A Complete Guide to Getting a UAE General Trade License in Dubai 2024
A general trading license is pivotal for entrepreneurs seeking to engage in importing, exporting, and selling a wide range of goods within Dubai and across the UAE. Whether operating in the Dubai mainland or a Dubai Freezone, this license allows businesses to venture into various sectors without being restricted to a specific product category. In this article, we detail how to get a trade license in Dubai, discuss the cost of trade license in Dubai, and cover essential information about trade license in UAE, including options within Freezones and the mainland. Get your General Trading License today!
- 100% Foreign Ownership
- Easy Business Setup
- Reach a global audience
- Simplify operations
What is a General Trading License
A general trading license grants businesses the freedom to conduct diverse trading activities across multiple industries. Whether you want to import machinery, chemicals, electronics, or even food products, this license accommodates such activities. The primary advantage of a general trading license is its flexibility, allowing traders to operate across sectors without requiring separate licenses for each category. However, certain products, such as pharmaceuticals and tobacco, require additional approvals.
Why Choose a General Trading License in Dubai, UAE?
Securing a trade license in Dubai is essential for any entrepreneur looking to enter the UAE market. The Dubai mainland and Freezones offer different benefits, but both regions provide ample opportunities for growth and expansion. Entrepreneurs often inquire about how to get a trade license in UAE, and the answer lies in understanding the specific requirements of the region they wish to operate in.
For those wondering how to get a trade license in Dubai, the process is streamlined. You submit the necessary documents to the Department of Economic Development (DED) and follow their procedures. The same is true for how to get a trade license in UAE as a whole.
Top Business Activities Covered by General Trading License in Dubai, UAE
While encompassing a wide range of activities, a general trading license in Dubai commonly includes the following business activities:
- Import & Export
- Retail store
- Online selling
- Trading multiple products
- Medical products (Approval from Dubai Health Authority required)
Benefits of Establishing a General Trading Business in Dubai, UAE
Securing a trading license in Dubai offers numerous benefits to both local and international investors. To begin with, the Dubai government is actively promoting foreign trade within the emirate, which offers to a range of benefits available to companies that have successfully acquired a trade license in Dubai.
- Global Access: Businesses can import/export to international markets.
- Tax Benefits: The cost of trade license in UAE is justified by the country’s low corporate tax structure, encouraging growth.
- Flexibility: Operate across multiple industries with a single license.
- Visa Eligibility: A general trading license grants you eligibility to sponsor employee and dependent visas.
- Strategic Location: Dubai’s prime location as a hub between Europe, Asia, and Africa enhances trade opportunities.
- Auditing is not a compulsory requirement.
- A straightforward and legal process without complications.
- A diverse selection of banking services is available.
- Simplified visa acquisition for employees.
- No limitations on currency transactions.
- Minimal import duties apply.
Available types of Trading licenses in Dubai, UAE
General Trading License
- Enables trading in a diverse range of products
- Facilitates trade across multiple industries
- Comes with a comparatively higher license cost
- Offers a broad scope for business diversification
Regular Trading License
- Permits trading in only one group of products
- Restricts trade to a single industry
- Involves a comparatively lower license cost
- Lacks scope for business diversification
Business Structure and Planning in Dubai, UAE
Choosing the right business structure is vital when launching a firm in Dubai. Options include:
- 1. Free Zone Company: A free zone company provides foreign ownership, and simplified registration processes, ideal for global operations.
- 2. Mainland Company: Mainland companies adhere to UAE laws and regulations and are suitable for businesses targeting the domestic market.
- 3. Offshore Company: Offshore companies are Practical for commercial companies registered abroad wishing to operate outside their primary countries.
Consider factors like your business services, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.
Steps for Obtaining a General Trading License in Dubai, UAE
The Department of Economic Development (DED) presently provides expedited processing for general trade corporation licenses. To secure a general trade license in Dubai, the following steps must be completed as part of the business registration process:
Embark on the journey of opening a business in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.
Before securing a trade license in Dubai, the first decision involves choosing between operating within the Dubai mainland or a Freezone. While Dubai Freezone trade license holders enjoy 100% foreign ownership, businesses in the Dubai mainland benefit from easier access to the local market.
