It is a perfect time to start a trading company by obtaining a trading license in UAE. The trade and commerce sector in the region is showing positive growth. The growth is driven by a series of government-led initiatives to boost the economy of the UAE.

Getting a Trading License in UAE helps the investors to conduct specialized trade in the local and international markets. The foreign investor can start operating a trading company in the UAE mainland or Free Zones in the Country.

There is a huge growth opportunity for specialized trading in UAE. There is a steady demand for trading in building materials, engineering equipment, etc., due to the construction boom in the region.

Additionally, a specialized Trading License in UAE helps investors to conduct business in sectors such as garments, foodstuff, electronics, chemical trading, and more. Investors require a General Trading License in UAE to trade multiple items under a single license.

Trading License in UAE is the most in-demand business license category among investors. There is enormous business opportunities available in the Middle East and international markets.

Steps in Getting a Trading License in UAE

Investors must follow certain steps for getting a trading license in UAE. The steps have to be followed the right way to get the Trading License at the earliest. Entrepreneurs can seek the assistance of experienced Business Consultants such as AURION.

• Select the company name – shortlist three company names and get the name approval
• Choose the business jurisdiction – Free Zone or Mainland depending on the scope of the business, office space requirements, office rent, visa quota, etc.
• Choose the right business activity for the company from the list of business activities available
• Prepare the application form and submit the list of documents as specified by the business jurisdiction.
• Get special approvals if necessary. There will be special approvals for selected business activities such as Food-Stuff Trading, Gold & Precious Metal Trading, Chemical Trading, etc.
• Choose the office space depending on the business requirement and prepare the tenancy contract
• Make the required Fee Payment and submit all the supporting documents such as Investor photograph, Passport Copy, Special Approvals (if any), tenancy contract, etc., for review
• The specific business jurisdiction in UAE will issue the Trading License to the entrepreneurs for a specific period. The trade license is subject to renewal yearly and also available multi-year trading licenses in UAE.

Above are the general steps involved in getting a Trading License in UAE. There are two major business jurisdictions in UAE, i.e., Mainland and Free Zone. The general process of obtaining a Trading License is almost similar across business jurisdictions with few differences.  

Taking the assistance of Business Consultants will help to avoid any errors while applying as well as proceed the right way while choosing the business activity, business jurisdiction, office space, and more.

The Business Consultants will be aware of the regulations and specific requirements in each business jurisdiction. Also, they guide investors accordingly to speed up the process of obtaining the Trading License in UAE.

How to form a Trading Company in UAE?

A Trading Company in UAE can be formed in any of the two business jurisdictions – The Mainland and Free Zones. The process of setting up a Trading Company is similar, however, there are certain specific steps to be followed by an entrepreneur when applying for a Trading License in UAE.

Forming a Trading Company in UAE is becoming easier as the business jurisdictions are processing the requests at a faster pace. Also, the steps in the formation of a Trading Company in UAE are much simplified with minimal documentation to speed up the process.

1. Forming a UAE Mainland Trading Company

In the case of forming a UAE Mainland Trading Company, the Department of Economic Development of the respective Emirate issues the Trading License. The entrepreneur can form a Limited Liability Company with 2 or more shareholders and start operating their company without any hassle.

As per the latest Commercial Companies Law, there is no requirement for having a UAE National Sponsor for opening a Mainland Trading Company. The foreign investor can obtain the Trading License from DED for their selected business activity, and start running the business in no time.

2. Forming a UAE Free Zone Trading Company

Similarly, in the case of forming a Free Zone Trading Company in UAE, the respective Free Zone is the governing and licensing authority. Entrepreneurs can choose from a wide range of company packages, business activities, and more.

Depending on the specific trading activity, the global investor can choose a company package with ample visa quotas for hiring staff, a well-equipped office, and other facilities. The Free Zones in UAE offer various business activities for trading companies to conduct business.

Expert Business Consultants will guide investors through the right company package after precisely studying the business requirements. There are multiple advantages for investors in forming a Free Zone Trading Company.

