agriculture

How to Start Wholesale Agricultural Products Trading Business?

Dubai offers a promising market for Agricultural Products Trading due to its strategic location, growing demand, and government initiatives to expand internationally. Further, the UAE’s focus on food security and investments in agricultural infrastructure creates opportunities for trading. Dubai’s favorable business environment, diverse consumer base, and support for foreign investment make the agricultural products market even more desirable.

Wholesale of agricultural products trading involves buying and selling agricultural commodities in large quantities to retailers, distributors, or other businesses. You can act as an intermediary, purchasing products from producers at wholesale prices and selling them at a markup. This includes sourcing, price negotiation, quality control, logistics, and storage. Wholesale traders may specialize in specific product categories and provide value-added services. 

4620.00 Wholesale of Agricultural Raw Materials and Live Animals 

Apply for your trade license for Wholesale of Agricultural Raw Materials and Live Animals with activity code 4620.00.  Wholesale of agricultural raw materials and live animals refers to the business activity of trading and distributing unprocessed agricultural materials and live animals on a large scale to retailers, processors, or other businesses involved in further processing or distribution.

Agricultural raw materials can include commodities such as grains (wheat, rice, corn), oilseeds (soybeans, sunflower seeds), fibers (cotton, jute), sugar, coffee, cocoa, spices, and other plant-based products. These materials are typically sourced directly from farmers, cooperatives, or agricultural producers and sold to buyers in bulk quantities.

Live animals involved in wholesale trading can encompass livestock, poultry, aquaculture species, and other animals used for agriculture. These live animals are often bred or raised by farmers or specialized producers and then supplied to retailers, processors, or other businesses involved in meat production, dairy processing, or animal husbandry.

Inclusions

Having a Wholesale of Agricultural Raw Materials and Live Animals business license allows you to expand your operations beyond this activity. Diversifying your wholesale business allows you to appeal to a broader customer base, tap into different markets, and increase revenue. Your license also allows you to engage in the following wholesale activities:

  • Wholesale of Oleaginous Fruits: This involves the distribution and sale of oil-rich fruits such as olives, coconuts, sunflower seeds, and other fruits used for oil extraction or food production purposes.
  • Wholesale of Flowers and Plants: You can venture into the wholesale trade of flowers, plants, and horticultural products, catering to florists, nurseries, landscaping businesses, and other related industries.
  • Wholesale of Unmanufactured Tobacco: This allows you to trade unprocessed tobacco leaves, supplying tobacco manufacturers, cigar makers, and other businesses involved in the tobacco industry.
  • Wholesale of Live Animals: With this license, you can wholesale live animals, which may include livestock, poultry, or other animals intended for breeding, farming, or other purposes.
  • Wholesale of Hides and Skins: You can engage in the wholesale trade of hides, skins, and other animal by-products used in industries such as leather production, textile manufacturing, and craftsmanship.
  • Wholesale of Leather: This license allows you to wholesale processed leather products, including hides, skins, and various types of leather used in the fashion, footwear, and upholstery industries.
  • Wholesale of Agricultural Material: You can distribute agricultural inputs such as fertilizers, pesticides, agricultural machinery, equipment, and other supplies necessary for farming and crop production.
  • Wholesale of Waste, Residues, and By-Products Used for Animal Feed: This enables you to trade in waste, residues, and by-products from various industries utilized as animal feed ingredients, contributing to the recycling and utilization of such materials.

Exclusions

With your business license, you cannot perform any activity related to the wholesale trade of textile fibers. This means that your license does not permit you to offer wholesale of textile fibers such as cotton, wool, silk, synthetic fibers, or any other materials used in the textile industry.

Third-Party Approvals

In order to engage in the wholesale business activity of Agricultural Raw Materials and Live Animals (4620.00), it is necessary to obtain additional approval from the Agriculture and Irrigation, Waste, and Environment Department of Dubai Municipality or the Ministry of Climate Change and Environment. This approval is required after issuing your business license, ensuring compliance with regulations and guidelines pertaining to trading agricultural raw materials and live animals.

4620.07 Wholesale of Agricultural Material, Waste, Residues and By-Products Used for Animal Feed 

Apply for your trade license under Wholesale of Agricultural Raw Materials and Live Animals and choose business activity Wholesale of Agricultural Material, Waste, Residues and By-Products Used for Animal Feed with activity code 4620.07.

Wholesale of agricultural material, waste, residues, and by-products used for animal feed refers to the trading and distribution of various agricultural products that are not intended for human consumption – instead; they serve as feed for animals. You can include various products derived from agricultural processes, such as crop residues, milling by-products, food processing waste, and other agricultural waste materials.

