How to start a Jewellery Store in Dubai

How to start a Jewellery Store in Dubai

The gold and diamond business setup is lucrative business opportunity. Every year the Dubai government celebrates the Dubai shopping festival which is a shopper’s paradise. After oil industry, the government is looking at other industries to drive the foreign capital into the country. And the trends are pointing at the jewelry industry.

Dubai is the perfect and safest place to set up a jewelry company in. This is because the local government has created specific regulations and imposes rigorous checkups to those who bring gold or other precious metals which are sold in the emirate most famous gold market: Dubai Souk.

Why open a jewelry business in Dubai?

First of all, the quality of the metals sold in Dubai is famous all over the world, therefore a jewelry company will never complain on the lack of customers. However, starting a jewelry business in Dubai has another great advantage: no value added tax will be imposed on the sale of gold.100% purity

Benefits of starting a Gold Business in Dubai: How to start a Jewellery Store in Dubai

• 100% ownership: There are many types of companies that can be incorporated under Dubai laws. Contrary to Limited Liability Company (LLC) clause where your stake as a foreigner is limited, under Free zones, you get 100% ownership on your business. Under Dubai Free zones laws, a single individual can set up the business and rope in maximum benefits of the business.
• 100% repatriation of capital and profits: All the profits incurred from business activities can be pulled back in the business as capital without having to pay any taxes.
• Exemption on corporate tax
• Exemption on income tax
• 24/7 operational facilities Giving the business owners benefits of an ‘always open’ business
• Workforce: Expatriate workers can be easily hired with minimum paper work and maximum government assistance.
• Easy access to all supporting business facilities: no matter what business function you choose, you would have supporting functions at your disposal at all times.
• Central air conditioning: no worrying about the Dubai heat, with centralized AC complexes
• Tastefully build work environment with exhaust, ventilation systems and acid waste disposal system
• Secure at all times: Given the discreetness and security requirements of the gold business, business owners are provided 24/7 security personnel. In addition hi-tech video surveillance, fire alarm system etc are installed in all units.
• Soon to be launched hallmarking by Dubai municipality for all gold manufactured and sold from Dubai gold and diamond park.
• Shuttle services in and around the complex.
• World class retail center facilities for businessmen, to service gold buying shoppers.

• Other add-on benefits are ample tenant parking, high tech building management system, flexible leasing option from 1-5 years.

The office spaces range from 310 sq. ft. to 14000 sq. ft.

If you are interested in starting a jewelry business in this emirate, the Dubai company formation process is the first step to set it up.

Registering a jewelry company in Dubai: How to start a Jewellery Store in Dubai

Foreign investors who want to establish a jewelry business in Dubai can register a company in the emirate or in one of its free zones. In case they decide for a free zone, the Gold and Diamond Park Free Zone is the perfect place if we take into consideration its name. Apart from this, no local partner or sponsor is required when opening a jewelry business in the Gold and Diamond Park.

Requirements to sell jewels in Dubai

Both retail and wholesale of gold and other precious metals are allowed in Dubai. Whether one decides to set up a stall in the Dubai Souk or in one of the many malls in the emirate, one must take into account the requirements related to the quality of the materials used to create the jewels.

Dubai jewelry companies may also import or export precious metals or ready-made jewelry pieces which must first pass the inspection procedures imposed by the Gold Office. In order to do that, a Dubai company must obtain a customs code number.

Company setup in Dubai: How to start a Jewellery Store in Dubai 

Documents required for registration with gold and diamond park management

• Valid passport copies of the shareholders
• Updated resume of the manager of the business
• Proof of trade name
• Proof of initial approval
• Notarized memorandum of association and article of association
• Notarized and attested power of attorney for legal representative of any
• Lease agreement
• Minimum capital requirement: In case of Dubai local company, this requirement does not apply. In case of freezone, the minimum authorized capital of AED 150,000 is required. You are also required to submit rent to gold park management and 15% of annual unit rent as refundable deposit. This is not inclusive of maintainence fee. In addition to the above, you may also need to pay other licensing and permit fee to the government body depending upon type of activity you will be undertaken in gold business setup.

Marketing

Marketing is another important aspect in retail business. Customers will come to your store only if they know or hear about your products and services. You need to advertise regularly on all possible mediums. If you take an Indian scenario, Jewellery shops are generally promoted by newspaper advertisements, TV ads, Hoardings and Theatre advertisements. Depending on your budgets you need to plan accordingly. You need to choose the right medium whichever will yield you more returns

POS (Point of Sale) software: How to start a Jewellery Store in Dubai

First and foremost software required for a jewellery store is POS software for billing the customers. One of the focal points of any retail business is the cash register. The ability to process transactions and tender cash are essential to the efficient operation of business. A POS system is a computer software and hardware networked together to track sales and inventory as they occur. POS systems will solve a multitude of problems in your business.

Since implementation of a POS system is requires a large investment in time and money, the selection of software and hardware requires careful research into the features available and associated costs. For the new business, a POS system is a smart investment. The savings in labor hours and increase in efficiency makes balancing staffing easier, and the POS system automates many time-intensive tasks. Most POS software helps you stay aware of how your business is performing.

