety-in-uae","status":"publish","type":"post","link":"https:\/\/jupiterbusinessmentors.com\/blog\/how-to-set-up-foodstuff-trading-and-penalty-for-violation-of-food-safety-in-uae\/","title":{"rendered":"How to Set Up Foodstuff Trading and Penalty for Violation of Food Safety in UAE?"},"content":{"rendered":"

With the F&B trade reaching a benchmark of $20 billion in the first nine months of 2021 (Dubai Chamber of Commerce reports) and with the UAE Expo 2020 further strengthening UAE\u2019s position as tourist destination, the time is just right to get into food trading business<\/strong>. According to Bloomberg reports in 2021, Abu Dhabi and Dubai import a whopping 90% of their food needs and UAE & Abu Dhabi having established themselves as an attractive international hub in the Middle East translates to lucrative environment for food businesses.<\/p>\n

\"\"Dubai\u2019s top food import countries include United States, United Kingdom, France and Brazil. With the New CCL that allows 100% foreign business ownership in most\u00a0foodstuff\u00a0and beverages, the market seems extremely opportunistic at the present.<\/p>\n

Before you get started with the business registration process ensure to have these primary documents ready.
\n– Passport copies of owner\/shareholders
\n– Residence or visit page of the owner\/shareholder
\n– NOC from the current sponsor (if they have a resident visa)
\n– Emirates ID\u00a0of\u00a0the shareholders<\/p>\n

\"\"
\nWe will first look at how to set up a business in the mainland and then in the\u00a0free zone.<\/p>\n

How to set up\u00a0foodstuff\u00a0trading\u00a0in the UAE\u00a0Mainland?<\/p>\n

1.Identify the type of legal entity
\nFood stuff trading business require a commercial license and are typically registered as a Limited Liability Company (LLC). This structure permits a maximum of 50 shareholders.<\/p>\n

The Department of Economic Development (DED) issues the business licenses for companies based out of Mainland and the free zone authority issues the license for companies based out of\u00a0free zone. You will set up your business in the Mainland if you target the domestic audience.<\/p>\n

2.Get the initial approval
\nSelect and submit three trade names options for\u00a0DED\u00a0approval<\/p>\n

3. Find an office space for your business
\n– After you finalize the space, procure the tenancy contract
\n– Register the tenancy contract on Real Estate Regulatory Agency (RERA)<\/p>\n

4. Apply for trace license
\n– Members should sign the MOM attested by Dubai Notary Public
\n– Submit the tenancy contract and\u00a0RERA\u00a0registration to the Dubai Municipality’s Food Control Department
\n– Collect the payment voucher and make the total payment to procure the trade license<\/p>\n

5. Register your product
\nDubai Municipality’s food safety department is responsible for inspections and regulations for food trading. Therefore, every company, trading foodstuff in Mainland must register with the Dubai Municipality.<\/p>\n

How to set up\u00a0foodstuff\u00a0trading in\u00a0free zone?<\/strong>
\nYou can easily set up business in\u00a0free zone\u00a0if you mainly intend to export and import and wish to avail tax exemption benefits. There may be few variations between different zones but the general procedure to set up a\u00a0foodstuff\u00a0trading in\u00a0free zone\u00a0is as follows:<\/p>\n

1.Determine the type of legal entity
\n– Free Zone Limited Liability Company (FZ LLC)
\n– Free Zone Company (FZ\u00a0Co.)
\n– Free Zone Establishment (FZE)
\n2. Choose a trade name
\n3. Apply for a business license
\n4.\u00a0Choose\u00a0an office space
\n5. Get pre-approvals, register your business, and get the trading license<\/p>\n

After you receive your trading license from\u00a0DED\u00a0you also need to register your business and food items with Dubai Municipality.<\/p>\n

Statutory requirement if you plan to import or re-export,<\/p>\n