Advantages of Forming a Free Zone Trading Company

• 100 % foreign ownership and full profit transfer to home country
• Favorable Tax incentives and exemptions
• No Import Duty for goods imported to the Free Zone
• Easy Access to Seaports and Airports in UAE
• In-house Customs Clearance in designated Free Zones
• Strategic Location that connects easily with international markets – Air, Sea, Land
• Easy Company Setup with minimal documentation
• Access to World-Class Facilities – Warehouses, Office Space, and other Infrastructure

Thus, forming a Trading Company in any UAE Free Zones is highly beneficial for global investors. There is great flexibility in business operations – Customs Clearance, Free Zone approvals, logistics support, etc., while conducting business from a Free Zone jurisdiction.

Cost of a Trading Company in UAE

The Cost of a Trading Company in the UAE varies depending on the business jurisdiction. In the mainland of UAE, the cost of a Trading Company License is about AED 25,000 inclusive of the license fee, virtual office fee, initial approvals, etc.

The Trading License fee in UAE will vary depending on the office space location, rent, and visa processing for employees. In the UAE mainland, the trading company cost can be kept low by taking office space in a cheaper location.

Similarly, the cost of a Trading Company in the UAE Free Zone is dependent on the location, visa quota, office facility, etc. The Trading Company License in UAE costs ranges from AED 11,500 for a 1 visa quota to AED 24,000 for a 3 visa quota.

Hence, multiple factors contribute to the cost of a Trading Company in UAE, i.e., the number of visas required, office space requirement, visa cost for employees/investors, and more.

Aurion Business Consultants will guide global investors by advising them on the right company package for their business. The choice between the Mainland and Free Zone depends on various factors. For certain business activities being in the UAE mainland is more feasible.

For businesses that are more actively involved in the local UAE Market than international trading, being in the UAE mainland is more efficient for their daily business operation.  

Similarly, for a business that requires constant international logistics, a Free Zone with easy access to Airports and Seaports is the ideal choice. Business Consultants such as AURION will be in a better position to guide entrepreneurs to the right business jurisdiction based on their experience.

To know more about the steps in getting a Trading License in UAE, connect with our expert team right away!

Contact Us: Aurion Business Consultants

The post How to Get a Trading License in UAE? appeared first on AURION.

UAE is home to numerous Free Trade Zones that support the growth of trade and the economy of the region. There are various business activities available in the Free Zones for doing business. In UAE there are more than 45 Free Zones delivering various company packages for investors.

Foreign investors choose to establish their business in the Free Zones due to various reasons such as:

• The ease of setting up an office,
• Registering the company easily,
• Avail of the numerous business benefits offered by the Free Zones.

Free Zone in UAE

Free Zone in UAE is an area demarcated within the country. It is a designated area where investors can legally trade and avail various incentives for their business. Furthermore, for a Free Zone Company in UAE there are a host of benefits such as:

• Provision of Complete Ownership of the Company
• Trusted Governance
• Absence of taxation,
• Plug and Play Office Spaces
• Easy Company Registration and more

Also, there are designated Free Zones in UAE that are VAT Exempted under certain circumstances. The VAT is levied depending on the place of supply of the services and goods by the Free Zone company.

Free Zone – Available Privileges for the Investors

The jurisdiction of a particular Freezone is limited to the area where it is established. A company registered in a Freezone is essentially an onshore resident company. So, it can avail all privileges of an onshore company such as:

1. It is eligible for Office premises in Freezone
2. It can have a Visa quota
3. It can trade or do business within the UAE and outside
4. It can be registered with the Chamber of Commerce
5. It can obtain import-export code
6. Tax Residency Certificate can be obtained so that investors get the benefit of DTAA ( Double Taxation Avoidance Agreement)
7. Certificate of Origin can be obtained for manufacturing companies
8. 100% Expatriate Ownership and 100% repatriation of profits

The Free Zones in Dubai will be pricier when considering the total cost of setting up a business in UAE. It is dependent on various factors such as the location, office rent, other infrastructure facilities, and more.

Top Free Zones in Dubai

The Free Zones in Dubai offer various company formation packages for the investors. Depending on the specific business requirement, the Free Zones have custom-made business solutions.

