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How to set up a Trading Company in UAE Free Trade Zones?

UAE is an ideal place for entrepreneurs to start a company and conduct trade. The Free Trade Zone is a perfect business jurisdiction for foreign investors to operate any kind of business in the UAE. Many of our clients ask us frequently this question – How to set up a Trading Company in UAE Free Zones?

The answer is by setting up a trading company in UAE Free Zones there are many benefits for entrepreneurs. They can easily facilitate trade operations within the UAE and the rest of the countries at a very low overhead cost.

The Free Zones offer a perfect platform for entrepreneurs to launch their businesses. The 100% ownership, fully furnished office space, warehouse facilities, and other amenities make the Free Zone the right choice for starting a business in UAE.

Why Choose UAE Free Zones for Setting up a Trading Company?

A Trading Company in UAE is set up by an investor to conduct any form of trading activity. Numerous trading activities are available in UAE for a Free Zone Company to conduct business. Depending on the trading activities the company owners select, the company can operate in those business activities.

The Free Zone Company can conduct Trade in UAE, the GCC region, and the rest of the world with the support of local and international distributors. The Trading Company will have to take a warehouse in the UAE to store their goods.

trading company in uae

They must also obtain an import-export code from the UAE Customs to facilitate global trade. Some businesses only operate the billing and coordination in UAE and the goods are moved through international waters. In such instances, the goods are not entering the UAE market.

How to Learn Trading of Goods Using a Free Zone Company in UAE?

Registering a Free Zone Trading Company in UAE is the perfect way to learn about the trading of goods in UAE. There are a few processes to follow when it comes to conducting any sort of trade operations in the UAE. The Port and Customs Authorities facilitate trading operations within the country as well as overseas markets.

Free Trade Zones are considered a separate business jurisdiction and they have different Customs regulations. There is Zero Customs Duty for any imports to the Free Zone from overseas markets.

However, if any re-packaging or alterations to the product is made for re-exports, then Customs regulations will be applied accordingly. The Customs Department will require the Certificate of Origin of the product in such cases to facilitate the re-exports.

To know more, read about the Re-Exporting Business in UAE

So, there are many processes involved in the Trading of Goods in the UAE. Free Zone Company has many benefits such as reduced setup costs, and easy access to office space and warehouse facilities. Additionally, most of the Free Zones are located close to Airports and Seaports, and they have in-house Customs Clearance.

The facilities and benefits offered by the Free Zone help to keep the overhead costs of the company low. Also, facilitate faster transport of goods to and from the Free Zone to other markets. All these make the Free Trade Zone an ideal location for starting a Trading Company in UAE.

Setting up a Free Zone Trading Company and Facilitating Trade Operations in UAE

A Free Zone company in UAE can conduct trading of goods or any specific items by obtaining a Trading License from the respective Free Trade Zone. Few Free Zones in UAE insist on taking office or warehouse space for conducting any sort of trading activities in the country.

Also, it is beneficial to have an office space for trading companies to easily approve their corporate bank account in UAE. UAE banks have strict KYC norms that must be met by the business investor to obtain a corporate bank account in the name of the company.

Along with the Trade License from the Free Zone, the investor must apply for an import-export code from the UAE Ports and Customs Department to conduct overseas trade.

The Custom Code will help the trading company to easily facilitate the transfer of goods. The Free Zone Company can move the goods to and from the Free Zone to the UAE mainland, the rest of GCC Countries, and overseas markets without any hassle.

To know more, read about Import- Export trade operations in UAE

Best Business Consultants such as AURION will guide the investors in obtaining the Trading License in UAE at the lowest cost and getting the import-export code at the earliest.

Aurion team will also coordinate with the respective authorities to get the required pre-approvals (for selected trading activities), bank account opening assistance, chamber of commerce registration, and more.

Popular Free Zones in UAE Offering Trading Licenses

Almost every Free Trade Zone in UAE offers Trading License. There are specific business activities that business investors can choose for their company. Depending on their business interests, the investors can choose the specific business activity available from the Free Zones activity list.

A few of the most popular Free Zones in Dubai that offer Trading Licenses are the following

The Dubai Airport Free Zone is one of the most prestigious Free Zones in the world. There is a wide variety of office and warehouse facilities available in DAFZA.

Opening a Trading Company in DAFZA is highly beneficial due to the strategic location, proximity to Dubai International Airport, and favorable trade license cost.

The business owner can get a 27 Sq.m Office space and Trade License for AED 92,665. They can get access to world-class business infrastructure and facilities and easily start operating their trading company in Dubai.

Similarly, there is Dubai CommerCity, DMCC, and IFZA that offers similar trading license in Dubai at a cost-effective rate. The Free Zones in Dubai are perfect for setting up a trading company and coordinating international trade operations.

Trading License from Free Zones in Sharjah and Northern Emirates

Additionally, Free Zones in Sharjah and the Northern Emirates offer comparatively low-cost trading license packages to investors. Hence, for investors looking for a cheaper trade license package, the ideal options are the Sharjah Airport Free Zone (SAIF Zone), Sharjah Media City (SHAMS), and the Ras Al Khaimah Economic Zone (RAKEZ).

trading company in dubai

Also, the newest Free Zones in Sharjah the Sharjah Research Technology and Innovation Park (SRTIP) offers low-cost Trading Licenses for entrepreneurs. Hence, there are multiple options available for Investors when it comes to choosing the right trade license package and the Free Zone for setting up a Trading Company in UAE.

Feel Free to reach out to AURION, our expert Business Consultants will precisely identify your exact business requirement. The Business Team at AURION will provide you with the right Trade license package and Free Zone that best suit your business requirements.

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