Dubai provides terrific business opportunities for any budding business, and most of the people try to form a logistic company or a trading business in Dubai. This is because there are various features which are beneficial, such as modern infrastructure, positive and stable government and numerous other factors which attract the potential businessmen and entrepreneurs from all over the world.
Dubai was a place of interest from the olden days. Due to its location by the sea, it was regarded as a port city, and the strategic location of Dubai allows it to access bot the continents of Africa and Asia. In today's world, it is a logistics hub and is considered as the gateway to Africa. It excellent connectivity to the world via sea route and airways is another crucial factor which makes Dubai a perfect place to set up a trading company.
What is a Trading Company?
Put, a trading company is a company which mostly deals in importing and exporting of goods from all over the world. The main aim of a trading company is to connect the buyers and sellers in various countries or the same country. A trading company may or may not have its distribution network for the sale and delivery of items.
Some of the main activities of a trading company are:
- Negotiation of the various terms of sale and the mode of delivery
- Transport and logistic managing
- Assurances to the exporter/supplier
- Identifying the Supplier in different countries
- Customs management and the management of the barriers to trade
Numerous professionals and companies are performing the trading function, making it a widely followed international activity.
Types of Trading Companies in Dubai
There are mostly two different kinds of trading companies which can be found out in Dubai.
1.General Trading Company
There are many goods that do not require any particular license and can be traded by obtaining a general trading license. The exception to the public trading goods are various forms of hydrocarbons, precious metals such as diamonds, gold etc. and cryptocurrency and require special approval for trading by the concerned department of the UAE government.
2.Specific Trading Company
Certain items require a particular trading license for trading in the UAE. These items fall in the category of electronic articles, garments, cosmetic items and many other specific items which are specified by the government. These items cannot be traded with a general trading license.
These are the two different types of trading companies that are available in Dubai. According to the nature of the activity, a trading company can be chosen.
Trading Activities Approved by the Department of Economic Development
There are many trading activities which he the government of UAE approves and can be followed by anyone. Some of these trading activities are:
- Accessories of computers
- Beauty and personal care
- Electronic accessories
- Construction Equipment
- Food and Beverage
- Dairy Products
- Mobile Phones
- Jewellery Trading
- Home Furniture
- Health foods
- Non- Manufactured precious metals
There are many other activities that a trading company can peruse.
Benefits of a Trading Company
You can avail various benefits if you want to set up a trading company in Dubai. These benefits are as follows:
1.Simplified Company Formation
The business setup process is quite simple and straightforward. The business owners only need to provide the business plan of the company along with the necessary documents of the company. They also need to present the revenue projections of the company, which will be crucial in determining the fate of the company.
A person coming to Dubai can avail the facility of various visas. Having multiple visas will allow the company to have a physical presence in the country and will help in recruiting more people from abroad.
Upon receiving the visa, the person can then sponsor a visa for his near ones. The list may include loved ones, drivers, maids etc. The procedure to sponsor a visa and to get a sponsored visa does not take much time.
4.No or less Tax Payment
The middle east is famous for its fewer taxes. The government has initiated a 0% taxation policy for the free zone companies. This move of the government attracts entrepreneurs and people in business from all over the world.
The Business Regulation and Licensing sector of Dubai Economic Department saw the present condition and understood the requirement of regulation in the e-trading sector and accordingly introduced an e-trader license. This license will allow the nationals of both the GCC countries and the United Arab Emirates to conduct business on different social media platforms.
Setting up a trading company in UAE is one of the most straightforward and profitable business as the person is guaranteed a piece of the profit. If you want to set up a trading company look no further than "Commitbiz".
At "Commitbiz" our employees work hard to give your business the solution it requires. Commitbiz will handle all the different functions of the business, allowing you to focus on managing the company in a better way. To know more about the various services provided, do contact us – we will be happy to help.