8 Key Benefits of Dubai General Trading License

Dubai general trading license

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The United Arab Emirates is a major player in global trade, ranking 16th in exports and 17th in imports among 127 countries, despite having a population of less than 10 million. Many trading companies choose Dubai as their base due to its excellent location, strong infrastructure, and business-friendly atmosphere.

If you are considering starting a trading company, you will need a Dubai general trading license. Here, we’ll cover the necessary things you should know about obtaining one. Planning carefully and following specific steps will contribute to your business’s success in this active and thriving trade hub.

What is a general trading license in Dubai?

A general trading license in Dubai provides the flexibility to engage in trading activities across multiple products and diverse industries. General trading in the United Arab Emirates (UAE) means buying, selling, and trading lots of different products, like furniture, clothes, electronics, and toys. With Dubai general trading license, you can do business in many industries, unlike a regular trading license, which only lets you trade one type of thing in one industry.

You can set up your business in Dubai mainland or in one of the free zones, depending on what you want to do. With this license, you can buy and sell all sorts of goods from different industries, even if they’re not related. It gives you the freedom to do different kinds of trading, whether you’re bringing things in from other countries, sending them out, or selling them locally.

Top 8 Benefits of Dubai General Trading License

Here are the key benefits of Dubai general trading license:

  1. Local and International Trade
  2. Low Tax Rate
  3. Simple Business Setup Process
  4. Wide Range of Products
  5. Dubai’s Strategic Location
  6. World-Class Infrastructure
  7. Easy Sponsorship for Dependents
  8. Business-Friendly Environment

1. Local and International Trade

Getting a general trading license in Dubai lets you do business both locally and globally. With this license, you can bring in, make, sell, and send out lots of different products. It gives businesses the power to trade in Dubai or try out trading opportunities in other countries.

2. Low Tax Rate

Dubai is attractive for businesses because it has really low taxes compared to other countries in the world. When you get a general trading license there, it means you can sell products more affordably, which helps you compete better globally.

Basically, having this license in Dubai helps you save money on taxes and makes it easier to make products that can compete well around the world.

3. Simple Business Setup Process

Getting a Dubai  general trading license is much easier compared to other region of the world, which is great for entrepreneurs. The Department of Economic Development in Dubai makes the application process simple and fast. So, if you want to start a business quickly, Dubai is a good choice because you can get your trading license without much hassle.

4. Wide Range of Products

Having a general trading license in Dubai allows businesses to sell lots of different products from different industries, except for some items that have special rules.

This means you have more chances to make money and stay profitable over time. So, even if it costs more to get started, having this license helps businesses make more profit in the long term by selling a bigger range of products.

5. Dubai’s Strategic Location

Dubai location in the middle of global trade routes is a big advantage for businesses. Being at the center of world trade means there are lots of chances for businesses to reach out to other countries and become important players globally.

This makes it easier for businesses in Dubai to grow and succeed on an international level. So, being in Dubai puts businesses in a really good position to connect with markets all around the world and make a big impact.

6. World-Class Infrastructure

Dubai has really great infrastructure designed specifically to help businesses succeed. This includes modern warehouses, smooth logistics services, excellent seaports and airports, and an easy customs process.

All of this top-notch infrastructure makes it easier and more competitive for trading companies to do business in Dubai. With such strong support systems in place, businesses can operate more efficiently and stay ahead in the market.

7. Easy Sponsorship for Dependents

Dubai General Trading License makes it easier to bring family members to live with you, which is a big plus for investors. With this license, you can sponsor visas for your employees.

8. Business-Friendly Environment

Dubai government has made it really easy for businesses to operate, and with the country’s wealthy population and strong economy, trading is straightforward and transparent. Entrepreneurs can trust that there’s a high demand for imported goods, which makes Dubai a great place for trading.

Dubai is seen as a top choice for trading because of its supportive government, wealthy residents, and booming economy, making it a smooth and reliable place to do business.