As a Wholesale trader in this sector, you can typically procure these agricultural materials from various sources, such as farms, food processing plants, grain mills, and other agricultural establishments. You can then sell these products in bulk to feed manufacturers, livestock producers, and other businesses involved in animal husbandry. Your wholesale trading process involves sourcing, purchasing, storing, and distributing these agricultural by-products to meet the demand of the animal feed industry.

Inclusions

Having a Wholesale of Agricultural Material, Waste, Residues and By-Products Used for Animal Feed business license allows you to engage in a range of wholesale activities, expanding your business scope and serving diverse industries within the agricultural sector. By broadening your wholesale operations, you can attract a wider customer base, access different markets, and increase your revenue streams. As a wholesaler, you are allowed to engage in various activities, including those listed below.

One option is the wholesale of oleaginous fruits, which involves distributing and selling oil-rich fruits like olives, coconuts, sunflower seeds, and other fruits used for oil extraction or food production purposes. Another option is wholesale flowers and plants, catering to florists, nurseries, landscaping businesses, and other related industries. If you’re interested in the tobacco industry, you can venture into the wholesale trade of unmanufactured tobacco leaves, supplying tobacco manufacturers, cigar makers, and other businesses. Additionally, you can obtain a license to wholesale live animals, allowing you to distribute livestock, poultry, or other animals intended for breeding, farming, or other purposes. Another opportunity is the wholesale trade of hides, skins, and other animal by-products used in leather production, textile manufacturing, and craftsmanship. If you prefer processed leather products, you can acquire a license for wholesale leather, including hides, skins, and various types of leather used in the fashion, footwear, and upholstery industries. Another option is the wholesale distribution of agricultural materials, including fertilizers, pesticides, agricultural machinery, equipment, and other supplies necessary for farming and crop production. Lastly, you can engage in the wholesale trade of waste, residues, and by-products used for animal feed, contributing to the recycling and utilization of such materials. These business opportunities offer a diverse range of products and industries to explore in the wholesale sector.

Exclusions

Your license restricts you from offering wholesale services for textile fibers. You are not authorized to engage in any activities related to wholesale textile fibers, including but not limited to cotton, wool, silk, synthetic fibers, or any other materials used in the textile industry.

Third-Party Approvals

You must obtain external approval from Dubai Municipality’s Agriculture, Irrigation, Waste, and Environment Department and the Ministry of Climate Change and Environment before engaging in wholesale trade in Agricultural Material, Waste, Residues, and By-Products Used for Animal Feed (4620.07). This third-party approval must be obtained subsequent to acquiring your business license to ensure adherence to the regulations and guidelines governing the trading of agricultural raw materials and live animals.

4620.90 Agricultural Crops Selling 

Apply for your trade license under Wholesale of Agricultural Raw Materials and Live Animals and choose business activity Agricultural Crops Selling with activity code 4620.90.

Your Agricultural Crops Selling license encompasses agricultural firms involved in selling locally produced agricultural crops. This includes both wholesale and retail transactions conducted within stores, farms, or local markets. With this license, you have the authority to engage in the selling of agricultural crops from local production, catering to various customers and outlets in the agricultural industry.

Inclusions

With an Agricultural Crops Selling license from Meydan Free Zone, you can partake in a wide array of wholesale activities, thereby expanding your business horizons and serving multiple sectors within the agricultural industry. These opportunities encompass diverse industries and include: The wholesale of oleaginous fruits involves distributing and selling oil-rich fruits such as olives, coconuts, sunflower seeds, and other fruits used for oil extraction or food production purposes. Another option is to venture into the wholesale trade of flowers and plants. This allows you to cater to florists, nurseries, landscaping businesses, and other related industries.

For those interested in the tobacco industry, obtaining a license enables you to engage in the wholesale trade of unmanufactured tobacco leaves. You can supply tobacco manufacturers, cigar makers, and other businesses involved in tobacco production.

You can also acquire a license to wholesale live animals, which allows you to distribute livestock, poultry, or other animals intended for breeding, farming, or other specific purposes.

The wholesale trade of hides, skins, and other animal by-products presents another opportunity. These materials are used in leather production, textile manufacturing, and various forms of craftsmanship. If you prefer dealing with processed leather products, you can obtain a license for wholesale leather. This includes hides, skins, and various types of leather used in the fashion, footwear, and upholstery industries.

