Many prospective company entrepreneurs in Dubai are appealed by a vending machine license and there are various reasons for it. The vending sector is advantageous for the ones who want to launch their own business as vending machines are present everywhere and can be used for a wide variety of items.
Managing a vending machine business is very profitable and quite adaptable. Due to its inexpensive start-up costs, affordable participation, low risk, scalability, and growth potential, the vending machine business concept is becoming popular.
Let’s walk you through everything you need to know about starting a vending machine business in Dubai and its procedure, documentation, costs, and benefits.
The simple process of setting up a vending machine business is one of the prime advantages. In order to avoid mishaps or delays, you require adequate knowledge about the procedure.
Documents:
You must present all necessary documents to the respective authorities to set up a business in Dubai. Although different activities require varying documents, some business setups require common documents as well. Some common documents are:
1) Passport Copies of all Shareholder
2) Passport-size Photos
3) Entry visa or stamp page
Specifically for a vending machine business set up, you will require the following documents:
- Trade name registration
- Articles of incorporation (if necessary)
- Brief descriptions of intended business activities
Cost:
There are several factors involved in determining the total vending machine license cost. These factors include the rent for the ground, additional permits, and visa applications. The cost of these factors are variable so determining the exact cost is difficult. However, the cost of a vending machine license in Dubai is approximately AED 23,000.
Steps for Business Setup:
1) Research the Market:
Before starting a vending machine business in the UAE, think about your area of expertise. You need to take the following questions into account:
- What products do you wish to stock—something that is widely available or is a rare item?
- Are you targeting a specific market?
- Is there enough demand?
- Where will you get a rare product from if you intend to stock it?
Concentrate on particular items rather than considering a wide range. Find out what supplies are most required in the area where you want to install a vending machine. Do some research to find out what your competitors are stocking. Check to see if it is beneficial for them. You cannot skip this step, despite the fact that it may take some time.
2) Choose a Trade Name:
Dubai provides a detailed guideline for business name. Simply put, you must avoid using foul or offensive language. Avoid using well-known company names and abbreviations. Additionally, confirm that you can register under the name you want.
These are just a few of the many regulations. Additionally, some naming guidelines are only relevant to certain businesses. Therefore, check to see if your company name is authentic and legal.
3) Location of your Business:
The location of your business is an important aspect for generating profits from your vending machine business. A costly vending machine selling food and beverages might not do well in a mall with lots of restaurants, but it might do well in an office park. There are many options for locations, including airports, hospitals, corporate centres, and educational facilities.
Take into account the areas where you have personally made purchases from a machine as well as the time of day when customers are most likely to purchase snacks, drinks, and other items and then make a decision.
4) Research the Market:
The development and success of your vending machine business depend on the selection of an appropriate vending machine. In the market, there are a variety of vending machines. While some machines are made primarily to sell food and drinks, others are made to sell in bulk. Similar machines exist for ice cream, frozen foods, laundry supplies, and other items. Select the vending machine based on the item that you want to sell and the area where you want to set up the business.
Benefits:
1) Vending machines work 24/7. This means that you will be earning money throughout.
2) If placed in a strategic location, your vending machine will require no advertising.
3) Emirate’s 0% corporate and personal income tax rate will be beneficial for you.
4) You can easily import items from the rest of the world.
5) There are minimal market barriers and minimal interference from the government.
6) You will not be required to hire employees.
7) Higher scalability and minimal risk.
8) You will require minimal capital for setting up the business.