Setting up a general trading company in Dubai – Key Considerations

Before setting up a general trading company in Dubai, you should consider the following:

1. Market Research and Planning

Before starting the business, it is important to study the market in Dubai. This means finding out if people want your products. You also need to know who your customers will be, who your competitors are, and what is popular in the market.

Once you have this information, you can make a detailed plan for your business. This plan should include what you want to achieve, how you will do it, how much money you expect to make, and how your business will work day-to-day.

2. Choose the Business Structure

When starting the general trading business, it is important to choose the right structure. This could be a sole proprietorship, partnership, limited liability company (LLC), or setting up in a free zone. Each option has its own rules and advantages.

3. Name and Licensing

To start the business, it is essential to pick a name that matches your business activity. The name must follow the naming rules set by the Department of Economic Development (DED) or the relevant free zone authority.

After choosing the name, it is time to apply for licenses such as the trade license, commercial license, and any permits required for the industry. This ensures the business is legally authorized to operate.

4. Capital Requirements and Bank Account

Before starting the general trading business, it is important to figure out how much money you will need. This depends on your business structure and where you are setting up.

Once you know the capital requirements, open a corporate bank account in a respected bank in Dubai and deposit the necessary funds. It is important to keep accurate financial records and follow accounting standards to ensure smooth operations and legal compliance.

5. Secure Office Space

Before getting started, it is important to find the right office space that meets the requirements of the licensing authority. The office should be big enough for your business activities and located in an area where general trading is allowed.

Once you find a suitable space, you will need to sign a lease agreement or get the required documents to establish your presence there. This ensures that your business has a physical location where it can operate from.

FAQs

Q1. What’s the difference between a Trade license and a General Trading License In Dubai?

Ans: The difference between a Trade license and a General Trading License in Dubai lies in their scope of permitted activities. A Trade license is typically used for specific business activities, such as retail, food, or real estate. Whereas, a General Trading License provides a wider range, including range of trading activities without restrictions on the type of goods traded.

Q2. How much is a general trading license in Dubai?

Ans: The cost of obtaining Dubai General Trading License can vary based on several factors. These include the chosen jurisdiction, the additional services required (such as office space or visas), and any government fees associated with the licensing process. Generally, the cost can range from a few thousand to several thousand dirhams, depending on these factors and the specific requirements of your business.

Q3. Can I sell on the mainland using a free zone general trading license?

Ans: While having a free zone general trading license in Dubai grants you the freedom to conduct trading activities within the boundaries of the free zone, it does not allow you to sell directly on the mainland. To operate on the mainland, you would need to collaborate with a mainland distributor or establish a separate legal entity, such as a mainland company, to comply with mainland regulations and laws.

Q4. Can I import/re-export with a general trading license?

Ans: With a general trading license in Dubai, you are permitted to engage in the import and re-export of goods. This license provides you with the necessary authorization to bring goods into Dubai from overseas markets and subsequently export them to other countries. It offers flexibility in conducting international trade activities and leveraging Dubai strategic location as an international trading hub.

Conclusion

Dubai General Trading License brings many advantages for entrepreneurs and businesses. It allows access to a diverse market, offers tax benefits, and flexibility in business activities. By following the required steps and guidelines, entrepreneurs can establish their presence in Dubai’s dynamic business scene and open up a world of opportunities.

Get your Dubai General Trading License with RFZ

If you are planning to obtain Dubai general trading license and are confused about the process, it is a good idea to consult RFZ Corporate Services Provider that can assist you in finding the best and easy solution.

At RFZ, we offer personalized help and solutions to people according to their requirements. We can assist with everything from creating a company to managing finances. Our experienced team will give you trustworthy advice at every step of your business journey in the UAE.

Are you ready to make your business dreams a reality? Partner with RFZ Corporate Service Provider, and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at +971 4 589 0815 or email your questions to info@rfz.ae. We are here to assist you!

Umber Awan
Umber Awan

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