Dubai has been continuously ranked as one of the major business locations in the world. Over the last few decades, there has been a huge growth in the business and financial sectors in Dubai. Sectors such as trade and logistics have also shown remarkable growth. So, starting a general trading company in Dubai is a beneficial investment.
If you are planning to start a general trading company in Dubai and want to know how to start, we have made life easier for you. Below is a step-by-step guide to start a general trading business in Dubai.
Starting a Trading Company in Dubai
Starting a trading company in Dubai is straightforward with its business-friendly environment. You must choose a business activity, register your company with the Dubai Department of Economic Development (DED), and get the necessary licenses. With a strategic location and excellent infrastructure, Dubai is an ideal place for trading businesses.
What Is a Trading Company?
A trading company is a business that buys products from manufacturers or suppliers and sells them to retailers, wholesalers, or directly to consumers. These companies often deal in a wide range of goods and may also handle import and export activities. Trading companies play an important role in the supply chain by facilitating the movement of goods from producers to the market.
What is a Trading Company License in Dubai
A trading company license in Dubai is a legal permit that allows a business to engage in trading activities, such as buying, selling, and importing/exporting goods. Issued by the Dubai Department of Economic Development (DED), this license is essential for operating a trading business within the emirate.
It ensures the company complies with local regulations and can legally conduct business. The license covers a variety of trading activities, including general trading and specialized trading, and must be renewed annually.
What is General Trading in Dubai?
General Trading in Dubai involves business activities like Import, export, and distribution of a wide variety of goods. Companies engaged in general trading can deal in multiple product categories, such as electronics, clothing, food items, furniture, and more. All these businesses operate under a general trading license.
It also allows them to trade in a diverse range of products without being restricted to a specific industry or type of good. Dubai’s strategic location, world-class infrastructure, and business-friendly environment make it an attractive hub for general trading activities.
Benefits of Starting a General Trading Company in Dubai
DED general trading license in the UAE provides flexibility and convenience for entrepreneurs. The advantages of opening a trading company in Dubai are numerous, including:
- Low-Risk and Booming Market: The market booms with many business opportunities, making it a low-risk venture. The growing tourism industry in the UAE also boosts trading companies’ revenue.
- Easy Licensing: Getting a general trading license is simple, especially with the help of experts like Shuraa. This makes it an attractive option for entrepreneurs seeking easy business setups.
- Tax Benefits: Trading companies only pay 5% VAT and enjoy no customs duties, corporate taxes, or other fees. They also have complete freedom to repatriate capital and profits.
- Strategic Location: Dubai’s prime location and excellent infrastructure provide great logistics and connectivity, making it easier to access global markets.
- Growing Economy: Dubai’s diverse and expanding economy offers numerous opportunities for trading businesses to grow and succeed.
- 100% Ownership: 100% ownership helps you start a company in Dubai, you don’t need any UAE national as an owner, shareholder, or director.
These advantages make obtaining a general trading license in Dubai a smart and appealing choice for entrepreneurs.
How to Start a General Trading Company in Dubai
Below are the steps which will help you to start a general trading company in Dubai:
1. Develop a Business Plan
The first step in starting a general trading business is developing a business plan. A good business plan considers almost all factors, such as market conditions, competition, products and activities, total number of employees, office space requirement, Initial investment, Marketing tactics, Investors, and financing. These factors determine the workings of the business. Study these factors thoroughly and create a wise business plan.
2. Choose the Jurisdiction
Dubai’s market is classified into three jurisdictions: free zones, offshore, and mainland. There are currently 40+ free zones in Dubai. The free zone offers 100% exemption on corporate and personal income and 100% ownership to investors. On the mainland, full business ownership is allowed for most business activities.
An offshore company is set up in a country other than the investor’s residence. Choose the jurisdiction according to your company’s requirements. It is better to start your company on mainland Dubai because there is more exposure to customers, you can trade with other companies in Dubai, there is no limitation on issuing work visas, and you can open multiple branches.
3. Legal Formalities
Getting a license for your business is very important as it makes your business legal. The General Trading License allows companies to sell, store, distribute, import and export, etc. A General Trading License covers a wide range of business activities, from retail & wholesale of goods to the selling of clothes, accessories, pieces of equipment, furniture and fixtures, and electronic appliances.
4. Visa Application
You must get important visas to start a general trading company in Dubai. You need a residency visa for yourself, your employees, and the staff members working. There are just a few steps for the visa process, which are mentioned below:
- Entry Permit
- Status adjustment
- Medical and fitness tests
- Visa stamping
5. Open a Corporate Bank Account
The final step is to open a corporate bank account in Dubai. Select a bank suitable for your business needs. You can choose from a local or international bank. If you are stuck opening a bank account in Dubai, contact our Shuraa experts, who will help you.
Steps to Get a General Trading License in Dubai
To get your trading license and start a general trading company in Dubai, follow these simple steps:
- Choose a trade name for the company
- Plan your business activities
- Apply for initial approval from DED.
- Getting external approvals if required
- Prepare a Memorandum of Association (MOA)and get it signed by your partners
- Choose a business location and get a tenancy contract properly attested by Ejari.
- Apply to the Department of Economic Development (DED)
- Pay the fee for the issuance of the license
If you are applying for a general trading license in a free zone or offshore, you must submit the original documents to the Commercial Registry at the trade license and commercial registration department.
DED will issue the general trading license after getting approval from the trade license and commercial registration department.
Cost of Setting up General Trading Company in Dubai
The cost of setting up a general trading license in Dubai will be anywhere between AED 15,000 to AED 50,000 (approx.) or even more. The total cost of a license is determined by factors such as where you choose to set up a business, warehouse size, office space, additional approvals, business jurisdiction, and visa applications.
However, when you engage with the experts at the Shuraa, you won’t have to worry about the authenticity of these payments. We oversee all transactions to ensure you secure the cheapest general trading license in the UAE and that you do not incur additional costs due to incorporating your general trading business in the UAE.
Documents Required for General Trading Company Formation in Dubai
Setting up a General Trading Company in Dubai requires compliance with administrative paperwork. Here’s a list of documents you’ll need to submit:
- Passport copies of all the partners in the company
- Passport-size photographs of the candidate in compliance with the photography protocols
- MoA and LSA agreements
- Trade name registration letter issued by the concerned council
- Office/warehouse tenancy contract, along with a detailed location plan
- NOC letter from your current service agent
Once you submit these documents, company officials will check, verify, and add your trade name to the commercial registry. The DED will forward your documents to the Federal Ministry of Economy for publication. Upon successful publication, the ministry will issue an approval letter.
Start your General Trading Company with Us!
To start a general trading business, you first need to develop a business plan, which will give your business direction. Once you have a business plan, choose the jurisdiction of your company. The next step is to find a sponsor.
At this stage, you must complete all the legal formalities to set up your business. Once you have done so, you will get the general trading company license.
If you’re looking to start a business in Dubai, contact Shuraa Business Setup today. For more information, speak with our experts at +97144081900 or WhatsApp them at +971507775554.
