Start a General Trading Company in Dubai (5 Step Guide)

How to Start a General Trading Company in Dubai: The following is an all-inclusive, step-by-step guide to establishing a general trading company in Dubai.

This manual is designed to help anyone who are interested in or preparing to launch a general trade firm in the United Arab Emirates but are unsure of the first steps to take.

Start a General Trading Company in Dubai

It is common knowledge that Dubai is the best place in the United Arab Emirates for foreign investors and ambitious businesses to establish a general commerce firm.

For the past two decades, the government of the United Arab Emirates has ensured an unprecedented expansion of the country's commercial sector. This has led to a massive commitment of resources into the industry.

Therefore, we have developed this comprehensive strategy / guide for you to follow in order to learn everything you need to know about establishing a general trading company in Dubai.

The government has secured steady growth in all industries, which is particularly encouraging for potential foreign investors because to the country's attractive market prospects. It is obvious that Dubai is one of the world's major commerce centers, making it a good choice for entrepreneurs and investors to set up company there.

To open a general trading company in the United Arab Emirates, you must follow certain rules and regulations.

An investor considering establishing a general trading company in Dubai should first consider the following five factors.

Read: How to start a small business in Dubai (7 Simple Steps)

Steps to Start a General Trading Company in Dubai

As one of the world's most prominent trading hubs, Dubai offers an excellent environment in which to establish a business dealing in goods and services of all kinds. Read this article carefully to learn the first five steps:

Step 1: Decide / Form a Corporate Structure

Step one in setting up a general trade company in Dubai is picking the legal form your firm will take. It's crucial to follow the rules and have a well-thought-out strategy when operating in Dubai.

It takes careful consideration of many factors, beyond just the money and people put in at the outset, in order to establish a profitable business.

General commerce is only one of several business options available in Dubai.

Step 2: Pick your Business Activities

If you only want to engage in a select few types of trade, you can find the full list on the Dubai Department of Economic Development (DED) website and apply for the relevant licenses and permits with the assistance of local consulting service providers like UPS Business Setup Dubai.

However, Dubai will label your business as a general trading company if you intend to perform a wide range of commercial activities.

A general trading license, which is more expensive but permits you to do more types of business, is what you need in this case.

Step 3: License for General Trading

In order to legally operate a general trading company in Dubai, a general trade license is required from the relevant authorities.

Among the lawful pursuits made possible by this permit is the retail sale of apparel, furnishings, and technological devices.

Obtaining a General Trading License in Dubai entails the following steps:

• Name that conforms to established norms
• Determining the nature of the business activities
• Submitting an application
• Obtaining outside approvals as needed
• Having the required contracts on hand (Memorandum of Agreement, Assignment of Assets, etc.)

This is the procedure to acquire a commercial license in Dubai.

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It is also required that an appropriate location be selected for the company, that all required approvals be obtained, that an application be filed to the DED, and that all required payments be completed.

Step 4: Verification of the Application

When you submit your paperwork, government employees will review it immediately. The next step is for authorities to authenticate your business name before adding it to Dubai's commercial registry.

The documents you submit will be sent to the Federal Ministry of Economy for assessment and verification by the Economic Department of Dubai. Once your paperwork has been reviewed and accepted, you will receive an acceptance letter.

Step 5: Finding a Location

After securing the necessary authorizations, it's time to start looking for a spot where your money will do the most good.

When making decisions, keep things like supplier and consumer accessibility, visibility, and proximity in mind. For investors, setting up shop in a free zone in Dubai means enjoying perks like duty-free imports and exports, zero percent corporate tax rates, and full control over foreign ownership.

When starting a new general trading business, picking the right location is essential for fostering trade expansion.

Understanding the various commercial areas available in Dubai is vital for finding the right spot. In Dubai, commercial zones can be divided into two broad categories: free zones and mainland.

General trading businesses in Dubai can be difficult to launch, but if you follow these 5 steps you'll be well on your way to success.

In order to start a general trading company in Dubai, you need to submit a variety of paperwork to the relevant authorities. Some examples of required paperwork are as follows:

1. The Department of Economic Development (DED): Your company's trade name has been officially reserved by the Department of Economic Development (DED). There is a six-month validity period for this document.
2. Memorandum of Association (MOA): The company's stated purposes, scope of operations, and ownership structure are all laid forth in the MOA. The memorandum of understanding must be notarized by a public notary in Dubai.
3. Passport copies of shareholders and directors: Shareholders and board members must provide passport copies. Copies of passports for all owners and company execs, please.
4. Tenancy Contract: You must provide a tenancy agreement for your Dubai business premises.
5. First approval certificate: The DED offers a first approval certificate to confirm that a company can lawfully conduct business in Dubai.
6. Bank reference letter: A letter of financial recommendation from a bank in your own country or in the United Arab Emirates is required.
7. Evidence of share capital: You must provide proof that your share capital has been deposited into a bank account in the United Arab Emirates (Q7).

