Many entrepreneurs are choosing to establish a new firm in Dubai because of the favorable business environment and government support. Dubai is one of the most sought-after locations for beginning a new business because of its high demand for goods, ease of doing business, and proximity to rising markets. However, you'll need a valid trade license from the Department of Economic Development to get started (DED). To receive this license, a series of rules and processes must be followed.
What is a General Trading License?
A general trading license is required for any entrepreneur wishing to start a business in Dubai. A general trade license covers all of your trading activities, whether they are in the same or separate industries. Export, import, and trade of goods or products such as clothing, accessories, furniture, electronics, and other items are among the activities covered by the general trading license in Dubai.
A general trade license is required for those who want to perform wholesale business. One of the advantages of obtaining a general trading license is that it allows a company to conduct business within Dubai and the other Emirates.
It's vital to remember that some products, such as alcoholic beverages, pharmaceuticals, frozen foods, and so on, are regulated and require special approval from the relevant authorities before they may be traded. A trader has the benefit of exploiting all trading options due to great opportunities in local, national, and international marketplaces.
Entrepreneurs in Dubai have three major alternatives for starting a business:
- Mainland
- Freezones
- Offshore
A businessperson must pick from which area in Dubai he or she wishes to obtain a trade license. Offshore and free zones both have their benefits and drawbacks.
Procedure for Obtaining a General Trading License in UAE
To obtain a general trade license for your trading business in Dubai, follow these eight simple steps:
Decide on a Trade Name and a Legal Entity
Choose a business name and legal structure that is right for your organization. Ensure that the trade name complies with the DED's requirements and is distinctive. For future actions, the corporate entity is required.
Decide on a Business Activity.
Make a list of all the business activities that will be covered by the business license (a maximum of 10 per license)
Fill out an application
Fill out the application and submit it for preliminary approval.
Obtain External Approvals
Obtain external approvals if necessary, depending on the nature of your firm.
Obtain the Required Documents
Arrange for all essential documents, such as the Memorandum of Association (MOA), as well as all government-approved documents.
Select a Location
Choose a business site and obtain an Ejari-attested tenancy contract.
Fill out the application and send it in.
To obtain the final license, apply to the DED.
Pay Fees
Make the required license payment, which includes a charge for getting the license.
The corporation must submit the original documents to the Commercial Registry at the Trade License and Commercial Registration Department in order to obtain a legitimate trade license from a free zone or offshore.
Read more :-Advantages of Setting Up a General Trading Business in Dubai
Documents required for obtaining a UAE General Trading License
- An application for a license signed by the company's managers or legal representatives.
- A Memorandum of Association (MoA)
- DED Passport copy of the managing partners
- Attested firm name approval letter
The documents will be checked and validated by the Commercial Registry Authority. The company's name will then be registered with the Commercial Registry. The documents will be sent to the Federal Ministry of Economy for publishing by the DED. The government will give its approval letter after publishing the documents, which include the MOA and the application entry of the firm name. The DED issues the initial trade license and commercial registration certificates after the licensing procedures are completed.
The license is valid for one year after it is obtained. In order to renew your trade license in Dubai, you must first obtain approval from the authorities. A copy of the previous license should be submitted with the permission form. The renewal is good for another five years.
Cost of a General Trading License in Dubai
The cost of a Dubai general trading license ranges from AED 30,000 to AED 40,000, depending on a number of factors. Within the UAE and other licensing authorities, it can also be used as a legal holding entity. Storage and warehousing can be done in the same way.
The Benefits of a General Trading License in Dubai's
- Tax-Free Zone
- Provision of local and international trading
- Auditing is not required.
- Effortless legal procedure
- A comprehensive range of banking services are available.
- Employees have easy access to visas, and there are no currency limits.
- There is no requirement for fully paid-up capital.
- 100 percent capital and profit repatriation
- Import duties are low.
Conclusion
A general trading license in Dubai can be quite beneficial to a businessperson. Investors are flocking to Dubai to launch a firm because of the government's pro-business policies. If you decide to start a business in Dubai, make sure you read all of the rules, regulations, and processes before making a choice; ignorance and lack of understanding might result in unnecessary costs.
We at Dhanguard have advisers who can guide you through the entire process of obtaining a general trading license in Dubai. Please contact us if you are considering starting a business in Dubai, even if it is only for friendly advice.