The general trading license in Dubai is for businesses that are looking to perform activities such as trading, exporting, and importing commodities. Businesses that trade in electronics, food, automobile, furniture, consumer goods, etc. need to get this license. It allows companies to trade goods locally as well as beyond the borders of the UAE.
Dubai is the attraction of many entrepreneurs and businessmen from all around the world. These businessmen are choosing to start a new business in Dubai for a lot of reasons. For starters, the ease and comfort of doing business in Dubai are like none other. Dubai has a growing market and an enormous demand for goods and services of all categories. All these reasons make Dubai one of the most desirable places to start a new business.
To start a new business here, you need to obtain a legal trade license from the Department of Economic Development in Dubai. There are processes and steps of obtaining these business trade licenses in Dubai. The general trading license is one of the most popular business licenses in Dubai. The general trading license allows you to trade the products that are permissible under the Department of Economic Development Activity List.
The general trading license allows the purchase, sale, export, and import of mixed goods. This means that this license allows you to trade toys and electronics at the same time. It stands true for any number of goods you might want to trade inside and outside the UAE. However, the trade of goods like Alcohol, Chemicals, Medicine, etc. are not covered by the general trading license. You need special government approvals for those goods.
General Trading License Cost in Dubai
The cheapest way to obtain a general trading license in Dubai is to get it yourself. However, without previous experience in Dubai, this will be a daunting task. You will have to deal with the authorities and complete all the steps in the process by yourself. If you are a foreigner who is new in Dubai, you probably do not know the language and customs here. In that case, it is advised that you get a consultation from experts who have years of experience dealing with issues related to the general trading license in Dubai.
The general trading license cost in Dubai will range anywhere from AED 10,000 to AED 40,000. It is not assured that it will cost you the least if you try to obtain the license by yourself. This is because you may make a mistake in any of the steps of the process and end up having to pay even more. That is why, if you are new, you will be better off paying extra for the assistance. The best business consultants will obtain the general trading license in Dubai for you, while you can sit back and relax.
If you want to take on the challenge and obtain the general trading license by yourself, here is how you can do it.
Steps to Obtains the General Trading License in Dubai
There is a specific process you need to follow to obtain the general trading license in Dubai. The Department of Economic Development in Dubai is responsible for handling the registration processes of new businesses here. For several of these steps, you need to deal with the officials there.
Here are the steps in the process of obtaining the general trading license in Dubai:
- Choose the legal structure of your business.
- Choose a suitable and unique trade name for your business.
- Select all the business activities you mean to perform, and keep in mind that you can select up to 10 business activities per license.
- Complete the application for the initial approval from the Department of Economic Development in Dubai.
- Choose your office location and get the tenancy contract with the EJARI.
- Get the required external approvals from the relevant authorities.
- Assemble all the necessary documents like passport copies, the Memorandum of Association, etc.
- Submit all the documents for the final approval from the Department of Economic Development in Dubai.
- Pay the required fees and receive the general trading license.
Documents Required for the General Trading License in Dubai
Some official documents are required for the general trading license in Dubai. These documents are required in the second to last step of the process of obtaining the business trade license.
Here are the documents required for the general trading license in Dubai:
- The completed application form was signed by all the owners and legal representatives of the company.
- The Memorandum of Association (MOA).
- The attested company name approval letter from the Department of Economic Development in Dubai.
- Copies of the passports of all the owners and legal representatives of the company.
- The tenancy contract of the office space and the EJARI.
Advantages of the General Trading License in Dubai
The government of the UAE is in the process of changing the economic focus of the country from the oil and gas industry for a decade now. As a result, they are providing a lot of incentives for entrepreneurs and businessmen from all over the world to start a business here with their trade licenses.
The general trading license in Dubai provides the most benefits among the rest of the licenses here. That is the main reason the general trading license is so popular in Dubai.
Here are the advantages of the general trading license in Dubai:
- 100% exemption from corporate and personal taxes.
- 100% exemption from import and export duties.
- 100% repatriation of capital and profits.
- No restrictions on any of the foreign currencies.
- A wide range of banking facilities is available.
- Yearly audits are not mandatory.
- Ability to sponsor a number of visas for your employees depending on the size of your office.
- International trading facilities.
Business Activities – General Trading License in Dubai
Here are the business activities allowed by the general trading license in Dubai:
- Retail activities
- Wholesale of goods
- Sales of services
- Trading of multiple goods
- Distribution of goods
- Storage of goods
- Import and export of goods
The general trading license in Dubai is valid for one year. After that, you can easily renew it for anywhere between AED 5,000 to AED 9,000.
