The United Arab Emirates is a popular destination for international and domestic trade. Dubai and Abu Dhabi are offering numerous opportunities to foreign entrepreneurs and investors in wholesaling and retailing. You can begin a wholesale trading business in Dubai to make the most of the booming UAE market.
Dubai’s prime location in the Middle East provides a major shipping hub for the global trading sectors. Its competitive economy offers easy business registration for expatriate investors and corporate leaders. Generous government incentives for the local commerce and industry are driving the industry.
Numerous markets are available to the international investors in the UAE. For example, technology, foods, vehicle and electronics parts, household materials, building supplies, machinery, equipment, etc. The business ecosystem of Dubai entitles foreigners to zero corporate and personal income taxes, 100% ownership, and other financial incentives.
Dubai provides easy access to the top-level airports and sea ports to the manufacturing and distribution companies. Accordingly, it allows a wholesale trading business in Dubai to deliver goods to reach every corner of the UAE. As the world has become a global village, these wholesalers can ship the products internationally.
Process to register a wholesale trading business in Dubai
This is the step-by-step procedure to launch a wholesaling company in Dubai, UAE.
- Pick business activity
- Select company and trade name
- Decide corporate location
- Acquire initial approval
- Rent/lease the office
- Submit application with documents
- Get trading license
- Register business bank account
Now, we briefly look upon the steps you have to follow for registering license for a wholesaling company in Dubai.
Pick business activity
Determine from the appropriate business activities that your wholesale trading business in Dubai will run.
Select company and trade name
Come up with a concise and non-offensive trading name that does not include acronyms. Your trade name must align with your brand and the corporate naming guidelines in the UAE. Include three preferable trade names in your reservation application, to save yourself from delay due to rejection.
Decide corporate location
Dubai mainland is the best option if you want to deliver wholesale goods within the UAE. However, some free zones enable whole-sellers to operate inside the mainland with special permission to run product delivery operations. Wholesalers can base themselves in Meydan Free Zone, as local retail businesses can easily procure inventory from them.
Acquire initial approval
Take a no objection certificate (NOC) from the Department of Economic Development (DED). In case, you opt to establish a wholesaling setup in a free zone. Then, you can seek preliminary approval from the regulatory authority of the chosen free zone.
Rent/lease the office
Secure an appropriate workspace for your wholesale business in Dubai. You may require to lease a warehouse space as well. Make sure both are spacious to facilitate your daily wholesaling operations across the UAE.
Submit application with documents
Complete your application form and provide the necessary legal paperwork. Paying the due fee is essential for the success of your trading license application. Submit this compulsory set of legal documentation to the DED or the free zone authority.
- Copy of the passport
- Photocopy of the visa
- Copy of the Emirates ID
- NOC from the DED or FZ authority
- MOA detailing the legal structure
- Ejari/rent certificate of the premises
Get trading license
Obtain your business license after the regulatory approval once all of the due payments are successful.
Register business bank account
Open a corporate banking account to perform financial transactions once you start wholesaling business operations.
Conclusion
The wholesale and retail trade contributes to over 25% of the GDP of the UAE. It was forecast to reach its highest revenue of USD 55 billion in 2024. Incorporating a wholesale trading business in Dubai requires applying for a trade license.
Efficiently go through the procedure as easy as 1-2-3 with the help of KWS Middle East right now.
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FAQs about wholesale trading sector in Dubai
These are the answers to the common questions about the wholesale trading industry in Dubai.
What is the wholesale trade?
The wholesale trade is the process of buying products from the manufacturers and sell them in bulk to the retailers. Wholesale traders greatly reduce the time to the market of the goods. By taking care of the major supply chain phase, wholesalers help retailers in timely fulfillment of the customer demands.
Who is the issuing authority of trade license in Dubai?
The Department of Economic Development (DED) issues the trade license in Dubai. Also known as the business license, it is necessary to run wholesaling business in Dubai. Consequently, it enables a company to conduct specific business activities for trading within the UAE.
Which is the cheapest general trade license in the UAE?
Sharjah media city (Shams) and Sharjah publishing city (SPC) are among the cheapest free zones with AED 6000 license cost. Ras Al Khaimah Economic Zone (RAKEZ) has the same general trade license cost of AED 6000. Meydan Free Zone and International Free Zone Authority (IFZA) have a business license fee of AED 12,000 to AED 13,000.
How long is a wholesale trade license valid in Dubai?
Dubai Economy provides instant general trading license for investors looking to start a wholesale and retail business in mainland Dubai. The validity of this trade license for wholesaling businesses in Dubai is 1 year. Furthermore, they can renew the license on annually after the expiry.
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