Start Your Own General Trading Company in Dubai: Step-by-step Guide
Starting your own general trading company can be a money-making and satisfying business, especially in a busy city like Dubai. Thanks to its booming business environment, geographical advantages, and sophisticated infrastructure, Dubai presents a great opportunity for entrepreneurs who are keen on the idea of setting up a trading company. Have you ever desired of starting a trading company in Dubai? Then, this blog will help you navigate the process of starting the general trading company in Dubai!
What is a Trading Company?
A Trading Company is referred to a business which focusses on purchasing the goods or the commodities from the wholesalers and then selling it to retailers or the customers. The general trading companies acts as an intermediary between the said parties, it may also include export and import of the commodities as per the demand and profitability.
Key functions of a trading company:
- Sourcing: Finding authentic suppliers and making good agreements.
- Purchasing: Going to rural markets to buy goods at cheaper prices using economies of scale.
- Logistics: Handling the transport and storage of goods.
- Financing: Making arrangements for financing purchases and operations.
- Risk Management: Reducing the risks of international trade, such as currency fluctuations and geopolitical uncertainties.
Why Dubai for a Trading Business?
Being strategically located and sporting world-class infrastructure, including favourable government policies, Dubai has become the world’s trading hub.
Key benefits of setting up a trading company in Dubai:
- Strategic Location: Dubai is strategically located at the intersection of Europe, Asia, and Africa, allowing for easy access to major markets.
- Tax Benefits: Dubai offers a business-friendly tax system.
- World-Class Infrastructure: In Dubai, there are high-standard ports, airports, and logistics centres, thus facilitating efficient trade operations.
- Supportive Government Policies: The government of Dubai is highly active in trade promotion and investment, consequently offering business with multiple opportunities
- Free Zones: Dubai offers reflected free zones by giving 100% foreign ownership privilege, tax exemptions, and simplified regulations.
Types of Trading Licenses in Dubai
- General Trading License: This license is if the company will trade in several products, which covers various trading activities like import, export, etc. Dubai provides two primary avenues for obtaining a General Trading License: a Mainland License, which is issued by the Dubai Department of Economic Development (DED), and a Free Zone License, which might be issued by the relevant freezone authorities.
- Specific Trading License: A specific trading license is a permit given to people who are focusing on a particular product category, e.g. electronics, textiles, etc.
Steps By Step Guide to Start the Company in Dubai
- Choose a Business Name and Legal Structure: Choose a business name that is unique and decide on the legal structure (LLC, sole proprietorship, etc.).
- Select a Jurisdiction: Free zone or mainland jurisdiction is one of the options that you can base your business needs on and budget.
- Prepare Essential Documents: Compile all the required documents, including copies of your passport and visa, proof of residence, utility bills, and bank statements.
- Get Initial Approval: Submit necessary documents to the authorities involved in case they grant the initial approval.
- Secure Office Space and Visa: Accommodation will be a thing of the past because your company will secure office space for you and your employees in its building and take your visas to secure a residence visa for you and all your family members.
- Finalize License and Commence Operations: Get done with the last necessary procedures, get the trading license, and start operations.
Cost For Setting Up a The Company
The cost outline for getting a trading license in Dubai can be (AED 25,000/- to AED 50,000/-) much different if we take into account the following factors. These factors include jurisdiction (onshore or Free Zone), the type of business activity, company legal structure, the area and place of the office space, and additional services if needed. Hence the cost may vary subject to certain factors
Even though the exact cost can vary, consequently, an approximate listing of the main expenses in the process of getting a Dubai license may include:
- Government Fees: These are the costs of the necessary approvals, trade name reservation, and other compliance charges.
- License Cost: This is the principal cost that is incurred in acquiring the genuine trading license.
- Foreign Trade Fees: These are fees that are imposed on things related to foreign trade.
- Corporate PRO Services Fees: Professional fees are the costs that are the result of services like visa processing, document attestation, and legal consultations.
Documents Required for General Trading Company Formation
The following documents are required to establish a general trading company in Dubai:
- Passport copies of shareholders and directors
- Visa copies
- Proof of address
- Bank statement
- No Objection Certificate (NOC)
- Business plan
Set Up General Trading Company in Dubai Now
In conclusion, starting up your own general trading business in Dubai is very beneficial and quite prosperous as well. Through the right knowledge, resources, and guidance, you can effectively navigate the Dubai business world and create a sustainable trading company. We at CDA, have the necessary skills and experience to guide you step by step along the way.
Set up your Trading Business in Dubai with CDA
Whether you decide to take up the services of CDA in only one step or in all, the professionals of CDA will be there to help you in all stages, including company formation and licensing, visa processing, office setup, and accounting and legal compliance. Our team of experts are well aware of the regulatory framework and the procedures which are to be followed for setting up a business. Hence, we assure a package of effective services for your business idea.
Give us a call, and we will assist you in setting up your general trading business in Dubai.