There are popular Free Trade Zones in Dubai that offer variety of company packages. Few of them are:

• Dubai Airport Free Zone
• Dubai Multi-Commodities Center
• Dubai CommerCity
• Dubai Silicon Oasis – IFZA

Also, the investor can choose from a wide range of business activities for setting up their company. The Free Zones of Dubai has many advantages due to the strategic location and improved infrastructure facilities to support business growth.

Free Zones in Abu Dhabi

There are Free Zones in Abu Dhabi that offer various specialized license packages and business activities to the entrepreneurs. For example, the Masdar City Free Zone offers special licenses for startups in the field of renewable energy, energy management, environment management, etc.

Similarly, the Khalifa Free Trade Zone (KIZAD) offers logistics, shipping, packaging, and commercial trading license at budget friendly rates for the investors.

Additionally, for airlines chartering, flight maintenance, and aircraft management companies, the Abu Dhabi Airport Free Zone is an ideal choice. It offers various cost-effective business license packages for the entrepreneurs.

Top Free Zones in the Northern Emirates of UAE

The Northern Emirates especially Sharjah has few cost-effective alternatives for companies to set up at a much affordable rate in the UAE.

Let’s look at the various options available in the Northern Emirates for company setup and successfully set up your dream business venture in UAE most comfortably and cost-effectively.

1. Sharjah Airport International Free Zone (SAIF Zone)

Sharjah Airport International Free Zone is one of the most dynamic Free Trade Zone driving a variety of trade and business activities in the UAE. Hence, it is one of the busiest trading and manufacturing hubs of UAE.

With an in-house Customs Clearance, proximity to the Sharjah International Airport and the Khalid Port, SAIF Zone facilitates global trade with more than 100 countries.

The custom warehouse and light manufacturing units allow entrepreneurs to easily scale up their business operations and profitably run the operations. SAIF Zone offers customized office spaces starting from 9 Sq.m cubicle to fully furnished executive offices.

Also, the company formation process, state-of-the-art infrastructure, staff accommodation, etc., are best in class making the Free Zone a favorable option to consider for setting up a business establishment in the UAE.

2. Hamriyah Free Zone

Similar to Sharjah Airport International Free Zone, the Hamriyah Free Zone is another popular Free Zone for commercial and manufacturing licenses mainly. It hosts some of the top manufacturers of the world.

Hamriyah Free Zone offers warehouses with office space requirements with up to 50 employee visa quotas for large manufacturing setup.

There are top-class warehousing and storage facilities in Hamriyah exclusively for food manufacturers, healthcare providers, etc.

The proximity to one of the busiest ports in the UAE makes it a trader’s hub. There are daily import-export transactions from Hamriyah Port to numerous countries around the world with the majority share to Asia and then Africa and Europe.

3. Sharjah Media City

Sharjah Media City is one of the most competitive Free Zone gaining a strong presence as the popular Free Zones for profitable business investment in the UAE.

SHAMS offers a wide range of business activities at a low-cost business setup package starting from as low as AED 8,050 for a Zero visa quota company setup.

The Free Zone offers investors a multitude of company formation options and a wide list of business activities to choose from.
As the name goes, SHAMS just does not only offer Media related Business License but several business licenses and activity categories ranging from general trading, services, eCommerce, and more.
To know more about Company Formation in Sharjah Media City, talk to our expert Business Consultants, connect with us here!

4. SPC Free Zone

The Sharjah Publishing City Free Zone is a competitive Free Zone in the emirate of Sharjah. It has various company packages that suit the investor business requirements. SPC Free Zone is a popular choice among the freelancers and startup companies.
The Free Zone offers cost-effective company packages that will enable investors to easily start there business venture and scale up. SPC offers flexi-desk spaces and Co-working spaces for startups and freelancers to work.
SPC offers the investors more than 1000+ business activities across services and commercial business categories. The proximity to Sharjah International Airport makes it an ideal location for business travelers to easily visit the office premises for project discussions and meetings.

5. Ajman Free Zone

For entrepreneurs looking at further low-cost options, there is Ajman Free zone that offers attractive business setup packages across various business license categories and trade activities.
Choosing a Free Zone with the only objective of a low-cost business license will have implications in the future during office space expansion, warehouse space addition, bank account opening, address and reputation, and more.
Hence, entrepreneurs must look at a holistic approach while choosing the right Free Zone for their business establishment and not just a low-cost option.

