How to Get General Trading License in Dubai, UAE: Step-by-Step Guide

Individuals seeking to establish a business in the UAE, a general trading license provides numerous advantages, empowering investors to engage in seamless trade both within local regions and on an international scale for their businesses in the UAE. Get your General Trading License today!

  • 100% Foreign Ownership
  • Easy Business Setup
  • Reach a global audience
  • Simplify operations
Start your General Trading Business in Dubai, UAE - Smart Zones UAE

A general trading license is a type of trading authorization that grants an individual or business the permission to engage in the buying and selling of goods, products, and services offered by other commercial enterprises. It is among the fundamental licenses required for a business entity intending to conduct general trading activities.


Why Get General Trading License in Dubai, UAE ?

Dubai offers a wide range of options for running a business. You can apply for a general trading license in Dubai, which allows you to do various types of businesses in different industries like food, electronics, furniture, clothing, fashion, and more. But remember, you must have a general trading license to officially register your general trading company in Dubai.

Given the heightened competition in today's market, this license has become an essential requirement for any e-commerce business aspiring to achieve success.


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)
Advantages of Establishing a General Trading Business in Dubai, UAE - Smart Zones UAE

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.

  • Access to both local and international trading 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 to Launch a General Trading Business 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.

It is essential to make a choice regarding an appropriate business name and the legal structure for your business. Entrepreneurs in Dubai have a selection of business entities at their disposal. Nevertheless, it's crucial to thoroughly understand the advantages and disadvantages associated with each of these business entities before making a decision.

As per governmental regulations, it is required that the general trade license clearly outlines the commercial activities taking place at the business premises. Therefore, you are asked to determine the specific business activities that will be covered by the license, limited to a maximum of 10 activities per license.

Selecting the right location is a crucial factor when it comes to establishing a company. The growth of your business greatly depends on this choice. Dubai provides a range of location options, such as mainland, free zones, and offshore areas, each with its specific requirements for business formation. The optimal location should be determined based on its accessibility to your target audience. Furthermore, once the location is chosen, it's essential to secure a tenancy agreement that is attested by Ejari.

The initial approval form needs to be accurately filled out, signed, and submitted to the relevant department for approval from the regulatory authorities. This form should contain essential details about shareholders, business operations, location, and more, all of which must be accurately provided to advance the approval 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.

Operating since 2013, Smart Zones® UAE provides on-going support to obtain Business Services License in Dubai, UAE including General Trading Businesses.

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 secure a general trading license, one simply needs to furnish the following documents to the relevant governing body.

  • 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.

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

For a General Trading License in Dubai, the cost is slightly higher. This is attributed to its allowance for trading in various products under a single license, offering a greater potential for business growth and diversification. Consequently, it presents a more cost-effective solution compared to a license limited to a single activity.

The expense for a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000 (approx.) or more. The overall cost is influenced by factors such as the chosen business location, warehouse size, office space, additional approvals, business jurisdiction, and visa applications. You can contact Smart Zones® UAE for a more accurate estimate.

Frequently
Asked Questions (FAQs)

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.

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Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?

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