The United Arab Emirates is home to a thriving network of opportunities for doing business of all kinds. From million-dollar tech companies to vending machines, every startup tends to make strides in the flourishing business environment of the UAE. Similarly, getting a vending machine license Dubai can also bring in high potential profits that too with low startup costs.
So, this article will guide you with all the relevant information required to obtain this license and prosper in this business.
Advantages of starting a vending machine business in Dubai
There are several perks of establishing a vending machine business in Dubai, such as –
- Works 24*7
- Chances to earn money round the clock
- No need for advertising
- Self-promoting business
- 0% corporate and personal income tax rate
- Strategic location
- Easy to import items from international borders
- Minimal intervention from the government
- Lesser workforce
- Negligible market barriers
- Hassle-free financial reporting
- Requires lesser space
- Minimal capital requirements
- Higher scope of expansion
- Minimum risk
- Doesn’t require a lot of maintenance cost
- Low-cost renewal and restocking
- Profitable as well as easy-to-operate
- Simplified business regulations
- Well-established procedures
- Variations in vending machines available
Disadvantages/risks of starting a vending machine business in Dubai
On the other hand, a vending machine business might have to face certain challenges as well in Dubai. For instance,
- Provision of unattractive and useless locations for the placement of vending machines
- No approval or permission to put up vending machines in certain properties, such as shopping malls, retail centers, etc.
- Chances of machine break down and loss of goods
- High cost of renting space for the machine
- Requires continuous cleaning and refilling of machines
- Ongoing servicing might take a considerable amount of time as well as money
- Hard to find the perfect spot for the placement of the vending machine
- The extremely competitive market of the UAE makes it more challenging to find customers as well as venues for the vending machine
- Prone to vandalism and theft
Verticals in the vending machine business
- Food and beverage
- Exclusive stuff
- Travel Gadgets
Also read the post: What is the Process to Get a Delivery License in Dubai?
Procedure to get vending machine license Dubai
Below are the steps to obtain your vending machine license in Dubai, UAE:-
Research the market
Identifying your niche before launching a vending machine business in the UAE is the first as well as the most significant step of the process. This additionally includes several other areas, such as –
- What products can be easily found in the market and what do you want to stock?
- Which rare product do you want to include in your vending machine? Where can you find such products?
- Is there a specified market for your products?
- What items are more in demand in the chosen location for the vending machine?
- What items are your competitors stocking in their vending machines? How profitably is it working for them?
Rather than focusing on a broad range, try concentrating on specific items that are more in demand. This whole step may take a considerable amount of time, however, you cannot skip it as it is very crucial for your business.
Plan your business activities
Before setting on to your vending machine license application process, you need to clearly define the business activities you intend to carry out in Dubai. However, the selected activities must align with the list of activities published by the Dubai Department of Economic Development (DED).
Shuraa Business Setup can properly guide you as well as make sure that you are correctly licensed without any delays.
Pick an appropriate business name
The UAE government has fixed some precise rules for naming an enterprise. In other words, you need to keep certain things in mind while choosing a name for your business. For example, refrain from using vulgar, blasphemous, or unpleasant words, avoid using abbreviations as well as names of any well-known organizations, and most importantly, check if the chosen name is authentic, valid as well as available for registration. Therefore, it is always advisable to put forward a few options that capture the essence of your business in order to make a wise decision. Also, ensure to keep it simple, and easy to pronounce and spell.
Choose a location
The key factor of making a profit from your vending machine business depends on the location you choose for its placement. For example, a vending machine full of beverages and snacks would struggle to make money in a shopping mall full of eateries. However, it would be a lucrative idea to place it in a corporate park, hospitals, airports, educational institutions, etc. Furthermore, consider the peak hours when customers are most likely to buy snacks.
Select the legal business structure
To apply for a business license, every business owner must identify the legal structure of the business that they intend to operate in the UAE. The legal structure of the company determines the type of license they can apply for.
Additionally, there are several options for business forms such as civil companies, sole proprietorships, LLCs, etc. that an owner can choose for his vending machine business. This would further help you in acquiring your license easily as well as quickly.
To make an effective decision on the legal structure of the business, speak with the professionals at Shuraa who specialize in business formation in Dubai, UAE.
Choose a suitable vending machine
For the growth and expansion of your vending machine business, select a suitable vending machine from among the various types available in the market. For instance, some vending machines are good for selling bulk, whereas some are designed specifically for serving food and beverages. Similarly, some machines are good for stocking and selling frozen goods, laundry goods, etc. Therefore, choose one based on the product and location.
Apply for a vending machine license
Now that you have most of the basic essentials in hand, it’s time to apply for a vending machine license Dubai. All you need to do is submit an application request along with all the necessary documents, get the required approvals and obtain the license.
The authority for issuing the license depends on the jurisdiction you choose for your vending machine business. For example, the Department of Economic Development(DED) issues permits for mainland companies. On the other hand, free zone authorities issue licenses for free zone.
Complete the visa process
Since you have formed your business in Dubai, you will further need a visa to live and work in Dubai. Additionally, the process of visa application is quite simple as well. All you need to do is visit the Dubai eVisa portal and submit an online application with all the supporting documents such as a business plan, proof of financial stability, etc. The concerned authorities will then review and approve the visa which will allow you to live, work, and operate your business in UAE.
Start a corporate account
The final yet significant step is to start a corporate account for your vending machine business. This will enable you to send and receive payments for your business dealings. This can however be a complex procedure, especially for non-GCC citizens. Therefore, the team Shuraa can make it easy for you by connecting you with the best banks in Dubai that would offer the services you require.
Documents required for the vending machine license application –
- Trade name registration certificate
- Passport copies of the owner/shareholders
- Description of business activities
- Trade license application
- ID proofs as well as address proofs of shareholders, directors, and local sponsors
- Lease agreement for the floor space
- Local service agreement(LSA)
So, if you have any further concerns regarding setting up a vending machine company in the UAE or applying for a vending machine license Dubai, get in touch with Shuraa Business Setup at +971 44081900 or email at [email protected].