When deciding on a company name, ensure it adheres to UAE’s strict naming regulations. Offensive words or religious terms are not allowed, and certain general terms such as “international” require approval. This step is crucial before applying for a trade license in UAE.
Businesses are required to secure office space that fits the needs of their operations. Whether establishing a company. in Dubai free zones or the mainland, having a registered office is necessary for obtaining a trade license under Dubai mainland or Freezones.
Once the company name is approved and the office space is secured, you can begin the formal application process for your trade license in Dubai or trade license in UAE. For the Dubai mainland, you will work closely with the DED, while Dubai Freezones have their own authorities managing the licensing process.
To obtain external clearance for your company, you should approach the relevant department that corresponds to your specific industry.
Once the required approvals have been obtained, it's essential to create the relevant company documents, including the Memorandum and Articles of Association. These documents also encompass the authorized paperwork provided by government agencies.
In order to obtain a trade license, it is necessary to make a specific payment that covers the issuance fee. By fulfilling this payment requirement, which includes the issuance charge, business owners can acquire the essential general trade license that allows for the efficient operation of their businesses
Complete the process by opening your corporate bank account for your Dubai Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.
Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Documents Required to Start a General Trading Business in Dubai, UAE
To obtain your trade license in Dubai, you will need to submit the following documents:
- Passport documentation for the shareholders in question.
- A company name approval letter from DED that has been attested.
- A license application that has been properly signed by the legal representative.
- A copy of the business plan.
- A receipt confirming the payment of fees.
- The Memorandum and Articles of Association.
These documents verify your eligibility to obtain a trade license UAE, ensuring all legalities are covered.
Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.
Cost of Establishing a General Trading Business in Dubai, UAE
Understanding the cost of trade license in Dubai is crucial for budgeting purposes. While the exact cost of trade license in UAE varies based on the type of business, jurisdiction, and additional permits required, a general trading license typically costs between AED 15,000 and AED 50,000. Opting for a Dubai Freezone trade license can sometimes reduce overheads, though it depends on the specific Freezone you choose. You can contact Smart Zones® UAE for a more accurate estimate.
Jurisdiction Decision Process for General Trading Business in Dubai, UAE
Trade License Options in Dubai: Mainland vs. Freezones
- 1. Dubai Mainland General Trading License: Businesses holding a trade license under Dubai mainland enjoy easier access to local markets and can trade directly with local clients without a local agent. However, foreign investors must have a local UAE partner who holds at least 51% of the shares.
- 2. Dubai Freezone General Trading License: A Dubai Freezone trade license offers 100% foreign ownership and tax exemptions. Companies in Freezones are also exempt from customs duties when trading outside the UAE, making this an attractive option for international traders.
A general trading license is essential for individuals or businesses involved in buying and selling across various industries. It is a fundamental requirement for officially registering a general trading company in Dubai.
A general trading license in Dubai covers diverse activities, including import/export, retail, online selling, trading multiple products, and medical products (with Dubai Health Authority approval).
Benefits include access to local and international trading opportunities, no compulsory auditing, a simplified setup process, diverse banking services, simplified employee visa acquisition, no currency transaction limitations, and minimal import duties.
Types include General Trading License (diverse products and industries) and Regular Trading License (limited to one group of products and industry).
Options include Free Zone Company (foreign ownership, global operations), Mainland Company (UAE laws, domestic market focus), and Offshore Company (for commercial companies registered abroad operating outside their primary countries).
Steps involve partnering with Smart Zones® UAE, selecting a name and business structure, determining activities, choosing a strategic location, submitting an approval form, obtaining external clearances, drafting necessary paperwork, paying fees, and opening a corporate bank account.
Required documents include shareholder passports, a DED-attested company name approval letter, a signed license application, a business plan copy, a fee payment receipt, and Memorandum and Articles of Association.
Costs range from AED 15,000 to AED 50,000 (approx.) or more, influenced by factors like business location, warehouse size, office space, approvals, jurisdiction, and visa applications. Contact Smart Zones® UAE for a more accurate estimate.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
