Now a day Dubai is a hub for business as well as tourism; Dubai in the earlier period was generally known as a trading place for business due to its strategic position. Now, Dubai has changed a great deal with the opening a general trading company in Dubai; and a number of new businesses. But it is now favor to all kinds of businesses; through a variety of incentives and world class facilities.
But the government of Dubai is surely aware about the fact; that their major strength is their site which provides ordinary harbor for trade between different parts of globe.
What is a general trade license in Dubai
If a company want to export as well as import or trade products; like clothes, furniture, accessories and electronics etc. It can apply for a general trading license in Dubai. A you are searching for a chance to import as well as export in the UAE; then you need a trade license in UAE. If you want to trade several product which are in the same or different industry; then a general trading license in Dubai covers it all. Moreover, having such license has its own benefits and advantages. But there are certain products like guns, alcohol, cars and medical goods; that can not be allow to trade through general trade license; as these products need approval from higher authorities or clearances from UAE municipalities. However, those goods can be trade under a commercial trade license after going through the approval process.
Advantages of opening a general trading company in Dubai
Following are few good reasons that favor the opening a general trading company in Dubai. Now, there are quite a lot of advantages in doing any business in Dubai.
- There are about 30 free zones in Dubai. These free zones are place near seaports and offer tax free import as well as export in UAE. You can do import, manufacture, distribute (in local market) as well as re-export a variety of products in Dubai
- There are a very small number of products which are ban in Dubai. Apart from them, there is a big variety of products which are allow to be trade;
- As compare to the majority of other countries; there is no currency and foreign exchange limitation in Dubai.
- There is a huge number of overseas residents in Dubai. These expats wish using imported product of their native countries. This offers good opportunities for import of products from other countries
- Millions of tourists visit Dubai each year. A vital reason for arrival of great number of tourists is the fame of Dubai; as a set for accessibility of products from all around the world in reasonably priced
How to open a general trading company in Dubai
There is for sure about the reward and opportunities accessible in Dubai for trading companies. But like other type of businesses; there are a number of steps need to be taken for opening a general trading company in Dubai. Following are essential steps which must be taken for a flourishing completion of opening a general trading company in Dubai.
Make a business plan for opening a general trading company in Dubai
In a lot of these area which permit the opening a general trading company in Dubai; it is a compulsory thing to submit business plan so that to get the license. Your business plan should include the information about company structure, number of staff you need to start with; the type of products, info about the suppliers, the size of the office; investors and other linked factors. Submitting such business plan is part of application and it must be solid enough to qualify. But do not worry about it; as we will help you in making a solid business plan.
Choose appropriate jurisdiction:
The first step for opening a company is to select a proper area (free zone or main land); because it can be open in free trade zone as well as in main land. So before you apply for the license; you need to select a proper zone for it; which is suitable for your business.
If your company deals with import as well as re-export of goods; then Dubai free zone company formation is a good option for you. But if you want to use the market of Dubai for sale of different products; then Dubai main land is an ideal place for such company.
Find a sponsor for opening a general trading company in Dubai
If you wish to set up your trading company in Dubai main land; then you will need a local sponsor; which is the main requirement for setting up any type of company in Dubai mainland. These sponsors will hold a share of 51% in your company; while their fees will be according to the support they give.
Choose appropriate license
Now it is time to choose a license type. There are many type of license available to your business; nature of activity as well as type of product that you want to trade. Generally, general trading license permits you to trade numerous types of products.
On the other hand, there are some type of products which need extra approval; so if you want to trade such a product; then you need to get a specific type of trading license for such products. It is compulsory to pick the right type of license according to type of your business.
Approval from authorities
After finishing these initial tasks, you will be mandatory to submit appropriate documents in related authorities. You can open your trading company after approval from the relevant authorities. You will require services of an experienced as well as reliable consultancy firm to achieve all these tasks.