How to Start Trading Business in Dubai

How to start trading business in Dubai

Dubai is one of the preferred dream cities to live and do business with for most entrepreneurs worldwide. It is because of its extraordinary business infrastructure, strategic location, economic stability, well-versed rules & regulations, and ease of doing business.

With all these facilities, even new investors can start trading businesses in the UAE or internationally without hassle. Entrepreneurs can set up a company in Dubai with professional, commercial, and industrial activities. A trading business setup in Dubai is one of the potential types of business to start in Dubai and other UAE-free zones. Here we discuss how to start a trading business in Dubai or an import-export business in Dubai.

What is a trading or import-export business?

A trading company is a type of company that deals with various kinds of products to import-export around different countries and distribute to businesses, consumers, or governments. There are two types of trading licenses in the United Arab Emirates. These are given as:

General Trading License: Allows trading of all types of goods except oil and gas, cryptocurrency and precious metals, etc. which requires specific approval from UAE authorities with a license.

Specific Trading License: In the case of this trading license in UAE, you are allowed to trade specific types of items that come under the same business categories, like electronic items trading, cosmetics trading, garments trading, and many more.

Free Zone or Mainland: Where to Start the Import/Export Trading Business?

You can set up a trading company in the free zone or mainland areas. It depends on your business plan and target market. The free zone is the best option if you want to target international companies for import and export business. On the other hand, the mainland trading company will meet your requirements if you are focusing on trading in the local market. With a Mainland trading license, you can import-export all over the UAE and internationally.

How to Start Trading Business in Dubai

There are various types of trading businesses from them you can easily choose an appropriate activity. Some of them are given as:

  • Automobile Trading
  • Baby wear Trading
  • Beauty & Personal Care Equipment Trading
  • Computer Electric Accessories Trading
  • Construction Equipment & Machinery Trading
  • Dairy Products Trading
  • Food & Beverage Trading
  • Garments Accessories Trading
  • Gold Trading/Non-Manufactured Precious Metal Trading
  • Health Food Trading
  • Home Furniture Trading
  • Jewelry Trading
  • Mobile Phones Trading
  • Perfumes & Cosmetics Trading
  • Ready-made garments trading

Check here for all Dubai trading business activities approved by DED

Required Documents for Trade License Registration

  • Passport copy of all shareholders
  • Residence visa copy with entry stamp of shareholders if they have
  • NOC letter for shareholders if required
  • 3 proposed trade names for approval

Steps to Getting a Trading License in Dubai, UAE:

Free Zone Trading Business Startup
  • To check the proposed company name availability
  • Virtual office service agreement or Office space if required
  • Need to submit required documents and license fee to relevant free zone authority in UAE
  • A trading license will be issued from the Free Zone authority
Mainland Trading Company Registration
  • Trade name reservation and approval from the Department of Economic Development
  • Find a local sponsor
  • Court notarization & need to take other external approvals if required as per proposed activity
  • Need tenancy contract/Ejari of rented office space
  • Submit all required documents & License fees to DED (Department of Economic Development)
  • Then DED will issue the trading license

Benefits of Starting a Trading Business in Dubai:

There are various benefits of trading company formation in Dubai. Some of them are given as:

  • Easy to start trading business in UAE
  • Affordable company formation costs
  • Can start anywhere, either in the mainland or in free zones
  • Get multiple visa facility
  • Can sponsor dependents’ residence visas also
  • Allowed multiple shareholders to start this business
  • Can trade locally as well as internationally
  • Low barriers to the area of business

And many more. With the pandemic spreading worldwide, businesses have been severely affected. Eventually, people gave up on the brick-and-mortar business and started their business online. One such prominent type of business that most people turned to was dropshipping.

What is a Dropshipping Business?

Dropshipping is a business model where the vendors will accept orders via social media or online stores. One of the best things about dropshipping is that as the owner you don’t need to carry any inventory. Therefore, you don’t have to worry about shopping for the product.

Starting a dropshipping business is extremely convenient because it requires very little staffing, inventory cost, or even storage cost. Owing to all these benefits, entrepreneurs across the world are switching to dropshipping, especially the ones in Dubai.

How to Start a Dropshipping Business in Dubai?

Starting your own dropshipping business in Dubai can be extremely convenient. You however need professionals like Business Link UAE who can provide you with the right consultation for setting up your dropshipping business in Dubai.

Here are the necessary steps for starting your dropshipping business in Dubai:

  • Choose your Niche

Niche or target audience is extremely crucial when you’re starting a business. When you want to start a business online, you need to know what to sell. You need to reach out to the audience to whom you want to sell your products. It is crucial to know the Dubai market so that you can make a choice.

  • Apply for a Business License in Dubai

Setting up a dropshipping business in Dubai can be complicated if you don’t know how to proceed. You need to be familiar with the business process across UAE to make a choice. Business Link UAE can assist you in the process of applying for a business license.

  • Mention the Business Activities

The key way to get your business license is to define what business activities you will be conducting. There are thousands of business activities you can choose from. Therefore, you can choose one activity that suits you the most.

  • Describe Your Setup Type

When you are setting up a business in Dubai, you need to choose from mainland and Free zone setup. However, each of them has its benefits and limitations. As a result, you can weigh your options and make a choice accordingly.

  • Apply for Visa

Applying for a visa doesn’t usually take more than a week. Once you get the visa, you will be good to go with your dropshipping business in the UAE.

How Can Business Link Experts Assist You?

Dropshipping business is a legal business in the UAE. However, if you’re starting one, you need to comply with the legal regulations. Therefore, if you are new and do not know what it means, we at Business Link UAE will help you.  Having more than 15 years of experience in Company Registration Dubai and all related PRO services, we are one of the well-known legal consultancies in Dubai. At Business Link UAE, our teams of experts will assist you with the legal procedures for getting the trading license in Dubai as well as other UAE UAE-free zones. We are experts in getting special approval from relevant authorities and closely work with all UAE local government departments. For any clarification, you can give us a call at +971 50 205 2735or email at