Reports showcase that trading business in Dubai existed over 4000 years ago, asserting to have trade links with Egypt and Indian subcontinent. Dubai has become a center of trade in the region after the extensive vision of non-oil progressions.
Dubai is a member of the World Trade Organisation and offers trading businesses in Dubai a well-structured business enterprise. Trading businesses in Dubai have a safe market space. This enables steady trade relationships, open trade opportunities, global trade relations and more.
So is it expensive to start a trading company in Dubai? What are the various costs of setting up a trading business in Dubai? And are there any annual fees involved in setting up a business?
Before answering and analysing the cost, let’s understand why Dubai? What makes Dubai the best place to start a trading business and related type of businesses.
Below listed are some of the factors that make Dubai perfect for trading business:
Dubai is an epicentre for trading in the world that connects Asia, Africa and several parts of Europe. The region is a hotspot for import and export businesses. Being an import and export or trading company, accessibility and distribution is the key. To trade across the world, Dubai’s centralised location and connectivity contributes effectively. Connectivity and location serve as a grounding factor for setting up a trading business in Dubai. The strategic location of the city supports as an interface for major connecting hubs.
Trading serves Dubai’s Ecosystem and creates economical upsurge in various other Emirates. Company formation for Trading in Dubai is guided by the department of economic development in Dubai. The methodology of company formation is determined through supportive measure taken by the judicial procedures. Government realises that trade businesses in Dubai are crucial to uplift the economic. Trading diversifies commercial growth. Hence, the government has created easy company formation procedures for such businesses.
Eleven percent of growth is estimated every year according to the records submitted by the Dubai’s department of economic development. The major reason for this growth is the appealing trade policies. From tax advantages, least duty on imports and exports, no exchange control and limited trade barrier – what more could a trader ask for! In Dubai, companies have the access and liberty to develop open trade relations and free trade policies.
Open Trade Relations
Open trade relations inspire trading companies from around the world to get a trade license in the UAE and setup a business in Dubai. Traders in the region are eligible to create an open trade relation, that does not discriminate between the imports and exports of a foreign jurisdiction. Trades can voluntarily buy or sell from separate economies and no governmental quotas, charges or subsides are applied.
Dubai tax advantages and perks include international trading partners and double taxation avoidance agreements that limit imports and exports tax liabilities. The government has always encouraged trading in Dubai and worked towards creating tax beneficial scheme for the trader. With an aim to initiate opportunities there are several agreements with International trading partners to prevent ‘double taxation’.
How to start your own trading company in Dubai?
There is a list of procedures that you would have to follow to start your own trading company in Dubai. This also depends on which part of Dubai you would like to trade and what sort of commodity are you planning to trade.
If you plan to setup an LLC company in Dubai or trade under a commercial license you will have to initiate the process with the department of economic development, or a business setup service provider can do it all for you!
Here are the steps you need follow –
- Decide on what are you going to trade.
- Decide for a name for your company and get the company name approved.
- Partner with a reliable UAE local through a corporate sponsorship agreement and get the power of attorney to have complete control over the business.
- Acquire initial approval or preapproval from the department of economic development.
- Draft the Memorandum of Association with the shareholders of the company.
- Rent a warehouse, commercial space or an office within one of the luxurious business centres in Dubai.
- Get the tenancy contract attested with your Ejari and other required documents as requested by the department of economic development and the Dubai Municipality.
- Submit the acquired documents to the DED and the respective governmental authorities.
- Collect your business trade license and start your own trading company in Dubai.
What is the cost of starting up a trading business in Dubai?
The cost of setting up a trading business in Dubai Mainland involves the Department of Economic Development (DED), that derives the costs as per the formalities involved.
Setting up a trading business in Dubai is a step-by-step procedure that needs to be completed within a time frame to avoid penalties. Under such environment, it is advisable to go for business setup packages offered by Shuraa Business Setup.
Shuraa’s business startup packages for trading businesses provide exceptional value for money with combined functionality and updated procedures at a cheaper price.
Cost of Trading Company Setup under Shuraa Startup Packages
Dubai LLC Company License & Setup for AED 29,999* (First Year)
- Dedicate Business Setup Consultant
- Free Company Formation Consultation
- License Fees
- Registration Fees
- Flexi Desk – Office Space
- Immigration Card
- UAE Local Partner
- Visa Cost for Owner / Partner
- Stamp of The Company
- Owner / Partner Medical and Emirates ID
- One Free session on VAT consultation
What are the annual costs of having a trading company in Dubai?
There are only four annual costs that you will have to pay every year. Those are corporate sponsorship fees as contracted by your local sponsor; the license renewal fees is to be paid to the DED. The immigration card fees needs to be paid annually to the Immigration Department.
You will need to pay the rent each year as well. Based on your rent or lease agreement you will pay the rent for your office, warehouse or commercial space annually.
The investor visas also require renewals However, investor visas are valid for a span three year.
So, if you would like to make an investment in the trading sector or want to establish a trading company in Dubai, talk to Shuraa’ s business setup consultant. Book a free consultation today!
Shuraa Business Setup is leading business setup service providers in Dubai and has assisted several businessmen and SMEs start trading companies in Dubai and across UAE.
Speak to our business setup consultancy to know about this most fruitful market.