The UAE is consistently praised as being one of the lucrative markets for foreign investors and business owners. Namely, sectors such as trade logistics have shown growth above expectations. Rest assured that the plan to setup trading company in UAE will be your pathway to success!
If you would like to setup trading company in UAE, we have made life easy for you. Below is a step by step guide to get a general trading license in the UAE.
Steps to Starting a General trading company in the UAE are as follows:
Develop a business plan
A good business plan to setup trading company in UAE will consider all facets of your business such as proper market analysis, competitor analysis, a detailed portfolio of products and their positioning, the total number of employees that are present, requirements of the office space, the initial investments you will be making along with a cost analysis involving the entire financing and investors who will be involved. These factors thoroughly determine the inner workings of your business.
Choose the jurisdiction
Choose between the three different divisions of jurisdiction in the UAE such as Free Zone, Mainland, and Offshore. To setup trading company in UAE within these vast range of options can seem to be a rather overwhelming task as Dubai in itself has a total of 48 free zones to choose from. Free Zone companies have the added advantage of giving foreign investors or company owners 100% ownership of the organization without the need for a local sponsor. Mainland companies will require a local sponsor to hold 51% of total shares from the business while an offshore company is different in the aspect that it is setup in a country different from the location of the investor.
Find a Sponsor
To Setup Trading company in UAE if you wish to go ahead with mainland company formation, you need to find a sponsor for your business as it is absolutely mandatory to find a local sponsor in order to establish a company in the mainland. There are mainly two different types of ownership options : local sponsorship or corporate sponsorship which basically means that the local sponsorship will gain 51% ownership of your organization whereas the corporate sponsor will give you 100% ownership of through investors right protection act.
Legal Formalities
Licensure is a very crucial step to setup trading company in UAE and in fulfilling in making your business legal in the UAE, usually trading companies will absolutely require a general trading license which includes the business of products such as clothes, accessories, electronic appliances, pieces of furniture, below is a brief overview of the tasks that will allow you to receive a general trading license in UAE;
- Choose your Trade Name
- Choose your business activities
- Receive initial approval from DED
- Receive external approval if required
- Prepare a Memorandum of association that is signed by your partners
- Choose your office location and prepare a tenancy contract properly attested by Ejari.
- Submit the complete application to the Department of Economic Development (DED).
- Pay all the related fees.
Documents required for application of general trading license are as follows:
- Licensure application signed by legal representatives
- Memorandum of Association
- Attested company name approval from DED
- Passport and Visa copies of partners
All these documents to Setup business trading company in UAE will be allotted to an official who will check and verify so that they can add your trade name to their commercial registry. The DED will then take all documentation to the ministry of economy for approval thereafter, the ministry will notify you about the successful issuance.
The first step will be to derive an appropriate business plan to give a direction to your company, then you will be choosing the jurisdiction that is suitable to your vision, third you will be assigning a local sponsor for your company if your chosen jurisdiction is mainland, and finally the main focus will be assigned to getting all required legal approvals.
If you would like to setup trading company in UAE, contact our team of experts for a free consultation, At Biztrack Business Setup we have the expertise you require to establish your business vision into a vivid reality.
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