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Advantages of Setting Up a General Trading Business in Dubai

By Sakshi Srivastava - 11 Apr 2022 Last Updated: 12 Apr 2022
Advantages of Setting Up a General Trading Business in Dubai

The Middle East offers a highly competitive and nurturing business environment to all companies that enter the region. Different characteristics such as cutting-edge business infrastructure, a healthy economy, and an understanding government, as well as low or no taxes, are some of the reasons why entrepreneurs and business people from all over the world are drawn here.

Most investors prefer to put their money into establishing a trading company in the UAE because it was historically regarded as a trading port. In the current scenario, Dubai has been a center for supplying logistics services. The strategic location of Dubai allows for the rapid transfer of goods and raw materials from one location to another. There are so many other reasons for setting up a General Trading business in Dubai. In this blog, we’re going to discuss the advantages of setting up a General Trading Business in Dubai.

Types of Trading Companies

Trading business is one that deals with various goods from around the world, as well as their imports and exports. These goods are then distributed to various firms, individuals, or countries, depending on the situation.

There are primarily two types of trading firms in the Dubai  and they are as follows:

General Trading Company

A general trading company is required to have a general trading license and can trade goods other than precious metals, cryptocurrency, and various hydrocarbons. These previously mentioned goods necessitate special approvals from the relevant authority.

Specified Trading Company

The government allows the exchange of certain electronic items, cosmetics, clothing, and other items. To purchase these items, you must first obtain a special trading license.

The Advantages of Having a Trading Company in Dubai

Creating a trading company has several advantages that any company that joins this company will benefit from. Among these advantages are:

Establishment of a Low-Cost Business

Company formation is a relatively simple and inexpensive process. Some business owners must send a business plan, as well as the necessary documentation and sales projections.

Multiple Visa Services

People wishing to establish a business in Dubai can take advantage of a facility that allows them to obtain a variety of visas. Obtaining multiple  will allow the trading company to keep a physical presence in Dubai and hire more employees.

Sponsorship of Dependent Visas

Once a person has obtained a visa, they can sponsor a ticket for any of their family members or relatives. There is a simple procedure to follow in order for the sponsored person to obtain a visa.

Capability to Trade both Locally and Internationally

A trading company can sell or distribute imported or exported goods in both local and international markets. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or more expensive domestically.

Reduced Trade Barriers

Prices are significantly lower at the start of the company, and the time required is much shorter. Entrepreneurs with a mainland trading license are exempt from any annual paid-up share capital requirements or audits. It significantly improves the company's profitability and affordability.

Executing E-Trading

The Dubai Economic Department's Market Regulation and Licensing Sector recognised the need for E-trading regulations and introduced an e-trader license. This license will allow UAE and GCC nationals to conduct business on various social media platforms.

Zero-Tax Payment

The Dubai government has implemented policies that allow freezone companies to pay no taxes. This move will attract entrepreneurs and businesspeople from all over the world. The processing fees are the only costs that must be paid during registration.

Read more: Benefits of Trading Account in Dubai

How to Begin a Trading Company in Dubai?

Starting a general trading company in Dubai is a simple five-step process:

Business Activities

The first step in obtaining your general trading license is to decide on your business activities. Every item you want to trade must be specified. There are thousands of possible options, so you're bound to find one or more that work for your company.

Company Name

The next step is to come up with a company name. Keep in mind that you must follow a strict set of naming conventions. Any offensive or scandalous language should be avoided. If you are naming your company after yourself, avoid names of well-known organizations and abbreviations.

Application for a License

You can now apply for a mainland general Trade license. If you work with a company formation service such as Dhanguard. We can create and manage the application to ensure a quick and easy incorporation.


In addition to applying for your license, you can also apply for any necessary Visas. This includes your residency visa, company employee visas, and visas for domestic workers such as housekeepers or drivers.

The maximum number of visas you can apply for is determined by the size of your company, the setup you choose, and, in the case of totally dependent visas, your personal earnings.

Bank Account

The final step in launching your general trading company in the UAE is to open a corporate Bank Account. There are numerous local and international banks to choose from, but opening an account can be a difficult process for international entrepreneurs.

Dhanguard will help you set-up a general trading company in Dubai with 100% bank account opening guarantee.


Dubai is the world's leading business development location, and every aspiring entrepreneur dreams of relocating to the Middle East to conduct business. Setting up a general trading business will bring you a lot of profit. Furthermore, the Dubai government is extremely supportive and collaborative, making the business setup process relatively simple and straightforward.

If you have a business plan in the UAE or are looking for services to help your business grow, Dhanguard can assist you in every manner.

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 faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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