HOW TO SET UP & REGISTER A TRADING COMPANY IN THE UAE?
Published on June 6th, 2022.
The UAE offers unique opportunities for all forms of entities – from start-ups and SMEs to large multinationals. The UAE has established itself as a global hub for entrepreneurs, business owners, and traders.
Among the list of benefits to set up a company in Dubai and the UAE is the option to engage in local and international trade. This is made possible through the country’s various jurisdictions. A wide range of prospects are available to foreign investors in Dubai and the UAE, especially in the commercial trading business. More than 2,000 licensed economic activities are available in all seven emirates, governed by relevant departments of economic development, municipalities, and free zones.
Corporates and individuals from all over the world can have complete ownership of companies in the UAE. This was made possible after the ratification of the Commercial Companies Law in 2020, which allows foreigners to establish companies with 100 percent full ownership.
In a report released by Dubai’s Department of Economy and Tourism (DET) regarding Dubai’s economic outlook during the first quarter of 2022, stated a total of 24,662 new business licenses were issued in quarter one. It also reflects that 43% of the newly issued business licenses during the said quarter were from the trading industry.
WHICH LOCATION IS SUITABLE TO START YOUR DUBAI / UAE TRADING COMPANY?
MAINLAND OR ONSHORE TRADING COMPANY
Your UAE trading company can benefit from setting up operations in the mainland by having access to the local market, free zones, and an international audience. Mainland companies are excellent options for retail, wholesale, and distribution businesses in the wider UAE market. Further, such companies are permitted to bid and secure local UAE government contracts. To register as a mainland company, a license from the Department of Economic Development (DED) is mandatory. Listed below are the appropriate DED authorities for the respective emirates.
Dubai – Department of Economy and Tourism (DET)
Abu Dhabi – Abu Dhabi Department of Economic Development (ADDED)
Sharjah – Sharjah Economic development department (SEDD)
Ajman – Ajman Department of Economic Development (DED)
Ras Al Khaimah – Department of Economic Development (RAK – DED)
Umm Al Quwain – Department of Economic Development (DED)
STEPS TO BEGIN / REGISTER A TRADING BUSINESS IN UAE MAINLAND
Only consult with a registered Corporate Service Provider to provide accurate and up-to-date details.
Work with a consultant to choose your business activity, company, and shareholding structure.
Select a preferred company name and secure the initial or preliminary approval.
Secure any third-party government approval, if applicable to the selected business activity.
Complete the company’s Memorandums and Articles of Association.
Finalize the company’s registered address – a physical office, retail shop, or warehouse.
License and registration to be completed with the relevant Department of Economic Development.
Register the company with the Immigration Department to secure an Establishment Card.
Register the company with the Ministry of Human Resources and Emiratization (MOHRE).
Apply for the investor, employee, and dependents visas, etc.
Complete all post-license processes such as Ultimate Beneficial Ownership registration.
Open a corporate bank account.
FREE ZONE TRADING COMPANY
Free zones are economic areas in which goods and services can be traded with favorable tax and customs rates. Free zones usually offer plug-and-play options where investors can enjoy benefits such as 100 percent foreign ownership, 100 percent corporate tax exemption, 100 percent repatriation of capital funds, and a virtual office.
Free zone companies are not permitted to conduct commercial activities outside the free zone’s limits (in the wider UAE or Mainland); however, the license holder is permitted to operate outside of the UAE free zone (internationally). Local selling in mainland UAE is only possible through a distributor or an agent.
Free zones are an ideal solution for investors who are seeking opportunities in the import, export, and international trading business.
Below we have listed the main free zones within the UAE that may be suitable for your trading company.
STEPS TO START / REGISTER A TRADING BUSINESS IN A UAE FREE ZONE
Only consult with a registered Corporate Service Provider to provide accurate, up-to-date details.
Work with a consultant to choose your business activity, company, and shareholding structure.
Select a preferred company name and receive the preliminary approval.
Finalize the company’s registered address – a physical or virtual office.
License and registration formalities to be completed with the relevant Free Zone authority.
Register the company with the Immigration Department to secure an Establishment Card.
Apply for the investor, employee, and dependents visas.
Complete all post-license processes such as Ultimate Beneficial Ownership registration.
Open a corporate bank account.
TAKEAWAY
There are many business setup options available in the UAE. Yet, it is important to seek the correct advice from a registered corporate service provider. Creation Business Consultants will guide you toward the appropriate license options, and recommend the correct jurisdiction that is appropriate for your UAE trading company for the present and the future of the company’s needs.
Our team of experts will liaise you with the proper authorities while simultaneously providing all the needed details to successfully set up your trading company in the UAE. Contact a member of our team to learn more, email us on info@creationbc.com or call UAE +971 4 878 6240 Saudi Arabia +966 54 995 2676.
