Dubai is popularly known as the land of business. It has gained a reputation as a global business hub where various industries flourish and make a name for themselves in today’s competitive marketplace. Thanks to the world-class modern facilities and infrastructure, today, Dubai has become an ideal location for conferences, corporate meetings, business events, and exhibitions. Entrepreneurs from around the world are applying for a general trading license in Dubai.
A general trading license in Dubai allows your company to export, import, re-export, and sell various goods and commodities. It includes food products, electronic gadgets, fashion apparel, furniture, jewelry, and several other goods. But, note that trading pharmaceutical drugs and alcohol doesn’t come under a general trading license. You can apply for a commercial license for trading these products. You can connect with business consultants at Gulfroots to give you a better understanding of the general trading license cost in Dubai for your company.
What is the Process to Get a General Trading License in Dubai?
The process for obtaining Dubai’s general trading license is hassle-free and straightforward. All you need to do is follow the steps mentioned below:
1. Decide The Trading Activities
The Department of Economic Development (DED) provides a list of permissible business activities allowed to do in the UAE. You must pick and choose the activities you want to conduct depending on your business’s nature and submit the list of selected activities to the authority. Remember, you can select up to 10 activities on one license.
2. Company’s Legal Structure
Moreover, finalize whether you want to set up your company in the mainland or any one of the free zones. If you decide to establish your company in the mainland you can access Dubai’s lucrative local market. If you choose to go for a free zone formation, it gives you 100% business ownership. Furthermore, you must decide whether you want your company to be an LLC, a partnership (Public or Private), a sole proprietorship, an international or GCC branch. Once you decide this, you can then partner with business consultants in Dubai to help you figure out the general trading LLC license cost in Dubai.
3. Reserve a trading name
All the general trading companies in Dubai must register a legal trading name for their business. However, you must refrain from using the name of any god in your trading name and avoid using a name that is similar to an already established company. Furthermore, you are not allowed to use any derogatory terms or words that hurt the sentiments and religious beliefs of a community. Ensure to use a person’s full name if you wish to name it after one.
4. Obtain the initial approval
Once your company name is approved, you need to obtain the initial approval. You must reach out to the concerned authority for your general trading license in UAE. You’ll need the trade name registration payment receipt alongside a few other mandatory legal documents to get this approval. To make the process to obtain the initial approval more effortless than ever, you can hire local legal advisors to assist you with the same. If all the documents are in place, you will get the initial approval certificate which states that the government has no problem with you establishing a company in the UAE.
5. Secure a Physical Office Space
Be it a lavish office or a warehouse, every general trading company in Dubai needs an official business space to execute its activities as planned. It’s better to find an affordable office space and rent it rather than purchasing one in the UAE as you will have to pay a considerable amount in advance. Once you rent an office space, you must register it with Ejari and secure your tenancy contract, without which you cannot obtain a trading license.
6. Apply for General Trading License
You can easily apply for your trading license once you’re done with all the steps mentioned above. You’ll also need the initial approval document in this step, along with other necessary legal documents required for verification. Ensure that you fill in all the details correctly in the business license application and double-check before final submission. Complete the required payments within the defined time frame. Moreover, you might have to apply for additional approvals if some of the business activities aren’t included in your general trading license.
7. Process Visas and Open a Bank Account
The last step is to get your visas processed for your and your family’s stay in the UAE. As per your business plans, you can apply for visas for your relatives, staff, business manager, etc. It is mandatory to open a corporate bank account for doing business in Dubai. Opening a corporate bank account helps you smoothly carry out transactions and offers long-term benefits and services.
What are the Major Advantages of a General Trading License in Dubai?
There are several advantages of setting up a general trading company in Dubai. A few of them are mentioned below:
- It’s a risk-free venture because it’s a booming industry and offers plenty of business scope.
- Moreover, the tourism industry in Dubai is expanding at a rapid pace, boosting the revenue of general trading companies in Dubai.
- It’s a quick and straightforward application process for obtaining a trading license. It is even easier if you get assistance from the business experts at Gulfroots.
- A general trading company is the first choice for new-age investors and entrepreneurs as it is free of any complications.
- Thanks to several policies and tax exemptions, general trading companies can generate good revenue. They only need to pay a 5% VAT. Furthermore, there’s no need to pay customs duty, corporate or income tax, etc., in Dubai.
- Moreover, general trading companies in Dubai enjoy 100% repatriation of capital and profits.
What are The Documents for a General Trading License?
The government has carefully drafted the paperwork requirements for establishing a general trading company in Dubai. Here’s a list of documents you’ll need to obtain a general trading license in Dubai:
Following are the documents required for a new trade license:-
- Trade Name ( At Least 3 name choices)
- Passport copy of the shareholders.
- Entry stamp or Visa page.
- Passport size photograph
Get Your General Trading License in Dubai Through Gulfroots
After learning about the benefits, the easy application process, and minimum costs, if you are thinking of obtaining a general trading license in Dubai, you are thinking in the right direction. General trading companies generate good revenue in the UAE and will continue to grow in this competitive world. One of the best ways to acquire this license is by collaborating with Gulfroots. Our experienced business consultants will take care of documentation, application, approvals, and licensing at an affordable rate. All you need to do is call us and we will take care of the rest.