Setup A General Trading Company In Dubai
Start A General Trading Company In Dubai
In the last few decades, Dubai has grown to become a business hub, attracting investors through profitable investments. Starting a general trading company in Dubai offers several advantages, making it the best choice for starting a business. Dubai is a hub of benefits for entrepreneurs and businesses that plan to set up trading companies in Dubai. And being located at the intersection of Europe, Asia, and Africa, it is this gateway that provides access to these lucrative markets. It is one of the major centres of trade and industry; therefore, it gives you an opportunity to connect with worldwide networks of supplier manufacturers as well as buyers. The contemporary ports, airports, and logistic facilities make Dubai stand out from other cities since it has amazing infrastructure that supports both importation and exportation. Therefore, we can assert that Dubai has created an environment conducive enough for business development and innovation by instituting policies aimed at attracting foreign businessmen.
Steps to Setting Up a General Trading Company in Dubai
Several steps and considerations are involved when setting up a general trading company in Dubai. Quick summary points include:
1. Type of business
Define the products you will trade within. A Trading licence In Dubai allows companies to trade on a variety of products except those which are regulated, such as pharmaceuticals, firearms, etc.
2. Determine your business structure
Choose the most appropriate legal form for your business; it can be mainland, free zone, or offshore, each with its own advantages and disadvantages relating to ownership, taxation, and operation.
3. Choose the company’s name
The Department of Economic Development (DED) or the relevant freezone authority specifies the naming guidelines for this.
4. Local Agency or Sponsorship
A mainland company requires a local sponsor or partner holding 51% of the shares; however, some free zones allow foreign investors to own 100% of the shares.
4. Licence Acquisition
Finally, apply for a general trading licence from either DED (mainland companies) or respective free zone authorities (companies located in free zones).
5. Visa
It is a permit that you will need for yourself and anyone else that you intend to hire as part of your workforce. The number of visas one can get depends on various things, including the size of an individual’s office space and type of company setup.
Benefits of obtaining general trading licence in Dubai
The advantages of opening a general trading company in Dubai are many. Here are some of them:
1. It is a relatively less dangerous affair to start a trade company in the UAE because the market is growing and offers various business opportunities. Moreover, the tourism industry in the United Arab Emirates keeps expanding at a fast pace. Therefore, increasing the incomes of general commerce firms located in Dubai.
2. In order to obtain a general trading licence in Dubai, it’s as simple as that. For modern-day entrepreneurs, finding a simple business opportunity is always essential in that it gives them some space for their creativity, and such an option as a general trade company is always very attractive to them.
3. Tax incentives granted by UAE governments play a great role in raising substantial sums for trading companies. They need only pay 5% VAT, and there are no customs duties, corporate taxes, or other charges within Dubai. Additionally, Dubai’s trading companies have unrestricted repatriation of capital and profits.
Steps to get a general trading licence in Dubai
Simple steps to get a trade licence in Dubai for your business:
1. Pick a trade name for the company
2. Plot out your business activities.
3. Please apply for initial approval from DED.
4. Get external consents if required
5. Prepare Memorandum of Association (MOA) and get it signed by your partner.
6. Choose a business location and get a tenancy contract properly attested by Ejari.
7. Submit the application to the Department of Economic Development (DED)
Moreover, if you are applying for a general trading licence in a free zone or offshore, you should submit the original documents to the Commercial Registry at the Trade License and Commercial Registration Department. Hence, general trading licence will be issued by DED after obtaining approval from the Trade License and Commercial Registration Department.
How can the Flying Colour business setup assist you in establishing a trading company in Dubai?
Why don’t you set up a general trading company in Dubai today, now that you know the steps? Opening a general trading business in Dubai is profitable, and the government of Dubai supports this by making it easy for operators to start. In case you have any last-minute concerns about starting a general trading company in the UAE, it may be helpful to collaborate with a reputable firm such as Flyingcolour. Flying Colour experienced consultants are focused on offering advice on how to start a business in Dubai and can therefore help you out during the whole process so as to enable you to realise the smooth-running setup of your company.
To learn more about how to start a general trading company in Dubai, book a free consultation with one of the Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.
Please note that this article was published on 26/04/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
