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How to Start General Trading Company in Dubai?

By Ananya - 01 Apr 2022 Last Updated: 01 Apr 2022
How to Start General Trading Company in Dubai?

 Dubai has emerged as a key commercial destination for all foreign investors and start-up entrepreneurs from around the world. Over the last two decades, there has been tremendous progress and expansion in the commercial and financial sectors in Dubai, as the government of Dubai has made a number of actions to promote the country's economic growth and development.

As the UAE government attempts to diversify its economy, there has been continued growth in numerous other industries such as tourism, trade and logistics, restaurant and cafeterias, and other such management consultancies.

General Trading Business in Dubai

Dubai is one of the world's most prominent trading ports, making it one of the greatest areas to establish a General Trading Business in Dubai. With numerous advantages, Dubai is a very appealing place for businesses and investors from all over the world. To start a general trading firm in Dubai, several procedures must be taken to ensure that the operation is properly designed and implemented legally, as Dubai's laws are extremely stringent.

The steps to set up a General Trading Business in Dubai are mentioned below:

Type of Business

The first step in beginning a business is to create a comprehensive business plan for the future. This includes the present business activity you will be carrying out. This will aid in understanding the demands of the firm and where management should concentrate its efforts the most. The Dubai jurisdictions necessitate a carefully devised plan of action to support management in carrying on the operation.

The following information should be included in the plan

The following parameters must be researched and incorporated into the company plan. This will aid in determining the markets to be targeted, the business activities to be concentrated on, and the investments that will be necessary. It will also aid in the expansion of the business, whether in terms of product lines or into new markets.

Planning the Activities

A trading business in which the business owner wants to concentrate on a single activity will necessitate the acquisition of a trade license specialized to that activity. If the business owners intend to engage in a variety of business activities, the company must be classified as a general trading company. This means that the company will need a general trading license. A broad trade license is normally more expensive because it allows for the trading of multiple products.

Thus, the activities carried out by a business are regarded as a vital aspect in the overall setup and operation of the business.

Fix a Jurisdiction as per Requirement

To choose a jurisdiction from which to conduct business, managers should be familiar with all of the jurisdictions that can be accessible. After receiving this information, management must priorities these jurisdictions based on the needs of the firm. In Dubai, the jurisdictions are divided into three groups.

They are as follows:

  • Freezone
  • Mainland
  • Offshore

In Dubai, there are currently 48 Free Zones that businesses can utilize. Such free zones are incorporated within a distinct jurisdiction and are administered by the authorities in charge of those jurisdictions. Foreign investors and businesspeople benefit greatly from free zones since they provide specific advantages, such as a firm founded in a free zone in Dubai being fully tax-free. The business investor will then have 100 percent ownership of the company. These advantages can be extremely beneficial to a company's growth and development.

In the case of the Mainland, the business investor would need to obtain a sponsor in order to establish a firm in Dubai Mainland. A local sponsor will be awarded 51% of the company's stock in exchange for the required monthly remuneration. According to the most recent revisions, certain activities, including as trading, manufacturing, contracting, and packaging, are eligible for 100 % ownership if certain conditions are met.

When it comes to offshore company formation, an offshore company is one that is often established in one jurisdiction but has its parent organization in another. In such a jurisdiction, there is no actual office. As a result, they are no longer physically present in the country. This might be a terrific alternative for entrepreneurs from all over the world who want to start a business in the UAE. Offshore corporations also serve as investment vehicles.

Find Sponsor

As previously stated, if the business owner chooses to establish a corporation on the mainland, some standards must be met. Finding a sponsor that can assist you in the setup is one of the most significant needs. The above mentioned sponsor will receive a 51 % stake in the company. With the most recent revisions in UAE law, an entrepreneur can have 100% ownership, eliminating the need for a local sponsor. This will apply to industries like trading, manufacturing, contracting, and packaging. A local sponsor will be required for the remaining business activities.

Legal formalities

Obtaining a license for your business is critical since it legalizes your operation. The type of license required by the firm will be determined by the type of business activity undertaken. For example, a general trading license will be necessary for a general trading company where many activities and items are exchanged, imported, and exported. This type of license covers everything, including all accessories, clothing, furniture and fixtures, pieces of equipment, and other electrical products.

The following are the processes to get a general trading license for the company:

  • Choosing a suitable trade name for the company
  • Making a plan for all of the company's activities
  • Completely filling out the application and submitting it for approval
  • Obtaining external approvals as needed
  • Putting together the necessary legal paperwork, such as the memorandum of association and any government-approved documents
  • Choosing a business site and receiving a fully documented tenancy contract from Ejari.
  • Application submission to the Department of Economic Development (DED)
  • Paying the required fee for the license's issuing

When applying for a free zone or offshore establishment license, the corporation must send the original paperwork to the Commercial Registry's trade license and commercial registration department. The DED will issue the Trading license after the process is completed.


To establish a general trading company in Dubai, business owners and entrepreneurs must go through a lengthy process that includes correct documents and legal requirements. Such legal procedures should be carried out by a Business setup professional.

Dhanguard offers professional assistance in establishing a business in Dubai. We handle every formality and fact of your business, ensuring that all of your needs are met. Please contact us. We will be delighted to assist you.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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