Starting a Furniture Trading Business in Dubai - License Cost and Approvals

At COFTT, we work closely with entrepreneurs who want to set up trading businesses in Dubai, and one of the industries that never slows down is furniture trading. With thousands of new homes, offices, and hotels opening across the UAE every year, the demand for furniture keeps rising.

But here’s what makes Dubai unique: it isn’t just about selling to the local market. Dubai is a re-export hub, meaning you can import furniture from top manufacturing countries like India and China, then sell not only in the UAE but also to GCC, Africa, and beyond. That’s why a furniture trading license is becoming one of the most attractive options for new investors.

Opportunity in Dubai’s Furniture Market

Dubai’s real estate growth is driving furniture sales. Every new villa, apartment, or commercial tower needs furnishing. Add to that the hospitality industry, where hotels, resorts, and holiday homes constantly upgrade their interiors, and you see why the market is expanding fast.

Importing furniture from India and China is especially popular. Both countries have strong manufacturing bases that produce everything from affordable household items to luxury designer pieces. Traders in Dubai often import containers directly from these countries, then sell locally through showrooms or re-export to nearby markets.

The opportunity is not limited to one category. Whether it’s luxury Italian-style sofas, budget-friendly bedroom sets, or even eco-friendly bamboo furniture, the demand is there. Choosing the right niche is what helps you stand out in a competitive industry.

Why Selecting a Niche Matters

The furniture market is broad, and entering it without focus can be overwhelming. Successful traders in Dubai usually specialize in one or two areas. For example:

- Luxury and branded furniture for villas and high-end hotels
- Affordable household furniture for apartments and mid-income families
- Used or refurbished furniture for the budget-conscious and expatriates moving frequently
- Office furniture for businesses and co-working spaces
- Custom or eco-friendly furniture for a growing market that values sustainability

By defining your niche, you can position your business better, manage inventory more efficiently, and target the right customers. It also helps you build stronger relationships with manufacturers in India, China, or other sourcing countries.

Furniture Trading License in Dubai

To operate legally, you need a furniture trading license. This license allows you to import furniture, sell within the UAE, and export to other countries.

You can set up your license in two main ways:

Mainland License

Issued by the Department of Economic Development (DED). This gives you full access to the UAE market, allowing you to open showrooms anywhere and trade directly with local buyers.

Free Zone License

Issued by Free Zone authorities such as JAFZA or DMCC. This option is perfect if your focus is on importing furniture from abroad and re-exporting it regionally. It also gives you 100 percent foreign ownership and customs benefits, though direct retail sales in the UAE mainland will require a local distributor or branch.

License Cost for Furniture Trading

The cost depends on whether you set up in the mainland or a Free Zone.

Mainland licenses usually range from AED 15,000 to AED 25,000, excluding showroom rent.

Free Zone licenses generally start from AED 12,000 to AED 20,000.

Beyond the license, the biggest cost is your showroom or warehouse, since furniture needs display space. Prime locations such as Al Quoz or Sheikh Zayed Road are more expensive but attract higher traffic, while warehouses in Free Zones are cheaper and ideal for bulk storage.

Approvals Required for Furniture Trading

The approvals are straightforward but important:

- Trade license approval from DED (mainland) or Free Zone authority
- Dubai Municipality clearance for showrooms and warehouses
- Dubai Customs registration if you are importing or exporting furniture

These approvals ensure your business runs legally and avoids delays when clearing goods at ports.

Step by Step Process to Start a Furniture Trading Business

Here’s how the journey typically looks when you set up with COFTT:

Step 1: Define your business activity

Choose whether you want to run a retail showroom, wholesale operation, or focus mainly on import-export.

Step 2: Select mainland or Free Zone setup

This depends on whether you want direct access to UAE customers or mainly target regional re-export.

Step 3: Reserve your trade name and get approval

Register your company name and get initial approval for furniture trading activities.

Step 4: Secure a location

For retail, this means a showroom. For wholesale or exports, a warehouse or storage facility is required.

Step 5: Submit documents and apply for license

Complete paperwork such as Memorandum of Association (for mainland) and file for your trading license.

Step 6: Register with Dubai Customs

This step is crucial if you plan to import containers of furniture from India or China.

Step 7: Launch operations

Open a bank account, hire staff, and begin importing, marketing, and selling your products.

Types of Furniture Trading in Dubai

The most active categories right now include:

- Luxury furniture for high-net-worth clients and hotels
- Affordable mass-market furniture imported in bulk from India and China
- Second-hand and refurbished furniture for expatriates and startups
- Office furniture for growing business hubs and co-working spaces
- Eco-friendly furniture to target sustainability-focused buyers

By selecting the right category, you can align with market demand and compete effectively.

Costs Beyond Licensing

Beyond the license itself, consider:

Showroom or warehouse rent: anywhere from AED 100,000 annually upwards depending on size and location
Staff visas and salaries: sales staff, logistics team, and drivers
Marketing and branding: online campaigns, exhibitions, and partnerships with real estate developers
Logistics and insurance: for safe storage and delivery of bulky items

Planning these expenses is crucial to building a profitable trading operation.

Post-Registration Formalities:- After receiving your license, you must:

- Register for VAT if your turnover exceeds the threshold
- Register with Dubai Customs for import and re-export activities
- Open a corporate bank account
- Arrange insurance for goods and staff

Join furniture trade fairs such as INDEX Dubai to showcase your products and meet buyers

These steps build credibility and expand your reach quickly.

Final Thoughts

Dubai’s furniture market is full of opportunity, but success depends on two things: sourcing smartly and choosing your niche. Importing directly from India and China gives you cost advantages and access to a wide range of designs. Selecting the right niche helps you stand out and attract the right customers.

At COFTT, we make the process simple. From getting your trading license to securing approvals and customs registration, we handle the setup so you can focus on building relationships with suppliers and growing your sales.

‍

If you are ready to enter the UAE furniture market, now is the perfect time - and COFTT is here to guide you step by step. Contact us today to get tarted.