Dubai is known as the heart of United Arab Emirates. It is like a shining jewel to attract people from all over the world who want to do business. Dubai is a well developed city and is listed among the top cities because of its good spots, great buildings infrastructure, and a lot of business opportunities, making it easy to start companies. If you are looking at how to start a trading company in Dubai, you are on the right track.
This guide is going to be a roadmap to your success and help start your trading Business in Dubai. We will break down the steps to start your trading business, and also help you secure your trading license. Keep reading, and we will provide you with all the steps by which you can achieve your goals.
What is a Trading Company?
A trading company is like a middle man, helping to connect buyers and sellers from different countries. They assist you in import and export of wide range of goods like oil, grains, electronics, clothing, and many others. These companies didn’t manufacture products. They are just the bridge between suppliers and buyers.
Trading Company in Dubai
Dubai is a strategic location across the global trade hub, with world class infrastructure and business friendly environment. Dubai government supports international trading businesses and provides various resources too. Here are some points that make Dubai a prime location:
- Dubai is a prime location.
- Free zones with tax breaks.
- Business friendly regulations.
- Government support for trade makes it a global trading hub.
Cost of Trading Company License
Dubai business license cost is around AED 25,000 to AED 50,000. This will depend on a trading company size, type, jurisdiction, and nature of business. This cost is not fixed and it depends on few things:
- You need to include government fees for initial approval, trade name registration, and actual trading Business License costs. This cost is around AED 11,000 to AED 12,000.
- There might be fees for renting a building and hiring workers. If you are hiring from other countries, then you need to pay for work visas too.
- You can also get help from business consultant, this might help you save some money.
Cost Details:
|
Cost Category |
Estimated Cost (AED) | Estimated Cost (USD) |
|
Initial Approval |
120 |
$33 |
|
Trade Name Registration |
620 |
$170 |
|
Tasheel Preapproval |
350 |
$95 |
|
Tasheel MOA |
345 |
$94 |
|
Trade License Cost |
11,960 |
$3,250 |
|
Foreign Trade Fees (Optional) |
2,000 |
$545 |
|
Corporate PRO Services |
6,000 |
$1,636 |
|
Total |
21,395 |
$5,823 |
Note: Costs mentioned in the table might be changed in the future, and there is also a chance estimated cost is USD also changes by time to time according to currency exchange rate.
Steps to Start a Trading Company in Dubai
Dubai is a super cool and very successful trading city with a giant market place. If you want to start your trading company in Dubai, these steps will help you:
Figure Out What You’re Selling
First, you need to decide what you are going to trade. Before deciding, check trends to see what people looking for and what they need from other countries. Then decide a product you want to trade whether it is clothes, electronics, food items, or any other.
After selecting your product check if there are any extra permits required. For example, some food products require extra documentation.
Pick a Company Name
Now the second step is to select the name of your company, It is better to choose a name related to the products you want to trade. Make it sure that your company name is very catchy and that name is not taken by any other company in Dubai. To find out whether it is taken or not, the Department of Economic Development (DED) will help you.
Get Your License
Now time to get your License, it is like a permission slip to run your business. In this case you need to go to the Department of Economic Development. DED will provide you with a form to register and fill out. Then, after filling it out you just need to give them information about your trading products and pay a fee.
Make a Team
You need people to help you grow your business, like for boxes packing, deliveries and dealing with different customers. But if you are taking a start from a small level, then you can deal with everything by yourself. But in the case of hiring people from other countries you need to arrange work visas.
Open a Business Bank Account
Look for different banks in Dubai and choose one that you find right for your business. This is where you will keep all your money. This is a world of modern civilization, and everyone pays online nowadays. So having a Bank Account is most necessary for starting a trading company.
Conclusion
It is best to have a trading company in Dubai, because of its strategic location, world class infrastructure, and business friendly environment. This guide provides you with all the basic information from start to finish.
Use this guide as a springboard for your business. Now you know your starting point. It is time to start with careful planning. This depends on your strategies in selecting your products for trading. Best of luck from our side!
