If you are a potential investor looking to start a general trading company in Dubai, you have landed in the right place. The guide is thoughtfully composed in order to give you comprehensive information regarding how to set up a general trading company in Dubai, how to obtain a general trading license, the cost of starting a general trading company in Dubai, and everything in between.
What Is a General Trading Company in Dubai?
A general trading company is a business that allows you to have multiple product trading lines where you can start general trading activities that allow you to import, export, and trade locally in UAE. You will have an option of registering with a general trading company in Dubai mainland or any of the UAE frees which will be defined based on the nature of your business. If your business is a third Port shipment or within the free zone, then you may go for free zone registration and if the business is trading into the local market, then you may go for mainland company registration In Dubai.
An entrepreneur keeping this license will be allowed to trade a variety of goods from several industries; although, goods may be completely unrelated to each other. To put it simply, under a general trading license, you can trade a variety of goods and products.
Starting a General Trading Company in Dubai
Dubai has long been known for its trade and commerce from the emirate’s early days of pearl trade through the financial and oil markets to the present when one can trade a wide range of goods and products. The government is highly dedicated to providing potential investors with an opportunity to relocate to Dubai and start their businesses in highly emerging and profitable economies.
Moreover, the Emirate enjoys a great location that puts it in a great position to conduct business with both the East and West markets. Furthermore, with its easy setup procedures, minimal entrance hurdles, and no to minor taxation policies, Dubai is incredibly well-liked by traders of all stripes. That’s why opening a general trading company in Dubai is a win-win for foreign investors.
Steps to Start a General Trading Company in Dubai
If you are a foreign investor or businessman looking to start a general trading company in Dubai that trades a wide range of products without any obstacles, you will need to get a general trading license. A general trading license will enable you to sell and trade an array of goods and products in Dubai.
- Select A Trade Name for Your Business
First and foremost, you will need to choose a name for your general trading company in Dubai. For this, you will need to keep in mind a few things including the name must not be allocated to any other company, not to use any blasphemous words, etc. Make sure to choose a simple, relevant, and unique name for your company and get it approved by the concerned body i.e. the Department of Economic Development (DED) or the concerned Free Zone in UAE.
- Plan Your Business Activities
To successfully acquire a general trading license in Dubai, you must plan the business activities that you are likely to conduct. Make sure to show the goods and products that you want to trade among the thousands of potential options.
- Apply for Initial Approval with DED or Free zone
Now is the time to apply for Preapproval either in DED or in one of the free zone in UAE. For this, write and submit an initial license approval application to the department. A pro tip is to consult with an experienced business setup advisory like Avyanco to avoid any complications during the process. We will assist you in making the license application submission process smooth, hassle-free, and effective.
- Getting External Approvals If Required
It is suggested to apply for any external approvals like visas that you may require in order to live and work in Dubai. This might include your residency visa, company employees’ visas, and more. The number of visas you should or might apply for depends on the nature and size of your business, your chosen business setup, jurisdiction, and earnings.
Benefits of Opening a General Trading Company in Dubai
The UAE’s economy has experienced tremendous diversification over the past decades mainly due to the increasing interest of foreign investors to start businesses in Dubai. The UAE’s stable economy, tax-free zones, and open social and economic frameworks appeal to foreign investors. The government is also dedicated to making Dubai a profitable economic hub for worldwide investments which further appeals to foreign investors. One of the most prosperous Dubai businesses is a general trading business which investors consider profitable to start with. The general trading business offers countless benefits including 100% ownership of the business and more – as follows:
- Tax-free policies
- No trade barriers
- Easy business setup
- High-quality infrastructure
- A large number of products
- Simple yet effective process
- Easy sponsor to dependents
- Local and international trade
- No restriction on repatriation of fund
Documents Required to Start a General Trading Company in Dubai
In order to open a general trading company in Dubai, you will be required to provide the essential documents to the concerned authority. Proper document submission is a must in order to get a general trading license.
- Business plan
- Passport copy of the owner/shareholder.
- Visa copy of the owner/shareholder
- Few name Choices for the company reservation.
- Lease Agreement – Actual office or Virtual office
Cost of Setting Up a General Trading Company in Dubai Mainland
The cost of starting a general trading company in Dubai may vary based on multiple factors including the type, size, and nature of your business. In addition to that, there are other multiple fees that you must keep in mind when applying for a general trading license including trade name reservation costs, initial approval costs, license fees, and more. A business setup consultant like Avyanco can help you efficiently manage general trading license costs and other fees whilst making the process hassle-free.
|Cost Of General Trading Company Setup in Dubai Mainland|
|Sr. No.||Particulars||Fee Tenure||Amount in AED|
|1||Initial Approval Fees||One Time||120.00|
|2||Name Approval Fees||One Time||620.00|
|3||Tasheel Fees||One Time||345.00|
|4||Notary Verification Fees||One Time||350.00|
|5||MOA/LSA-Notary Fees||One Time||1,200.00|
|6||License Fees Approximately||Part- Annual||28,000.00|
|7||Immigration Card Fees||Annual||750.00|
|8||Stamp of the Company||One Time||100.00|
|9||Labour Card Fees||One Time||1,000.00|
|10||External Department Fees||Part- Annual||NA|
|11||Investor Residence visa Fees||Part-3 Years||4,200.00|
|13||Corporate Service fees||Avyanco Fees||8,000.00|
|14||Office or Shop Rent||Annual||7,000.00|
Cost of Setting Up a General Trading Company in Dubai Free Zone
The cost of starting a general trading Company in a Free zone varies based on different license issuing authorities such as IFZA Free zone, Meydan Free zone, DMCC free Zone, JAFZA free zone, RAKEZ Free Zone, etc.. due to multiple factors such as type of the office, number of visas requirements. In addition to that, there are other multiple fees that you must keep in mind when applying for a general trading license in Dubai including trade name reservation costs, initial approval costs, license fees, and more. A business setup consultant like Avyanco can help you efficiently manage general trading license costs and other fees whilst making the process hassle-free.
|Cost of General Trading Company Setup in Dubai Free Zone|
|Sr. No.||Particulars||Fee Tenure||Amount in AED|
|1||License & Registration Fees||Annual||14,900.00|
|2||Immigration Card Fees||Annual||2,000.00|
|3||Stamp of the Company||One Time||100.00|
|4||Investor Residence visa Fees||Part-2 Years||5,000.00|
|5||Setup Fees||Avyanco Fees||5,000.00|
How Avyanco Can Help You Start a General Trading Company in Dubai?
At Avyanco, we have a team of expert business setup consultants who have vast industry experience backed by a strong portfolio. Team Avyanco aspires to help foreign investors with the business setup processes in and across Dubai. Whether you need assistance regarding the general trading license requirements, costs of a general trading license, best jurisdiction to open a general trading company in UAE, and more, we are a full-service business setup advisory working actively to help you successfully establish businesses in Dubai. Moreover, we provide expert assistance regarding pre- and post-company formation processes. Our core services include business setup consultancy, PRO services, visa and license approvals, bookkeeping, accounting, auditing, and more.
What makes Avyanco the most trusted choice for setting up businesses is our credibility and reliability. We keep professionalism and transparency at the center of what we do. Furthermore, we offer tailored packages from which you can select one that best meets your business requirements and budget.Feel free to contact us for any queries and concerns and we will be right at your service!