How to Set Up a Trading and General Trading Company in Dubai?

How to Set Up a Trading Company in Dubai: A Complete Guide

In Dubai and the United Arab Emirates, foreign investors have a variety of options, especially in the commercial trading industry. Over 2,000 regulated economic activities are available across all seven emirates, all managed by their respective free zones, local governments, and ministries of economic development.

Setting Up a Trading Company in Dubai

Setting up a trading company in Dubai is a win-win situation for foreign investors due to the numerous benefits the location offers. Investors and individuals from all over the world will have full ownership of their companies in the UAE.

Additionally, Dubai has minimal taxes and a high level of security and economic stability. Its world-class infrastructure and potential sales market offer diverse and exciting opportunities for a trading company to grow and achieve higher profits. For anyone looking to invest in a profitable business, a trading company in Dubai is a win-win situation.

Trading Company in Dubai

A trading company is a type of commercial business that involves purchasing products and selling them to potential customers. A trading business is one conducted by obtaining a trade license that permits the buying, selling, and trading of goods and products. Under a general trading license, a business is licensed to trade a variety of products, which can be diverse and from different sectors. To open a trading company in Dubai, potential investors must obtain a trade license from the Department of Economic Development (DED) or any free zone.

If a foreign national has a business in the international market and in the UAE, they can go for mainland registration. If the foreign national only has a business in the international market where the goods do not touch UAE ports and customs, then the investor can go for free zone company registration in Dubai.

Trading Company License in Dubai

If you are a foreign national looking to set up a trading company in Dubai, you must first obtain a trading company license. Especially if you are considering engaging in various commercial activities, you will need to obtain a general trading license. Dubai is a forward-thinking region that has made advantageous decisions to allow businesses to engage in all kinds of trade under the umbrella of one commercial license. OBTAINING a commercial license is essential to start a trading business in Dubai.

Benefits of Opening a Trading Company in Dubai

When it comes to opening a trading company in Dubai, the advantages are endless, including the following:

Investors can sponsor the residence visas of their dependents, including parents.
Multiple shareholders or investors are allowed to start the business.
Can conduct both local and international trade to expand the business.
Low barriers to entry for a business area with maximum growth potential.
Affordable trading company setup cost for potential investors.
Obtain multiple or various visa options, including employee visas, residence visas, and more.
Easy and hassle-free business setup process when it comes to starting a trading business in the UAE.
Multiple jurisdiction options are available to start from anywhere on the mainland or in free zones.
100% foreign ownership, where you do not need to hire a UAE national as the owner or shareholder or even a manager of the company.
0% corporate tax, and no income tax on free zone trading, but a company operating on the mainland will have to pay 9% corporate tax on profits earned above AED 375,000/-.

Cost of a Trading Company License in Dubai

The cost of a trade license in Dubai ranges from (AED 25,000/- to AED 50,000/-). The cost of setting up a trading business can vary depending on the type and size of your business, the jurisdiction you will operate in, the nature of the business, and more. Consulting with an experienced business setup consultancy like World Company Setup will help you streamline the process as well as minimize costs and enter the Dubai market smoothly.

Cost Breakdown Details for a Trading Company License in Dubai

Government Fees	Fees in AED
Initial Approval	120
Trade Name	620
Tasheel Initial Approval	350
Tasheel MOA	345
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 certain requirements that every potential investor must meet, including providing the necessary documents. Below is a list of important documents you will be asked to provide to the relevant department to obtain a commercial license for a trading company in Dubai.

Copy of trade name approval
Passport copy of the shareholders
Memorandum of Association (MOA)
Passport copies for all shareholders and managers
Initial approval from the relevant government authorities
Shareholders' agreement and other necessary documents
ID and address proof for all managers and shareholders

Steps to Set Up a Trading Company in Dubai

There are certain steps every investor must follow to set up a trading company in Dubai:

Choose a Trade Name for the Business

You will need to choose a name for your trading company in Dubai. Keep a few things in mind, such as the name not being previously allocated to another business, avoiding profane 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 obtain a successful trading company license in Dubai, you need to plan the key business activities you will conduct. Be sure to provide a list or the names of the goods and products you want to trade from among thousands of potential options.

Apply for Initial Approval from the DED or any free zone

Apply for initial approval by writing a preliminary license approval application to the DED department or any free zone authority. A pro tip: we will help you make the process of submitting a license application smooth, hassle-free, and effective to avoid any complications during the process.

Obtaining External Approvals if Necessary

It would be wise to apply for any external approvals you might need, including visas to live and work in Dubai without any hindrances and restrictions. This may include your residence visa, company employee visas, and more. The number of visas you need or can apply for depends on the nature and size of your business, the business setup you choose, jurisdiction, and earnings.

How We Help You Set Up a Trading Company in Dubai

Whether you need help with trading company license requirements, the costs of a trading company license, the best jurisdiction or places to open a trading company in Dubai, and more, we are a full-service business setup consultancy actively working to help you successfully establish a business in Dubai.

We have teams of expert business setup consultants with vast industry experience and strong knowledge of Dubai's rules and regulations. We aim to assist foreign investors in their business setup processes in and across Dubai and help them meet corporate procedures and legal requirements. With our help, setting up a trading company in Dubai becomes seamless. Contact us for any questions.

How to Set Up a General Trading Company in Dubai?

