The Middle East provides a very competitive and nurturing business environment to all the companies that come to the country. Various features such as state-of-the-art business infrastructure, a stable economy, an understanding government, and less or no taxes attract entrepreneurs and people worldwide.
Conventionally, investors from all over the world preferred to set up a business in the UAE as the country was considered a trading port. In the present scenario, Dubai has become a hub for providing logistic services to businesses in and around the country. In addition, the strategic location of Dubai allows for easy transportation of goods and raw materials from one place to another.
Benefits of General Trading companies Dubai
Setting up a trading company comes with benefits that can be availed by any business that follows this business. Some of these benefits are:
Affordable Company Formation
Company formation is relatively affordable and straightforward. However, some business owners need to submit the business plan along with the necessary documents and the projections of the revenues. This license is issued by Dubai's Department of Economic Development (DED). The whole process has been made hassle-free as an initiative by the government. The entire process takes around one week.
Multiple visa Facility
Dubai offers the people coming in to set up a company a facility through which they can obtain various visas. Having multiple visas will allow the trading company to keep a physical presence in Dubai and help recruit more help for the business. After getting a general trade license, one can apply for multiple employee visas. It depends on the size of the office; the more prominent your office, the more visas you can get.
The businessman can also sponsor visas for dependents, i.e., spouse, child, parents, maid, driver, etc. But one should ensure to get an expert's advice before commencing since this is a necessary process.
Dependent visa Sponsorship
Once a person receives the visa, they can sponsor a visa to any other who is looking for one. This may include loved ones, maids, drivers etc. There is a simple procedure to follow through which the sponsored person can get a visa.
- Ability to Trade Locally and Internationally
A trading company has the authority to sell or distribute imported or exported goods either in the local or overseas market. This will allow a trader can exploit all the possibilities of doing business in local, national and international calls to gain profits.
Fewer Barriers to Trade
The costs at the start of the business and the time taken are comparatively less. Also, the entrepreneurs holding the mainland trading license are exempt from any paid-up share capital or any audits conducted yearly. This dramatically increases the profitability and affordability of the business.
The Business Regulation and Licensing sector of the Dubai Economic Department understood the need for regulation in e-trading and accordingly introduced an e-trader license. This license will allow the nationals of both the UAE and the GCC countries to conduct business on different social media platforms.
The Government of Dubai has allowed a 0% tax rate for the free zone companies. This move will attract entrepreneurs and people in business from all over the world. The only cost that needs to be paid during the registration is the processing fees. The holder of such a license doesn't have to pay taxes on profits, income, or any other amount.
Apart from these, various banking facilities are available for personal and corporate purposes. For example, a company with a general trading license is allowed to have 100% repatriation of capital and profits. They do not have to deposit share capital in UAE banks. Due to these and several other facilities made available for the licensee, traders are getting fantastic opportunities to utilize their resources and become successful.
Dubai is the world's leading place for business development, and every budding entrepreneur has a dream of going to the Middle East to conduct business. If you plan to do business in the UAE or are looking for services that will help your company grow and achieve success, you should look into the services provided by "Commitbiz".
To know more about the various services provided, do contact us.
What are the benefits of Setting up a General Trading Business?
The benefits of a General Trading business are:
- Affordable Company Formation
- Multiple Visa Facility
- Dependant Visa Sponsorship
- Ability to trade Locally and Internationally
- Fewer Barriers to Trade
- Conducting E-Trading
- No-Tax Payment
What activities are allowed for a General Trading Business?
A General Trading Business can conduct the following activities:
- Export and Import of Goods such as Clothes, Accessories, Furniture, Electronics
- If the business wants to trade in multiple goods across different industries
- Distribution and storage of the aforementioned goods
How long is a General Trade License valid in Dubai?
A Trade license is valid for one year and this can be extended for four more years.
What is the fine applicable to a business if the trade license expires?
If the trade license expires then the business will have to shell out AED 250 for each month after the expiration of the license
What are the two types of trading companies in UAE?
The two types of Trading Companies are:
- General Trading Company
- Specific Trading Company