Sharjah is the third-largest population hub in the United Arab Emirates, known for its strong heritage and outstanding infrastructure. Hence, starting a grocery store here can be an incredible opportunity to tap into the culturally rich market within the emirate. Not only can investors benefit from the low setup costs but also take advantage of the strategic trading location that provides access to multiple Gulf ports. However, understanding the grocery business and grocery license cost in Sharjah is the key step to a smooth start. Therefore, in this guide, we will learn how to open grocery store in Sharjah, and what are the basic requirements to obtain a grocery license.
Benefits of starting a grocery business in Dubai
Before getting into the process of how to open grocery store in Sharjah, let’s explore some of the benefits that make it an attractive option for entrepreneurs:
- Growing population: Being the third-largest population in the UAE, Sharjah has a large and diverse customer base that ensures a steady grocery demand.
- Lower setup costs: Entrepreneurs and investors can enjoy business benefits at a budget-friendly price in Sharjah, compared to Dubai and Abu Dhabi. This makes the formation and maintenance of a grocery store more reasonable.
- Strategic location: Sharjah is close to multiple Gulf ports and trading routes which facilitates easy access to imported goods, such as exotic groceries from Asia and Africa.
- Stable economy and political environment: The political stability and robust infrastructure of Sharjah promote a safe environment for long-term business growth.
- Supportive business landscape: New entrepreneurs can experience a business-friendly setup process in Sharjah along with perpetual governmental support and a straightforward licensing system.
- High demand: A large population of Sharjah’s population consists of expatriates from all over the world, creating a high demand for a wide selection of groceries.
- Ease of business setup: The government of Dubai has streamlined the procedures and set up free zones, thus making the business setup process easier for entrepreneurs.
- Lucrative market: The multi-billion-dollar industry of grocery is projected for growth in the coming future. This means there is potential for high profits for business owners.
- E-commerce integration: With the integration of e-commerce in the UAE, online grocery delivery or pickup has become easier, thereby helping businesses expand their reach and cater to the growing population.
How to open grocery store in Sharjah: Procedure
Opening a grocery store in Sharjah is an easy process. However, the business owners are required to follow a trail of steps outlined by the authorities –
- Research and study the market to assess customer needs and current trends
- Determine the kind of grocery store you want to open. For instance, a neighborhood convenience store, a specialty store selling organic or imported goods, a supermarket, or other.
- Decide the initial investments, business location, trading name, company structure, and the type of license required for the business.
- Get initial approval from the Department of Economic Development (DED).
- Gather the required documents and submit them along with the license application to the respective licensing authority.
- Pay the license fee within the specified time.
- Open a corporate bank account to manage the finances of the grocery store.
- Apply for relevant visas for yourself, your employees, and your family.
Essential documents required for the process:-
- Business plan
- Application for business registration
- Attested and notarized MoA (Memorandum of Association) and AoA (Articles of Association)
- Power of Attorney
- Passport copies of all business partners/managers
- Reference letters for the bank for each individual partner
- Lease agreement for the store premise
- Board Resolution
Cost of grocery license in Sharjah
The grocery license cost in Sharjah may vary depending on the specific requirements and amenities required by the store owner. However, the final price will determined based on the following factors:
- Size of the store
- Location
- Inventory
- Utilities (electricity, water, etc.)
- Technology (POS systems, IMS, etc.)
- Administrative fees
- Equipment (electronic equipment, shelves, shopping carts, etc.)
- Marketing
To get an estimated price of the grocery store license in Sharjah, consider speaking with one of the advisors at Shuraa Business Setup. They will assess your requirements and provide a customized quote to get started with your business plan.
Updated rules for opening a grocery store in Sharjah
There are certain rules pertaining to obtaining a grocery license in Sharjah:-
- The department must be updated about the existence of any fake products or supplies in the local market.
- The store owner cannot display the advertising sign boards until and unless the prescribed permit is obtained.
- In case the store owner wants to change the location of the store, they must obtain prior approval from the concerned authorities.
- The customer must acquire an invoice for the purchased commodities.
- Commodities like pots, vegetables, electric devices, fruits, clothing, and kids’ toys should not be kept for display.
- The store can install the machines for coin operation only after getting the relevant permit.
- The grocery store must avoid selling products with fake trademarks.
- The store must not sell tobacco products (excluding cigarettes). For example, morsel, instruments; hookah tools and pipes, gas refilling boxes, etc.
- The grocery business owner cannot make any amendments to the license without the approval of the authority in Sharjah.
- After obtaining relevant permits, the store must install a signboard mentioning the name of the grocery and warehouse, if any.
- Promotion or sale of counterfeit goods is strictly prohibited.
- The name on the signboard should be the same as the name of the commercial mentioned in the license.
- The owner of the grocery license must strictly consider the rules and regulations of the country for the sale and business of different goods.
- The date of production and the date of expiry must be mentioned on the products kept for sale.
- Unless the parent company gets the permit, the store should not engage in any promotional campaigns or conduct private promotional offers.
- The store owner must obtain proper approval to place sales, discounts, or special offers on groceries.
- The grocery shops in Sharjah are prohibited from selling explosives, fireworks, or any toys that use gunpowder or flammables.
- The prices must be clearly displayed on the commodities.
- The stores are not allowed to sell cigarettes to people less than 20 years of age.
- The trademark of the grocery shop must be registered with the Ministry of Economy.
- Rules regulating the rights of customer must be fulfilled. The invoice issued to the customer must not have sentences like “The goods are not returnable or not exchangeable”.
- No extra fees shall be charged for the use of credit cards by the customers.
- The grocery license in Sharjah does not allow the sale of products of herbal, medical, pharmaceutical, cosmetics, etc.
Seek Shuraa’s Expertise
Opening a grocery store in Sharjah can be a rewarding opportunity, considering the Emirate’s dynamic market and cost-effective business environment. However, to streamline the formation process, you need expert guidance to help you secure the necessary licenses, meet the regulatory requirements, and choose the appropriate legal structure for your business.
Shuraa Business Setup offers comprehensive company formation services, from understanding the grocery business and market in Sharjah to managing documentation and compliance, that ensure a smooth and efficient setup. Their experts will tell you how to open grocery store in Sharjah and guide you through the process with confidence and ease.
For fast and reliable assistance, call +971 4408 1900 or email info@shuraa.com