If you are looking for experts to help you obtain the general trading license in Dubai, then we are always ready to help you out.
Why you Should Apply for the General Trading License in Dubai
There are reasons that make the general trading license in Dubai as popular as it is. While it allows most of the business activities you will want to perform in Dubai, there are also several other reasons that make it so attractive.
Here are the reasons why you should apply for the general trading license in Dubai:
Easy Setup Process: The straightforward setup process is one of the main reasons behind the general trading license’s popularity in the UAE. It is even easier to acquire a general trading license in one of the many free zones in the UAE. In fact, if you meet the requirements for the general trading license then the Department of Economic Development in Dubai will list your company within ninety minutes.
Cost-effective Setup Process: The general trading license is also very budget-friendly. Small businesses can easily get it without breaking the bank. The usual perception is that the business setup in Dubai is way too expensive. However, you can easily set one up with the general trading license, which starts at AED 9,200 only.
Location Flexibility: The general trading license allows businesses to rent both office and storehouse space in the city. Dubai has a wide range of choices for office spaces. You can find the type that meets your specific needs and rent or lease that. Dubai allows virtual offices as well. So if your business does not require a physical base of operations, you can opt for virtual offices.
Ability to Sponsor Multiple Visas: Depending on the size of the office space you rented or leased, you can sponsor a number of visas for your employees. This gives you the flexibility to hire anyone from anywhere in the world. So, you have access to a wider talent pool, and you can find the right fit for the job.
Allows Multiple Share Holders: The general trading license allows your business to have multiple shareholders. There is no limit on the number of shareholders per license. As a result, you can start a public shareholding company with a general trading license. You can raise more capital and further improve your products or services thanks to this option.
Minimum Barriers to Entry: The process of obtaining the general trading license in the UAE is pretty straightforward. The market in Dubai is also welcoming for new entrants. The UAE ranks 16th in the world on the index for ease of doing business. The availability of expert business consultants in Dubai makes it even easier to start a business here.
Family Visa Eligibility: After you have obtained the general trading license in Dubai, you can apply for the visas of your children, spouse, and domestic workers. The golden visa in Dubai allows you to plan a future for your family and yourself here.
Easy Way to Get Your Own General Trading License in Dubai
There is an even easier route to get your own general trading license in Dubai. And that is with the help of professional Company Setup Consultants. Business setup experts make your life easier by obtaining the general trading license for you while you can focus on the more important aspects of your business. You do not need to wait in the long queues in the government buildings. We will do it for you. Contact us today and hit the ground running.
Frequently Asked Questions on General Trading License in Dubai, UAE
How much does a trade license cost in Dubai?
The cost of a trade license in Dubai varies in the range of AED 8,000 to AED 10,000. The cost of your trade license in Dubai will depend on the business activities you mean to perform here. The general trading license in Dubai starts from AED 9,200 only.
How can I get a trading license in Dubai?
Trading licenses are provided by the Department of Economic Development in Dubai. They are responsible for registering and handling new businesses in the city. You can get your trading license yourself by following the business setup process. Or, you can seek the assistance of professional Company Setup Consultants.
Do I need a trade license in Dubai?
To legally trade goods and services in Dubai, you need a business trade license Dubai. There are three popular business trade licenses in Dubai. They are the commercial trade license, professional trade license, and industrial trade license.
What license do I need to trade?
To trade goods and services in Dubai you need the general trading license or the commercial trading license. The Department of Economic Development in Dubai is in charge of providing these licenses to new and existing businesses here.
How much does it cost to renew a trade license in Dubai?
The renewal cost of your specific trade license in Dubai will depend on the business activities you have previously chosen when applying for the license in the first place. You can expect to pay in the range of AED 8,000 to AED 15,000 for the renewal of your trade license in Dubai.
What are the documents required for trade license renewal in Dubai?
For regulatory purposes, you will have to provide some documents when renewing your business trade license from the Department of Economic Development in Dubai. Here are the documents you will require to renew your trade license:
- Attested tenancy contract.
- Filled up trade license renewal form.
- Photocopy of your existing trade license.
- Passport copies of all the owners of the business.
- No Objection Certificate is required if it is applicable to your business.
Some other documents might be required depending on the business activities you are pursuing in Dubai.