6. Ajman Media City

Ajman Media City Free Zone is another low-cost option for investors who are looking at an entry point to the UAE business landscape.
The Ajman Media City offers a Freelance Permit for media enthusiasts, Photographers, graphic designers, web-developers, etc., to enter the entrepreneur world seamlessly.

Also, Ajman Media City offers a host of other business license packages at competitive packages for investors to choose from for their business setup in UAE.

7. Ras Al Khaimah Economic Zone (RAKEZ)

The RAKEZ is a Special Economic Zone in the Emirates of Ras Al Khaimah offering attractive company setup options for global investors.

The Free Zone consists of dedicated business parks, manufacturing units, warehousing, and logistics complexes to cater to a wide business requirement of entrepreneurs.

Also, to promote the academic and education-related business establishments, RAKEZ has a specialized Academic Zone that houses all the companies that offer services and products in the education sector such as training, Ed-Tech startups, tutoring, etc.

In a nutshell, UAE Free Zones offers global investors all that they require to set up their business seamlessly and easily scale up to achieve business sustainability.

Seasoned Business Setup Consultants like Aurion will assist in the end to end Business Setup Processes, Visa Processing, Bank Account Opening Assistance, and beyond making the journey of Company Formation in UAE hassle-free for the investors.

Read more about Business Setup in Fujairah and Business Setup in Ras Al Khaimah (RAK).

The post What is a Free Zone? appeared first on AURION.

Why is the UAE the Right Choice for Setting Up a Logistics Company?

The strategic location of UAE coupled with Government support and initiatives towards promoting trade locally and internationally has transformed the region into a trade hub of the world.

UAE is an international transit hub and an intermediary stop point for international trade across the world. It has a robust logistics support system, warehouse facilities, a dedicated zone for handling large cargos, and many more.

How to Start a Logistics Company in UAE?

UAE is home to a bunch of international trading companies as well as numerous local entrepreneurs in the field of Logistics and trade operations. As a new business venture in the trade and logistics segment, the company must be bringing in innovation or an advanced business model to strive through the intense competition in the segment.

However, despite the competition, there is a vast opportunity in the field of logistics and distribution. Often large companies in the logistics segment only work with higher quantity and premium service fee, low cost providers might lack in customer service and technology-driven strategic implementations.

Entrepreneurs with a fair knowledge of the UAE market segment and customer preference will succeed in launching their business venture easily in UAE

Ideal Free Zones for opening a Logistics Company in UAE

Each Free Zone in UAE has distinct benefits and based on investor requirements the right Free Zone Business Setup Package is to be chosen. Aurion will assist you in picking the right choice for your business by assessing your precise business requirements.

Note: The list of Free Zones included below is not an exhaustive list, there are more than 45 Free Zones in UAE and most of the Free Zones offer business License for the activities under the Logistics sector.

The below list of Free Zones is curated based on the business benefits for the investors of a logistics company by setting up their business in the below Free Zones.

1. Dubai Airport Free Zone

Dubai Airport Free Zone is the world’s top Free Zone offering attractive company formation packages to the global investors. Dubai Airport Free Zone is the ideal choice for setting up a logistics company due to the enormous business benefits offered by the Free Zone.

Dubai Airport Free Zone – Key Highlights

The proximity to one of the world’s busiest airport makes it easy for trading and logistics companies to handle the Air Cargo Shipments at reduced transportation cost and handling fees.

The Free Zone offers custom-build warehousing facilities and light manufacturing & assembling units starting from 350Sq.m onwards with an office space and 30 employee visas.

The 0% import duty on all imports to Free Zone, Zero Taxation policies, and 100% foreign ownership are the highlights for foreign companies considering this Free Zone as the final choice.

Also, the easy company setup, UAE residence visa processing, bank account opening, and the prestigious Dubai Address is the additional benefits for the entrepreneurs.

