Trading companies are specialists that cover all export and import operations and procedures. A trading company buys products in one country and sold them in different countries where it has its own distribution network. This kind of company mostly works with high production volumes of products such as raw materials, chemicals, generic pharmaceuticals, etc. The activities of a trading company include:
- Identification of suppliers in different countries with the capacity to supply large volumes of generic products at competitive prices.
- Negotiating the terms of sale and delivery of products.
- Financing and assurance of payment to the supplier-exporter.
- Managing logistics and transport.
- Managing customs and barriers to international trade.
- Distribution and sale of the products through its retail network.
At present, trading companies specialize in emerging countries in areas of Asia, Africa, and Latin America. Its function is to identify competitive suppliers, negotiate and purchase their products and sell them through a distribution network in its country or neighboring countries. From a contractual point of view a trading company can act in four different ways:
- Sales agent for those exporters that are domestic. The trading company establishes a marketing presence in foreign markets soliciting orders from foreign customers in the name of the manufacturer
- Buying agent for importers that want to buy a specific kind of products within a specific territory that can be a country or multiple countries well known by the trading company.
- Exclusive distributor on a buy-sell basis. The trading company buys a manufacturer at a set price and resells to foreign customers at a price established by itself.
- Intermediary in specific trade operations in which does not act as a buyer or seller but as an intermediary that charges a commission on export and import
How to Start a Trading Company?
Before starting any business, you might get through a roller coaster of ideas. Many ideas might emerge in your mind, and you may let many of them go because of any problems that might occur. In the modern world, software companies are the ones that are providing a lot of benefits for customers and providers. Hence, opening a software trading company in Dubai can help you earn a lot and become a successful businessman in a very short time.
This article will tell you how to start a trading company and some common trading companies recently started in the UAE as examples.
Start a Trading Company
In the past few decades, Dubai has been producing the best trading and logistics companies. It has been a hub for millions of jobs for the nationals and people from overseas. Starting a trading company in the UAE can be the best decision you will ever take if you follow all the rules properly and work hard on it.
Steps to Start a Trading Company in the UAE
For starting a successful trading company in Dubai, UAE, you can follow these steps.
Develop a Business Plan
Before starting any business, you should first identify what things you want to excel in. You should develop the best-level business plan for yourself. You should also design different plans so that if your one plan does not work, you can opt for the second one. A business plan includes market conditions, financing, marketing tactics, investors, etc.
Find a Sponsor
There are two types of business sponsorships in the UAE. In local sponsorship, you need to sponsor 51% shares to the UAE national. And in the corporate sponsorship, the corporate sponsor will give you 100% ownership as an investor’s right protection contract.
Choosing the Jurisdiction
There are three basic parts of land for trading in Dubai. Offshores, free zones, mainland. Developing a trading company on the mainland is the most beneficial as it has more market exposure. But the disadvantage is that you need to give 51% of shares to the UAE national to develop a business on the mainland. Free zones offer you 100% consumption on corporate and personal income. And the offshore company is the company that is set away from the company of residence of the owner.
Cost of Setting a General Trading Company in the UAE
Suppose you plan to set up the best trading company in Dubai, which costs between AED 15,000- AED 50,000. The cost can be more, too, depending on your company’s perks.
How To Get a General Trading License in UAE
Applying for and getting a general trading license in UAE is one of the basic steps you will have to follow.
Documents Required for Obtaining General Trading License in UAE
Submitting the following documents to officials helps you in obtaining a General Trading License in the UAE:
- Trade name registration letter by the concerned council.
- MOA and LSA agreement.
- Warehouse/Office tenancy contract along with a detailed location plan.
- Passport-size photographs of the candidate.
- Passport copies of all the potential partners in the company.
- NOC letter from a current service agent.
Advantages of Getting a General Trading License for Your Company in UAE
Following are some of the many advantages of getting a general trading license for your company in the UAE:
- It is the legal way to register your company.
- You don’t have to pay corporation taxes, customs duties, and other taxes if you are a registered company in the UAE. You just pay 5% VAT.
- It makes way for you to explore other business opportunities.
- You can open more branches of your business in other states of the UAE.
Common Trading Companies in the UAE
WebDesk ERP is the best trading software company in Dubai. Not only in Dubai, but it has various branches in other cities of UAE. It is one of the biggest and most famous trading companies in the UAE. The best trading software company in the UAE was established in 2007. From that year onwards, The company is providing ERP products for a lot of other companies all over the world.
- Accounting Software
- Trading Software
- Inventory Software
- POS Software
- DMS Software
- Approval Management
- Production Management
- Payroll Software
- CRM Software
- HRM Software
- Logistic Management
Address: 13-B/F-06, Empire Heights, Tower B, Burj Khalifa Block, Business Bay, Dubai, UAE
Contact: +971 52 8028863
Raynastar is a famous UAE trading company that provides exceptional services to the Industry. They provide the highest level of professionalism, service, and quality of artistry. The company provides its services in various things and provides good customer services.
- Stainless Steel
- Sea Food
- Garnet Sands
- Fruit & Vegetable
Contact No: – +971526880507
Address: – M/08B, Bank Melli Iran Building, Mankool Road, Near Al Fahidi Metro Station, Bur Dubai, Dubai
Website: – https://raynastar.ae/
Bahmani Group has been providing its services for more than 30 years in Dubai. Due to this, UAE is included as one of the leading Trading Partners for energy solutions in the GCC. They majorly trade generators, air conditioners, and heaters and are now launching into the future as a leading Renewable Energy Group.
- Renewable Energy
- Property Development
- Travel & Tourism
Contact No: – +97143333992
Address: – 2002 Boulevard Plaza Tower 2, Downtown Dubai, UAE, P.O Box 377216
Website: – http://bahmanigroup.com/
Percept General trading
Percept General Trading provides superior goods and services to its clients. Its main aim is to build a relationship with its clients based on management knowledge and certainty in the respective market. It is committed to delivering value products and services at competitive prices.
- Wood and Allied Products
- Air Care and Hygiene
- Non-Ferrous Metal Powder
- Hides and Skins