Knowing the right steps for trading company registration in Dubai has always been a hustle bustle for the entrepreneurs. Who takes the credit? It’s the ample zones available for incorporating an import-export entity in the UAE.
And being an entrepreneur it’s inevitable for you to face endless confusions and challenges. These hurdles and confusions could be in terms of choosing the right locations, getting license approvals, or whatnot.
In this blogpost, we’re going to share the 6 most essential steps to incorporate a trading business in the UAE. But before that, let’s know a few scopes of setting up a trading entity in Dubai.
What are the scopes of trading company registration in Dubai?
The import-export entities are booming in Dubai. It’s because a trading company in the UAE earns a lot of profits. As per the Statista’s reports for the year of 2020, the Emirate’s trade balance crossed 93.54 billion U.S. dollars. Isn’t it huge?
Here is why registering a trading company in Dubai has endless scopes:
1. Perfect location with an excellent accessibility to ports 2. Convenient product distribution management
3. Liberty of duty free export to over 17 middle east counties, and more.
How to get general trading license in Dubai?
In Dubai, obtaining a general trading licence is a multi-step process. A general guide to obtaining a general trading licence in Dubai is provided here.:
1.Choose a business activity: The first step is to determine which business activity you want to engage in. A general trading license in Dubai allows you to engage in trading any commodity that is permitted in the UAE. However, you may need to obtain additional approvals or licenses for certain types of products.
2.Choose a company structure: You will need to decide on the company structure for your business. Options include a sole proprietorship, a partnership, or a limited liability company (LLC). An LLC is the most common structure for businesses in Dubai.
3.Choose a trading name: You will need to choose a trading name for your business that is not already taken and complies with UAE naming conventions.
4.Get initial approval: You will need to obtain initial approval from the Department of Economic Development (DED) for your business. This involves submitting a business plan, choosing a location, and obtaining any necessary approvals from other government departments.
5.Reserve your trade name: Once you have obtained initial approval, you can reserve your trade name with the DED.
6.Obtain your lease agreement: You will need to obtain a lease agreement for a physical office space in Dubai to operate your business.
7.Obtain your trade license: Once you have completed all the above steps, you can apply for your general trading license with the DED. You will need to provide all required documents and pay the necessary fees.
8.Final approval and issuance of the license: The DED will review your application and issue your general trading license upon approval. The license is typically valid for one year and renewable annually.
It is important to note that the specific requirements and procedures for obtaining a general trading license in Dubai may vary depending on the nature of your business and other factors.
How to get started for Trading Company Registration in Dubai?
Now, when you understand the scopes and benefits of starting a trading entity in Dubai, let’s see how to register it. Let’s dive in.
1-Select Your Trading Activity
While registering an import export business in the UAE,the first step is to choose your trading activities. These activities will help you in deciding the suitable type of license for you.
For instance, if you desire to trade multiple unrelated goods, then a general trading license will be the best alternative.
2- Think of a Company Name
After listing out trading activities, the next essential thing you have to do is to think of a company name. Make sure you are keeping certain things in mind while doing it. You just need to abide by a few name conventions, such as:
1. The name must not include any offensive or blasphemous language
2. Restrain yourself from using the names of well-known organizations
3. In case you use your name, then avoid using abbreviations
3- Decide on a setup location
Dubai serves you a lot of location choices to incorporate your trading company. Whether you start your trading business in Dubai Mainland, or incorporate it a UAE free zone, that’s your call. We will recommend you to choose any of the UAE free zones to get started.
For example, Fujairah Free Zone that is just 15 minutes away from Fujairah Port will be an impeccable choice. Thanks to the capability of this port for serving direct routes to the Persian Gulf, the Indian subcontinent and Africa.
4- Apply for the suitable trading license
Are you now thinking how to apply for the suitable trading license for your business? Well, it isn’t a rocket science. There are two ways for doing it. One way is to directly apply for it from the Department of Economics Development (DED). Whereas, the other way is to go the municipality of your chosen emirate to apply for the relevant trading license.
Enlisted below is the list of the documents you need to provide:
1. 100% filled up application form
2. Proposed owner’s passport copy
3. Two colour passport size photographs with a white background
5- Fulfill The Customs Requirements
Since you are planning to trade with various companies situated around the world, considering custom requirements becomes essential. Although you can lap up the benefits of import-export tax exemptions in free zones, you still need an import code. You need to request it from the Federal Customs authority.
All you need to do is to offer the following documents:
1. General trading license’s copy
2. Passport’s copy
3. Information about the trading activities
6- Obtain the Required Visas
After applying for the business license, the next crucial procedure for trading company incorporation in Dubai is to get the required visas. It’s always a great idea to seek guidance from the company formation experts based out in Emirates.
In order to be eligible for the maximum number of visas,there could be a plethora of factors. You will need to evaluate your company’s size, your chosen setup, and a lot more things.
Wrapping it up:
Indeed, incorporating a trading company in Dubai has endless scopes and possibilities. So, investing in it is definitely a win-win game for entrepreneurs. Hopefully, the above-discussed steps will give you more clarity for undergoing smooth trading company registration in Dubai.
Do you still need one-to-one assistance for your trading business formation in Dubai? Feel free to connect with Industry experts.