2. Sharjah Airport International Free Zone

The Sharjah Airport International Free Zone is a reputed Free Zone in the emirates of Sharjah. The proximity to the Sharjah International Airport and the Khalid Sea Port makes this Free Zone the right Launchpad for logistics and trading companies aiming at local, GCC, and International Markets.

The company formation in SAIF Zone is relatively easy with minimum paperwork. The Free Zone also offers custom-build warehouses, land of warehouse/manufacturing units, as well as customized office spaces.

To know more about the warehouse specifications in the Sharjah Airport Free Zone, enquire with our experts!

3. Dubai South Free Zone

Dubai South Free Zone is the fastest growing Free Trade Zone and a preferred logistics hub in Dubai.

Dubai South specifically caters to logistics and trading companies by offering state of the art warehouses of customizable sizes to suit a wide range of requirements from the entrepreneurs.

With easy access to the Jebel Ali Port through a special logistics corridor and the Al Maktoum International Airport (DWC), the Free Zone is transforming the logistics and distribution network in UAE.

How to Setup a Logistics Company in Dubai South?

The Dubai South Free Zone offers numerous business setup packages for investors by following simple steps. Taking the assistance of expert Business Consultants will make the company registration process hassle-free.

Steps in Setting Up a Logistics Company in Dubai South Free Zone

• Prepare the application form for the initial approval
• Choose the right trade name and get the approval
• Choose the right business setup package (License type, office space, office type) – Aurion will assist you here in choosing the right company setup package)
• Prepare the documentation (shareholder resolution, passport copy, business plan) and submit the relevant documents for the company registration
• Pay the required fee and obtain the business license post-approval of the documents
• Also, obtain the company documents such as the incorporation certificate, special approvals (if any)
• Proceed to apply the UAE Residence Visa and Bank Account opening

So, in a nutshell, UAE is the perfect location for establishing a logistics company and easily scale up by tapping into the growing business opportunities in the region.

Here are few more choices of Free Zones for Setting up a Logistics Company in UAE, watch the full video!

There are numerous small and big trading companies and a growing consumer base in UAE. Logistics and distribution companies are the means to connect these suppliers/manufacturers with the end-consumer.

Those companies that provide exceptional service will get positive customer feedback and will be able to scale up easily with a growing number of order fulfilments.

To know more about Starting a Logistics Company in UAE, talk to our Expert Team right away!

Read more about “Tips for Setting up a Trading, Logistics, or Supply Chain Company in Dubai” and Import export licenses in UAE.

The post How to open a Logistics Company in UAE? appeared first on AURION.

The SAIF Zone is a designated zone (VAT Free Zone) and has an in-house customs checkpoint for easy clearance of shipments. The proximity to Sharjah airport makes it a preferred choice for trading and import-export companies.

The Free Zone is the perfect choice for a wide range of companies such as air freight forwarding companies, international distribution companies, and trading firms to easily transport goods to global markets.

Why Choose SAIF Zone for Setting up a Trading Company?

The SAIF Zone has a well-established infrastructure offering a wide range of facilities starting from shared office space to large manufacturing units. It caters to a large business community with varying business requirements.

It is also close to the busy seaport, the Khalid Port, and two other deepwater ports the Khorfakkan Port and Hamriyah Port, facilitating faster and more streamlined import-export operations.

SAIF Zone offers investors a host of business benefits along the lines of operational efficiency, lowering costs, and expansion to international markets. The company setup process in the Free Zone is easy and hassle-free.

The Free Zone offers a cost-effective Trade License package, office space, and warehouse facilities to the investors. It is a perfect choice for setting up an import-export company in the UAE.

How Do the Import Export Companies Operate in a Free Trade Zone based in UAE?

For starting an Import Export Company anywhere in the world and successfully operating it to achieve business growth, it is a pre-requisite to know more about the Import, export tax, customs duty, and other taxation norms of the area where the business is operating.

In UAE, there are two major business jurisdictions for company formation – The Mainland and the Free Zone. They have distinct characteristics and business benefits. For Trading Companies especially to facilitate import, export, and trading in international markets, the Free Zones are the right choice.

There is Zero Customs duty on imports to the Free Zone, as well as most of the Free Zones have a customs checkpoint and are in proximity to the busiest Airports and seaports of UAE.

