How to become a food distributor in 5 simple steps
Food distribution companies have blossomed in the UAE (United Arab Emirates) and Dubai in particular. This is because there are numerous companies that need distributors. There are several reputed distribution companies in UAE that have imported leading global food brands into the region and made them household names. They have also helped people get access to several varieties in the domestic market while ensuring distribution, logistics, storage, warehousing, transportation, and even retail at times among other solutions.
Going by the growing need for more distribution companies in the space, questions may come up, i.e. how to become a distributor for a manufacturer? If you wish to become a food distributor in this region, then here are 5 easy steps that you have to follow:
1. Choose the name carefully- All legal trading and business entities should have authorized trading names for businesses in Dubai. You should make your own list of a few names that you find suitable and submit them to the authorities like DED. The department will then review your application while approving the names chosen. You can then choose one out of the list which has been approved by the authorities.
2. Complete all the documentation- You should follow all the regulations regarding documentation. You need to produce the Memorandum of Association or MoA and sign it while getting it notarized. You will have to secure a commercial business license. You can get registered as a Limited Liability Company or LLC in Dubai. If the company is foreign-owned, then you should partner with a local entity or national of the UAE named the local sponsor. The local sponsor will have 51% of the entity with you getting 49%. You should also furnish documents like copies of all shareholder passports, Emirates IDs of shareholders, visa pages of shareholders, and NOCs from current sponsors.
3. Get the right warehouse- You can then rent or buy a warehouse and storage facility while setting it up with all the necessary infrastructure and equipment along with other technological support by way of WMS and similar solutions.
4. Get your trading license- Once you have done the above-mentioned tasks, you can finally apply for your trading license in the UAE. You should also remember that this license has to be renewed on an annual basis. Getting this license is an important part of the process.
5. Obtain all external approvals/clearances- You will need the approval of the Dubai Municipality. Other external approvals or clearances may also be required if anything is still not approved by the authorities. These clearances should be fully in place before you can begin your business.
These are the simple steps that you can follow to set up your food distribution business in Dubai or any other part of the UAE (United Arab Emirates). Food distribution is currently a flourishing sector in Dubai although it requires vast expertise and experience along with hefty investments. However, with hard work and persistence, you can always get there!