Businesses in Dubai are booming. The number of new enterprises is increasing, and most are trading companies focusing on General Trading. But many people still need to be made aware of this form of business as it is less common and does not attract much media attention.
What is General Trading Business in Dubai?
General Trading Business in Dubai is a well-established business for anyone who wants to enter the world of trading. With this kind of business, you can earn money by trading any commodity from anywhere in the world and anywhere you want to sell it.
To start your own business, you need a good education, experience, and knowledge about the commodities that will help in trading.
Suppose you want to begin your new career as an entrepreneur. In that case, you must have some basic knowledge of finance and economics because these two topics will help you decide on the right direction for your business.
It would be best if you also had enough capital to afford all the expenses involved in starting a new business. You also need money for advertising materials such as brochures and flyers if they would help you attract customers or investors to your company.
How to start a General Trading company in Dubai?
Following are the steps to start a General Trading Company in Dubai:
1. Registering Your Company
The law requires that every person who carries on business in Dubai must register his or her company with the Ministry of Commerce. If you are starting a new business, it is essential to register your company before trading with customers.
2. Obtaining the Trade License
Obtaining a Trade License is an essential step for you to start your business. Dubai Municipality requires a trade license to conduct any business activity in Dubai. The permit can be obtained from the concerned offices of Dubai Municipality or through an agent you can appoint for this purpose. The primary purpose of obtaining a trade license is to ensure you do all the legal formalities required before starting your business.
3. Getting the Business Location
If you are planning on starting a General Trading company in Dubai, you need to know where to get your business location. There are two options available – either rent or buy. The first option is renting space from another company that already has a shop or store. The second option is buying an empty store or shop where you can set up your own office and warehouse space for your products or merchandise.
4. Registering with the Department of Economic Development (DED)
Registration of the company with the Department of Economic Development (DED) is mandatory for all companies. The Directorate General of Foreign Trade (DGFT) is responsible for regulating and supervising foreign trade in the UAE. It is also responsible for all import and export activities, including licensing, registration, inspection, and audit of foreign companies operating in the UAE.
5. Processing of Documents at the Chamber of Commerce and Industry
Please be informed that the Chamber of Commerce and Industry (CCI) is processing all applications for establishing a General Trading company in Dubai. The Chamber has started to issue licenses to entrepreneurs who have submitted their application forms, which the CCI approved. So it is essential to submit the application form duly completed with all necessary documents. The process will take a few weeks.
Cost to get General Trading License?
The cost of a Trade License depends on which area of Dubai you would like to establish your organization. It also depends on what business you plan to start.
The costs would range from AED 15000 to AED 150,000 p.a. These costs are inaccurate and are for illustrative purposes only. If you plan to take office with the trade license costs, you’ll have expenses related to office rent, utilities, staff salaries, visa costs, insurance, and much more.
To better understand all the costs involved, get in touch with a consultant who can help you each step of the way, right from obtaining the trade license.
Documents required to submit for General Trading License?
The following documents are required to submit for a general trading license:
1. Trade License Application Form
2. Trade License Registration Certificate
3. Health Certificate (A separate document)
4. Power of Attorney (A separate document)
5. A copy of your Emirates ID (passport)
6. A copy of your educational certificate or diploma
7. A copy of your work experience certificates and documents
8. A copy of your passport or Emirates ID card with a photograph, if you are applying for the first time
9. Two passport-size photographs (self-photography)
Benefits of getting a General Trading license in Dubai:
The General Trading License is a license that allows you to start trading in the market. This license will allow you to trade any financial product or commodity. You can trade any commodity, whether gold, silver, oil, or other commodities.
Dubai Financial Services Authority (DFSA) issued the General Trading License.
Once you have got your license, you are allowed to trade anywhere in the world and also outside Dubai.
There are many benefits associated with getting a General Trading License in Dubai:
1. First of all, it is the most sought-after license in the UAE. This means that once you have this license, you can open your own business and operate it as a sole proprietor.
2. Secondly, if you have this license, you will be able to work anywhere in the country and do business with anyone without restrictions. You will be not only able to do business within your own country but also with other countries around the world.
3. Thirdly, if you have this license, then you can work anywhere in the world and do business with anyone without any restrictions or limitations. You will no longer need to worry about immigration issues when doing business outside your country.
4. Fourthly, once you get this license from Dubai Customs Department, there is no limit on how much money you can make through trading as long as Dubai Customs Department imposes no other restrictions.
How can AIG Corporate Services Provider help in the startup of your Trading business?
AIG Corporate Services Provider helps you build a new venture, whether a startup consulting company, a new business, or an established business trying to achieve sustained growth. Why? Because we are the leader in management improvement programs and individual development solutions. AIG Corporate Services Provider provides a sophisticated level of expertise that drives the results. Our clients range from private firms and divisions of large global corporations to governments, major foundations, and nonprofit associations. They depend on us for reliable advice, proven tools and systems, tailored assessments, and immediate action. Today we are creating dynamic knowledge-based organizations through strategies and best practices customized for each client’s needs.
For further information, don’t hesitate to get in touch with us.
Setting up a company in Dubai is simple. You can own your business by registering with the Federal Government of Dubai or a Free Zone Authority. The documents needed to apply will vary depending on whether you decide to do it yourself or through someone else. You’ll be dealing directly with the government-issued license for popular free zones such as Jebel Ali and Jumeriah. Entering a free trade zone has tax benefits and other incentives, including exemption from VAT and income tax, 100% foreign ownership, and no corporate income tax for trading-only activities.
The article provides advice on the general trading company, how to get it started, and what license is needed.