Dubai is a global hub for commerce and trade, offering a thriving environment for entrepreneurs looking to start a business. Among the various business opportunities in the UAE, establishing a general trading company is one of the most lucrative options.
Whether you’re planning to import or export goods or engage in various trading activities, Dubai provides the infrastructure, strategic location, and business-friendly regulations to help you succeed. In this guide, we will walk you through what a general trading company is, the benefits of starting one in Dubai, and the steps required to establish your business.
What is a General Trading Company in the UAE?
A general trading company in the UAE is a business entity that specializes in buying and selling a variety of goods without being limited to one specific product category. This flexibility allows the company to engage in trading across multiple sectors, including electronics, clothing, foodstuffs, machinery, and more.
As a general trading business, you can also import and export goods, taking full advantage of Dubai’s position as a global trading hub.
What is a General Trade License in Dubai?
A General Trade License in Dubai is a specific type of business license issued by the Department of Economic Development (DED). It allows companies to trade a wide range of products without being restricted to a single sector.
This license covers activities like importing, exporting, and re-exporting various goods, and it permits businesses to operate in different commercial categories.
There are two key categories under the General Trade License in Dubai:
- Commercial Trading: This covers the buying and selling of goods in sectors such as electronics, fashion, automotive, and more.
- Wholesale Trading: This license type is suited for companies engaged in bulk trading of goods, often at a regional or international level.
The General Trade License in Dubai is ideal for businesses that aim to diversify their operations or deal with multiple product lines. It gives you the flexibility to expand and adapt your business offerings over time, making it an appealing option for entrepreneurs looking for long-term growth.
Types of Activities Covered by the General Trade License
A general trading license can include a wide variety of activities, such as:
- Import and export of electronics, machinery, and equipment.
- Trading of food and beverages.
- Dealing in clothing, textiles, and fashion accessories.
- Trading of furniture, building materials, and household items.
- Sale and distribution of cosmetics and personal care products.
- Wholesale of goods in multiple sectors.
Read more: How to get a trade license in Dubai?
Benefits of Starting a General Trading Company in Dubai
Starting a general trading company in Dubai comes with several advantages that can help you thrive in the global market. Here’s a breakdown of the main benefits:
- Growing market and low risk: Dubai’s stable economy and diverse consumer base offer a growing market with relatively low business risks.
- Strategic location: Positioned between Europe, Asia, and Africa, Dubai is an ideal location for companies looking to engage in international trade.
- Easy Licensing Policies: Setting up a business in Dubai is straightforward, thanks to streamlined processes and assistance from authorities like the DED.
- Tax benefits: Dubai offers a tax-free environment on corporate profits and personal income, making it attractive for businesses.
- 100% Ownership: Foreign investors can have complete ownership of their company, especially in Free Zones, allowing for full control over business operations.
How to Start a General Trading Company in Dubai (Steps)
Establishing a general trading company in Dubai requires you to follow a few specific steps to ensure compliance with local regulations. Below is a step-by-step guide on how to get started:
1. Choose a Trade Name for the Company
The first step is to choose an appropriate trade name for your company that reflects your business activities. Ensure that the name complies with DED’s naming conventions, avoiding any offensive terms or words related to religious and political institutions.
2. Plan Your Business Activities
Once you’ve chosen a name, you need to identify the specific trading activities your company will engage in. Be clear about the goods you plan to trade, whether it’s electronics, fashion, or other products. This clarity will help in the licensing process.
3. Apply for Initial Approval from the DED
After planning your activities, you need to apply for initial approval from the Department of Economic Development (DED). This approval indicates that the government has no objection to your business activities, allowing you to proceed with the setup process.
4. Get External Approvals if Required
In some cases, your business activities may require external approvals from government bodies or industry regulators. For example, trading food items may require permission from the Dubai Municipality. Make sure to check if your business needs any additional approvals.
5. Prepare a Memorandum of Association (MOA)
A Memorandum of Association (MOA) outlines the scope of your business, the rights and responsibilities of partners, and the company’s shareholding structure. This document must be prepared and signed by all partners involved in the business.
6. Choose a Business Location
You are required to have a physical office in Dubai to operate your business. Once you’ve chosen a location, make sure to register your tenancy contract through Ejari, Dubai’s tenancy contract attestation system.
7. Submit the Application to the Department of Economic Development (DED)
With all the necessary documents and approvals in place, submit your application to the DED for the issuance of your General Trade License. The DED will review your application and issue the license once everything is in order.
8. Pay the Fee for the Issuance of the License
Finally, pay the required fee to obtain your General Trade License. Once the payment is processed, you will receive your license and can officially start trading in Dubai.
How Much Does It Cost to Set Up a General Trading Company in Dubai?
The cost to establish a general trading company in Dubai can range from AED 15,000 to AED 50,000, depending on several factors, including the type of office space you choose, the number of business activities, and whether you are setting up in a Free Zone or Mainland Dubai.
Free Zones typically offer more streamlined processes and additional benefits like 100% foreign ownership, but they may come with higher costs. On the other hand, setting up on the mainland might offer access to the local market at a lower cost.
Start Your General Trading Business in Dubai with SolutionsFZCO!
At SolutionsFZCO, we specialize in helping entrepreneurs establish their general trading companies in Dubai. From choosing the right trade name to obtaining the necessary licenses and approvals, we guide you through every step of the process. Our expertise ensures that your business gets up and running smoothly, allowing you to focus on growing your company in Dubai’s thriving market.
Starting a general trading company in Dubai can open the doors to a world of opportunities, and with the right guidance, the process is simple and straightforward. Contact us at SolutionsFZCO to get started today!
Frequently Asked Questions
What is the cheapest general trading license in UAE?
The cheapest general trading license in the UAE is of the SPC Free Zone, with starting costs around AED 6,500, depending on the specific business requirements.
How much does an LLC cost in UAE?
Setting up a Limited Liability Company (LLC) in the UAE typically costs between AED 20,000 and AED 50,000, depending on the business activities, location, and office requirements.
Which trade license is best in UAE?
A commercial trade license is the most popular trade license in the UAE. It is the most common type of license that is offered to individuals and companies involved in selling and purchase of goods in UAE.
