Vaping is a global trend. Each day, more and more smokers are moving towards vaping as it is associated with far fewer health risks than smoking. Due to this, e-cigarettes are destined to overtake traditional cigarettes in popularity and use as smoking cigarettes is being outlawed in more and more places worldwide. Therefore, if you are considering setting up a vape shop in Dubai, this is the right time to start.
In this article, we will take a look at the vape business in Dubai, from its advantages and costs to how to start one. Here is a list of the contents involved:
1. What are the advantages of starting a vape shop in Dubai?
As the world crunches down on traditional cigarettes and conventional tobacco products, including in the Emirates, the vape business is growing massively. Here in the UAE, where a quarter of the male population smokes, vaping has been welcomed with open arms.
Setting up a vape shop in the UAE comes with many benefits. Businessmen are welcomed in the country with streamlined business formation setup processes, 0% tax rates for personal and corporate income, and other incentives from the UAE government
For this reason, as an entrepreneur, you will be able to take advantage of the booming vaping sector and the economic policies of the nation.
2. What approvals do you need for starting a vape business in Dubai?
If you are interested in offering vape delivery services in Dubai or selling e-cigarettes, liquid refills, vape accessories, nicotine salts, electronic shisha, and other similar products, you will have to get approval from the ESMA (the Emirates Standardization and Metrology Authority).
To fabricate your own vaping devices or vaping liquids, you will need to get a Lab Report, Product Analysis Report, and Free Sales Certificate. These regulations guide the vaping industry and e-cigarette trading in the UAE.
3. How to get a vape business license?
Entrepreneurs looking to set up a vape business in Dubai, only need to apply for a trade license. These trade licenses are provided by the UAE government’s Department of Economic Development (DED). A commercial license is the type of trade license necessary for a vape shop in the UAE.
The process of acquiring a trade license is very straightforward, you just need to submit a complete form, an outline of your business activities, a copy of your passport, and some other documents that may be requested.
You will also need to acquire specific permits for activities such as storing certain vaping products or offering vape delivery services in Dubai.
4. How to start a vape business in Dubai?
The process of setting up a vape business in Dubai is very simple. Here we will give you a list of steps to start your vape business
4.1.1 Step 1: Choose a business name
First, you will need to choose and register the name of your business with the United Arab Emirate’s Registry Office. The business name must follow the UAE’s naming policies, including that a business name cannot be similar to that of any other company, and it must not include profane or offensive language or references to Islam or Allah.
4.1.2 Step 2: Choose a business jurisdiction
There are two major business jurisdictions in the UAE: Free Zones and Mainland Companies. Choosing either of these company types will have an impact on how you operate your business. A Mainland business means you can trade within the UAE, and you will need to sign with a local business partner who is an Emirati citizen. The local partner must own 51% of the company’s shares while you will hold 49%
A Free Zone business means you will not pay personal or income tax. You will be able to repatriate your profits and fully own your company, but will not be able to trade within the UAE market.
If you are unsure of the best company jurisdiction for your business, contact our company to help you make the best decision for your business. Our highly-experienced professionals can assist you with this crucial step.
4.1.3 Step 3: Choose your business activities
It is important to outline your vape shop’s business activities for your commercial license application. Your trade license allows your business to carry out several activities, but only those listed on your license.
You can select the adequate business activities you wish your business to perform in Dubai on the DED’s website. Failure to list all your business activities on your trade license application may result in penalties.
5. What is the cost of starting a vape business in Dubai?
The cost of opening a vape shop in Dubai and getting all the approvals can vary from AED 10,000 to AED 20,000. This cost depends on many factors, such as the number of visas attached to your application, the size and location of your vape shop, and other governmental approvals required.
6. How Connect FZ can help you in setting up a vape shop in Dubai?
When it comes to starting a company in the UAE, Connect FZ is your best ally during this tedious process. With our assistance from your side, the process of starting a vape shop business in Dubai will be as smooth as possible.
In Dubai, you can start your vape company and operate in the following free zones:
- Dubai South Free Zone (DWC)
- Dubai Silicon Oasis (DSO)
- Jebel Ali Free Zone (JAFZA)
- Dubai Multi-Commodity Center (DMCC)
- Dubai Airport Free Zone Authority (DAFZA)
Nonetheless, if you desire to set up your company in another UAE location, you can choose between these emirates:
Do you desire to establish your vape shop business in Dubai or another UAE location? Feel free to contact our specialists by sending us an email at contact@connectfz.com, or calling us at +971 43 316 688. We will assist you throughout the entire process
