25 Feb 5 Steps to start a General Trading Business in Dubai
It is a well-known fact the UAE as a country has become one of the best business locations for foreign investors as well as budding entrepreneurs from all over the world. The government during the last two decades has been making sure that business shows constant growth and as a result has pumped into the market a huge number of resources.
The government has made sure that every sector keeps on growing and thereby presenting attractive market options to foreign investors. As is clear that Dubai is one of the major trading locations of the world and setting up a business in Dubai is only going to prove beneficial for the investors and budding entrepreneurs as well.
Starting a general trading business in Dubai, the investor needs to follow a certain established process that has been made compulsory by the government. By following the due process the investor makes sure that the business has been established and implemented properly and legally.
General Trading Business in Dubai
The 5 major steps that you as an investor need to follow for starting a general trading business in Dubai areas:-
Business type: – starting a general trading business in Dubai, the first in the process is for the investor to decide the type of business that will be set up. The government has made it clear that before setting up a general trading business a proper plan needs to be followed. The plan that needs to be formulated should consist of:-
- Investment at the initial stage
- Employee strength
- Products and activities
- Market analysis
- Office space
- Tactics with regards to prevailing market
- Financing and investors
- SWOT analysis
- Market competition
The above points give an idea about the formulation of the plan, with more emphasis being on activities, initial investment, and competition prevailing in the market.
General trading business ideas 2021
Nature of activities: – if the focus of the investor will be on a few limited activities then the application for a specific trade activity has to be filled up. However, if the investor plans on dealing with several trading activities then the business set up will be classified as a general trading business, and accordingly, an application for a general trading license has been processed.
A general trading license will usually cost on the higher side as it allows you as an investor to carry out several trading activities.
Choose a location: – while deciding to start a general trading business in Dubai, the investor has to choose a location carefully for the business set up that will help flourish his trade.
To decide on a location the investor needs to have complete information about the different business zones that are on offer in Dubai. usually,
the business is classified into three types in Dubai which are:-
Hiring a local sponsor: – The process of choosing a local sponsor for starting a general trading business in Dubai has to be carried out only if the investor chooses the mainland as the location of his business set up.
The local sponsor will have a capital share of 51% in the business set up and will also charge fees from the investor depending on the agreement between the two.
The sponsors available in Dubai vary depending upon the connections within the government and the type of work that will be carried out by these sponsors and accordingly they will charge the fees from the investor.
Legal framework: – While setting up a general trading business in Dubai, it is a must for an investor to make sure the business is run legally and for that purpose, a license has to be obtained from the concerned authorities.
For the general trading business wherein several trading activities are carried out, a general trading license will have to obtain to run the business legally. This license will cover several business activities ranging from clothing, furniture, electronic appliances among others.
Steps to get a general trading license are as follows:
- Choose a trading name as per the established naming conventions.
- Decide the type of business activities.
- Application for submission.
- External approvals may be required.
- Keeping all the legal documents handy like MOA and AOA.
- Decide on a suitable location for the business and get the contract approved by concerned authorities.
- Application form submission to DED.
- Making the required payment as per the norms.
The documents that need to be submitted for starting a general trading business will also vary as per the location that has been decided by the investor. In the case of the free zone or offshore the investor will need to submit all the original documents to the commercial registry and commercial department.
The general trading license is usually valid for a period of one year and may cost anything from AED 30,000 to AED 40,000 depending upon many factors.
List of General Trading Company in Dubai
Dubai has some well-established trading and commodity trading companies that are operating from some locations and carry out many activities as has been determined legal with the issuance of a general trading license.
Some of the wells know companies areas:-
- Israco Trading Company.
- Phoenix Trading Company LLC.
- Edmark Trading Co. L.L.C.
- Al Haif Trading Company LLC.
- Sport One Trading.
- Faisal Jassim Trading Co. (L.L.C.).