Are you looking to start a trade business for a wide range of items in the UAE? For that business, you need a general trading license in the UAE either from mainland or free zone authorities. With a general trade license, you are allowed to combine different commercial activities in various industries in the UAE.
However, obtaining a general trading license can be a difficult and challenging process for investors and entrepreneurs. You might face challenges such as high costs, choosing between mainland and free zones, managing office space or stores, and getting approval from the relevant UAE authorities.
In this article, we explain a general trading license, its benefits, scope, and the complete process for obtaining a general trading license for your business in the UAE. Now Consultant offers an affordable company setup with a general trade license for your business in the UAE.
What Is a General Trading License In Dubai?
A general trading license allows you to import, export, and trade a wide range of goods, giving you great flexibility and opportunities in your trade business in the UAE. Unlike specialized licenses, this type of license offers broad flexibility, allowing you to trade in many different items.
However, there are some restrictions; you cannot trade in products that are banned in the UAE, such as tobacco and items that do not meet health regulations.
Benefits Of a General Trading License
Starting a general trading company in Dubai is a strategic move, offering numerous benefits and opportunities. The following are the benefits of a general trade license in the UAE:
1. Access to Local and International Markets
A general trading license in the UAE allows you to import, sell, and export various products, giving your business access to both local and international markets.
2. Tax Advantages
The UAE has introduced business-friendly tax policies and is commonly known for its low tax rates, making it an ideal location to maximize your business profits. With the general trading license, you can get tax advantages for your business in the UAE.
3. Wide Product Range
A general trading license allows you to trade in a wide range of products, with only a few exceptions. With this trade license, you are allowed to combine different commercial activities in various industries in the UAE.
4. Simple Licensing Process
Obtaining a general trading license in the UAE is simple and fast. With the required documents, you can secure your license from the relevant authorities within a week or two.
5. Easy Visa Sponsorship
A general trading license simplifies the visa process for your employees and their dependents. It streamlines bringing your team to Dubai, making it quicker and easier to set up your workforce in the UAE.
6. Global Trade Hub
The UAE’s strategic location at the crossroads of global trade offers various opportunities for business expansion. Its central position between major international markets makes it a prime hub for growing your trade operations.
7. World-Class Infrastructure
The UAE offers excellent infrastructure with modern warehouses, advanced logistics, well-equipped seaports and airports, and streamlined customs processes. This world-class infrastructure supports trade business.
8. Extensive Business Networks
The UAE offers a wide range of support services for your trading business, from logistics and warehousing to legal and financial services.
9. Business-Friendly Environment
The UAE government has set policies to make it a business-friendly climate, supported by a wealthy population and a growing economy, which set an expanded market for your products
Starting a general trading company in Dubai is more than just a business decision. It is a step toward success in a state known for its dynamic trade environment and endless opportunities.
Scope of a General Trading License In Dubai:
There exists a great scope for a general trading license in the UAE. It covers a wide range of business activities, from wholesale and retail to the import and export of essential goods, clothing, food, machinery, electronics, and more.
With this license, you can trade almost any permissible commodity in the UAE. Unlike a specific license, a general trading license offers greater flexibility, allowing you to sell a broader variety of products.
As an example, with a general trading license, you can trade essential items like packaged food, household goods, clothing, personal care products, and much more.
How to Get a General Trading License In Dubai?
Getting a general trading license in Dubai involves several important steps. Each step is important and must be followed as given below:
Step 1: Choose Your Jurisdiction
The first step in obtaining a general trade license in the UAE is to choose your jurisdiction. There are two main jurisdiction options in the UAE: Mainland and Free Zones.
Mainland: If you opt for a mainland company, your business will be regulated by the Department of Economic Development of the respective emirate. A key requirement in mainland business is having a UAE national as a partner or sponsor.
Free Zones: For foreign investors seeking full ownership of their business, free zones are the ideal choice. These zones offer numerous benefits, such as low tax rates, 100% repatriation of capital and profits, and a streamlined business setup process.
Step 2: Choose a Company Name
The second step is to choose a suitable name for your general trading business, and you need to get approval from authorities. The given instructions must be followed when choosing a business name in the UAE:
- Your business name will be translated into Arabic or English, and special characters, offensive terms, or references to religion, countries, or regions must be avoided.
- The name cannot start with words like “Universal” or “International,” and it must be unique in both languages.
- If your business name involves countries or governments, you need embassy approval.
After successful approval of your company name, you are ready to apply for your general trading license.
Step 3: Secure Office Space
As general trading often involves handling physical goods, you need to rent or own an office space for storage and operations. The office space you choose should be suitable for your business activities and comply with local regulations. You must take care that the location is convenient for your supply chain needs and accessible to your target market.
Step 4: Obtain Customs Clearance
If your business involves importing goods into Dubai, you need to obtain a customs clearance from the UAE authorities. For that purpose, you need to obtain an import code from the customs authority and pay the necessary fees.
Registration for customs clearance can be completed by any customs authority across the Emirates, allowing your goods to move easily through UAEs ports.
Documents Required To Get a General Trading License
To start a general trading company in the UAE, you require the following documents.
For a company with individual shareholders, you need the following documents:
- A copy of your passport
- A passport-sized photo
- A copy of your residence visa
- A copy of your Emirates ID
If you establishing a trading company based upon the general trade license with corporate shareholders, you need the following documents:
- A certificate of incorporation
- A certificate of incumbency or its equivalent
- A memorandum of association
- A board resolution
Make sure all these documents are ready to ensure a smooth setup process for your trading business in the UAE.
General Trading License Cost In Dubai:
The cost of a general trading license varies for the mainland and the free zone in the UAE.
Mainland Costs:
The cost of obtaining a general trade license in the UAE mainland ranges from AED 30,000 to AED 40,000. Along with this, the other fees include a trade license fee, virtual office rent with Ejari for one year, and necessary pre-approvals. So, the total setup cost is around AED 41,683 on the mainland.
Free Zone Costs:
The cost of a general trading license in the free zone of the UAE with a one-visa quota starts at approximately AED 15,700. However, the total cost is about AED 50,000 or more, depending on factors such as the free zone’s location, specific business activities, visa quota, and other considerations.
Both above options offer unique advantages, and your choice will depend on your business needs and budget.
Cheapest General Trading License In The UAE?
The most affordable General Trading License in the UAE is available in Sharjah Media City for around AED 8,050, with a zero visa quota.
The cost of a General Trading License varies depending on the Emirate. However, the cheapest option in Dubai is from Dubai Silicon Oasis (IFZA) at AED 11,900, also with a zero visa quota.
How Can We Help You?
Starting a general trading business in Dubai can be challenging, but our experts at Now Consultant can simplify the process for you. At Now Consultant, we specialize in company formation for both mainland and free zones in the UAE.
We offer affordable company formation packages that fit your specific needs and provide clear guidance on choosing either the mainland or free zone jurisdiction according to your business scope and requirements.
Our experienced business consultants will guide you through each step, from choosing a suitable name and securing office space to obtaining necessary customs clearances and approvals for obtaining the general trading license in the UAE.
FAQs:
Is There A Cheap General Trading License For Foreigners In Dubai?
Yes, foreigners can get a cheap general trading license in Dubai for AED 11,900 through Dubai Silicon Oasis (IFZA), but it does not include any visas.
How Long Does It Take To Obtain A General Trading License In Dubai?
You can receive your trading license from DET within a week after submitting the necessary documents, making it faster than many other registration processes.
Can I Operate My Business From Anywhere In Dubai With A General Trading License?
Yes, with a general trading license from Dubai Mainland, you can operate your business, open a store, or set up an office anywhere in Dubai.
