Dubai, the business capital of the UAE, has witnessed huge growth in the commercial and financial sectors over the last many years. In addition, trade and logistics have also developed remarkably in the Emirate. In such a scenario, investing in a trading company can be a beneficial move, considering the possibility and scope of domestic and international trade in the city. However, if you are worried about how to start a general trading company in Dubai, we have made it easier for you through this guide.
Starting a General Trading company in Dubai
A general trading company formation in Dubai is straightforward given the business-friendly environment, strategic location, and excellent infrastructure provided by the emirate to entrepreneurs and investors. Trading companies play an important role in the supply chain. They deal in a wide range of goods and hence facilitate the movement of goods from manufacturers to the market. They typically purchase products from manufacturers or suppliers and sell them to retailers, wholesalers, or even directly to consumers.
To operate a general trading company in Dubai, you will need a trading company license which will serve as a legal permit to engage in trading activities, including importing and exporting of goods. The Department of Economic Development (DED) issues this license to trading companies in Dubai.
Benefits of General Trading Company Formation in Dubai
A general trading company license provides numerous advantages to company owners, including flexibility and convenience.
- Low-risk thriving market – The Dubai market is thriving with humongous opportunities. This makes a trading company setup a low-risk venture. Besides, the growing tourism in Dubai significantly contributes to the revenue of the trading industry.
- Easy license acquisition – The process of starting a general trading company in Dubai is quite easy, and so is getting a trading company license. This, thus, makes it an attractive option for those looking to step into the trading market of Dubai.
- Tax benefits – The trading companies in Dubai have to pay only 5% VAT and are fully exempted from customs duties, corporate taxes, and other fees. In addition, they are completely free to repatriate capital and profits.
- Strategic location – Dubai has a prime location and excellent infrastructure that offers great logistics and connectivity, thereby making it easier for trading companies to access global markets.
- Growing economy – Trading businesses can avail numerous opportunities to grow and succeed within the diverse and expanding economy of Dubai.
- 100% ownership – Foreign investors who wish to set up their business base in Dubai can do so with 100% ownership, without the involvement of any UAE national as an owner, shareholder, or director.
These are just a few points. There are many other advantages of obtaining a general trading license in Dubai. Get the full details from the experts of Shuraa.
How to start a general trading company in Dubai – Process
Investors need to follow a trail of steps to establish their trading firm. Here’s how to start a general trading company in Dubai –
Develop a business plan
The first step is to draft a comprehensive business plan that covers all factors, including market conditions, competition, commodities and services, number of employees, office space, Initial investment, marketing tactics, investors, and funding. All these factors will determine the functioning of the company. Hence, you need to study them meticulously and thoroughly in order to come up with a robust business plan.
Pick a jurisdiction
The market of Dubai is classified into three different jurisdictions: free zones, mainland, and offshore. Currently, there are over 40 active free zones in Dubai that offer full tax exemption on corporate and personal income and 100% ownership to foreign investors. Even on the Mainland, full business ownership is allowed for the majority of business activities.
On the other hand, offshore entities are established outside the registered jurisdiction. Therefore, business owners must make a selection based on their business requirements. For instance, if they want more exposure to customers, trade with other companies in the region, no limitation on work visas, and freedom to open multiple branches, then Mainland is the best alternative.
Complete the legal formalities
A business license is mandatory to make the business legal. With a general trading license, companies can sell, store, distribute, import, and export goods and services in the global market. From retail & wholesale of goods to the selling of basic essentials like clothes, accessories, furniture, electronic appliances, etc., this license covers a wide range of activities.
Make the Visa applications
You need to acquire important visas to stay and operate your business in Dubai. For example, a residency visa, employee visa, partner visa, etc. The process of obtaining a visa includes the following steps:-
- Secure an entry permit to Dubai
- Status change
- Undergo the Medical and fitness tests
- Register for an Emirates ID
- Visa stamping
Open a corporate account
The final step is to open a business account in any of the Dubai banks. The city has several options for local as well as international banks. Hence, business owners must select a bank or financial institution according to their banking and business needs.
If you have any confusion regarding which bank is the most trusted one or how to open a corporate account, contact the business setup experts of Shuraa.
Documents required for the company setup process:-
- Passport copies – owners, partners, shareholders
- MOA and LSA agreements
- Trade name registration letter
- Office tenancy contract and a comprehensive location plan
- NOC letter from the current service agent
Upon submitting the paperwork, the concerned officials will verify the documents and add the company to the commercial registry accordingly. These documents will further be forwarded to the Federal Ministry of Economy for publication. After publication, an approval letter will be issued to the company by the Ministry.
Cost of setting up a general trading company in Dubai
Apart from learning how to start a general trading company in Dubai, it is equally important to stay informed about the cost structure of the process. The cost of starting a trading company involves several factors such as the location, office and warehouse space, additional approvals, visa applications, etc.
Nevertheless, the authenticity of these payments can often be a matter of concern for business owners, especially those who are new to the city. The company formation experts at Shuraa will oversee all transactions and help you secure the cheapest trading license in Dubai. They will also make sure that you do not incur any additional costs or are not subject to any hidden administrative charges.
Start your journey to Dubai with Shuraa
A successful business setup will help your company function better and retrieve more profits and fame. For this, you will need a well-drafted business plan, a suitable business location, mandatory documents, and a supportive partner like Shuraa.
Shuraa Business Setup will help you complete all the legal formalities to establish your general trading business in Dubai and obtain your license through lawful means. Their team has vast industry experience and strong knowledge of the rules and regulations through which they will assist you in meeting all the administrative criteria and setting up your enterprise seamlessly.
If you still have queries on how to start a general trading company in Dubai, contact Shuraa Consultants at +97144081900 or WhatsApp at +971507775554.