If you are a potential investor looking to set up a general trading company in Dubai, you have come to the right place. This guide is carefully prepared to provide you with comprehensive information on how to set up a general trading company in Dubai, how to get a general trading license, the cost of setting up 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 permit you to import, export, and trade locally in the UAE. You will have the option to register a general trading company on the Dubai mainland or in any free zone in the UAE, which will be defined by the nature of your business. If your business involves third-port shipments or is within a free zone, you can go for free zone registration, and if the business trades in the local market, you can go for mainland company registration in Dubai.

An entrepreneur with this license will be allowed to trade various goods from different sectors; however, the goods can be completely unrelated to each other. To put it simply, under a general trading license, you can trade a variety of goods and products.

Setting Up a General Trading Company in Dubai

Dubai has long been known for its trade and commerce, from the early days of pearl trading through the emirate's financial and oil markets to the present day where a wide variety of goods and products can be traded. The government is highly committed to offering potential investors the opportunity to move to Dubai and establish their businesses in highly developing and profitable economies.

Moreover, the Emirate has a great location that puts it in a fantastic position to do business with both Eastern and Western markets. Additionally, with easy setup procedures, minimal entry barriers, and no to low taxation policies, Dubai is incredibly loved by traders of all kinds. Therefore, opening a general trading company in Dubai is a win-win situation for foreign investors.

Steps to Set Up a General Trading Company in Dubai

If you are a foreign investor or businessman who wants to set up a general trading company that trades a wide range of products without any barriers in Dubai, you will need to obtain a general trading license. The general trading license allows you to sell and trade a range of goods and products in Dubai.

Choose 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 a few things in mind, including that the name is not allocated to another company, no profane words are used, etc. Make sure you choose a simple, relevant, and unique name for your company and get it approved by the relevant authority, i.e., the Department of Economic Development (DED) or the respective Free Zone in the UAE.

Plan Your Business Activities

To get a successful general trading license in Dubai, you need to plan the commercial activities you are likely to perform. Be sure to indicate the goods and products you want to trade from among thousands of potential options.

Apply for Initial Approval with the DED or Free Zone

Now is the time to apply for a Preliminary Approval at the DED or one of the free zones in the UAE. For this, write a preliminary license approval application and submit it to the department. A pro tip: we will help you make the process of submitting a license application smooth, hassle-free, and effective to avoid any complications during the process.

Obtaining External Approvals if Necessary

It is recommended to apply for external approvals such as a visa that you might need to live and work in Dubai. This may include your residence visa, company employee visas, and more. The number of visas you need to apply for or can apply for depends on the nature and size of your business, the business setup you choose, jurisdiction, and earnings.

Benefits of Opening a General Trading Company in Dubai

The UAE economy has experienced tremendous diversification in recent years, especially due to the growing interest of foreign investors in setting up 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 committed to making Dubai a profitable economic hub for investments worldwide, which further appeals to foreign investors. One of the most prosperous Dubai businesses that investors initially find profitable is a general trading business. The general trading business offers numerous advantages, including 100% ownership of the business, and more:

Tax-free policies
No trade barriers
Easy business setup
High-quality infrastructure
Numerous products
Simple yet effective process
Easy to sponsor dependents
Local and international trade
No restrictions on repatriation of funds

Documents Required to Set Up a General Trading Company in Dubai

You will be asked to provide the necessary documents to open a general trading company in Dubai to the relevant authority. Proper document submission is essential for obtaining a general trading license.

Business plan
Passport copy of the owner/shareholder.
Visa copy of the owner/shareholder
Several name options for company reservation.
Lease Agreement – Actual office or Virtual office

Cost to Set Up a General Trading Company on Dubai Mainland

The cost of setting up a general trading company in Dubai can vary depending on many factors, such as the type, size, and nature of your business. In addition, there are other fees you need to keep in mind when applying for a general trading license, including trade name reservation costs, initial approval costs, license fees, and more.

General Trading Company Setup Cost on Dubai Mainland
Sr. No.	Details	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 Attestation Fees	One time	350.00
5	MOA/LSA-Notary Fees	One time	1,200.00
6	License Fees Approx	Partial 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	Partial Annual	N/A
11	Investor Residence Visa Fees	Part-3 Year	4,200.00
13	Corporate Service fees	Avyanco Fees	8,000.00
14	Office or Shop Rental	Annual	7,000.00
Total	51,685.00

Cost to Set Up a General Trading Company in a Dubai Free Zone

The cost of setting up a general trading company in a Free Zone varies according to different licensing authorities like IFZA Free Zone, Meydan Free Zone, DMCC Free Zone, JAFZA Free Zone, RAKEZ Free Zone, etc., due to many factors such as the type of office and visa count requirements. In addition, there are other fees you need to keep in mind when applying for a general trade license in Dubai, including trade name reservation costs, initial approval costs, license fees, and more.

General Trading Company Setup Cost in a Dubai Free Zone
Sr. No.	Details	Tenure	Amount in AED
1	License and 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 Year	5,000.00
5	Setup Fees	Avyanco Fees	5,000.00
Total	27,000.00

How We Help You Set Up a General Trading Company in Dubai

We have a team of expert business setup consultants with vast industry experience backed by a strong portfolio. We aim to assist foreign investors in their business setup processes in Dubai and across the UAE. Whether you need help with general trading license requirements, the costs of a general trading license, the best jurisdiction to open a general trading company in the UAE, and more, we are a full-service business setup consultancy actively working to help you successfully set up a business in Dubai. We also provide expert support during the pre and post company formation processes. Our core services include business setup consultancy, PRO services, visa and license approvals, bookkeeping, accounting, auditing, and more.