For both foreign and local investors, the perfume business in Dubai is a booming industry. Customers from all across the world find their desired perfumes in Dubai as it is a famous tourist destination. In comparison to other fragrance hubs, the diversification of perfume products in Dubai is unparalleled. It is a profitable venture for Indian entrepreneurs and other expatriates to start a perfume business in Dubai. So, how to start a perfume business in Dubai?
It is always recommended to consult with reputable Business setup consultants in Dubai to have a complete range of corporate services across the UAE. With the best consultancy firm in Dubai, setting up a perfume business is easy.
Perfume Industry in Dubai
Middle East province has its distinctive brand of perfume. It is known as “Attar” and is popular within UAE. “Attar” is seen as the future of Dubai’s perfume sector as it is the most popular perfume in UAE. It is an essential oil extracted from botanical resources and UAE is known for it all over the world for its exceptional fragrance. The perfume sector has got a promising future in the UAE because its “Attar” is unique and one of a kind.
The traditional practice of producing the perfume manually and then selling it to the market was common in UAE earlier. The industry has made big strides in the last decade. It is because UAE has indicated itself as a global destination and strategic business center for the perfume industry and a Business setup in UAE is in high demand.
The perfume manufacturing industry innovated and came up with customized fragrances when the world of personalization has taken a hold of everyone’s attention. UAE firmly established itself in this trend change as this made a huge market opening. It is probable to see both men and women using their perfume selection for personal grooming when it comes to the target market.
Entrepreneurs must determine the cost of a new perfume startup in Dubai if they are Indian investors. The cost to start a perfume business in Dubai is largely dependent on the creation of fragrance, assembly, filling, designing, and packaging of the perfume brand. Salary to their employees and rents of their business outlets in Dubai are other additional costs that the investor has to bear.
With the assistance of the UAE leadership and regulations, the country holds the top spot when it comes to the production and export of perfumes. Opening a perfume manufacturing facility in Dubai provides an opportunity for the entrepreneur to deal with an international market. It is an excellent business proposition that sets the entrepreneur on the path to success.
Steps to Start a Perfume Business in Dubai
The sense of smell stands out most of all other human senses. It is because compared to other senses, the sense of smell is distinctive. Therefore, there is a high impact of perfumes upon every individual.
There is a promising future for the perfume sector in the UAE. It is one of the most successful and profitable industries and the entrepreneurs will be on the path to success while opening a perfume business in Dubai.
Setting up a perfume business also requires the entrepreneur to follow certain rules and regulations like that of any other business in the UAE. The process to start a perfume business in Dubai is straightforward. At first, there is a planning stage and an implementation stage. Waiting for the approval of the business is the last step of the Company formation in the Dubai process that helps to make the products available to the public for purchase.
Make a Business Plan
Proper planning is essential to start a new business. A person cannot launch a new business without an adequate plan. The business strategy needs to be formulated. The entrepreneur must write down the company mission statement, products that they need to offer, goals, business capital, and budget plan. They should also decide on the priorities, desired cash flow, income statements, etc.
Entrepreneurs need to hire professional experts and researchers who will help them invent their exclusive products. The business person should try making distinctive blends by purchasing a few essential oils in fragrances according to their interest. They should research the perfume recipes and start blending scents. They can then start with their most liked scent for mass production.
Design Bottles and Packaging
The most important thing that the entrepreneur must look after is the final outlook of their product. The look of the product is very crucial. Customers are going to look at it when the entrepreneur is advertising the product. Therefore it is necessary to invest in the design of the bottle and packages. They can select the shape and size of the bottle that reflects the fragrances of their perfume.
The business person should hire researchers and experts who provide them with information on how to design perfume bottles. The packaging should also be taken care of. Manufacturing of the bottles and packaging can also be outsourced to the contractor.
Build a Brand
Whether a company can establish itself as a brand or not is a fact that points out the long-term success of a business. Entrepreneurs need to represent their company in such a way that it is appealing to their targeted audience. For this, they will need to hire creative people who will help them design a brand logo. They also help with formulating a marketing strategy for the brand.
The business owners should also get the trademark registration done from the assigned authorities in Dubai.
The most important thing that the entrepreneur has to do is to obtain a business license from the Department of Economic Development (DED). This is crucial to start the perfume business in Dubai.
There are also many free zones available if the entrepreneur is an Indian investor looking to set up a perfume business in Dubai. Some of the areas that offer facilities to establish perfume manufacturing units include Dubai free zone and Jebel Ali free zone.
An Indian investor needs to have a few more documents to set up a perfume business in Dubai apart from the perfume trade license from the Department of Economic Development. The documents include the registration certificate of the company, laboratory test report of the perfumes, analysis report on the perfumes they wish to sell, and certificate of free sales.
Benefits of Starting a Perfume Business in Dubai
By opening a perfume business in Dubai, there are several benefits that businessmen and investors can enjoy.
An entrepreneur gets an offer to deal with a variety of fragrances in Dubai when they decide to start a perfume business. Rich, warm, and natural forms of fragrances are preferred by consumers who live in Dubai. This helps the entrepreneur to make products using popular ingredients like oud, exotic flowers, amber, musk, etc.
It is the low tax rate that promotes many business people in doing perfume business activity in Dubai. Any type of corporate tax is also not required to pay by any foreign investors. They also get a very affordable VAT rate. The VAT is applicable for the business person if only they sell perfume within the UAE. When they sell perfume products outside of the UAE, there is no need to pay VAT.
The entrepreneurs are free to rent a workplace and get started with business operations when they open a perfume business in Dubai. However, the relocation of the business does not cost them much and is hassle-free. As the approvals and licensing methods are cost-effective and well defined, launching a perfume business is hassle-free. Also, obtaining a perfume license in Dubai is easier when the entrepreneur gets connected with a business consultancy firm.
There is a high inflow of Indians every year in Dubai as it is one of the multicultural places in the world. To encourage and empower Indian investors to set up and run perfume businesses in Dubai, the government of Dubai continues to make new policies.
Dubai is on the way to a technologically advanced future and it has one of the most updated digital facilities. Entrepreneurs can list their perfume business in e-commerce and social media with the help of technology and the internet. This helps the consumers have an awareness of the brand.
Perfume business is one of the fastest growing sectors of the economy in UAE. It is because UAE can easily facilitate business operations as it has a strong network and transport facilities. There is also the presence of different regions such as mainland, free zone, and offshore and they provide quick access to acquire the business license.
UAE holds a tremendous opportunity when it comes to the perfume industry. Also, UAE offers business investors an excellent opportunity to establish their business quickly. To prevent any legal problems in the future, it is recommended to take the advice of experts in this field.
Business Setup Consultants in UAE take care of the registration process and legal proceedings and also any of their client’s basic needs. They have dealt with many clients in different sectors and are well versed in any area. They assist entrepreneurs in a hassle-free way to complete the process.
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