After submitting the required documentation to the DED, a commercial license will be issued, allowing you to open your general commerce company in Dubai. Hiring a firm establishment consultant in Dubai is essential to making sure all the bases are covered. They will be able to guide you through the process.

Starting a wholesale or retail business in Dubai could cost anything from AED 30,000 to AED 50,000.

How to start a general trading company in Dubai

The first license is usually valid for a year and doesn't necessitate finding a place to work. To keep operating within and outside of the UAE once the initial renewal period ends, however, a permanent business site will be required.

List of  a few famous General Trading Companies in Dubai

Several companies in Dubai's trade and commodity trading industries operate out of different locations and engage in various legal activities after obtaining a general trading license.

• Israco Trading Company
• Phoenix Trading Company LLC
• Edmark Trading Co. L.L.C.
• Al Haif Trading Company LLC
• Sport One Trading
• Faisal Jassim Trading Company

These are examples of some of Dubai's most prominent limited liability companies (L.L.C.

Since you are now aware of everything that must be done to establish a general trading company in Dubai, there is no reason to put it off any longer.

Establishing a general trading firm in Dubai is a surefire way to succeed financially. The government in Dubai is helpful and welcoming, further streamlining the process of opening a business there.

Consult a business setup consultancy if you have any remaining doubts or questions regarding launching a wholesale or retail enterprise. UPS Business Setup Dubai's expert business consultants have extensive experience setting up companies in Dubai.

We're here to help you through the process from start to finish, from developing a viable business plan to gathering the necessary documentation. We can also try to get you a general trade license and a preliminary clearance for a fair charge. Get in touch, tell us what you need, and rest easy while we handle the rest.

Feel free to leave a comment below and one of our business setup specialists will contact you to answer any remaining questions you may have about establishing a general trade company in Dubai.

FAQs on Starting a General Trading Company in Dubai:

1. Q: What are the legal requirements to start a general trading company in Dubai?

A: To start a general trading company in Dubai, you need to register your business with the Department of Economic Development (DED), obtain a trade license, and fulfill any specific industry requirements.

2. Q: Can a foreigner start a general trading company in Dubai?

A: Yes, foreigners can start a general trading company in Dubai. However, they are required to have a local sponsor, either an individual or a company, who will hold the majority share (51%) in the business.

3. Q: How long does it take to register a general trading company in Dubai?

A: The registration process can vary, but typically it takes around 1-2 weeks to complete the initial steps of registering a general trading company in Dubai.

4. Q: What is the minimum capital required to start a general trading company in Dubai?

A: The minimum capital requirement for a general trading company in Dubai depends on the business activity and the location. However, there is no fixed minimum capital requirement.

5. Q: Are there any specific licenses required for a general trading company in Dubai?

A: Yes, you will need a general trading license issued by the DED. Additionally, if you plan to trade in specific products or industries, you may need additional licenses or permits.

6. Q: Can I operate my general trading company from a free zone in Dubai?

A: Yes, you can choose to set up your general trading company in a free zone in Dubai. Free zones offer various benefits such as 100% foreign ownership, tax exemptions, and simplified company setup procedures.

7. Q: What are the ongoing compliance requirements for a general trading company in Dubai?

A: As a general trading company, you will need to renew your trade license annually, maintain proper accounting records, submit financial statements, and comply with any industry-specific regulations.

8. Q: Are there any restrictions on the types of products I can trade as a general trading company in Dubai?

A: Generally, there are no restrictions on the types of products you can trade as a general trading company in Dubai. However, certain products may require additional approvals or permits from relevant authorities.

9. Q: Can I have multiple business activities under a general trading license in Dubai?

A: Yes, a general trading license allows you to engage in multiple business activities related to trading. You can specify these activities during the license application process.

10. Q: Are there any tax implications for a general trading company in Dubai?

A: Dubai does not impose corporate or personal income taxes. However, there may be other taxes or duties applicable to specific products or industries. It is advisable to consult with a tax professional for accurate information.

So, as you now are aware of how to start a general trading company in Dubai, you can follow the steps shared above to start your own general trading company in Dubai and if you need a professional help (which is always recommended to establish a company in Dubai), please feel free to WhatsApp us at +44 7529694074 & book your free business consultation.