Opening a Packing Materials Store or becoming a Packing and Packaging Materials Retailer with Meydan Free Zone involves setting up a business that specialises in selling various types of packing and packaging materials to customers. This can include items such as boxes, cartons, tape, bubble wrap, packing peanuts, foam padding, mailing envelopes, shipping labels, and other packaging supplies.
As a Packing and Packaging Materials Retailer, your business can focus on sourcing, stocking, and selling a wide range of packing and packaging materials to customers, who could be individuals, businesses, or organisations that require such materials for their shipping, moving, or packaging needs. Your store may cater to various businesses and industries, including e-commerce companies, retail stores, moving and relocation services, manufacturing and production companies, wholesale and distribution companies, event planning and logistics firms, office and business supply stores, and home-based businesses.
4773.d2 – Packing & Packaging Materials Trading
Packing & Packaging Materials Trading license from Meydan Free Zone involves the buying, selling, and trading of various types of materials that are used for packing and packaging purposes. You can include a wide range of products, such as:
- Packaging materials: This may include items like cardboard boxes, bubble wrap, packing peanuts, tape, stretch film, packing paper, foam packaging, and other materials used for packaging goods.
- Shipping supplies: This may include shipping boxes, shipping labels, shipping tape, packaging fillers, void fill materials, packing list envelopes, and other supplies used for shipping and transportation of goods.
- Protective packaging: This may include materials designed to protect fragile or sensitive items during shipping or handling, such as foam inserts, cushioning materials, edge protectors, and corner guards.
- Packaging machinery and equipment: This may include machinery and equipment used for packing, sealing, labelling, or other packaging processes, such as packing machines, sealing machines, labelling machines, and related tools and equipment.
- Custom packaging solutions: This may include customised or specialised packaging materials or solutions tailored to specific customer requirements, such as custom boxes, printed packaging, branded packaging, or unique packaging designs.
- Eco-friendly and sustainable packaging: This may include environment-friendly or sustainable packaging materials, such as biodegradable or compostable packaging, recycled materials, or other eco-friendly alternatives.
- Other packaging-related products: This may include various other packaging-related products, such as strapping materials, pallets, pallet covers, dunnage bags, and other packaging accessories or supplies.
This business activity does not require third-party approval.
The UAE has become an attractive location for companies looking to minimise their tax liabilities due to its no or low tax jurisdiction. However, some companies have misused this advantage for tax evasion by shifting their income from higher tax jurisdictions to lower tax jurisdictions. To address this issue, the UAE government has implemented the Economic Substance Test (EST) to ensure that companies engaging in certain activities have a substantial presence within the country. This requires companies to demonstrate an adequate number of full-time employees in the UAE, generate most of their income within the country, and have sufficient assets and operational expenses in the UAE.
To comply with the EST, companies must file an Economic Substance Return (ESR) within one year of the end of their fiscal year. For example, companies with a fiscal year that started on or after January 1, 2019, and ended on or before December 31, 2019, are required to file the ESR. New companies are also required to file an ESR in the following year if their activities fall within the scope of the EST. This measure aims to ensure that companies conducting business in the UAE have a genuine presence and economic substance in the country, discouraging tax evasion practices.
Business activity 4773.d2 is exempt from the ESR requirement.
Designated Non-Financial Businesses and Professions (DNFBPs) in the UAE are obligated to comply with anti-money laundering regulations to prevent the financing of terrorism and illegal organisations. To meet the standards set by the Ministry of Economy, an awareness campaign was conducted on April 30th, 2021, and existing license holders have already been registered for goAML.
Failure to comply with these requirements before the deadline may result in fines imposed by the Ministry of Economy. To avoid penalties, new licensees must ensure they fulfil the requirements after obtaining their license.
Note that business activity 4773.d2 is not subject to AML regulations.
Why Apply for Your Trade License with Meydan Free Zone?
- Guaranteed bank account.
- Business license recognised by MoFA and Dubai Chamber of Commerce.
- Open an online shop and choose from over 30 plus marketplaces.
- Apply for unlimited visas.
- We provide clearing, forwarding, shipping, storage and warehouse facilities.
- Apply for your import/export code directly with Meydan Free Zone.