General trading company formation in Dubai-A&A Associate LLC

Dubai has been continuously topping as the most-innovative business location in the world. We have seen a huge growth in the financial sector over the last few decades. Moreover, the trade and logistics sectors have shown remarkable growth in recent years. Therefore, starting a general trading company in Dubai is quite beneficial.

If you’re planning to start a general trading company in Dubai, we make it easy with a step-by-step procedure to obtain your trade license in Dubai.

What is a general trading business in Dubai?

General trading is incorporated with a general trade license allowing you to import, export, and distribute goods. With this license, an entrepreneur is permitted to trade different products from various industries and they can be completely unrelated to each other. Besides this license, for certain items, you need approval from higher authorities for legal distribution.

How to start your general trading company in Dubai?

Develop a business plan

Initially, you should develop a business plan. While preparing your business plan consider all the factors such as market condition, products, competition, activities, office space, the total number of employees, marketing tactics, and financing. These factors determine the progress of your business.

Select the jurisdiction

To get your general trade license in Dubai, you have to select the jurisdiction. Dubai has three jurisdictions free zone, mainland, and offshore.

The free zone offers full ownership and exemption from personal tax or income tax. While starting your business in Dubai Mainland, the business investors should find a UAE national to hold the 51% share of the company.

The offshore company is set up in a country different from the country of the investor. Investors can choose the jurisdiction according to their business requirements. While starting your business in Dubai mainland, you get more exposure to the customer and trade with other companies in the Emirates.

Find your Sponsor

If you want to set up your business in Dubai Mainland, you need a UAE national as a local sponsor. Here, the sponsor will hold 51% of the share and without a local sponsor; you cannot start your company in Dubai.

There are two types of sponsorship, local sponsors hold 51% of the share and corporate sponsors will give you 100% ownership through the investor’s right protection contract.

Get your business license

Getting a trade license in Dubai makes your business legal and it allows you to take part in all the trade-related activities.

Follow these steps to get the general trading license in Dubai,

Decide a trade name
Develop a business plan
Apply for initial approval
Get external approval if required
Prepare MoA and get it signed
Select a business location and get a tenancy contract attested by Ejari
Submit an application to DED
Pay fees for the license
While applying for your general trading license in Dubai free zone or offshore, you have to submit the original documents to the commercial registration department and commercial registry at the trade license. DED issues the license after getting approval from both departments.

What is the cost of setting up your trading company in Dubai?

The cost of a trade license in Dubai will be approximately anywhere between AED 15,000 to AED 50,000 or even more. Additionally, the total cost is determined by factors such as business, warehouse, office space, business jurisdiction, additional approvals, and visa application.

What are the documents required for applying for a general trade license in Dubai?

The list of documents you need to submit include,

Passport copies of all the partners
Passport size photo
LSA and MoA agreements
Trade name registration letter
Warehouse or office tenancy contract with a detailed office plan
NOC letter from the service agent
After submitting all these documents, company officials check and verify your trade name to the commercial registry. Now, DED will forward your document to the Federal Ministry of economy and the ministry will approve the final approval letter.

Easy to get your trade license in Dubai with A & A associates

We ensure that it takes only minimum effort to achieve your general trade license in Dubai. We help you go through different stages simplifying the company formation in Dubai. Just share the documents with us and wait for the approvals. Ultimately, we assure successful company formation and start running your business immediately.

Our business setup in dubai uae experts help you find the best solutions according to your specific needs. We advise the right structure and jurisdiction to start your company. Apart from the above, we take care of all the required technical, legal, and financial aspects of your company formation.