General Trading License in Dubai
How to Get a General Trading License in Dubai
This article will look at the steps you must take to obtain a General Trading License in Dubai. In addition, we will discuss the benefits of owning such a license. After reading this article, you will know exactly what to expect once you receive it. To begin, you must first decide on a name and business setup for your business. Next, you must apply for a General Trading License. This license allows you to carry out a wide range of unrelated activities. When applying for a license, you should name the types of goods you intend to trade in since trading in unlicensed items can lead to fines and revocation of your license.
What Is A General Trading License In Dubai UAE?
A general trading license in Dubai allows you to carry out business activities across different sectors. In a general trading license, you do not have to deal with goods that are closely related, such as food and beverage. You can also carry out business activities in various industries and even sponsor dependents. These licenses are essential for your business, so you should ensure that you have the proper requirements.
A general trading license is necessary if you plan to conduct multiple trading activities. This license does not limit how many shareholders you can have. Usually, the maximum number of shareholders is 50, but there is no upper limit. If you intend to trade in different commodities, such as food and drink, you should consider a commercial trade license. Alternatively, you may consider a general trading license for a more specific type of business.
A general trading license in the UAE allows you to carry out at least ten different business activities. These activities must comply with health and safety standards. You should not sell medical products, alcoholic beverages, or vehicles. Besides the license, you will need to apply for a name. If you are planning to use a generic name, be sure to follow the guidelines of the UAE Department of Economic Development. A general trading license also offers you a tax exemption.
A general trading license is a legal document that allows you to conduct business in a Free Zone. Its price depends on your business activity and location, but it is generally AED 15,000 to AED 40,000. You can also apply for a free trading license in other free zones, such as Sharjah. You must also know that you will need several other documents to conduct business in the free zone.
Why Should I Apply for a General Trading License?
The first step in registering your business in the UAE is to choose a business name. While you can list several activities under a general trading license, you must avoid using the name of a god. You must also avoid using words that might hurt religious beliefs or offend individuals. If you are naming your company after someone, you must use the individual’s full name.
Setting up a general trading license in Dubai is comparatively easy. Getting a general trading business license in Dubai is much easier than in a free zone. New initiatives have simplified the process, and you can register with the Dubai Department of Economic Development in as little as 90 minutes. You don’t need to sign a lease agreement to start your business.
A general trading license in the UAE allows you to trade almost any goods on the local market. Some products are restricted, such as alcohol and medical equipment. But most general items are covered by the general trading license. Though this license is expensive, it is worth it regarding flexibility and profit. Furthermore, the UAE government provides various incentives and tax breaks for establishing your business in Dubai. These benefits alone should convince you to apply for a general trading license.
What Are the Benefits of a General Trading License? General trading licenses are advantageous because they allow you to operate a business with multiple shareholders. Typically, this license will enable you to have 50 or more shareholders. Unlike a commercial license, you don’t need paid-up share capital. Furthermore, you do not have to submit your company to an annual audit. The advantages of a general trading license make it a highly viable option for foreign investors.
Steps To Obtain A General Trading License In Dubai
If you’re planning to start a business in Dubai, you need a general trading license. This license allows you to manufacture and export various goods and can cover multiple trading activities, and it also covers all kinds of goods that require external approval. Besides that, you can import, re-export, and sell various goods in Dubai. A general trading license is an excellent investment because it only costs you once but will pay you dividends for years.
To start a business, you must first choose the items you wish to sell or trade. Once you have listed the types of products, you must decide on the company’s name. Make sure that the name you choose is available for registration. After you have decided on a business name, you must select the location of your company. Mainland or free zone setups are both possible. For each, you will need to choose which one best suits your needs.
Once you have the appropriate business name, you can start registering your trade name. You can register a trading name as long as it is unique and not already registered under another name. However, there are some restrictions and regulations. You are not allowed to use terms like ‘Global’ or ‘International’ as the first part of your trade name. Your consultant can help you with the necessary approvals from various Government agencies to register your trade name.
In addition to licensing, the UAE offers various banking facilities. In addition, a general trading license enables you to repatriate 100% of your capital. Therefore, you don’t need to deposit your share capital in UAE banks. There are several benefits that general traders will appreciate. There are numerous benefits associated with a general trading license in Dubai. The most significant advantage of a general trading license is that it opens up a vast array of options.
Advantages Of A General Trading License In Dubai?
A general trading license in Dubai has several advantages for a business owner. Firstly, the UAE has nearly no taxes on importing and exporting goods. Consequently, you can enjoy zero taxes on your profit or income. Additionally, you can quickly get a Dubai trade license within a week. There are many other benefits of a Dubai general trading license, and here are some of them. These advantages make getting a UAE general trading license an excellent choice for people in business.
The next benefit of a general trading license is the flexibility of the visa requirements. You can have multiple shareholders, and there’s no upper limit. In the most popular areas, the total cost of setting up a business will be under-AED 100,000. In addition, you’ll have no paid-up share capital and no annual audits. That means less stress for you and your employees! This license is also suitable for big companies that want to hire many employees.
As mentioned above, Dubai is a world-class city with diverse requirements. With more than 200 nationalities, there’s a wide variety of markets to choose from. As a foreign business, you’ll have a chance to test the market’s appetite before expanding your business operations to a national level. You can even sponsor a dependent if you wish. This is a significant advantage of getting a general trading license in Dubai.
The general trading license in Dubai is not cheap, but its advantages far outweigh the costs. In addition to being tax-free, it allows you to import and export goods without restrictions. Another benefit of a general trading license in Dubai is that you can re-export your products, which is a substantial profit-making opportunity for a business. You’ll be able to take advantage of the low labour cost and government incentives.
Documents needed For General Trading License
A General Trading License in Dubai will enable you to trade goods in the UAE and internationally. You can apply for a license in mainland Dubai or a free zone. You must ensure that you comply with health and safety standards and do not plan on selling or purchasing goods that require external approval. You should also submit a name for the company, which must follow guidelines. We can obtain the license within three to four days.
Apart from these, you will also need the incorporation documents of your company. The incorporation documents must relate to trading activities. Generally, you can perform most actions in Dubai under this license. The documents should also include a rental agreement showing the company’s registered address. You should notarize the documents in Dubai. Once your company has the license, you can do business anywhere in the UAE. However, you must note that some activities are restricted by COVID-19.
The Department of Economic Development issues trade licenses for mainland UAE businesses. The licenses are granted based on the business you plan to conduct. The Department of Economic Development, or DECD, issues these licenses. For businesses wishing to work trade in Dubai, you must first obtain a business license before registering your company. It is important to note that you must submit the documents to the Department of Economic Development.
The Federal Ministry of Economy will publish the documents and issue the approval letter. The DED will issue the original trade license and commercial registration certificates. The whole process will take one week to complete. A General Trading License in Dubai is valid for a year. It is important to remember that this license is not permanent, and it is renewed every year, so you should renew it at the earliest. For the duration of the license, you can engage in various activities.