Have you ever considered how beneficial a metal scrap business setup in Dubai could be? As an industry that is rapidly evolving and attracting new investors daily, a metal scrap business would be incredibly profitable.
As of 2020, the UAE boasts a scrap reserve of 1.5m tons per year. With the aim to be among the best in every sector – it is doing evidently well in the scrap sector too. UAE is currently the second largest exporter of scrap goods. It accounts for 1.6% of the ferrous scrap found worldwide.
A new business is as exciting as it can be overwhelming but with the right support and guidance, your metal scrap business will be set up in no time!
Benefits of Setting up a Scrap Metal Business
Scrap metal comes from a variety of diverse sources such as the industrial sector, surplus material from manufactured products, household goods, leftover materials from construction sites, and more. With a business dedicated to metal scrap, you can do much with what you have.
Here are some of the benefits:
Facilitates Energy Conservation
Setting up a metal scrap business in Dubai allows you to help with the conservation of energy. On average, you save around 92% aluminum, 90% copper, and 56% steel when you recycle metals.
With a business that deals in scrap, you will be helping the environment massively!
Easier Access for Import and Export
Dubai is a global hub for trade through the sea, road, and air routes. With your metal scrap business in place, you can carry out the import and export of metal scrap. You can either export your scrap goods to the international market or import them for your own business.
Good Source of Revenue
A metal scrap business is a lucrative option if you are looking to build a profitable empire in Dubai. With the right knowledge of scrap goods and how to make use of them, you can indeed setup a brilliant business that reaps many rewards
The state of the environment we live in today is quite saddening. With global warming and the depletion of natural resources, every step taken in the right direction will be beneficial. Scrap metal businesses can positively affect the environment as metal recycling helps in safeguarding natural resources. It also minimizes greenhouse gas emissions.
What Documents do you Need to Start a Scrap Metal Business?
These are some of the documents you may require when you are setting up your metal business.
- Passport copies of all shareholders
- License application form
- PoA and MoA
- Lease contract for office/warehouse space
- Proof of fee payment
- Approvals for other entities (if required)
What is the Process of Setting up a Metal Scrap Business?
As a business that is quite capital-intensive, it can be all the more tempting to establish a business that deals in scrap metal. It is important to conduct rigorous research on aspects such as what sorts of metal you will be using, what equipment and tools you will require, and the sort of expenses, hidden or otherwise, you may incur.
- Depending on the exact nature of your business activities, you may need a commercial, professional, or industrial license for your metal scrap business in Dubai. Therefore, your first step would be to decide on the business activities to have more clarity for the proceeding steps.
- Next, you must select a trading name (or a few) that abides by the rules set by the UAE Government. Having several trade names in mind is a good idea as some may not be approved and others may already be in use.
- Now, you will be required to find an office space. If your business activities fall under an industrial license, you will be obliged to rent a warehouse. However, if they fall under the commercial or professional license, this shall not be the requirement. Whether you require a supermarket, a warehouse, or a simple office, you must rent it as office space is a requirement for the issuance of a business license.
- With these processes sorted, you must seek approvals from other concerned government entities such as the Dubai Municipality, Civil Defense, etc. This step depends on your business activities.
- After these steps are complete, you may then submit your license application, along with the additional approvals as well as the documents mentioned above to the Department of Economic Development
- If all things are in order, you will receive your business license in no time!
If a scrap business seems like something that you would like to invest in – given how beneficial it is environmentally and financially, you should get in touch with reliable business consultants who provide end-to-end solutions for your every need. Hiring trusted business setup consultants means you will no longer have to worry about having to manage tasks or waiting in long queues as these aspects will be taken care of. Make your life easy, hire Business Link!