If you’re a young Indian investor or entrepreneur looking to start a general trading business in Dubai, you’re spot-on with your decision. Tax-free legislation, a friendly government, and easy access to resources are just a few of the many advantages that business owners in the UAE enjoy.
Import-export of various commodities, furniture, electronics, jewelry, and other items are among the activities covered by a general trading license in Dubai. Therefore, you can choose them based on your business needs. In addition, to learn more about the many authorized business activities in the UAE, refer to the Dubai Economic Department’s trade license activity list.
What are the Steps to Launch a General Trading Company in Dubai?
All you need to do is follow the steps mentioned below to start a general trading business in Dubai
- Decide Your Trading Company’s Structure and Business Operations
- Reserve a Business Name
- Obtain the Initial Approval
- Procure Office Space
- Apply for a General Trading License
- Make Sure you get Customs Clearance
- Open a Business Bank Account
Here, we discuss each step in detail:
1. Decide Your Trading Company’s Structure and Business Operations
When it comes to deciding on the structure of your company in the UAE, you have a lot of alternatives. In the mainland region, you can register an LLC (limited liability company) or start a private company in any free trading region.
Furthermore, you must approach the Department of Economic Development (DED) or the relevant economic department and analyze their list of allowed business operations. You don’t have to be concerned if an activity you want to undertake isn’t on the list because you can get external approval for it.
2. Reserve a Business Name
All firms must get a legal trading name in the United Arab Emirates. The name should be distinctive, reflect your business’s operations, and not be a rip-off of another well-known brand. Furthermore, when choosing a name for your general trading business in Dubai, make sure to follow all naming conventions.
Moreover, avoid mentioning any references to Gods, as well as refrain from using problematic words, insulting slurs, or names that offend the sensitivities of any faith or society. In addition, when adopting a person’s name as your company’s official name in the Emirates, always use the complete name.
3. Obtain the Initial Approval
You’ll need the initial permission certificate from the economic department or any other relevant entity to get the license. Moreover, Indian business aspirants can get the initial approval as and when the authority is content with their submissions.
All you’ll need is the transaction receipt for trade name registration and a few obligatory documents (for identification and business authentication). You must resubmit any information that the authority finds insufficient.
4. Procure Office Space
After you’ve completed the preceding steps, it’s time to choose office space in Dubai for your general trading company. All legal entities in the UAE must have a professional address since official documents and letters are only sent to this address.
In addition, it’s preferable to rent office space rather than buy real estate. Why? Because it saves you money upfront and eliminates the trouble of selling the property if you decide to relocate. You can secure a virtual office for your general trading business in Dubai by signing a contract with the UAE Expansion India branch.
5. Apply for a General Trading License
You’ll need a legitimate business license if you want to trade in Dubai. Therefore, obtaining a general trading license for your trading firm in Dubai is critical to ensuring there are no compliance concerns or legal issues with your trading business.
To start a general trading business in Dubai, applicants must submit all the legal documents alongside the initial approval. You can apply to the relevant regulating bodies for additional permissions for business operations that aren’t covered by your general trade license.
6. Make Sure you get Customs Clearance
To maintain a stable and secure trade mechanism, the local general customs clearing authority assigns each trading company in Dubai a unique import code. Therefore, once you have the general trading license, you should seek the same from the customs department.
You’re entitled to trade in Dubai once you’ve paid the required fee for your trading company’s appropriate import code.
7. Open a Business Bank Account
To administer your trading company’s monetary activities in Dubai, you’ll require a corporate bank account. Therefore, ensure that you open a bank account with a reputable banking institution that offers long-term benefits. The legal advisors at the UAE Expansion India branch can help you shortlist the ideal banks for your general trading business.
Cost of General Trading License in Dubai
All businesses in the UAE require a valid trading license to carry out their business activities. The general trading license cost in Dubai ranges from AED 18,000 to AED 50,000 based on your business requirements.
Factors like the size of the warehouse, office space, external approvals, business zone, and visa applications — all play a critical role in determining the overall cost of a general trading license.
However, you don’t have to worry about the legitimacy of these payments when you work with the consultants at the UAE Expansion India branch. We supervise all the transactions to ensure you don’t pay anything extra for incorporating your general trading venture.
Benefits of Starting a General Trading Company in Dubai
- Starting a general trade firm is a low-risk endeavor because the field is booming and offers a wide range of business opportunities. Furthermore, the tourism business in Dubai continues to grow at a quick pace, boosting the revenue of general trading companies in the UAE.
- Obtaining a general trading license is simple and becomes an easy feat with the help of UAE Expansion business specialists. New-age investors and entrepreneurs are always on the lookout for lucrative business opportunities. Therefore, a general trading company is a top pick for such a venture.
- Trading companies in the UAE generate substantial revenue, thanks to the various tax perks and exemptions. They solely have to pay a 5% VAT, and there are no customs duties, corporation taxes, or other fees in Dubai. Furthermore, trading companies in Dubai enjoy complete capital and profit repatriation.
Documents Required to Get a General Trading Business in Dubai
- Choose a trading name for the company.
- Plan your business activities.
- Apply for initial approval from DED.
- Getting external approvals if required.
- Prepare a Memorandum of Association (MOA)and get it signed by your partners.
- Choose a business location and get a tenancy contract properly attested by Ejari.
Start a General Trading Business in Dubai!
A general trading license allows for a variety of operations. Hence, you must choose wisely, and you’ll be able to cover all of your intended activities under your license and experience hassle-free commercial operations in the UAE.
The company formation experts at the UAE Expansion India branch make company registration and setup easier for you. Therefore, if you’re willing to start a general trading business in Dubai, all you have to do is connect with us.