Several businesspersons and investors follow the business goal of entering the trade industry. In this sense, it is essential to discover if they can do this in a prosperous location like the Middle East. Undoubtedly, it involves learning everything about general trading in Dubai.
In this article, we will allow you to discover how to start a General Trading Company in Dubai. For instance, you can use it to learn the cost of a General Trading License in Dubai. So, find your way into this excellent business by discussing the following topics:
1. What is general trading in Dubai?
The UAE is a nation where the economy will allow you to follow one of several industries. For instance, you can seek success by setting up an accounting services firm in Dubai. However, you can enter one fast-growing industry.
Indeed, general trading in Dubai involves importing, exporting, selling, storing, and distributing goods in the Emirates. In other words, you can provide different products from overseas through a General Trading Company in Dubai. As a result, you will get high revenue very quickly.
On the other hand, it is a business that takes advantage of one of the best locations in the world for it. After all, the UAE has the logistics firms and business centers to give your General Trading LLC the boost it needs.
In short, starting a General Trading Company in the UAE is among your top options for doing business in the Middle East. Therefore, you will find it essential to learn how to start your way into general trading in Dubai. Fortunately, we will address this in our following subject.
2. The steps you must follow to start a General Trading Company in Dubai today
Logically, starting your General Trading Company in Dubai is not like applying for a Freelance Visa in the UAE. Nonetheless, it does involve following specific steps to enter Dubai general trading successfully. Let us show them in detail to help you in this process.
So, making your dream of a General Trading Company in the UAE a reality is a four stages process. Above all, we recommend avoiding skipping one during your setting-up activities in mainland Dubai. On the contrary, you may have problems with UAE authorities or worse.
On the other hand, it is worth mentioning that these steps to enter general trading apply to all trading companies. Nevertheless, you may have to follow additional steps in your specific case. Hence, feel free to assess them to guarantee success in the process.
Let us review the four steps for starting a General Trading Company in Dubai today:
2.1 Developing your business plan
Any business activity you perform must begin with a plan, including Human Resources Outsourcing. Assuredly, general trading in Dubai is not exempt from it. Hence, you must start your General Trading Company in the UAE by developing a business plan.
Indeed, your business plan for Dubai general trading has to include several factors. For example, you must cover market conditions, competitors, and rented offices required space. In other words, your trading company must prepare for anything to guarantee its growth.
In addition, your business plan for your general trading LLC should also include future factors that could affect your company in the long run. It involves marketing strategies, potential investors, and upcoming staffing requirements. As a result, your General Trading Company in Dubai will see great days ahead.
Besides, your business plan may foresee essential factors for your company. But it cannot include one that may turn your general trading for better or worse. Unequivocally, we are talking about your selected jurisdiction.
2.2 Choosing your jurisdiction
Selecting the best school for your children is a task you cannot see from only one vantage point. After all, you need to assess which one has the best transportation and safety. In other words, location matters, especially for businesses like PRO services in Dubai.
Regarding general trading in Dubai, the following step to start a General Trading Company is choosing your jurisdiction. Fortunately, the UAE has several options for you, including free zones like the Dubai Silicon Oasis. You can even evaluate other Emirates for it, such as Abu Dhabi or Sharjah.
However, how can you evaluate a jurisdiction for your General Trading Company in Dubai? Indeed, you can do it by assessing the advantage of each one. For instance, one may offer 100% ownership for foreign investors, and another may have better logistical companies.
In summary, your success primarily depends on the jurisdiction you choose for Dubai general trading. Unfortunately, not every option in the UAE allows 100% ownership as a foreigner. Hence, it is time you seek sponsorship in the UAE.
2.3 Finding a Sponsor in the UAE
Ex-pats can start a General Trading Company in the UAE without problems. Nevertheless, they may need the help of a UAE national, depending on the location they choose for it. In other words, they need to find a Sponsor in the UAE.
In this sense, several Emirates still ask foreign investors to allow a UAE citizen to own 51% of your company shares. Therefore, you cannot perform general trading in Dubai without seeking local or corporate sponsorship. Fortunately, the country has multiple Corporate Sponsorship Services firms to help you.
Moreover, you may think that being unable of 100% ownership could be an obstacle for your business. However, we can ensure your General Trading Company in Dubai will witness high profit regardless of it. Ergo, do not see it as an impediment to entering general trading.
