Dubai has consistently maintained its position as a leading global Business hub, with remarkable growth observed in various sectors such as trade, finance, and logistics. In light of this, establishing a general trading company in Dubai can prove to be a highly advantageous investment opportunity.

If you’re considering starting a general trading company in Dubai but are unsure about the process, fret not! We have simplified it for you with a step-by-step guide to obtaining a general trading License in Dubai.

Steps to Start a General Trading Company in Dubai

Step 1: Create a comprehensive business plan

To kickstart your general trading business, it’s essential to craft a well-structured business plan. This plan should encompass crucial aspects like market analysis, competition assessment, product portfolio, anticipated employee count, office space requirements, initial investment, marketing strategies, potential investors, and financing options. By thoroughly studying and understanding these factors, you can develop a strategic and informed business plan.

Step 2: Select the appropriate jurisdiction

The Dubai market offers three main jurisdictions for business setup: free zones, offshore, and mainland. Free zones, numbering 48 in Dubai, provide attractive incentives such as 100% exemption on corporate and personal income, as well as full ownership rights for investors. In the mainland, business investors need to secure a local sponsor who holds 51% shares of the company. Offshore companies are established in a country different from the investor’s country of residence.

Consider the specific requirements of your company and choose the jurisdiction accordingly. Opting for Dubai mainland may be advantageous as it offers greater exposure to customers, facilitates trading with other Dubai-based companies, imposes no limitations on work visa issuance, and permits the opening of multiple branches.

Step 3: Find a Local Sponsor

When establishing your company in Dubai mainland, it is crucial to find a sponsor who will support your business setup. In this arrangement, the sponsor will hold 51% shares in your company, as per the legal requirements. Without the sponsorship of UAE nationals, you cannot initiate a mainland company.

Read Also: How to Find Local Sponsor in Dubai

There are two types of sponsorship available: local sponsorship and corporate sponsorship. Under local sponsorship, the sponsor retains 51% ownership of the business, while corporate sponsorship offers an investor’s right protection contract, enabling you to maintain 100% ownership. Consider the options and choose the sponsorship type that best suits your business objectives.

Step 4: Fulfill Legal Requirements

Obtaining a license for your business is a crucial step to ensure its legality. In the case of a general trading company, acquiring a General Trading License is essential. This license enables your company to engage in various activities, including selling, storing, distributing, importing, and exporting goods.

The General Trading License covers a broad spectrum of business operations, ranging from retail and wholesale of goods to the sale of clothing, accessories, equipment, furniture, fixtures, and electronic appliances. By obtaining this license, your business gains the necessary authorization to conduct these activities within the legal framework.

Steps to get a general trading license in Dubai

Here are 8 straightforward steps to obtain a general trading license for your business in Dubai, UAE:

• Select a trade name for your company.
• Define and plan your business activities.
• Apply for initial approval from the Department of Economic Development (DED).
• Obtain any necessary external approvals, if required.
• Prepare the Memorandum of Association (MOA) and have it signed by your partners.
• Choose a suitable business location and acquire a tenancy contract, duly attested by Ejari.
• Submit your license application to the Department of Economic Development (DED).
• Pay the required fee for the issuance of the license.

When applying for a general trading license in a free zone or offshore jurisdiction, it is necessary to submit the original documents to the Commercial Registry at the trade license and commercial registration department. Once the Department of Economic Development (DED) obtains approval from the trade license and commercial registration department, they will proceed to issue the general trading license for your business. Simply put, submitting the required original documents and obtaining approval from the relevant department will enable you to obtain your general trading license.

Read Also: How to Get Commercial License in Dubai

Cost of Setting Up a General Trading Company in Dubai

The cost of setting up a general trading company in Dubai typically ranges from AED 15,000 to AED 50,000 (approximately) or possibly higher. The total expenses associated with obtaining a license depend on various factors such as the chosen business location, warehouse size, office space, additional approvals, business jurisdiction, and visa applications.

When you partner with our experienced Company Setup Consultants, you can rest assured about the transparency of these costs. We oversee all financial transactions to ensure you secure the most affordable general trading license in the UAE. Our goal is to minimize any additional expenses involved in incorporating your general trading business, providing you with cost-effective solutions.

The required documents for starting a general trading business in Dubai may differ depending on the chosen location for business setup. If you opt for a free zone, you will need to submit the original documents to the commercial registry and commercial department.

Required Documents for Starting a General Trading Business in Dubai

Here are the typical documents needed:

• License application signed by all stakeholders and legal representatives.
• Passport-sized photographs of all business partners.
• Copies of passports for all business partners.
• Copies of visas for all business partners.

These documents are essential for the application process and to initiate the setup of your general trading business in Dubai.

Start Your General Trading Company in Dubai with Company Setup

Now that you have a clear understanding of the steps and required documentation for starting a general trading business in Dubai, why delay any further? Establishing a general trading business in Dubai promises lucrative profits, and the government of Dubai is known for its supportive and collaborative approach, simplifying the setup process.

If you still have any doubts or uncertainties about establishing your general trading business, consider partnering with a trusted business setup consultancy like Company Setup Consultants. Our experienced consultants specialize in business setup in Dubai and can provide the guidance and expertise you need to ensure a smooth and successful setup process.

To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at [email protected].

The post Start a General Trading Company in Dubai, UAE appeared first on Business Setup Consultants.