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Dubai is one of the primary business locations for all foreign traders and startup entrepreneurs from different parts of the world, not only Dubai but all over the UAE. Over the past few years, there has been massive growth and development in the business and financial sector in UAE. Along with these sectors, there has been enduring development in several other industries such as trade and logistics, cafeteria and restaurant and many more.
The city in UAE is considered to be one of the most prestigious trading ports across the world. Starting a general trading business in Dubai is going to be beneficial for traders. A general trading license permits the business owner to trade in most household gods around the UAE market except Cryptocurrency trading, oil & gas. To set up the general trading business in Dubai, the individual has to follow the proper procedure step by step that incorporates all the laws which require to be abided in order to set up a legal company in the area. If you are wondering how to start a general trading company in Dubai, then here we mention the complete procedure to set up a general trading company.
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Procedure To Start General Trading Company:
1. Business Plan
In order to set up a general trading business in Dubai, you need to prepare a business plan. It is required to decide the type of business and business activities you want to set up. The proper business plan has to be done after a comprehensive market examines. A business plan is compulsory for the progress of the business. The business plan should consist of thorough research considering these things:
- Products and Activities
- nitial Investment
- Office Space
- Total number of employees
- SWOT analysis
2. Obtain A License
If a company want to import, export or trade products, you can apply for a general trade license. Getting a general trade license is expensive, but it has its own benefits and perks. The method of getting a trading license is easy. General trade license is issued by the Department of Economic Development (DED).
3. Choose The Jurisdiction
Dubai market is categorized into three jurisdictions named as mainland, free zones and offshores. So choose the jurisdiction as per the requirements of your company. It is finest to set up the company in Dubai mainland because there is more subjection to the clients, you can trade with other companies in Dubai, there is no restriction on open multiple branches and issuance of work visas.
4. Search A Sponsor
If you want to set up a general trade company in Dubai, then you require a sponsor for your business. You cannot set up a company in the mainland without obtaining your business sponsored by UAE national. The sponsor will influence 51% of shares in your company. There are two kind of sponsorship-corporate sponsorship and local sponsorship. A corporate sponsor will offer you 100% ownership through investors right protection contract, and a local sponsor will hold 51 % shares in your business.
Steps To Get a General Trading License In Dubai:
- Choose the trade name for the company
- Plan all business activities
- File the necessary applications
- Opt the business location
- Submit the application to the Department of Economic Development (DED)
- Pay the required fees
- License application signed by the legal representative or managers
- Memorandum of Association (MOA)
- Attested company name and approval letter from the Department of Economic Development (DED)
- Passport copy of the managers
For the motive of starting a general trading business in Dubai, one requires to follows these steps for ensuring that the business has been implemented and planned in a perfect and legal manner. You first need to derive a business plan. When you have a business plan, opt for the jurisdiction of your company. After then find a sponsor for your company, and the last step is to complete the legal formalities and submit required documents.