A general trade license in Dubai allows your business to export, import, re-export, and sell a wide range of goods and commodities. It includes food, electronics, fashion apparel, furniture, jewelry, and a variety of other items. However, trading pharmaceutical drugs and alcohol does not fall under the purview of a general trading license.
In this article, you will learn everything about how you can get a general trade license in Dubai. Let us observe:
1. How to obtain a general trade license in Dubai?
2. The benefits of a general trade license in Dubai
3. Top reasons to do business in Dubai
4. How can we help you with the best licensing services?
1. How to obtain a general trading license in Dubai?
The procedure for obtaining a general trade license in Dubai is straightforward, especially when you are being guided by a business licensing specialist. To obtain it, all you have to do is follow the instructions below:
1.1. Determine your trading activities
The Department of Economic Development (DED) maintains a list of permitted business activities in the UAE. You must select the activities you want to conduct based on the nature of your business and submit the list of selected activities to the authority. Remember that you can choose up to ten activities on a single license.
1.2. Legal structure of the company
Furthermore, decide whether you want to establish your company on the mainland or in one of the free zones. If you choose to establish your business on the mainland, you will have access to Dubai’s lucrative local market. If you choose to form a free zone, you will have complete business ownership.
You must also decide whether your company will be an LLC, a partnership (public or private), a sole proprietorship, or an international or GCC branch. Once you have made your decision, you can work with business consultants in Dubai to determine the general trading LLC license cost in Dubai.
1.3. Reserve a business name
All general trading companies in Dubai are required to register a legal trading name for their company. However, you must not use the name of any god in your trading name, nor should you use a name that is similar to that of an already established company.
Furthermore, you are not permitted to use any derogatory terms or words that offend a community’s sentiments or religious beliefs. If you want to name it after someone, make sure to use their full name.
1.4. Obtain preliminary approval
Once your company name has been approved, you must obtain preliminary approval. For your general trading license in the UAE, you must contact the appropriate authority. To get this approval, you will need the trade name registration payment receipt, as well as a few other required legal documents.
You can hire local legal advisors to assist you in obtaining the initial approval, making the process easier than ever. If all of the documents are in order, you will receive an initial approval certificate stating that the government has no objections to you establishing a company in the UAE.
1.5. Establish a physical office space
Every general trading company in Dubai, whether it is a luxurious office or a warehouse, requires an official business space to carry out its activities as planned. It is preferable to find an affordable office space and rent it rather than purchasing one in the UAE, where you will be required to pay a significant amount in advance.
You must register your office space with Ejari and secure your tenancy contract before you can obtain a general trading license.
1.6. Submit an application for a general trading license
Once you have completed all of the preceding steps, you can easily apply for your general trade license in Dubai. In this step, you will also need the initial approval document, as well as any other legal documents required for verification. Fill out all of the details correctly in the business license application and double-check before submitting it.
Complete the required payments within the time frame specified. Furthermore, if some of your business activities are not covered by your general trading license in Dubai, you may need to apply for additional approvals.
1.7. Visa processing and bank account opening
The final step is to have your visas for your and your family’s stay in the UAE processed. You can apply for UAE visas for your relatives, employees, business managers, and so on based on your business plans. To conduct business in Dubai, a corporate bank account must be opened.
Opening a corporate bank account facilitates transactions and provides long-term benefits and services. For further assistance, we can offer you our banking services.
2. The benefits of a general trading license in Dubai
2.1. Trade, both domestic and international
You can import or manufacture all of the products listed in the license if you obtain a general trade license in Dubai. You can either distribute these goods in the Dubai market or export or re-export them to another country.
Whereas most countries impose high taxes on imports, manufacturing, and sales of various products, the UAE is almost tax-free. One of the advantages of having a general trade license in Dubai is that you pay no taxes. Profit, income, or any other amount is exempt from taxation.
2.3. The procedure is simple
The simple setup process is one of the main reasons for the general trading license’s popularity in Dubai. When compared to other types of lengthy registration processes, this one takes about a week once the necessary documents are submitted to the DED. After that, you can start your business in Dubai.
2.4. Apply for several visas
Once you have a trade license in Dubai, you can apply for multiple visas for your employees. This, however, is dependent on the office space. As a foreign investor, you can also sponsor dependent visas. However, because this is a critical process, seek professional advice before beginning.
2.5. A wide range of products
Except for a few sensitive materials and restrictions, almost all products permitted in Dubai are registered under a general trading license. A single license allows you to trade a large number of products. You only need to pay for this license once, and it will provide you with benefits for years to come.
