Before the current business and tourism boom, Dubai in the past was commonly known as a trading place for merchants due to its strategic location. Now, Dubai has changed a lot with the introduction of several new businesses. It is by favoring all types of businesses through various incentives and world class facilities.
But the government of Dubai is certainly aware about the fact that their main strength is their location that provides natural harbor for trade between different parts of world. Following are few important reasons that favor the establishment of trading company in Dubai. Now, there are several advantages in doing any business in Dubai.
- There are around 30 free zones in Dubai. These free zones are located near seaports and provide tax free opportunities for import/export businesses. You can easily import, manufacture, distribute (in local market) and re-export various products in Dubai
- There are very few types of products that are prohibited in Dubai. Apart from them, there is large variety of products that are allowed for all types of business activities in the emirate
- As compared to most of other neighboring countries, there is no currency and foreign exchange restriction in Dubai
- There is large presence of foreign residents in Dubai. These expats prefer using imported goods of their native countries. This provides good opportunities for import of products from other countries
- Millions of tourists visit Dubai every year. An important reason for arrival of large number of tourists is the popularity of Dubai as a place for availability of products from all around the globe in affordable prices
How to setup trading company in Dubai:
There is no doubt about the advantages and opportunities available in Dubai for trading companies. But like all other types of businesses, there is a complete procedure along with rules and regulations for establishing trading company here. Following are important steps that should be taken for successful completion of trading company formation in Dubai.
Choose appropriate jurisdiction:
The first step of this process is to choose appropriate jurisdiction according to requirement of your business. Opportunities for establishing such company is available in Dubai mainland as well as in several free zones present in Dubai.
If your company deals with import and re-export of products, then establishing it in one of several free zones is a better option for you. But if you want to use the market of Dubai and UAE for sale of different products, then Dubai mainland is a better place for such company.
Make business plan:
In many of these jurisdictions that allow the formation of trading company, it is mandatory to submit business plan to qualify. This plan must include information regarding company structure, number of employees, related products, office space, suppliers, investors and other related factors.
Submitting this business plan is part of application and it should be solid enough to qualify. A business consultancy firm can assist you in establishing a comprehensive business plan.
Choose appropriate license:
There are different types of licenses available according to your business jurisdiction, type of activity and type of product/s you are willing to deal. Usually, general trading license allows you to trade several types of products.
On the other hand, there are special types of products and trading companies want to deal in such products need specific type of trading license for such products. It is necessary to choose the right type of license according to type of your business.
Find a sponsor:
If you want to register your trading company in Dubai mainland, then you will require a local sponsor which is a pre-condition for formation of any type of company in Dubai mainland. These sponsors will have 51% shares of your business while their fees will be according to the assistance they provide.
Approval from authorities:
After completing these initial tasks, you will be required to submit relevant documents in related authorities. You can start your trading company after approval from these authorities. You will need services of an experienced and reliable consultancy firm to accomplish all these tasks.
We at Riz & Mona Consultancy provide best solution for all these problems. We will assist you in getting approval of all documents, finding appropriate sponsors and creating business plan and others in both Dubai mainland and different free zones. You can contact us via WhatsApp # 971-56-9971225 or email address [email protected]