Also, the Free Zones in UAE have good connectivity by roads to major business centers and consumer markets across the UAE and Oman.

Hence, with the well-established logistics, storage facilities, and transportation network, the Free Zones are ideal destinations for an international trading company to easily facilitate faster trade operations.

What are the benefits of Starting an Import – Export Company in a Designated Free Zone?

A designated Zone as specified in the UAE Cabinet decision is a VAT Free Zone. For VAT, the designated Free Zones are considered to be out of the purview of VAT.

The Designated Free Trade Zones in UAE is where the VAT is charged at ‘Zero Percent’ or there is no VAT payment required for companies trading in the Designated Free Zone. There are few conditions to be met for classifying the transaction as VAT free.

For an Import-Export Company being in a designated Zone has many advantages. The absence of import-export duty, VAT exemptions, in-house customs clearance, etc., will help them to attain long-term profitability.

Designated Zone’s movements of Goods for VAT treatment:

The import export operations through Designated Free Zone has many advantages such as VAT Exemptions, Import Duty Exemptions, in-house Customs Clearance, etc. The following table highlights the movement of Goods and related VAT applicability on the transfer of goods to and from the Free Zone.

Required Documents for Free Zone Importing and Exporting Goods

To initiate the import and export of goods there are various documents required for the smooth transfer. The movement of Goods to and from the Free Trade Zones are regulated by the respective Free Zone’s Customs Department.

There are several ways the Goods can be transferred to and from the Free Zones in UAE. Following are the most common ways of goods transfer to and from the Free Trade Zones in UAE. There are few documents required by the authorities depending on the mode of goods transfer.

1. Importing Goods to Free Zone from Foreign Country/Outside UAE:

• Bill of Lading/Custom Bill (Air Way Bill or Bill from Terminal of Arrival)
• Suppliers Invoice
• Packing Lists/Delivery Note
• Bill of Entry (Free Zone Customs Form) to be filled upon entering of goods

2. Importing Goods to Free Zone from Mainland:

• Suppliers Invoice
• Packing Lists/Delivery Note
• Bill of Entry (Free Zone Customs Form) to be filled upon entering of goods

3. Exporting Goods to Foreign Country/Outside the UAE from Free Zone:

• Bill of Entry
• Suppliers Invoice
• Invoice to Customer
• Packing Lists//Delivery Note
• Bill of Exit (Free Zone Customs Form) to be filled upon exiting of goods

4. Exporting Goods to Mainland from Free Zone:

• Bill of Entry
• Suppliers Invoice
• Invoice to Customer
• Packing Lists//Delivery Note
• Bill of Exit (Free Zone Customs Form) to be filled upon exiting of goods

Note:

• In exporting goods to Mainland distributor is not required or Mandatory, that depends on the agreement between the Supplier and Customer.
• 5% duty is imposed on goods imported from abroad excluding goods in transit to GCC countries. However, the duty varies on some goods according to the tariff.
• Goods originating from GCC countries are treated as UAE local goods, provided that 40% of the raw materials used for manufacturing such goods is originated in the GCC

Import Operations through Sharjah Port – Things to know

The Sharjah Port handles huge volume of trade in UAE. It is one of the busiest Ports in the UAE. The companies operating in the Free Zones of UAE can opt for shipping their goods or importing goods to UAE via the Sharjah Port.

Hence, If the Import Operations is through Sharjah Port, then the documents will be as follows:

• Delivery Note
• Packing Lists
• Original Invoice from Supplier
• Attested Certificate of Origin
• Bill of Lading
• Receipt of Custom Duties/settled payment
• Inspection Report from Sharjah Port
• Bill of Entry/Import Declaration

If the above documents are not completed, then the amount of AED 1000 to be deposited and can only be refunded after completion of the required documents.

Export Operation through Sharjah Port

Below are the documents required for conducting Export Operations through Sharjah Port:

• Original Invoice
• Bill of Exit/Export Declaration

To know more about Designated Free Zone for VAT or Starting a Trading Company in the UAE Free Zones, talk to our expert team right away!

Read more about “Tips for Setting up a Trading, Logistics, or Supply Chain Company in Dubai“.

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