A Comprehensive Guide to Starting a Cosmetics Business in Dubai

Dubai, a vibrant cosmopolitan city, offers lucrative opportunities for entrepreneurs, including those interested in starting a cosmetics business. This guide outlines the essential steps, costs involved, and benefits of establishing a cosmetics trading company in Dubai.

The cosmetic trading business thrives in the UAE, particularly in Dubai, owing to its status as a global tourist destination and diverse consumer base. In fact, the UAE Cosmetic Products Market is projected to register a CAGR of 6.2% in the upcoming five years.

Obtaining a cosmetic trading license is mandatory to initiate a cosmetics business in Dubai. This license facilitates free trade within Dubai and other Emirates. Now that we understand the significance, let’s explore the steps to set up a cosmetics business in Dubai.

Steps to Open a Cosmetics Business in Dubai


Step 1: List Down the Business Activities

Compile a comprehensive list of intended business activities, ensuring alignment with regulatory requirements. If needed, seek assistance from expert consultants for external approvals. Notably, business activities will help you narrow down the free zone of your choice.

Step 2: Name Approval Registration

Registering a unique business name is crucial for brand identity and compliance. Adhere to naming conventions and avoid terms that may offend sentiments. There are certain restrictions in choosing some Proper Names, to learn more read all about Registering Trade Names article.

Step 3: Choose the Preferred Business Location

Evaluate options between mainland and free zones based on business needs and budget considerations. Opt for the most suitable location for establishing your cosmetics venture.

Step 4: Register Your Skincare and Cosmetic Products

Register cosmetic products with the Dubai Municipality to comply with regulations. Leverage services from business setup consultants for efficient product registration.

Step 5: Apply for a Cosmetics Trading License

Initiate the application process for a cosmetics trading license through relevant authorities. Follow prescribed procedures and submit necessary documentation within specified timelines.

Step 6: Manage Visas and Open a Bank Account

Facilitate visa processing for yourself and your dependents as part of the business setup process. Establish a corporate bank account with a reputable bank to manage financial transactions effectively. Now that we’ve outlined the setup process, next is to explore the associated costs.

Step 7: Cost of Starting a Cosmetic Business in Dubai

The setup cost for a cosmetics trading company in Dubai varies based on several factors, typically averaging around AED 28,000. This includes one-time and recurring expenses associated with the establishment. Understanding the costs is vital. However, let’s not overlook the benefits of establishing such a business in the UAE.

Why Open a Cosmetics Trading Company in the UAE

Wide Range of Products: Enjoy the flexibility to trade in diverse cosmetic products, catering to varied consumer preferences.

Low Tax Rate: The UAE offers a favourable tax environment, with minimal corporate taxes and a nominal VAT rate of 5%.

Flexible Location Options: Easily secure office space in Dubai and seamlessly manage relocation if required, minimizing operational disruptions.

Final Thoughts

Embark on your journey to launch a cosmetics business in Dubai today, leveraging the abundant opportunities and supportive business environment. Partner with NH Management for streamlined processes and guidance throughout your entrepreneurial endeavour. Now is the opportunity to realize your vision of a successful cosmetics venture in Dubai.


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