UAE is known as one of the major business hubs in the world. The last few decades have seen a substantial increase in business and trading in the country. New businesses in UAE receive tax benefits and other perks from the government, thus making it appealing for investors to set up companies in the country.

Why you need Trade License

• An entrepreneur thinking of starting a trading business in Dubai must acquire a general trading license, otherwise it is impossible to setup a business in Dubai. The UAE Economic Department and the Dubai Economic Department issue all the trade licenses in Dubai.  Trade license fees in Dubai will be determined by the area chosen to setup the business.
• A general trade license in Dubai will allow a startup to conduct all of their trading activities under one license. With a general trade license, a startup can trade in a diverse range of products from hair dyes to paper clips. The Department of Economic Development Dubai also allows a business with a general trade license Dubai to import and export their products, unless they are frozen foods or medicine and must comply with certain health and safety standards.

Process of Trade License

1. Choose a Location

Choose a location: First and foremost, it is important to choose a location and this must be considered carefully. Applying for a mainland Dubai trade license will allow the business to trade freely throughout UAE. However, if a business opts for a free zone, they will face barriers in moving their goods around freely.

2. Choose Activity:

Another important detail is choosing the activities the business will partake in. Up to 10 activities may be chosen, including regulated products which adhere to the related health and safety standards. However, goods which require external approval such as weapons and pharmaceuticals cannot be included.

3. Choose a business name:

The next step concerns choosing an appropriate name for the business. A name is a very important aspect of a business and it should be chosen carefully so that customers find it appealing and it complies with the company naming regulations in Dubai. Once the name is approved the general trade license application may be submitted.

4. Find an office space:

After applying for the license, it is time to look for an office space and a warehouse. Since general trading concerns physical goods, a warehouse is required to stock the products. Again, a mainland license is the best choice as it will allow one to set up a warehouse anywhere, but a free zone license will pose some limitations.

5. Get customs clearance:

This step is crucial for any business that wants to import goods to the country. In order to import goods into the country, an applicable amount must be paid and an import code must be obtained from the customs authorities. It is permissible to register with any suitable customs authority.

Running a business without a trade license in Dubai is illegal, and getting caught in the act can result in a substantial fine or even the business getting banned from operating. Even the regulations involving trade license renewal in Dubai are quite strict; inability to renew the license in a timely manner may result in penalties. Trade license renewal Dubai is only valid for one year. Since there are numerous details a business must be aware of at all times, it is very easy for them to make an error. Thus partnering up with experts in the field is an excellent solution – it will help save time and money and of course ensure the business is operating legally. Company Setup Dubai has some excellent and experienced consultants who can help a business stay on top of their game and smooth out any bumps on the road.

For further information and assistance on General trading license, speak with our experienced consultants. Book your FREE consultation today at +971 558654072, +971 4 3827780 or drop us a line on info@test.companysetup.ae

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