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Creating a Trading Company in Dubai

Creating a Trading Company in Dubai

Trading companies located in Dubai benefit from an advantageus geographical location and a tax free regime. The local UAE market is relatively small but investors have a very important advantage here: Dubai is an already established business and trading center, located close to other important markets. Product exports and re-exports are practiced by trading companies that are based here.

Investors in Dubai can choose from a variety of markets and products with good circulation both on the UAE market and on the neighboring ones. Popular choices include gas and oil products, pharmaceuticals, foodstuffs and others.

The Dubai legislation for foreign investments asks that foreign entrepreneurs are based in the special Free Zones, otherwise, the company may not be fully owned by the foreigners.

Business requirements in Dubai

There are more than twenty Free Zones in the Emirates. The business requirements can differ from one zone to the other as they usually target one area of investment, such as technological innovation. 

The Free Zone is governed and managed by that zone’s authority. One of our lawyers in Dubai can provide you with additional information about each of these special investment areas, the manner in which they operate and how they are supervised. 

Examples of Free Zones include the Dubai International Financial Centre (DIFC), the Dubai Airport Free Zone or the Dubai Media City

Dubai has no foreign exchange restrictions and one of its greatest advantages for investments is that it is a tax-free zone. Moreover, companies incorporated in the Free Zones benefit not only from various tax incentives but also from other facilities.

Company incorporation in Dubai

A foreign company incorporated in a Free Zone in Dubai will obtain a business license from the authority that operates that zone. Special business permits and licenses may also be necessary. 

The Dubai Department of Economic Development also issues business licenses. The commercial license is the one used for trading companies in Dubai. 

The business start-up costs in Dubai include those associated with obtaining the business license. The Emirates are an attractive investment environment because of their tax-free regime, however, investors need to have a business plan and prepare for opening a business here.

Legal aid can be necessary in some cases. Entrepreneurs who want to ask any questions concerning the business licenses and registration for a trading company can contact our law firm in Dubai