Retail and wholesale businesses are the most successful company types in Dubai. Wholesale trading companies are exciting in the United Arab Emirates: there are endless opportunities available for foreign entrepreneurs and investors. Starting as wholesale traders in Dubai begins with applying for your wholesale and retail trade license.
In this article, we’ll cover how to get your wholesale license in Dubai:
- What is a wholesale business?
- Advantages of starting a wholesale business in Dubai
- Steps to start a wholesale business in Dubai
- Cost of starting a wholesale business in Dubai
- Why work with Trade License Zone?
What is a wholesale business?
You can think of a wholesale trader as a company that usually buys products from manufacturers and sells them in bulk to various outlets and retailers. Dealing in wholesale trading means wholesalers can sell in bulk for a lower price while reducing retailers’ handling time and costs. Wholesale traders usually concentrate on one type of product or industry, but not always.
Advantages of starting a wholesale business in Dubai
Dubai is home to the most competitive economy in the UAE: regulations make the ease of doing business streamlined and straightforward. The positive aspects of business in the UAE include easy business registration for foreign investors, government incentives for local business and commerce, and its Middle East location is perfect for an East-meets-West major shipping hub for global markets.
Your business entity in Dubai also entitles you to zero corporate and personal income taxes, 100% ownership, and other finance benefits for foreign investors and entrepreneurs.There are many markets to choose from, such as foods, technology, vehicle and electronics parts, household materials, building supplies, machinery and equipment, and more. Easy access to international ports and airports means your goods can reach every corner of the United Arab Emirates and the rest of the world in no time.
Steps to start a wholesale business in Dubai
All companies trading in the UAE must adhere to specific regulations for business setup, license, company naming, business activities, and more. This section will give you the steps to get a wholesale license in Dubai.
Step 1: Partner with Trade License Zone
The first step in starting a wholesale trading business in Dubai is to partner with Trade License Zone. Our professional team will manage all aspects of your company registration, retail and wholesale trade license application, and setup process to guide you on all the documentation required for the various government authorities’ processes and obtain external approvals on your behalf.
Step 2: Select your business activity and services
Outlining your company’s business activity and services is essential for your wholesale business license in the UAE. Your business license enables you to carry out several activities. You can select the appropriate business activities you wish to pursue from an extensive list of more than 2,000 on Dubai’s Department of Economic Development’s website. Failure to list all your business activities on your wholesale business license application may result in penalties. That’s why it is best to partner with a company formation expert such as Trade License Zone to ensure that your wholesale license application and business activities are aligned.
Step 3: Choose a trading name
Trade License Zone will help you choose and register your wholesale trading business name with the UAE’s Registry Office. You can use your name in the company’s trade name, but you must use it in full instead of just your surname or initials. The business name must adhere to the UAE’s naming policies, including that a business name cannot include offensive or profane language or references to Allah or Islam.
Step 4: Choose a business location
Choosing the right location for your wholesale trading business is essential. Naturally, you’ll want a business located in close proximity to a transport hub, such as an airport, seaport, or road infrastructure centre. Warehouse facilities and distribution centres are located across the region, making it easy to find the perfect location for your wholesale business.There are over 40 free zones to choose from in Dubai. Selecting one of these is also the most popular type of wholesale trade company setup, and each free zone offers specific business support for industries. As we have already mentioned, a free zone company means you’ll hold 100% ownership of your business and be entitled to a zero tax rate for personal and corporate income.
Step 5: Submit your wholesale license application and documents
Setting up a wholesale business in Dubai isn’t too complicated – that is, if you know what you’re doing. The following are the documents required to get a wholesale license in the UAE:
- A completed wholesale trading license application form
- Copies of passports of all partners and shareholders
- Colour photos of all partners and shareholders
- Copies of all partners’ and shareholders’ residence visas (if applicable)
- Copies of all partners and shareholders’ Emirates ID (if applicable)
- Company name approval from the UAE’s Registry Office
- Memorandum of Association (MOA) completed by all partners and shareholders
Step 6: Open a corporate bank account and apply for a visa
After applying for your wholesale business license in Dubai, you can apply for your visa and open your corporate bank account. Your visa may enable you to sponsor the visas of family and staff, depending on your license’s conditions. Contact Trade License Zone’s expert team to help you with this critical step.
Cost of starting a wholesale business in Dubai
The cost of starting a wholesale trading business in Dubai is AED 12,500 with a free zone license. Calculating the exact cost of starting a wholesale company in Dubai is complicated. There are many factors to consider, such as visa costs, warehouse and office space rental, stock, inventory, and more. Additional permits may be required depending on the location and visa applications.If you’d like an accurate quote, contact Trade License Zone’s dedicated team.
Why work with Trade License Zone?
Business setup in Dubai is straightforward when you partner with a team of experts such as Trade License Zone. Starting a business in Dubai, such as a wholesale trading business, can be tricky regarding applying for a trade license, company structure, and visa regulations.
When you partner with Trade License Zone, we will save you from unnecessary delays or rejections and streamline the entire process.The specialists at Trade License Zone can get started once you provide us with some basic documentation and a little information about the nature of your company and business activities. Then, please sit back and let our team take care of the rest.
We’ll manage your wholesale trading business license and visa applications, communicate with all relevant local departments and authorities and report when you’re ready to trade. It really is that simple.