General Trading License in Dubai [2022 Guide]
Dubai is an ideal destination for trading and business due to its diversified culture and modern networking structure. Its proximity with the seaports and international airports makes it convenient to connect with global boundaries and brand your business across international markets. Acquiring a general trading license in Dubai is the first and foremost step to marketing your business globally and enhancing growth in the foreign land.
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The flawless infrastructure facilities, cost-effective energy, and updated communication system come as an added advantage to increase your business’s reach to international borders.
In this blog, let’s dive deep into the details about general trading license Dubai and understand the benefits and procedures of acquiring a license and the estimated general trading license cost in Dubai.
General trading license in Dubai
Individuals and companies who wish to establish their business in Dubai, UAE have several business activities options to choose from. The business laws laid down by the UAE government are welcoming and nurturing for foreign entrepreneurs and investors. The UAE government encourages foreign investments and trade as it is their key source of income that shapes the economic structure of the country. Therefore, the authorities have facilitated the issuance of general trading licenses for companies to invite more funds and businesses into their jurisdiction.
A general trading license allows you to perform trading activities for all kinds of products. The company with a general trading license can import, export, and trade goods from different categories across international boundaries. The authority of issuing a general trading license lies under the control of the Department of Economic Development, Dubai.
The categories of goods may include electronics, clothing items, jewellery, automobile, furniture, and other general items. However, certain products are restricted from trading in the general trading license such as liquor, frozen food items, weapons, and medical goods.
Advantages of having a General Trading License in Dubai
A general trading license in Dubai offers a rewarding opportunity for traders and investors. Businesses get a stable and consistent platform to generate more revenue and expand the business most legitimately. Other than that, this license also comes with several other major advantages:
- Facilitates both domestic and international trades.
- Provides accessibility to bank facilities.
- Comes with special tax status
- Reasonable custom charges on goods.
- The legal procedure is stress-free and quick.
- No restrictions on foreign currency.
- No compulsion in Paid-up capital requirement.
- Plenty of scopes to expand the business
- General trading license cost in Dubai is relatively low.
- Exemption from submission of audit reports to the authorities.
- Complete repatriation of profits and assets.
- Uncomplicated formalities
- Multiple visa benefits
- Enhances global connectivity
Steps to obtain a General Trading License in Dubai
The Dubai general trading license is quick and easy to obtain by following the below steps:
- Choose a business location
Deciding on a business location for setting up your business is the first step towards the registration of a trading license. You can opt for Dubai mainland or Dubai free zone as per your preference.
- Determine the legal entity
Dubai government has permitted the establishment of various kinds of entities within their jurisdiction. You can choose the type of company structure you want to form in Dubai according to your business needs.
- Decide the business activities
A business license allows a maximum of 10 business activities under one license. The investor has to choose the activities that he wishes to operate in his firm.
- Choose a trading name
A trading name is important for a business to make it stand exclusive and recognizable among customers. The investor must ensure that the decided trade name doesn’t match with any existing businesses.
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Application for a trading license
Once you decide the business activity you want to perform, apply for a license to run your business legally.
- Get the required pre-approvals
Before moving ahead to further steps of license registration, the owner should get the initial approvals from the Dubai authorities for license acquisition.
- Submit the relevant documents
Submit the requested documents to the concerned department and wait till the verification process completes.
- Payment fee for the license
A trading license requires a certain amount of fee that needs to be paid during the registration process. You might also need to make the requisite payment for obtaining the license.
- Final approvals from the DED
Once the DED is satisfied with all the above steps of registration, you receive the final approvals to move ahead with the license acquisition procedure.
- Acquire the license
After all the necessary checks and verification, you can obtain the trading license and start with your business operations.
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Documents required for general trading license registration
The investor needs to submit the following documents while applying for a trading license in Dubai:
- Duly filled application form
- Passport copies of the owner and other shareholders
- UAE visa/entry permit
- Trade name registration certificate or approval form
- Duly attested Memorandum Of Association(MOA) and Articles Of Association(AOA)
A general trading license is valid for one year after registration. As it reaches its expiry date, the owner must get prior approval from the issuing authorities to renew the expired license. Thereafter, the renewed license is valid for 5 years.
Conclusion
Dubai is one of the world’s leading business hubs, strategically located to do business with every corner of the world. Companies set up in the UAE grounds benefit from the welcoming and encouraging business environment of the country. Most of all, they get to enjoy the world’s most attractive tax regimes.
Almost every other good can be traded under a general license. From import and export of products to international markets to doing commercial sales within the UAE boundaries, the general trading license facilitates several business activities.
Most importantly, the application for a general trade license is complete only if it is free from errors and misinformation. Shuraa Business Setup can guide you with the necessary details and documents required to register your company for a trading license. Our team of professionals can help you with visa applications, investor visas, and all the other essential admin tasks in the shortest possible time.
Get in touch with our team for the best advice and consultation!
You can reach out to us at +97144081900 or drop a WhatsApp message on +971507775554. For further convenience, you can also mail your query at info@shuraa.com.
