5 Steps To Trading

Trading Company Dubai | A 5 Step Guide To Start UAE Trade

Trading company Dubai: Business plan, registration agent, activity and jurisdiction, sponsor, and costs

Trading Company Dubai: Dubai has traditionally been a trading port. So establishing a trading business in the United Arab Emirates [UAE] is a relatively safe investment for foreign investors.

Please invest 2 minutes of your time to watch the video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

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Trading in medical supplies, foodstuffs, and oil and gas products are the most common.

Dubai, a tax-free zone, is accessible to 2 billion people within 6 hours. This strategic location encourages traders from neighboring countries to establish banking and business outposts in Dubai.

Dubai is also helped by the fact that the countries within this served market have currency and foreign exchange restrictions. While Dubai has none.

The local UAE market is small. But the re-export of goods is big business. Both through efficient seaports and well-connected airports.

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5 Steps to Start a Trading Company in Dubai

 1. Plan your business

You can start your company in one of the 25+ free zones. Or as a Local company in any of the 7 Emirates [Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Umm Al Quwain, or Ras Al Khaimah] of the UAE.

Some jurisdictions will ask you for your business plan. The plan must have information on your

  • Markets
  • Products
  • Number of Employees
  • Office space required
  • The investment you wish to make
  • Marketing efforts
  • Investors, financing
  • Critical Success Factors for your business
  • Suppliers
  • Competitors

You may decide to start with wholesaling activities with an outlet in the wholesale market. Or tie-up with larger foreign manufacturers to sell their products in this region. Or maybe have a branded shop in one of the many shopping centers!

Whichever you decide to go, the business plan is a good start.

Trading Company Dubai | A 5 Step Guide To UAE Trade

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2. Consult with a company registration agent

Available are 2,000+ activity licenses and 28+ jurisdictions to choose from. So decision making is rightly complex.

All jurisdictions don’t offer all activities. And each specializes in some way or the other.

How do you decide which one is for you? Which one meets your objectives? Which combination will be optimum for you? Now and into the future?

A company registration agent who is willing to help you will provide a clear path through these options and hold your hand till you are satisfied.

They will also help you until your company is registered.

To start a trading company on your own might be difficult due to the various rules and requirements necessary in opening up a business in the Emirate.

3. Select the activity and the jurisdiction

A Specific Trading license will allow you to trade in the specific products. A General Trading license, which is more expensive will allow you to trade in many products.

Your company license could be from a Free Zone company, where you can own 100% of the company or a local company where you will need a ‘sponsor’ who will own 51% of your company on paper.

Some businesses require Local licenses. E.g. wholesale market outlets, shops, or businesses selling to government entities.

4. Find a Sponsor if you are registering locally

There are 3 types of Sponsors

  1. Those who will sign your documents and expect you to take care of your problems. Some of them will do the sponsorship through professional companies. This type shall charge the lowest fees.
  2. The 2nd type is middle-level government functionaries with connections who will help you when you are stuck. Their fees will be higher, but they may come with you if you need help.
  3. These sponsors are high-level name brands that are connected at senior levels. Their fees will be high. Your hope would be that their name is sufficient to get your work done.

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5. Get itemized costs for your company setup

Company registration firms will give you itemized costs for your company incorporation and be licensing. Visas cost extra.

The typical time taken for a company to be registered is 45 to 60 business days. Much of this time is spent in getting the correct Know Your Client [KYC] documents from you and getting you to come to the jurisdiction for signatures.

If you are easily available, then the process speeds up.

Registration agents will also help you to open bank accounts.

Trading Company Dubai | A 5 Step Guide To UAE Trade

Varal Team Members


Wish to sort documents in one place by getting an updated checklist for essential documents along with getting reminders for upcoming expiring services & notifications for important events? Download HABOT and enjoy all these benefits with just a single app. Sign up now!

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