If you’re an entrepreneur planning to start your business in Dubai, UAE, and still wondering which business license to get, so you should know about general trading license in dubai. Here, we will discuss a license that provides numerous benefits and opportunities for your business and trading career.
If you are a trader aiming to trade in a wide range of diverse products, a general trading license in dubai is your ultimate solution. This license acts as your gateway to importing, exporting, and trading in all kinds of products—except those requiring special legal approvals.
What is a General Trading License in Dubai?
A General Trading License is a permit granted to traders, allowing them to engage in the trade of a wide range of products without limitations—except for those that require special legal approvals, such as pharmaceuticals, alcohol, or firearms.
This type of license is an excellent option for businesses looking to start importing, exporting, and trading across the UAE. It also facilitates trading within the country through authorized distributors.
Obtaining a General Trading License in Dubai offers numerous benefits that can significantly enhance your business operations and trading career.
How to Start a General Trading Company in Dubai?
If you’re aiming to obtain a General Trading License in Dubai, you need to follow the proper procedures to set up your trading company. Below are the essential steps involved in the process:
1. Develop a Business Plan
Starting a company in Dubai requires a well-thought-out strategy. A solid business plan should include detailed research on products, services, market activities, and competition. These elements will significantly contribute to the success and sustainability of your business.
2. Determine the Right Location (Mainland vs Freezone)
The jurisdiction where you choose to establish your trading company will play a crucial role in obtaining the General Trading License. Dubai offers three types of zones: Mainland, Offshore, and Free Zones. Each zone offers different benefits:
- Mainland: Provides broader market access and more operational flexibility. It allows you to trade directly with the UAE market and other GCC countries.
- Freezone: Ideal for businesses focusing on international trade, offering tax incentives, and full foreign ownership.
- Offshore: Suited for businesses that operate internationally without a local market presence.
The jurisdiction you select should align with your business goals. For example, setting up in the Mainland provides more business opportunities and flexibility compared to Free Zones.
3. Choose a Trade Name
Selecting the right trade name is crucial for your company’s identity. Here are the guidelines for choosing an appropriate trade name:
- The name must be unique and non-repetitive.
- It must be transliterated into Arabic or English without special characters, symbols, or icons.
- Avoid offensive, religious, or political terms.
- Certain words like “Universal” or “International” are prohibited.
- The name must pass a database check for duplicates.
- Trademark registration is required through the Ministry of Economy.
- Embassy approval is needed if the name includes a country or government name.
Once you’ve decided on a name, it needs to be submitted for approval through Dubai’s government website.
4. Obtain the General Trading License
A General Trading License is the key to unlocking opportunities for businesses in Dubai that want to import, export, and trade a wide range of products. This license gives you the flexibility to operate across various sectors within the UAE and internationally. Obtaining this license enables you to establish and expand your trading activities.
5. Work with a Local Agent
Your local business setup consultant or agent plays an essential role in helping you understand the cost and requirements for obtaining the General Trading License. They can guide you through the entire process, ensuring compliance with local regulations and helping you manage legal formalities. Consulting with an experienced agent such as Business Link UAE will greatly improve the likelihood of your success.
6. Complete Legal Formalities
It’s essential for businesses involved in importing, exporting, or trading to meet the necessary legal requirements. A General Trading License is mandatory for such activities. A local consultant like Business Link UAE can assist you with registering your company, obtaining the license, and ensuring that you meet all legal obligations.
Want to Know More About Trading Activity in Dubai?
Entrepreneurs that have multiple business activities can rely on a trade license in Dubai to cover it all. For instance, The activities that are usually covered by a trade license include the export and import of goods such as furniture, electronics, clothes, and more. If you want to indulge in wholesale business in Dubai, you can always depend on a general trade license.
Furthermore, having a general trade license will allow you to conduct business anywhere with Emirates or Dubai. However, this license will be applicable only for certain regulated products like frozen goods, pharmaceutical goods, and beverages. Considering the rise in national and international market trades, the business owners are getting general trading licenses in Dubai.
How to obtain a general trading license in Dubai?
You must follow all the legal procedures to obtain a general trade license in Dubai. The steps to obtain the license include the following:
-
Have a trade name and corporate entity
Businesses applying for general trade licenses need to book a trade name in Dubai DED. At the same time, it is crucial that they determine their business entity.
The trade name should comply with the rules set by DED. It is necessary that they identify the corporate entity to initiate the process.
-
Know what business activity you want to conduct
Selecting the business activity is the first step to detrmine what are the business you will practice, in other words chosing the right license will be the optimum gate to reach your goal.
-
Choose company name
You need to choose an accurate trading name for your company. Once you select a name, you need to send it for approval as well. You should be familiar with the laws of the company, especially the do’s and don’ts. You can name your company only when you get the approval.
-
Choose an office space
You need to select an office location as well. It is crucial that you rent the warehouse as well. General trading will require you to have physical goods. With the help of a mainland license, you can get any warehouse.
However, for the Freezones you will have certain restrictions. It is necessary that you choose an office space depending on the requirement of your business.
-
Gather the documents
You need to get external approval along with all necessary documents. You should make sure to arrange documents such as the Memorandum of Association and more. This will further help to regulate your business.
-
Customs clearance
Customs clearance is necessary if you want to import certain goods within the country. The customs authority will provide you with an import code using which you can import products within the country. Furthermore, you can also register the company with a customs authority.
-
Submit the application
After you have filled in the application, you need to submit it to the Department of Economic Development.
-
Pay the fees
You will need to pay a certain fee for getting the approval of your document. It is crucial that you apply for a valid license under the offshore and free zone. Furthermore, you should consider submitting all the original documents to get a commercial License in Dubai and Commercial Registration Department.
What are the documents needed?
If you are applying for a general trading license in Dubai, you need to submit the following documents:
- Passport copy of management partners.
- Memorandum of Association.
- License Application Signed by the Company managers.
- Attested a copy of the name of the company.
The Commercial Registry Authority is responsible for checking and determining the validity of documents. Once all the documents are verified, they will be added as a part of the Commercial Registry. The Ministry will provide an approval letter only if the documents are considered to be valid.
The general trade license will be valid for a year. However, you can apply for the renewal only after getting approval from the authorities. The renewal of the license will be valid for five years from the date of renewal.
Why should you opt for a general trading license?
A general trading license in Dubai can prove to be extremely beneficial. Working in close association with the consultation company will help you determine the general trading license cost in Dubai.
Furthermore, it will also help you get the flexibility of holding companies which can further be used for warehousing and storage. Some of the common advantages of opting for a general trading license in Dubai include the following:
- Local and international trading provision.
- No currency restriction.
- Auditing is not compulsory.
- There is no requirement to opt for paid-up capital.
- Easy access for getting visas for employees.
- Low import duty.
- Various banking facilities.
- Tax-free jurisdiction.
Business Link – Your one-stop solution for Business Trading License in Dubai
Do you want to obtain a general trading license in Dubai? Business Link UAE can assist you in the entire process. In other words, Having a general trade license can prove to be extremely beneficial in the long run.
Once you have the license, investors will be all around you. However, one of the common mistakes people make is being unaware of the entire process. Business Link UAE can help to ease the process of obtaining the general trading license. If you want to do a business setup in Dubai, contact us.
For more info
✉ info@businesslinkuae.com | www.businesslinkuae.com | +971-556070118 | ☎+971-43215227