Another option is to engage in the wholesale distribution of agricultural materials. This encompasses fertilizers, pesticides, agricultural machinery, equipment, and other supplies necessary for farming and crop production. Lastly, you can explore the wholesale trade of waste, residues, and by-products used for animal feed. This business opportunity contributes to the recycling and utilization of such materials, specifically for animal feed purposes.

Exclusions

Your license restricts you from providing wholesale services for textile fibers. You are not permitted to partake in any endeavors associated with wholesale textile fibers, encompassing various materials such as cotton, wool, silk, synthetic fibers, or any other substances utilized in the textile industry.

Third-Party Approvals

To engage in the business activity of selling agricultural crops (4620.90), it is necessary for you to acquire external approval from two entities: Dubai Municipality’s Agriculture, Irrigation, Waste, and Environment Department, as well as the Ministry of Climate Change and Environment. This approval from third parties is a mandatory requirement and should be obtained after obtaining your business license. This process ensures that you comply with the regulations and guidelines that govern the trading of agricultural raw materials and live animals.

4653.00 Wholesale of Agricultural Machinery, Equipment and Supplies 

Apply for your Wholesale of Agricultural Machinery, Equipment, and Supplies trade license with activity code 4653.00.

With your Wholesale of Agricultural Machinery, Equipment, and Supplies trade license, you are equipped to provide a comprehensive range of agricultural machinery, equipment, and supplies to farmers, agricultural businesses, and other entities involved in the agricultural and forestry sectors.

Inclusions

Under your Wholesale of Agricultural Machinery, Equipment, and Supplies trade license, you are authorized to engage in the wholesale trade of a wide range of agricultural machinery and equipment. This includes the trading of various essential tools used in agriculture and forestry.

Specifically, you can offer products such as ploughs, manure spreaders, seeders, harvesters, threshers, milking machines, poultry-keeping machines, bee-keeping machines, and tractors designed for agricultural and forestry purposes. Furthermore, your trade license permits you to sell lawn mowers, regardless of their operating mechanisms. This means you can wholesale both traditional gasoline-powered lawn mowers as well as electric or battery-operated ones.

Third-Party Approvals

You are not required to obtain any third-party approval to operate the business activity of Wholesale of Agricultural Machinery, Equipment, and Supplies (4653.00) in Dubai. Once you receive your license from Meydan Free Zone, you can begin running your trading operations without additional approvals.

In addition to engaging in wholesale activities, you can participate in various retail activities for Agricultural Products Trading within Meydan Free Zone. You can explore retail opportunities in the following sectors with Meydan Free Zone:

  • Agricultural Tools Trading (4752.59): This involves retailing various agrarian tools, including equipment and accessories used in farming, gardening, and other agricultural practices.
  • Agricultural Pesticides Trading (4773.20): You can retail agricultural pesticides, such as insecticides, herbicides, and fungicides used for crop protection and pest management.
  • Agricultural Equipment & Accessories Trading (4773.61): You can Retail a wide array of agricultural equipment and accessories required for farming operations, including tools, machinery, and related supplies.
  • Agricultural Equipment & Machinery Spare Parts Trading (4773.62): You can retail spare parts for agricultural equipment and machinery, ensuring farmers and farming businesses have access to the necessary components for repairs and maintenance.
  • Agricultural Tractors & Machinery Trading (4773.72): You can retail agricultural tractors and machinery used in farming activities, providing farmers with access to essential equipment for crop cultivation, land preparation, and other agricultural tasks.s

By participating in these retail activities within Meydan Free Zone, you can cater to the needs of farmers, gardening enthusiasts, agricultural businesses, and other farming or agrarian industry stakeholders.

Economic Substance Return

The trading activities related to Agricultural Products (4620.00, 4620.07, 4620.90, 4653.00, 4752.59, 4773.20, 4773.61, 4773.62, and 4773.7) are not bound by specific regulatory requirements such as Ultimate Beneficial Ownership (UBO) or Economic Substance Regulations (ESR).

Under the Dubai Economic Substance Regulations (ESR), certain business activities in the UAE must adhere to international standards by maintaining sufficient economic substance within the country to prevent unfair taxation. Additionally, Dubai companies and entities must maintain accurate records regarding their ultimate beneficial owners (UBOs), who possess true ownership or control over the company or entity. However, Agricultural Products Trading in Dubai is exempt from the UBO and ESR regulations.

Anti-Money Laundering Compliance

The trading of Agricultural Products in the UAE is not subject to Anti-Money Laundering (AML) regulations. These regulations are specifically designed to prevent illicit financial activities, including money laundering and terrorist financing, by implementing measures to identify and mitigate risks within different sectors. However, Agricultural Products Trading in the UAE is exempt from AML regulations.

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