Many owners and managers find that the reports generated from the POS system valuable in the day-to-day and long term management of the business. From revenue and profit reports, ordering reports and product sales reports, the POS system offers a perspective of the total business that is difficult to grasp in other ways.

Impact of VAT on Gold Industry in UAE

More than 180 nationalities living in the UAE prefers to buy gold in Dubai rather than their own countries as Dubai’s gold has worldwide been associated with purity, quality, pricing and last but not the least wide range of variety at its offering. The industry experts, on the other hand, are bullish on the overall scenario and outlook of the industry post VAT era as well.While ruling out any major impact of VAT, retailers and consumers say that gold is a commodity that has great value and people prefer to invest in.

The VAT (value-added tax) on gold Jewellery will likely apply to the entire piece, which effectively means an additional payout of Dh7-Dh8 a gram at today’s prices, according to industry sources. But on gold bars, deemed as investible assets, no such tax will apply. (There will also be no duty on loose diamonds.)

The decision to include gold Jewellery under VAT is spelt out in the Executive Regulation governing the application of value-added tax in the UAE.

As Tourists are also huge buyer of gold in UAE , especially arriving from European countries also have VAT imposed in their own countries on Jewellery purchases, often at a rate higher than five percent, so in that regard, Dubai should remain competitive even after the imposition of VAT.

Reach Accountant Online VAT Accounting Software for Jewellery Business: How to start a Jewellery Store in Dubai

Reach Accountant is the ultimate guide providing solution to suit your business needs. There is a tendency the gold market can react adverse to the introduction of VAT, but proper business planning and appropriate software will help the business run smoothly. Various features of the software designed exclusively for Jewellery stores.

Business Intelligence Dashboard:The software has a feature of  providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.

Abide by to Regulatory Compliance: The whole industrial operations   are governed by existing country rules .Non compliance and violation of law may lead to cancellation of the license to operate the business.ERP software are embedded with laws and regulations of the country, ensuring and guiding business is carried out according to the  prevailing laws.

• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

• Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
• Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
• Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
• Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

Cost Effective:Saves IT cost associated with maintaining,integrating,upgrading separate applications.

Manufacturing Management : Manage the production process such as purchase approvals ,raw materials and retrieve the finished products reports for future references.

Order Management  :Receive the sales order and convert them in to invoice once ready Order management is all about keeping track of orders and managing the people, processes and partnerships required to fill them. It involves keeping track of the order itself and managing data around the customer and finally intimating the customer about the readiness of then product. The process includes:

• The sales and/or customer service representative discusses the order with the customer and enter the order into the system to be filled with details such as design, weight of the Jewellery, wastage ,making charges if any and date to be delivered.
• The order is then processed as per the form filled by the customer by the goldsmith or the craft man of the Jewellery store.
• Once the product is finished the customer is intimated through mobile application service.

The customer who places the order, receives it and pays for it

• Back office functions such as accounts receivable, accounts payable and general ledger that generate invoices and accept payments are processed done.

Goldsmith Outsourcing: Reach Jewellery software also aids in outsourcing the process to other goldsmiths .The software keeps a track of all the orders that are pending with gold smith with details such as old gold exchange, rate of gold per gram, making charges and wastage and date of receipt.

Point Of Sale: Touch and Keyboard billing system.One of the features is the software works even when net is also down.

Barcode and Batches Management: Generates batch codes and barcodes  and reads automatically on a bar code scanner.

Project: Cost Management reflecting cost at every stage of production. Order Management –Used for invoice orders.

Multi Branch: Gives the option of owning the business individually.

Purchases: Purchase Orders/Estimates,Purchase Bills,Purchase Return,Vendor Outstanding Management.

Sales:  Provides  with quotation, operational product, Sales invoice and sales returns ,Recurring invoices in one order and customer balance.

Access: Multi-User operation with restriction menus, Auto Back up ,Accounting Period Auto change ,Any Location operation, Easy to handle ,No hard accounting process and buttons, Auto conversion to accounting formats

Multi Company:Benefit of handling the business operations from the touch of the smart phone.

Auditor View: Full-fledged Financial reports,Tax reports,VAT reports,read process by auditor, with e-filing options,PF & ESI Reports,Tax Consulting Modules

Mobile Application:Business is just a touch away from you. Easy access through tabs,ipads,iphones,android phones.Click pictures of expense vouchers and attach to expenses.Raise invoices, check cash and bank balances,day to day income and expense and other reports through mobile applicatons.

Business Automation: Business expansion by  searching leads suitable for your business profile ,Leads  from mail server,Changing leads to appointments,converting quotations to invoices,

Addons: E-stores, Google docs, Google calender , Project management tools, SMS gateways, Payment Gateways are few to name.

Tally Import: Import excel files   from  tally to Reach software and manage accounts with smooth transitions.

User Friendly: Softwares are designed is such a way that the user will find it easy to operate.

API: The client can integrate the existing software with Reach accounting app,seamlessly.

Pricing of the software: No upfront investment, Low monthly rentals ,free servers,free routers,LAN ,Network cabling not required,Anti Virus not required, free data back up.