25 Feb Steps to start a General Trading Business in Dubai
Dubai consistently maintains its position as a global business hub, witnessing significant growth in the business, financial, and trade logistics sectors over the past few decades. Amidst this flourishing environment, establishing a general trading company in Dubai proves to be a lucrative investment opportunity.
We have simplified the process for those considering launching a general trading company in Dubai and seeking guidance on the process. The following is a comprehensive, step-by-step guide to obtaining a general trading license in Dubai.
What distinguishes a ‘general trading license’ from a ‘trading license’?
A trading license permits you to trade within a specific product category. In contrast, a general trading license is required if you plan to change across various products spanning different industries.
Essential Steps to Establish a General Trading Company in Dubai
1. Strategic Business Planning:
Initiating a general trading business in Dubai necessitates a comprehensive business plan. A well-crafted plan should meticulously assess market conditions, competition, product range, staffing requirements, office space, initial investment, marketing strategies, potential investors, and financing options. Studying these factors is crucial for creating a sound and informed business blueprint.
2. Selecting the Right Jurisdiction:
Dubai offers three distinct market jurisdictions: free zones, offshore, and mainland. Free zones, numbering 48, provide investors with 100% exemption on personal income taxes and complete ownership rights. Opt for a jurisdiction that aligns with your company’s requirements. Mainland Dubai offers advantages such as increased customer exposure, seamless trading with local companies, unrestricted work visa issuance, and the option to establish multiple branches.
3. Navigating Legal Procedures:
Obtaining the necessary license for your business is paramount to its legality. Acquiring a General Trading License is imperative, permitting various business activities such as selling, storing, distributing, importing, and exporting. This license encompasses a wide array of operations, from retail and wholesale of goods to dealing in clothing, accessories, equipment, furniture, and electronic appliances.
By meticulously following these steps, entrepreneurs can establish and operate a general trading company in Dubai, capitalising on the city’s vibrant business environment and global connectivity.
Steps to Obtain a General Trading Business in Dubai:
Acquiring a general trading license business in Dubai involves a straightforward 8-step process:
1. Choose a Unique Trade Name:
Begin by selecting a distinct trade name for your company, ensuring it aligns with legal requirements and is not already in use.
2. Define Business Activities:
Clearly outline your planned business activities, specifying the products or services you intend to trade in.
3. Seek Initial Approval from DED:
Apply for initial approval from the Department of Economic Development (DED), a crucial step in the licensing process.
4. Secure External Approvals (If Necessary):
If your business activities require external approvals, obtain them from relevant authorities before proceeding.
6. Select a Business Location and Obtain a Tenancy Contract:
Choose a suitable business location and obtain a tenancy contract. Ensure the contract is attested by Ejari, a system for regulating all tenancy contracts in Dubai.
7. Apply to DED:
Submit your application to the Department of Economic Development (DED) with all the required documents and approvals.
For applicants seeking a general trading license in a free zone or offshore, original documents must be submitted to the Commercial Registry at the trade license and commercial registration department. DED will grant the general trading license upon receiving approval from the trade license and commercial registration department.
What is The General Trading Business Cost in Dubai?
The expense of obtaining a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000 (approx.) or potentially more. Several factors influence the total licensing cost, including the chosen business location, warehouse size, office space, necessary approvals, business jurisdiction, and visa applications.
However, when you partner with Shuraa’s experienced professionals, you can rest assured about the transparency of these expenses. We manage all financial transactions diligently, ensuring you secure the UAE’s most affordable general trading license. With us, you won’t encounter unexpected costs related to establishing your general business in the UAE.
Required Documents for General Trading License Application in Dubai:
To obtain a general trading license in Dubai, businesses must adhere to the document requirements stipulated by regulatory authorities. Here’s a list of documents necessary for your available trading license application:
- Passport copies of all company partners.
- Passport-size photographs of the applicant, complying with photography guidelines.
Upon submission of these documents, company officials will review, verify, and add your trade name to the commercial registry. Subsequently, the Department of Economic Development (DED) will forward your documents to the Federal Ministry of Economy. The ministry will issue an approval letter for your general trading license after successful publication.
Advantages of Obtaining a General Trading License in Dubai
Indeed, here are different points outlining the advantages of obtaining a General Trading License in Dubai:
1. Successful Market and Abundant Opportunities:
Setting up a trading company in the UAE presents a low-risk venture due to the booming market and numerous business prospects. The dynamic business environment offers a wealth of opportunities for growth and expansion, making it an attractive choice for entrepreneurs.
2. Tourism Boosting Revenue:
The flourishing tourism industry in the United Arab Emirates acts as a catalyst, continuously increasing the revenue of general commerce companies in Dubai. The influx of tourists and visitors contributes to the demand for various goods and services, creating a lucrative market for trading businesses in Dubai.
3. Simplified Licensing Process:
Acquiring a general commerce license in Dubai is remarkably straightforward, especially with the guidance of experts such as Shuraa’s business specialists. Streamlined processes and professional assistance make the journey of obtaining the license hassle-free, allowing entrepreneurs to focus on their business strategies.
4. Favorable Taxation System:
UAE’s taxation system offers significant advantages to trading companies. Businesses enjoy higher profit margins with just a 5% Value Added Tax (VAT) to pay and the absence of customs duties, corporation taxes, and additional fees in Dubai. These favourable tax perks contribute to the financial viability of trading enterprises.
5. Complete Capital and Profit Repatriation:
One of the key benefits of operating a trading company in Dubai is the freedom to repatriate capital and profits entirely. This financial flexibility allows businesses to reinvest in their ventures, expand their operations, or allocate funds as per strategic requirements, enhancing their overall financial stability and growth prospects.
First, developing a comprehensive business plan is essential to establish a general trading business in Dubai. A well-structured business plan provides clear guidance and direction for your venture. Once you have a solid business plan, the next crucial task is selecting the jurisdiction for your company. Subsequently, securing a sponsor for your company is imperative. Completing all legal formalities required to establish your business is vital. After completing these formalities, you will be granted the general trading company license.
Undertake your entrepreneurial journey with us!
If you want to launch a general trading company in Dubai, we encourage you to contact Shuraa Business Setup today.