How to Start a General Trading Business in the UAE?

by commitbizadmin 22, Jul 2020

How to Start a General Trading Business in the UAE?

The United Arab Emirates is said to be one of the most popular destinations for trading ports around the globe. The country has become a global hub for financial services; logistics, hospitality, and trading is steadily growing in other sectors, including healthcare, technology, and renewable energy.

What is a General Trading Company in the UAE?

Since the initial days, from the point when the UAE, and especially Dubai, started being known as a strategic position for trading between different parts globally, the city's port has been one of the most famous ones for trading. Therefore, setting up a trading business in Dubai has been considered one of the most valuable investments for foreigners as well as entrepreneurs in the city.

A general trading company supplies or distributes a different kind of products to consumers, businesses, or the government. Most of the trading businesses are classified into two major classifications, the importers and wholesalers that purchase a specialized range of products either to stock them, trade them, or supply them.

Businesses Activities Approved by DED for General Trading

  • Automobile Trading
  • Babywear Trading
  • Dairy Products Trading
  • Health Food Trading
  • Beauty and Personal Care Equipment Trading
  • Computer Electric Accessories Trading
  • Construction Equipment And Machinery Trading
  • Food and Beverage Trading
  • Garment Accessories Trading
  • Gold Trading
  • Jewelry Trading
  • Mobile Phones Trading
  • Perfumes and Cosmetics Trading
  • Ready-Made Garments Trading

Procedure to Start a General Trading Business in Dubai

One can start a general trading business in any of the two jurisdictions in Dubai, UAE, i.e., Mainland and Free Zone

Steps to Start a General Trading Business in UAE Mainland

  1. Reserve a trading name for your business and get it approved from the Department of Economic Development (DED) of the concerned Emirate
  2. Get a local sponsor who will own 51% of shares in the business
  3. Notarize all the documents needed for starting your business
  4. Obtain external approvals if needed as per the proposed activity
  5. Submit the documents and license fees
  6. The DED will issue the trading license
  7. Get an office space

Steps to Start a General Trading Business in UAE Free Zone

  1. Check for the proposed company name availability
  2. Get the virtual office service agreement or office space if needed
  3. Submit the needed documents and license fee to relevant free zone authority in the UAE
  4. You will be issued with a trading license from the free zone authority

Documents Needed to Open General Trading Business in the UAE

  • Passport copy of all the owners/shareholders
  • Residence visa copy with entry stamp of shareholders (if any)
  • No Objection Certificate for shareholders/owners
  • Proposed trade name
  • Application form
  • Copy of Memorandum of Association

Benefits of Setting up a General Trading Company in the UAE

  • Easy and hassle-free business setup
  • Affordable business incorporation cost
  • Can start anywhere in a free zone or mainland
  • Get multiple visa facility
  • Can sponsor dependents residence visa
  • Allowed multiple shareholders to start the business
  • Can trade locally or internationally
  • Low barriers to the area of business

There are different reasons to set up a business with a general trading license in the UAE. The Emirates is one of the world's leading business hubs, strategically placed to do business with every corner globally. As well as a welcoming and encouraging business environment, the UAE businesses also benefit from one of the world's most attractive tax regimes with a 0% rate on both corporate and personal income. Incorporate in one of the nation’s free zones, and you'll also benefit from 100% exemption from customs tax. What's more, unlike in many other countries, UAE free zone business owners also have full freedom to repatriate all invested capital and profits. There are also no foreign exchange controls or currency restrictions.

We at Commitbiz can help you start a general trading business in the UAE. Our business setup consultants have years of experience in the field and can make the process hassle-free. Contact us for more information.