This is going to be a step by step detailed comprehensive guide for you on how to start a general trading company in Dubai. If you’re seeking or planning to start your general trading business in the UAE, and not too sure how and where to start, then this guide is going to be very useful for you.
It is a well-known fact that to start a general trade firm in UAE, Dubai is an ideal place for international investors and aspiring businessmen from all over the world. UAE government has ensured that from last 20 years there is an incredible steady increase in trading business. As a result, a huge number of resources has been invested in this sector.
Therefore, we’ve come up with this step-by-step plan / guide for you which will help you in gathering complete information on how to start a general trading company in Dubai.
Government has ensured a continuous development in each sector or industry, considering foreign investors has reached to appealing market possibilities. To establish a shop in Dubai is only beneficial for investors and aspiring business owners because it is truly clear that Dubai is among those country of major commerce centers in world.
You must adhere to a set procedure in order to launch a general trade business in the United Arab Emirates.
How to Start a General Trading Company in Dubai: 5 Steps
To launch a general trading firm in Dubai an investor needs take in account these 5 steps before turning to the path of launching any firm.
Due to its prominence global trade and commerce centers, Dubai is a lucrative, perfect place and center of attraction for starting a general trade company. Go through to this article thoroughly to know more about first five steps:
1. Decide on a Corporate Structure
Choosing the type of business structure, you wish to follow is the first step in establishing a general trading company in Dubai. It’s critical to respect the rules in Dubai and have well-organized plans and tactics.
To build a successful firm, entrepreneurs must take into account a variety of aspects, including the initial investments, the number of employees, the products and activities, market research, and more.
In Dubai, there are numerous business opportunities available, including general trading.
2. Choose your business activities
The complete list of allowed activities can be found on the Dubai Department of Economic Development (DED) as well as to get any required licenses or permits with the help of local consulting service providers such as ReCorporate, and for this you must submit an application for those specific trade activities if you intend to concentrate on a small number of them.
However, if you intend to engage in a variety of trade operations, Dubai will classify your company as a general trading company.
You will need to apply for a general trading license in this situation, which is normally more expensive because it allows you to engage in a variety of trade activities.
Read: Where to Start a New Business in Dubai? (2023 Guide)
3. General Trading License
To start a general trading company in Dubai, a general trade license from the appropriate authorities is necessary in order to lawfully run a general trading company in Dubai.
This license enables a range of commercial activities, including selling things like clothing, furniture, and technology products etc.
Steps to get a General Trading License in Dubai – requires:
- Name that follows naming conventions
- Determining the nature of the business activities
- Submitting an application
- Obtaining outside approvals as needed
- Making sure all legal documents, such as MOA and AOA, are available
These are the steps involved in obtaining a general trading license in Dubai.
A suitable business location must also be chosen, the necessary approvals must be obtained, an application must be submitted to the DED, and the necessary payments must be made in accordance with the rules.
4. Application Verification
As and when your documents are submitted, the government officials will go ahead and examine the same. Thereafter, officials will confirm, before going ahead and getting your trade name included in the Dubai’s commercial registry.
The Economic Department of Dubai officials will send your documents to the Federal Ministry of Economy for verification and for reviewing the same. An approval letter will then be issues once they successfully review your documents.
Read: Business Setup in Dubai Free Zones (How-to Guide)
5. Find a Location
Once you receive all the required licenses and permits, you must find a location which is suitable for your respective business investment.
Do mindful of choosing elements like supplier and customer proximity, visibility, and accessibility. You can choose one of the free zones in Dubai for establishing your trade company, which gives investors a number of benefits such as 100% foreign ownership, no taxes, and duty-free exemptions.
In order to encourage trade growth, it is crucial to carefully decide where to put up shop when launching a general trading business.
Knowing the different business zones that are accessible in Dubai is crucial for choosing an appropriate location. Free zones and mainland are the two main categories for commercial zones in Dubai.
Although starting a general trade business in Dubai can be challenging, by adhering to these 5 guidelines, you can be sure that your firm is headed in the right direction.
Documents Required for Starting a General Trading Business in Dubai
You must submit a number of documents to the appropriate authorities in Dubai in order to launch a general trading firm. The following are some of the important documents you must submit:
1. The Department of Economic Development (DED) has granted a certificate reserving the use of your company’s trade name. This document is legitimate for six months.
2. Memorandum of Association (MOA): This legal document describes the goals, range of activity, and ownership structure of the business. A public notary in Dubai is required to notarize the MOA.
3. Passport copies of shareholders and directors are required. Please submit passport copies for each stakeholder and director of the business.
4. Tenancy Contract: For your commercial space in Dubai, you must offer a tenancy contract.
5. First approval certificate: This document, which the DED issues, attests to the company’s operations being legal in Dubai.
6. You must have a bank reference letter from either your home country or a bank in the United Arab Emirates.
7. Evidence of share capital: You must present evidence of share capital that has been placed in a UAE bank account.
The DED will grant a commercial license when you have submitted all the necessary paperwork, allowing you to launch your general trade company in Dubai. To ensure that all the requirements are met, it is necessary to hire a company establishment consultant in Dubai. They can help you navigate the procedure.
Read: Can Foreigners Start a Business in Dubai?
Understanding the Cost of Setting Up a General Trading Business in Dubai
Depending on a number of variables, the cost to establish a general trade business in Dubai might range from AED 30,000 to AED 50,000.
The initial license often has a one-year expiration date and does not require office space rental. But, after the first year of renewal, you will need to find a physical office location for your company in order to go on doing business both inside and outside the UAE.
A Compiled list of Well-Known General Trading Companies in Dubai
After receiving a general trading license, there are several trading and commodity trading organizations in Dubai that operate from various locations and engage in a variety of lawful operations:
- Israco Trading Company
- Phoenix Trading Company LLC
- Edmark Trading Co. L.L.C.
- Al Haif Trading Company LLC
- Sport One Trading
- Faisal Jassim Trading Company
These are just a few of the well-known general trading companies in Dubai (L.L.C).
Establish Your General Trading Company in Dubai with ReCorporate Business Setup Consultancy
Why wait any longer now that you are completely aware of all the procedures and required paperwork involved in beginning a general trading company in Dubai?
Unquestionably, starting a general trading company in Dubai will bring you good profits. Also, the Dubai government is quite friendly and cooperative, which makes the process of setting up a business fairly simple and uncomplicated.
In the event that you’re still unsure or perplexed about any aspect of starting a general trade company, you can seek the assistance of a business setup consultancy. The business advisers at ReCorporate Business Setup are skilled and knowledgeable in Dubai business establishment.
Read: Best 5 Business Opportunities in Dubai for 2023
We can guide you through each step, assist you in creating a sound business plan, and compile all the required paperwork. Additionally, for a reasonable fee, we may also secure your preliminary clearance and a general trade license. Simply contact us, describe your needs, and we will take care of everything.
If you still have any questions or queries on how to start a general trading company in Dubai, please feel free to comment below and one of our business setup experts will surely get in touch with you.