Why Start a Trading Business in Dubai?
The beautiful trading avenue of Dubai in the Middle East of the world is full of opportunities for those individuals who are interested in starting a business. Dubai has very favourable characteristics of the business environment, safe well-developed infrastructure to enter the local, regional and global market. Here are some compelling reasons why starting a trading business in Dubai is a smart choice:
Advantages of Beginning a Trading Business in Dubai
- Strategic Location: Being located at the trading zone between Asia, Europe and Africa, Dubai gives access to a wider and biggest pool of customers in three continents.
- Robust Infrastructure: Another important factor for Dubai is that the country has first-rate logistics and transportation channels such as modes of port, airports, and roads for import and export systems.
- Global Business Hub: Dubai is a metropolis that embraces international business; his environment with global policies motivates international companies to develop newalliances, business relationship, and ideas to expand.
- Tax Advantages: Accounting to no Corporate or Personal Income Tax, Dubai has a competitive advantage as it does not charge taxes on corporate or personal income hence most businesses reap higher profits hence boost up their profits big time.
- Business-Friendly Policies: To address these issues the government of Dubai has set various reforms to improve business opportunities in entry processes, alleviate bureaucracy and ease the doing business environment.
Ultimate Checklist of Things to Do to Establish a Trading Company in Dubai
Step 1: Market Research and Identification of Your Specialty
See whether your products are in demand and with which your competitors already operate with, and identify your customer base.
Step 2: Selecting the Proper Form of Business Organisation for the Business.
Choose the right legal form for the trading business. It can be operating individually, in partnership, or establishing a company in a free zone or mainland.
Step 3: Business Registration to the Authorities in Dubai
Business formation and registration of trading business may be done with the Dubai government either through the DED or with a specific free zone depending on the choice of the business.
Step 4: Obtain the Necessary Licenses
Acquire the necessary licenses of the trading business. The licenses that are granted in Dubai are the general trading licenses, special trading licenses and free zone trading licenses.
Step 5: Open a Corporate Bank Account
Get a corporate bank account in Dubai for an easy financial transaction and proper handling of your business financial transactions.
Step 6: How to Prepare Your Office or Warehouse
Ensure that depending on your business needs you look for suitable office or warehouse space where you can run your trading business effectively.
The licenses available for trading in Dubai are as follows:
General Trading License
A general trading license permits companies to trade in a broad assortment of products in various industries.
Specific Trading License
This license is usually specific for particular products that the company trades or is specific for particular industry type.
Free Zone Trading License
A free zone trading license is issued to companies operating from a free zone, the benefits include; 100 percentage foreign ownership free from tax among others.
Expenses Incorporated During the Establishment of a Trading Business in Dubai
To start a trading business in Dubai various issues need to be taken into consideration, which are include license charges, office space, visa, and other overhead expenses. These costs should be factored into your business plan while going through the process of evolving one.
Legalities and lawful considerations
Import/Export Regulations
There is need to conform to the legal requirements on imports and exports, customs and any other documents that may be necessary in the movement of goods into and out of Dubai.
VAT and Tax Registration
Apply for Value Added Tax (VAT) and learn about Tax Laws and regulation set by the Federal Tax Authority in the United Arab Emirates.
Guidelines on Managing a Trading Business Firm in Dubai
Strengths: A definite business strategy and a clear market plan.
- The importance of suppliers and customers need to be strengthened.
- Looking at the numerous changing customer demands one has to ensure that he or she is up to date with market trends.
- Develop good stock control mechanisms in order to properly manage stock profiles.
- Marketing and Branding in order to popularize the brand in the market is an effective way for investment.
Afrikaner Common Problem and How to Solve Them
Some of the risks of doing a trading business in Dubai may include competition, overcrowding of the market, and a number of regulations. But with proper planning, market study, and integrated efforts, these drawbacks may be eliminated in order to remain in the business for a very long time.
Conclusion
Trade business in Dubai holds enormous opportunity for those who want to invest in such business due to the city’s strategic position, global and local infrastructure as well as the friendly business environment. If an individual follows the actions as highlighted in the guide, apply for the relevant license, and follow legal procedures, he or she will be in a position to trade in the UAE and particularly Dubai and avail a lot of opportunities for the business to grow and be very lucrative. read more articles…
