Establish your own general trading company in UAE
UAE is recognized as one of the top business locations in the world. Trading company in Dubai allows foreign investors and entrepreneurs to invest in trade and logistics. Over the last two decades, the country has faced huge development in the financial sector.
Among the Emirates, general trading in Dubai has been topping the business sector with remarkable growth. According to reports, trading in Dubai existed over 4000 years ago having trade links with the Indian Subcontinent and Egypt.
Dubai is a prominent member of the World Trade organization offering a safe market space for investors. Trading company in Dubai enables steady trade relationships, global trade relations, open trade opportunities and more.
What makes UAE or Dubai a perfect space for general trading?
Geography of Dubai
Trading companies in Dubai usually connect with Africa, Asia, and several parts of Europe. Accessibility and distribution is the key to successful import and export. The centralized location and connectivity contribute to setting up an effective UAE trading company! The strategic location acts as an interface for major connecting hubs.
Ecosystem of Dubai
Trading companies in Dubai have a well-organized economical ecosystem. The company formation is completely guided by the department of economic development and determined through supportive measures taken by judicial procedures. Trading in Dubai is a crucial way to uplift the economy.
Trade policies
The government has appealing trade policies for general trading companies in Dubai. The country provides several tax advantages and the least duty on export or imports. The companies have access and liberty to develop free trade policies and open trade relations.
Tax advantage
Trading company in Dubai enjoys tax exemptions which include international trading partners and double taxation avoidance agreements. The government has always encourages trading in Dubai by creating a beneficial tax scheme for investors.
How to open a trading company in Dubai?
Have a business plan
The first step to start your general trading LLC in Dubai is to have a good business plan. A complete business plan will consider most of the factors like competition, market condition, product and activities, initial investment, investors, financing, and a number of employees.
Choose the jurisdiction
Dubai market is divided into three main jurisdictions namely free zones, offshore, and mainland.
- Free zone – Can a Free zone company trade in Dubai? General trading company LLC Dubai can be operated in 48 free zones. Free zones usually offer 100% tax exemptions and 100% ownership to investors on the mainland.
- Mainland – In mainland, the investors find a sponsor to establish their business with around 51% of shares.
- Offshore – offshore company is setup from the country of residence of investor. Choose the jurisdictions according to the requirements of the company! Get more exposure to your customers.
Find a sponsor
If you wish to setup your trading business in UAE, find a sponsor for your business. The sponsor will hold around 51% of shares. Sponsorship is of two types, local sponsor will hold 51% of shares and corporate sponsor will give you 100% ownership.
Legal formalities
How to start a trading company in Dubai? Trade license is significant to start your business. Getting a license for your UAE trading LLC is important for the progress of your business. Exporter or importer in UAE needs a general trading license to accomplish their business.
How to check company trade license in Dubai?
- Choose a trading name
- Plan your business activity
- Apply initial approval from DED
- Getting external approvals
- Prepare MoA
- tenancy contract and consider a business location
- Submit the application to DED
- Pay the required fees and get the issued license
While applying license for a trading company in Dubai, submit your original documents to commercial registry and the commercial registration department. DED is the authority that issues trading license after getting approval from the concerned commercial registration department.
How to open a trading company in Dubai?
Some of the documents required to start a general trading company in Dubai
- License application signed by legal representatives or managers
- MoA
- Passport copy and visa of partners
- Company name approval letter given by DED
After submitting all these documents, company officials will check and verify your trade name to commercial registry. DED will forward your documents to Federal ministry of economy for its publication. On successful publication, ministry will issue the approval letter.
How A & A associates support your general trading in Dubai?
If you thrive to start a trading company in Dubai, derive a business plan! Business plan will direct the owners and entrepreneurs for the smooth operation of trading LLC.
A & A associates will simply the long procedure of paperwork through proper documentation and completing the legal formalities.
We assure great support on how to start a trading company in Dubai and deal with all legal requirements that satisfy your business needs!
