Trading has always been an important part of Dubai’s identity. All kinds of items are traded in the Emirate today, thanks to its history as a pearl trading port. It’s financial and oil markets, and its current plethora of market opportunities. There are a few sectors that don’t have Trade companies in Dubai. Emiratis have access to marketplaces in both the East and the West because of their good position.
Dubai’s cheap tax policy, ease of incorporation, and lack of entrance hurdles make it a popular choice for businesses of all kinds.
And you don’t have to stick to one product when you open an account here. Under one license, you can acquire and sell a wide range of items with the DED general trading license.
Procedure to Start a Trading Company in Dubai
- Create a company strategy
To begin a trading firm, the first step is to write a business strategy. A great business plan will examine virtually every aspect of the business, including the market, competitors, products and services near and far, the total number of employees needed, office space requirements, the initial capital investment required, and marketing tactics and promotional strategies. These aspects determine how the company functions. Take the time to thoroughly investigate and consider each of these variables before coming up with a strategic company plan.
- Choose the Location
Among the three jurisdictions or areas that make up the Dubai market are:
Dubai’s mainland as well as free zones and offshore areas
More than forty free zones are now in operation in Dubai. The free zone provides a tax exemption of 100% on both corporate and personal income, as well as 100% on foreign ownership. To start a Dubai trading company on the mainland, foreign investors must locate a local sponsor who owns at least 51% of the whole business. This type of business is known as an offshore company since it is set up outside of the investor’s place of residence. Consider your company’s needs when selecting a site, as well as the nature of the business you aim to conduct. It is best to establish your business on the mainland of Dubai since there is greater exposure to the consumers, and you may trade with other general trading companies in Dubai. With no restrictions on the issuing of work visas, several locations are simply opened.
- Identify a Sponsor
You’ll need a local sponsor if you wish to open a business on the Dubai mainland. As a result, the sponsor will possess 51% of the firm stock. If you want to create a business in the mainland UAE, you’ll need to find a local UAE national sponsor. The United Arab Emirates allows two types of sponsorship:
local and business sponsorships are available.
While a local sponsor will allow you to hold 49 percent of the shares in your firm, the corporate sponsor will grant you full ownership by invoking the investor’s right protection contract.
- Legal Formalities
As a business owner, obtaining a license is vital since it makes your Dubai trading company lawful. A general trading company license is required for a corporation that primarily does business in the general trading, importing, and exporting of diverse items. This license will allow the sale of goods such as clothing, accessories, machines, furniture, and decorative objects.
The following are the steps necessary to get a general business license:
Decide on the company’s name
- Organize your company activities in a systematic way.
- Pick a name for the firm to trade under.
- Submit an application for DED’s first approval.
- Approval from outside sources, where needed. Create a Memorandum of Association (MOA) and have it signed by your partners.
- Select a place for your business and obtain an attestation from Ejari for the tenancy agreement.
- Get in touch with the Division of Economic Development (DED)
- Obtain a license by paying the appropriate price.
To get a business license for Trading companies in UAE or in the free trade zone or offshore, you must submit the original paperwork to the Trade License and Commercial Registration department. After receiving clearance from the trade license and commercial registration department, DED will issue a trading license.
If you are planning to register a corporate bank account for your business in the United Arab Emirates, it is imperative that you properly research the licensing options before making a decision. Because so many of your customers and suppliers are located outside the UAE, you must register a bank account before you can begin doing business. You may save money and time in the long run if you take the appropriate approach when it comes to deciding between a general trading license and a commercial one.