Do you wish to initiate a trading company in the UAE? Are you confused about picking a suitable business license and estimating the general trading license cost in Dubai? You have reached the right destination with all such queries. This blog will share insights about the trading perks in Dubai and the benefits of obtaining a general trading license.
Dubai is one of the significant trading hubs of the United Arab Emirates. Its immaculate infrastructure facilities, low-priced energy, and the most updated and flawless communication systems attract investors to build their venture in this Arab region. Moreover, its strategic placement gives a clear advantage of access to international markets. Hence, it aids in significant growth in various fields of trade such as logistics, retail, etc. However, traders who wish to enjoy these facilities must primarily acquire a general trading license in Dubai. A general trading license in UAE allows the trading of any number of unrelated goods under a single license.
What is a General Trading License?
A general trading license in Dubai legally authorizes a company to sell, distribute, store, import, export as well as re-export commodities under one license. The major advantage of securing a general trading license is that it provides the privilege to trade in any unrelated goods – from food, clothes, and toys to electronic equipment and spare parts. A further benefit includes the incredibly straightforward process of license acquisition.
Even the wholesale trading companies in the UAE need to acquire a valid General Trading license to carry out their operations in the country. However, there are trade restrictions on certain commodities such as drugs, tobacco, alcohol, etc. Nevertheless, if the company wishes to trade in the aforementioned restricted goods, then they need to apply for external approval from the competent authority.
Business consultants at Shuraa can give you a better understanding of permitted and restricted goods, including the general trading license cost in Dubai.
Benefits of obtaining a general trading license in the UAE
The investors and businesses get the following benefits with the general trading license –
- Provision to trade locally
- Provides authenticity of brand and business in the UAE market
- Helps conduct trade operations effortlessly
- 5% VAT(Value Added Tax) on all trade transactions in UAE, as compared to other countries
- Freedom to choose office space anywhere in the UAE
- No limit to the visa quotas
- Easy to open a bank account
- Freedom to trade in multi-currencies
- Warehouse and storage facilities
- Straightforward setup procedure
- Reasonable and comparable setup costs
- No restrictions on the number of shareholders in one license
- No demand for paid-up share capital
- Easy to sponsor the dependents visa
- No compulsion on auditing
- The wide range of trading activities as well as banking facilities
- Minimal or no import duty
- Complete repatriation of profits and assets
- Enhanced possibilities of trading
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Procedure to acquire a general trading license in Dubai, UAE
The UAE authorities offer simple and uncomplicated formalities for license acquisition. The steps for obtaining a general trading license include the following –
Choose the preferred jurisdiction
Dubai offers multiple options of jurisdiction to start a company – Freezones, Mainland, and Offshore. The investor can choose any of them for their business establishment according to their business needs and provided facilities. Dubai Freezones are the most popular choice for traders because of the abundant trading facilities it offers, along with several tax exemptions.
Determine the ideal company structure
Once you finalize where you want to set up your company, you must further decide which company structure you should go for. Mainland and Freezones offer various legal company structure options based on the needs and activities of the company. For example, Limited Liability Company, Partnership company, Branch office, Free zone Establishment, Free zone Company, etc.
Decide the business trading activities
There is a list of permissible activities that you are allowed to do in the UAE. therefore, while applying for your license with the Department of Economic Development (DED), make sure you define your business activities clearly. Submit the list of activities mentioning all the products and services you are planning to sell, also the mode of sale. The general trading license allows the inclusion of up to 10 activities under one license.
Choose a trading name
A trading name is so important for a business. It is basically the name that specifies the brand in the market. Therefore, the business owner must choose a unique as well as an apt name for their company. However, there are certain rules when it comes to selecting a trading name. For instance – Do not use any offensive or blasphemous terms that can hurt the sentiments of individuals or a particular community; The name should be non-resembling to any other existing companies; Use the person’s full name rather than just the surname. Hence, to avoid any rejections, it is advisable to cross-check with the authorities before finalizing a trading name.
Obtain the initial approval
Now that you fixed a company name, it’s time to seek initial approvals from the concerned authorities before moving on to further steps. For this step, you need to present the trade name registration receipt along with a few other mandatory legal documents. The initial approval certificate is a kind of a statement that the government has no objection to you forming a company in the UAE.
Find office space to carry out trading activities
Every investor applying for a general trading license in UAE needs to have an official business space to execute their trading activities. Hence, they must find an affordable office space, either on rent or purchase. In case you rent a space, you must register it with Ejari and secure your tenancy contract accordingly.
Apply for license registration
Once you complete all the above steps, it’s time to apply for the general trading license. Fill in all the details correctly in the application and also double-check before final submission.
Submit all the necessary documents
Submit all the required documents to the relevant authorities for verification. These documents include:
- Passport copies of the owner/s
- Application form
- Copy of visa/entry permit
- Emirates ID
- Passport-sized photograph
- Trade name approval certificate
Pay the license fee
Pay the requested amount for the license registration within the defined time frame and receive a token/invoice for the same. To get more information on general trading license cost in Dubai, get in touch with Shuraa and get prompt solutions to all your business queries.
Get the general trading license
After the payment of fees and other basic steps, the authorities review your application and the submitted documents. If convinced, they approve your application and issue a general trading license for your business.
Apply for a residency visa and open a bank account
Now that you have your general trading license in hand, apply for a residency visa for your and your family’s stay in the UAE. You can also sponsor your relatives, staff, business manager, etc. Apart from that, most importantly, open a corporate bank account to manage all your business transactions. It will help you record your financial dealings and also offer long-term benefits and services.
The general trading licen#se cost in Dubai depends on multiple factors that include the types of goods listed for sale, the region of establishment, the legal structure, and many more. Similarly, the cost and procedure of general trading license applications are different in different jurisdictions. Nevertheless, every trading company operating in Dubai, UAE must mandatorily acquire a trading license to avoid any legal penalties.
Shuraa Business Setup ensures a reasonable as well as a hassle-free registration of your trading company in the UAE. Our experts will take care of the documentation, application, approvals, and licensing so that you can dedicate your valuable time and money to the core of your business.
So, reach out to us and get a free consultation today! Call us at +97144081900 or send a WhatsApp message for a chat query at +971507775554. You can also write to our team at email@example.com.