Dubai is becoming one of the most promising cities in the world for entrepreneurs. The commendable growth of the city and the immense opportunities, it is a dream hub for many. Dubai has been constantly moulding its avenues to welcome investors and entrepreneurs to start their business ventures in India. The amenities have been structured to go hand in hand with this initiative.
The trading business is a flourishing sector in Dubai. A trading company is a type of business that deals with exports and imports of products and services. There are two types of trading licenses: general and specific trading licenses.
The advantages of starting a trading business in Dubai:
- Starting a trading business in Dubai is a very fitting choice as the sector is booming and provides a sea of opportunities to consider. As the tourism industry is escalating, it can act as a catalyst for revenue growth for other businesses. The scope of expansion makes it a low-risk category of business.
- A trading endeavour is comparatively an easy business setup when compared to other forms of businesses in Dubai.
- Trading businesses in Dubai have a wide array of perks and benefits. The fees which have to be remitted to the government are comparatively less when it comes to trading business in Dubai. There is also complete capital and profit repatriation.
Steps/ How to Start a Trading Business in Dubai?
1. Develop a Business Plan
A business plan is basically a SWOT analysis. SWOT analysis is nothing but forecasting the possible strengths and weaknesses and the threats and opportunities of the business plan.
The entrepreneur should have a structured analysis of the business he is going to start. It will include understanding the products or services that are taken up for the business, the competition, market analysis, the number of employees that have to be hired, marketing strategies etc. Thorough knowledge of the business plan is an essential requirement before starting with it. Considering these factors can help you make the best decision.
2. Choosing the Jurisdiction
Once you have decided on the major factors concerning the business. The next step is to figure out where you want to set up your business. Dubai has been divided into three for doing the trading business; mainland, free zone and offshore. Starting a business in Dubai irrespective of the space you choose, Dubai has now come up with 100% foreign ownership. Choosing a free zone according to your business activity can help you be closer to the airports or ports. The mainland can provide much better visibility and a highlighted workspace. An offshore company is a legal entity that operates outside the location of its ultimate ownership. Free zones are comparatively cheaper to obtain a general trading license but the mainland can offer you better exposure and better connection with other sector businesses in Dubai.
3. Company name
There are strict naming conventions when it comes to naming your company. The name you choose should be unique and should not be something similar to the name already existing in the market. The names should also not be having any religious inclination or any offensive or blasphemous language. Do not use your own name or initials to name your company. There are provisions to check the availability of the name you choose before registering.
4. License Application
The next step is to apply for the license application for the trading license. The documents required to apply for the trading license are:
- Passport copies of all shareholders
- Passport size photographs of the applicant which comply with compliance requirements.
- Memorandum of Association and Articles of Association and LSA agreements.
- Trade name registration letter.
- Description of the intended business activities.
5. Visas
By applying for the trading license, you have to make a mandatory application for work visas for your employees and for yourself. The business owners should apply for their residency visas, employee visas and domestic staff visas. The maximum number of visas you could apply for will directly depend on the size of your company, your business activity and your personal earnings.
The visa application process will be over in compliance with these few steps:
- Application for entry permit
- Status Adjustment
- Medical and fitness test
- Emirate ID registration
- Visa Stamping
6. Bank Account
A corporate bank account is necessary to start a business in Dubai. There are various banks which you choose from. But the process can be quite complicated for foreign entrepreneurs. Understand each bank and its corporate services before choosing one. Business agents are prevalent in Dubai who can aid you in the process of setting up your corporate bank account. In order to open a corporate bank account, you will require:
- UAE business license
- Some banks demand shareholder residency visas to open a corporate bank account.
Conclusion
Starting a trading business in Dubai has its sole foundation on the amount of effort that is put into devising the structure and the amenities for the business plan. All of the rest of the elements have to be planned according to the amount you are planning to invest in the business. Having a good business agent can help in the smooth sailing of the entire process.
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