Dubai, a prosperous city in the UAE, has built up an enviable standing as a global center for trade and commerce. Obtaining a general trading license in Dubai is essential to entering this booming business community and starting a company in Dubai.
The General Trading License in Dubai permits enterprises to engage in various trading operations, such as import, export, shipping, and reexporting multiple products. It opens up several opportunities for businesses to expand their product offerings. This article will elaborate on how to get a General Trading License in Dubai to take advantage of its enormous business prospects.
Difference between General Trading License & Trade License
A general trading license permits enterprises to sell and wholesale any items in the UAE and abroad, except those restricted without government authorization. Thus, the general trading license in Dubai includes all categories apart from prohibited items.
The Dubai trade license activities list allows a business owner to trade with the specified categories of items stated on the license. The license does not allow selling any other products currently on the market. Therefore, the context of a general trading license is sufficiently broad and expansive in comparison to the extent of a trading license.
Why Get a General Trading License in Dubai?
Those who want to be involved in wholesale trading must also possess a general trade license. The general trading license in Dubai allows for the exportation, importation, and trading of clothing, accessories, furnishing, electronics, e-commerce, etc.
Trading regulated products, including multiple products like alcohol, pharmaceuticals, frozen goods, and others, require the relevant government’s authorization. A trader can investigate all the trading prospects available since there are many, both locally and on a national and worldwide scale.
Those interested in setting up a business in Dubai must first choose where to register their business.
Benefits of General Trading License in Dubai
Any firm that follows trade can profit from setting up a company. Some benefits are:
1. Local and International Trade
General trading companies in Dubai sells or distributes imported or exported items locally or internationally. This lets traders profit from local, national, and worldwide business opportunities.
2. Lower Trade Barriers
The startup expenses and time are lower. Entrepreneurs with mainland trade licenses are excluded from paid-up share capital and annual audits. This greatly boosts corporate profitability and affordability.
3. Visa Multiplier
Dubai visa services help business founders acquire various visas. Multiple visas will let the trade company stay in Dubai and hire more people. Multiple employee visas are available with a general trade license. More visas are available for larger offices. The business person can sponsor dependent visas for spouses, children, parents, maids, drivers, etc.
4. Affordable Company Formation
Company establishment is cheap and easy. However, some business owners must present a business plan with papers and income predictions. The process takes around a week.
5. Electronic trading
E-trading needed regulation; thus, the Dubai Economic Department’s Business Regulation and Licensing Department created an e-trader license. This license lets UAE and GCC nationals trade without traveling to the UAE.
Other banking options are accessible to individuals and businesses. A corporation with a general trade license can repatriate 100% of capital and revenues without needing physical office space. They need not deposit initial capital in UAE financial institutions.
Therefore, RFZ advisors can guide you through the entire process of obtaining a general trading license. If you wish to establish a business in Dubai, please contact us, if only for thoughtful and professional support.
Process to get General Trading License in Dubai
The Commercial Registry Authority will validate and review the documents. After that, the company’s name will be registered with the Commercial Registry.
The DED will disseminate the documentation to the Federal Ministry of the Economy. The government will provide its approval letter when the paperwork, comprising the MOA and the application for the company name, has been published.
The DED is responsible for issuing the initial business license and commercial registration documents following the successful completion of all licensing procedures. After acquiring the right, it is valid for one year. For your business to continue operating legally in Dubai, you must renew your license.
A copy of the previous license must accompany the approval document. The validity of the renewal is extended by five years.
Documents Required for General Trading License in Dubai
The following types of documentation are necessary to apply for a general trade license:
1. For UAE residents:
- Copy of passport
- Copy of UAE resident visa
- Copy of Emirates ID
2. For non-UAE residents:
- Copy of passport
- Copy of UAE visit visa
Complete the following steps to apply for a general trading license in Dubai:
- Pay required fees
- Please submit all documentation to DED.
- Get a Government payment voucher
- Get your general trading license
How much is General Trading License in Dubai
A general trade license is usually inexpensive and accessible, depending on your business’s legal structure and office location. The general trading license cost in Dubai depends on the particulars of your business’s structure. Government, registration, and processing fees are included. It is important to consider office space rental and staff visa expenses.
Some UAE free zones may provide significantly cheaper licenses, but their geographic scope may be severely limited. General trading licenses in Dubai offer more freedom and market access.
Frequently Asked Questions
1. Can I change my business activity after getting a General Trading License?
Yes, you can change your company activity by complying with the legal processes and receiving the relevant approvals.
2. Is a general trading LLC firm required to file an annual auditing report?
No, the licensee is not required to submit the yearly audit.
A general trading license in Dubai opens doors to business prospects. A low-cost and straightforward process allows enterprises and investors to enter Dubai’s dynamic market and develop a significant regional presence.
We can help you overcome whatever is holding you back from obtaining your general trading license in Dubai. RFZ provides assistance in establishing a company in Dubai, UAE, and guides you through the process of starting a business. We offer a wide range of value-added services, including company formation, UAE residency visa, business bank account opening, tax, and VAT registration.
So, kickstart your Dubai general trading license application with RFZ today and become a part of the flourishing business community in Dubai.