3. Top reasons to do business in Dubai
Dubai has come a long way toward establishing itself as today’s thriving, ambitious, and fast-paced economy. According to a 2021 survey conducted by the Dubai Chamber of Commerce and Industry, Dubai’s consumer confidence has reached an all-time high in the last ten years.
But, what exactly makes Dubai so appealing to start-ups and SMEs from all over the world? Let us take a look at the top reasons why Dubai is ideal for starting a new business.
3.1. Infrastructure in Dubai is among the best in the world
Dubai has extremely well-developed transportation, social, and economic infrastructure, including but not limited to high-quality office and residential space, strong transportation links, and a sophisticated financial and service sector.
The Global Infrastructure Investment Index ranks Dubai among the best in the world for infrastructure investment attractiveness, making establishing a business here easier than ever.
3.2. Doing business in Dubai: A strategic location with endless trading possibilities
Another significant advantage of Dubai is its geographical location, which allows for strong trade links with major cities such as Moscow, Hong Kong, London, and Hamburg. Dubai, as one of the top trading hubs, has experienced exceptional trade growth and hosts over 100 international trade shows each year.
Participating in these fairs as a business in Dubai allows you to network with multinational corporations and explore new opportunities without disrupting your regular operations.
3.3. Dubai has no income tax and allows for full profit repatriation
It is not surprising that many foreigners choose to establish a business in Dubai because of its business-friendly tax policies. Not only is there a low tax on earnings, but there are numerous leisure options for spending the money, making Dubai an excellent choice for you. In addition, here you can learn more about our tax-related solutions.
3.4. Financial safety
Numerous factors contribute to Dubai’s financial stability. Most importantly, poverty is almost non-existent among its inhabitants. In fact, 63 percent of Dubai residents believe they are financially secure.
Furthermore, Dubai is ranked third in the world in terms of attracting high-net-worth individuals. One of the major factors contributing to Dubai’s strong economy is its resilience to externally turbulent economic factors. Its ability to constantly innovate and create new channels for growth and development is also noteworthy.
In 2018, for example, the leading sectors contributing to Dubai’s growing economy were construction, tourism, and job growth. Dubai is also regarded as one of the world’s top 25 financial centers. Furthermore, it was ranked 18th among financial hubs by the Global Financial Centers Index (GFCI).
Dubai is also at the top of the list in Africa and the Middle East. This makes establishing a business in Dubai an excellent choice. The following are the main factors that GFCI considered when determining its global ranking:
- Business environment
- Human Resources.
- Development of the financial sector.
- Stability in politics.
- Macroeconomic situation.
3.5. Business-friendly government
One of the most important factors in attracting businesses to the region. Dubai’s business-friendly policies and regulations are designed to make doing business in the city-state simple and profitable. The government plays an important role in any business, no matter where it is located.
In Dubai, the government has created a supportive environment for businesses. This assists them in succeeding and achieving long-term sustainability. Foreign businesses can frequently incorporate and open in Dubai within a month with the assistance of PRO services, like the offered by us.
Working with a qualified PRO service provider who is familiar with Dubai’s rules and regulations is therefore critical. This ensures that the company is set up correctly and efficiently.
A PRO service professional has a wealth of experience working with government agencies. They stay up to date on ever-changing laws and procedures. Some of the services they offer are as follows:
- Visa applications and extensions
- Setting up residency for expatriates.
- Support from the Ministry of Labor.
- Local sponsorship if available.
3.6. A+/prime commercial spaces
Dubai is seeing an increase in “plug-and-play” office space. This enables a company entering the region to make faster transitions. Prime or Grade “A” office space accounted for 71% of new office stock between 2017 and 2020. Co-working spaces have taken over the business world, and Dubai is no exception.
There are numerous innovative, adaptable, and reasonably priced co-working spaces available. Furthermore, the majority include cutting-edge facilities and amenities. As a result, these options are very appealing to companies relocating to Dubai.
4. How can we help you with the best licensing services?
If you are considering obtaining a general trading license in Dubai after learning about the benefits, the simple application process, and the low costs, you are on the right track. In this competitive world, general trading companies generate good revenue and will continue to grow.
Hence, if you work with Connect Group, it would be one of the best ways to obtain this license. Our knowledgeable business consultants will handle all documentation, applications, approvals, and licensing at a reasonable cost.
Would you be interested in getting more information about how you can get a general trade license in Dubai? Reach us by making a phone call at +971 43 316 688 to share all your questions with us. You can do the same by writing an email to email@example.com. We have a large team waiting for you!
Are you tired of your current job? There are opportunities out there waiting for you. For this reason, visit thetalentpoint.com and apply for the many openings currently available. Write a cover letter, attach your CV and send it to firstname.lastname@example.org. In addition, your data will be deleted after we review it.