Starting a General Trading Company in Dubai

Starting a General Trading Business in Dubai: If you talk about the best location for business in the whole world, then we think that Dubai has been at the top in the list of best business locations for many years and who knows, it will remain so for many years to come.

For the last many years, Dubai has been witnessing progress and success in the business sector. Every day new businesses are opening in Dubai and different successful businessmen from all over the world are coming to Dubai to start their business.

Now let us talk about general trading in Dubai, be it e-commerce companies or logistics businesses, excellent growth is being seen in every business and every sector in Dubai. All businessmen from all sectors are achieving remarkable progress. And that is why opening a General Trading Company in Dubai is going to be a very profitable deal, it is obvious.

If you are also an international investor and you also want to start your own general trading company in Dubai but are wondering where and how you can start your own general trading company in Dubai, then today herein we have made it even easier for you to open a general trading business in Dubai.

Further in this article, we are going to give you a step-by-step guide and in detail we will explain to you how you can open your general trading company in Dubai and get a general trading license.

Steps to Start a General Trading Company in Dubai

Table of Contents

A business plan is very important for a general trading company

If you want to open a general trading company in Dubai or whether you want to start any other type of business, then the first necessary step and first step should be to make a very detailed business plan.

And a business plan is good only when we take into account all the factors in it, such as what products and what activities will be done in the general trading business, how the market conditions have been in the past and how they will be in the future, what kind of competition and competitors are we going to get in Dubai, how big an office space are you going to need for your general trading company and how many employees are you planning to hire, what is your initial investment, if you are looking for investors, where are they going to come from and how are you going to finance your general trading company etc.

All these factors together make a very successful and successful business plan and this determines the success of your business in the future. Therefore, our advice is that before starting your business, you should study all these factors very carefully and only after studying, make a proper, detailed business plan so that you can take the first step towards success.

Selecting the correct jurisdiction for your business

The Dubai market is divided into three jurisdictions for businesses:

Mainland

Free Zones

Offshore.

If you choose a free zone to start a business in Dubai, then we would like to tell you here that there are more than 48 free zones in Dubai.

The biggest advantage of opening a business in Free Zones is that you get 100% exemption on corporate tax and personal income tax. Not only this, the free zone also has 100% foreign ownership. This means that if you come to Dubai from any country around the world to start a business and start a business in any free zone in Dubai, then being the investor of the company, you will be its hundred percent owner and no one else will have any control over it.

There will not be even one percent interference in your company or your business. However, this is the case in Dubai Mainland also. If you start your own business or company in mainland then you will get 100% ownership.

But recently corporate tax has been launched in Dubai. That is why before starting your company in Dubai, it is very important to understand and see in which area you should start your business. It all depends on your business activity.

If you are thinking of starting the business of general trading, then free zones will be the best option for that. But mainland also proves to be very beneficial jurisdiction for many businesses because by starting a business there, your business gets more contact with customers. That means you get more chances of getting more customers in the mainland.

Another biggest advantage of starting a company in the mainland is that you can do business with other companies established in Dubai and also you get a higher quota of work visas. Not only this, you can also open more branches of your business.

Legal Formalities

You can legally start a general trading company in Dubai only if you obtain a license for your business from the Dubai government. A government license gives you the permission to buy, sell, import, export or distribute goods or store them in your warehouse.

The General Trading Company license covers a wide range of business activities. Which includes selling electronic goods, clothes, accessories or many other types of products which also includes many different types of electronic gadgets or electronic appliances.

Steps to get a general trading license in Dubai

To make your business registration easier, we have given some very simple steps by which you can get General Trading License in Dubai to setup your business:

First of all, you have to select a trade name of the company.
Plan your business activities: which business activities you would like to include in the general trading business.
Apply for initial approval from DED.
Now apply for external approvals if required.
After preparing the Memorandum of Association (MOA), all the partners should sign it.
Now you have to select the best business location and move towards business.
Now submit this application to DED.
Finally, you will have to pay a fee to issue the license.

Please note that if you want to obtain a General Trading License in a free zone or offshore, in that case you have to submit the original documents to the Commercial Registry of the trade license and commercial registration department. After that, as soon as DED gets approval from the trade license and commercial registration department, DED will issue you a general trading license.

Cost of setting up a General Trading company in Dubai

Talking about General Trading License, its price in Dubai may range anywhere from AED 14,000 to around AED 52,000. However, in some cases and business activities, even more.

The total cost of business is based on many factors like the location in which you choose to start the business, the size of the warehouse you will take, the cost of office space, the costs of external approvals if any, for the business. Selection of mainland or free zone, how much will visa applications cost etc.

Now here we would like to tell you that when you connect with the experts of ReCorporate, then you do not need to worry about all these steps or processes or depend on when, where, how for the payments and gevernment approvals.

Because we stand with you in all the steps and we ensure that you get the minimum payment to get your General Trading License. Our PROs and our experts always support you so that you do not have to pay much money to start a trading business in Dubai.

Documents required for application of general trading license in Dubai:

All the documents required by the government are necessary for anyone to start any company in Dubai. Here we are going to tell you the list of documents which you have to submit to get General Trading License in Dubai:

Copies of passports of all the partners in the company
Passport size photographs of all partners
MoA and LSA agreements
Trade Name Registration Letter
Tenancy contract for the office/warehouse along with a detailed location plan
A NOC letter from the current service agent

When you submit the documents mentioned above, company officials check those documents, verify them, and after verification, add the trade name to the commercial registry.

After this, DED sends your documents to the Federal Ministry of Economy for publication. After that the Ministry issues the approval letter after receiving a successful publication from its side.

Main benefits of obtaining General Trading License in Dubai

Well, there are endless benefits of starting a general trading business in Dubai. But we would like to draw your attention to some main advantages:

There are a lot of business opportunities in general trading and this segment is growing very fast, hence this is probably a very low risk business in Dubai. Moreover, the business of Tours and Travels is growing so fast in Dubai and because of that General Trading Companies are able to make huge profits in Dubai.
Getting a license to open a General Trading Company in Dubai has been made a child’s play by the business experts at ReCorporate. New emerging businessmen from all over the world who want to take their business to Dubai mostly choose general trading companies.
The amount of money that General Trading Companies make in Dubai due to tax benefits and tax exemptions, are so big that it literally cannot be calculated. Due to 0% tax and 100% foreign ownership in UAE, general trading companies make really high & good profits. There are neither any custom duties, nor personal income tax nor any other type of business fees in Dubai. Only 5% VAT for general trading companies.

Conclusion

If you want to start a general trading business in Dubai, then first of all you have to make a business plan. Only a good and wise business plan will prepare the right and easy path for your business.

Once your business plan is ready, you will select the correct jurisdiction for your company. Now you need to complete all the legal formalities for your company. Because you will get the license of your general trading company only when you complete all the legal formalities.

Start your general trading company with ReCorporate

If you want to start your general trading company in Dubai then you can contact us (ReCorporate) and our experts will help you to start your company easily and successfully in Dubai.

Office 1302 Al Moosa Tower 1, Sheikh Zayed Road , Dubai, UAE

Whats App: +971585865477