So, you designed your business plan, picked a location, and found a Sponsor. It means that your general trading LLC is almost ready. Thus, you must finish this process by processing the legal formalities of setting up a company in the International Free Zone.
2.4 The legal formalities
Activities like your Remote Work Visa application require you to perform some legal processes. After all, it is a mandatory document for professionals that want to work remotely in the UAE. But does it apply to businesspersons entering general trading in Dubai today?
Undoubtedly, yes, it does. Starting a General Trading Company in the UAE involves registering it with authorities. Nevertheless, you cannot do this without one feature identifying you as a business owner in this industry. Indeed, the final stage is getting your General Trading License in Dubai.
The General Trading License allows you to perform general trading activities in the country. Therefore, your general trading LLC will need it to sell, distribute, store, import, and export products in the UAE. By all odds, you can consider it as your business ID.
Lastly, we should mention that a General Trading License in Dubai will allow you to distribute goods like retail, clothing, furniture, and electronic appliances. However, you may need additional permits to trade more specific products, such as weaponry and healthcare medicines.
3. How can you get a General Trading License in Dubai?
Unlike a Green Visa, you must apply for your General Trading License in Dubai with the Department of Economic Development. In this sense, they will begin by asking you for a trading name for your company. Then, you must submit your business plan.
At this point, you will receive initial approval from DED if everything checks out. Later, they will ask you for other external permits (if they apply) and your Memorandum of Association (MOA). Remember, your partners must sign your MOA to make it have validity.
Finally, you must choose one location for your General Trading Company and complete your application with DED. For instance, you can pick one of several Smart Offices available in the UAE today. After, you must pay the General Trading License in Dubai cost, and that is it.
At first, you may think that the cost of a General Trading License in Dubai is substantially high. Nevertheless, it will surprise you that it is not as expensive as you think. Indeed, it is a small part of the cost of starting a General Trading Company in Dubai.
4. How much does it cost to start a General Trading Company in Dubai?
The Department of Economic Development in the UAE will ask you to pay between AED 15,000 and AED 50,000 for your General Trading License. After you make this payment, you will find open roads to perform general trading in Dubai. But is this the only fee for the entire process?
Unequivocally, no, it is not. Starting a General Trading Company in Dubai involves more than covering the Dubai General Trading License cost. Indeed, it also involves expenses related to your Workstation Desks, visa applications, employee compensation, and more. Ergo, it is not an exact amount we can calculate.
In short, starting your General Trading Company in the UAE requires a financial investment. Nonetheless, Dubai’s general trading is a fast-growing business in the Middle East today. Therefore, you will recover your investment sooner than you imagine.
5. The required documents for general trading in Dubai
We stated that you must submit your signed Memorandum of Asociation to DED to get your General Trading License. In addition, you must fill out your application form similar to what you did for your Golden Visa. However, are these the only documents you must submit for this procedure?
Logically, no, they are not. Starting a General Trading Company and getting a General Trading License in Dubai involves submitting personal and corporate documents. For example, you need a copy of the passports of your partners. Moreover, you will also require passport-size photographs of them.
Last but not least, you cannot begin your way in Dubai general trading without providing your office tenancy contract and NOC letter. Assuredly, you will find help for all of this throughout the UAE, including mainland Sharjah.
6. Why should you get a General Trading License in Dubai?
Undoubtedly, you will not find a better market to perform general trading than the UAE. After all, it is a booming activity in every part of the country, especially in the free zones like Dubai International Financial Center. Namely, it is a wave you must ride on today.
On the other hand, you can consider the UAE a dreamland for your General Trading Company. Indeed, it is a country with many tax concessions that will allow you to direct money to more essential operations. You now see why general trading in Dubai has so many fans nowadays.
7. Where to find more insights about general trading in Dubai
Among the business activities you can perform in the UAE, you can find ones that stand out. Indeed, they are the primary reason UAE authorities engage in policies to promote foreign investment. However, you will not find a better option for you and your partners than general trading in Dubai.
As you saw here, starting a General Trading Company in Dubai can be a complex task. After all, it involves several legal and corporate activities that may cost you time and resources. Fortunately, you can see your company become a reality with the assistance of Connect Middle East.
Let us help you enter the world of Dubai general trading. Feel free to contact us to learn more about setting up a General Trading Company in the UAE. All you need to do is submit your requests via email at contact@c-uae.com or phone at +971 43 316 688.
