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, stable economy, an understanding government, less or no taxes are some of the reasons which attract the entrepreneurs and people in business from all over the world.
Most of the investors prefer to put their money to establish a trading business in as conventionally UAE was considered as a trading port. In the present scenario, Dubai has become a hub for providing logistic services. The strategic location of Dubai allows for easy transportation of goods and raw materials from one place to another. The Middle East is also the meeting point of the eastern hemisphere with the western hemisphere and is the gateway to African countries.
Trading Companies and Types
A trading company is a company which deals with various products and their import and export all over the world. These products are then distributed amongst the different companies, individuals or countries, depending upon the situation. In the UAE, mostly two different kinds of trading company are present. These are:
1.General Trading Company
A general trading company requires a general trading license and which allows trading of goods except for precious metals, cryptocurrency and various forms of hydrocarbons. These goods mentioned previously require special approvals from the concerned UAE authority.
2.Specific Trading Company
The UAE government allows for trading certain items of the category of electronic articles, cosmetic items, garments and many others. To purchase these items, you need to need to obtain a specific trading licence.
Benefits of a Trading Company in UAE
Setting up a trading company comes with a set of benefits which can be availed by any business which follows this business. Some of these benefits are:
1.Affordable Company Formation
Company formation is relatively affordable and straightforward. Some of the business owners need to submit the business plan along with the necessary documents and the projections of the revenues.
2.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 will also help recruit more help for the business.
3.Dependent visa Sponsorship
Once the visa is received by a person, he or she can sponsor a visa to any of the helpless people. This may include loved ones, maid, driver etc. There is a simple procedure to follow through which the sponsored person can get a visa.
4.Ability to Trade Locally and Internationally
A trading company has the authority to sell or distribute the imported or exported goods either in the local markets or in the markets in overseas countries.
5.Fewer Barriers to Trade
The costs at the starting of the business are comparatively less and the time taken is very less. Also, the entrepreneurs holding the mainland trading license are exempt from any paid-up share capital or any audits that are conducted yearly. This dramatically increases the profitability and affordability of the business.
The Business Regulation and Licensing sector of Dubai Economic Department understood the need for regulation in the 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 in different social media platforms.
The Government of Dubai has initiated policies which allow 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.
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 have a plan of doing business in UAE or are looking for services which will help your company to grow further and achieve success, then you should look into the services provided by "Commitbiz”.
At “Commitbiz", our talented and professional employees work hard to provide solutions to your business problems along with the alternatives. It also offers many other services such as Intellectual Property registration services, PRO services and many others. To know more about the various services provided, do contact us – we will be happy to help.