How to Start a Trading Company in Dubai: Complete GuideMarch 9, 2023
The UAE offers excellent potential for all sizes of enterprises from small to medium to large companies. Dubai has established a reputation as a hub for global businesses, traders, and entrepreneurs. One of the major benefits of starting a business in Dubai is the possibility to do both domestic and international trade. And, one of the best ways to step into the highly emerging economy is to start a trading company in Dubai.
In Dubai and the United Arab Emirates, foreign investors have several options, notably in the commercial trading industry. More than 2,000 regulated economic activities are available in all seven emirates, and they are all governed by the proper free zones, local governments, and economic development ministries.
Starting a Trading Company in Dubai
Starting a trading company in Dubai is a win-win for foreign investors due to the countless benefits the location offers. Investors and individuals from all over the world will have complete ownership of their companies in the UAE.
In addition, Dubai has minimal taxes and a high level of security and stability in the economy. Its top-notch infrastructure and potential sales market offer distinctive and exciting opportunities for a trading company to grow and generate higher profits. For anyone looking to invest in a profitable business, a trading company in Dubai is a win-win.
What Is A Trading Company?
A trading company is a kind of commercial business that involves buying products and selling them to potential customers. A trading business is one that is operated by acquiring a trading license allowing buying, selling, and trading of goods and products. Under a general trading license, a business is licensed to trade various products in different industries that might be different from each other. To open a trading company in Dubai, potential investors need to get a trading license from the Department of Economic Development (DED) or any of the free zone.
If the foreign national has a business in international market and in UAE, then one can go for mainland registration and if the foreign national has a business in only international market where the goods are not touching to the UAE ports and custom then in that case investor can go for free zone company registration in Dubai.
Trading Company License in Dubai
If you're a foreign national who wants to launch a trading business in Dubai, you must first secure a trading company license, particularly if you intend to engage in a variety of trade operations you need to get a general trading license. Dubai is a forward-thinking region that has made the advantageous decisions to enable enterprises to engage in all forms of commerce under the auspices of a commercial license. To start a trading business in Dubai, ACQUIRING a commercial license is a must.
Benefits of Opening a Trading Company in Dubai
Benefits are endless when it comes to opening a trading company in Dubai including:
- Investors can sponsor dependents' residence visas including parents.
- Allowed multiple shareholders or investors to start the business.
- Can trade both locally as well as internationally to expand business.
- Low barriers to the area of business with maximum growth potential.
- Affordable trading company formation cost for potential investors.
- Get multiple or various visas facility including employee visas, residency visa, and more
- Easy and smooth business setup process when it comes to start a trading business in UAE
- Multiple jurisdiction options are available to start anywhere either on the mainland or in free zones
- 100% foreign ownership where you don’t need to hire UAE national as owner or shareholder or even a director of the company.
- 0% corporate tax, income tax in free zone business however company operating in mainland will have to pay 9% corporate tax on generated profit over and above AED 375,000/-
Cost of Trading Company License in Dubai
The cost of a trading license in Dubai is between (AED 25,000/- to AED 50,000/-). The cost of establishing a trading business might vary depending on your business type, size, jurisdiction in which you will operate, nature of business, and more. Consulting with an experienced business setup consultancy like Avyanco will help in easing the process as well as help you minimize costs and smoothly enter the Dubai market.
Trading Company License Cost Details
|Government Fees||Fees in AED|
|Trade License Cost||11960|
|Foreign Trade Fees||2000|
|Corporate PRO Services Fees||6000|
|Total Cost of Trading Company License||21 395|
Documents Required to Open a Trading Company in Dubai
To open a trading company in Dubai, there are some requirements that every potential investor must fulfill including providing the required documents. Below-mentioned is a list of important documents that you will be asked to provide to the concerned department in order to get a commercial license for a trading company in Dubai.
- Copy of trade name confirmation
- Passport copy of the Shareholders
- Memorandum of Association (MOA)
- Passport copies for all shareholders and directors
- Initial approval from relevant government authorities
- Shareholder agreement and other required documents
- Proof of ID and address for all directors and shareholders
Steps to Start a Trading Company in Dubai
There are some steps that every investor needs to follow in order to start a trading company in Dubai including:
- Select a Trade Name for the Business
You will need to select a name for your trading company in Dubai. Make sure to keep in mind a few things including that the name must not be allocated to any other business before, avoid any blasphemous titles or words, etc. Make sure to choose a relevant, simple, and unique name for your company and get it approved by the Department of Economic Development (DED).
- Plan Your Business Activities
To successfully obtain a trading company license in Dubai, you must plan the crucial business activities that you will conduct. Make sure to provide the list or name of goods and products that you want to trade among the thousands of potential options.
- Apply for Initial Approval from DED or any free zone
Apply for initial approval by writing an initial license approval application to the DED department or in any free zone authority. 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 wise to apply for any external approvals including visas that you may require in order to live and work in Dubai without any barriers and restrictions. 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.
How Avyanco Help You Start A Trading Company in Dubai?
Whether you need assistance pertaining to the trading company license requirements, costs of a trading company license, best jurisdiction or locations to open a trading company in Dubai, and more, at Avyanco, we are a full-service business setup advisory working actively to help you successfully establish businesses in Dubai.
At Avyanco, we have teams of expert business setup consultants who keep vast industry experiences and strong knowledge of Dubai rules and regulations. Team Avyanco aspires to help foreign investors with the business setup processes in and across Dubai and help them meet corporate procedures and legal requirements, With our assistance, setting up a trading company in Dubai becomes seamless. Contact us for any queries.
Jashvant Prajapati, founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC. He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.