Dubai is the land where businesses from various industries flourish and make a name for themselves in today’s competitive marketplace. The opportunities are even brighter for general trading companies, given the tax benefits and other privileges they enjoy in the UAE. All you need to do is obtain a general trading license in Dubai and form your dream venture in your preferred location.
This license allows your company to export, import, re-export, and trade various goods and commodities. It includes foodstuff, tech gadgets, apparel, furniture, jewelry, and several other products. However, remember that the trading of pharmaceutical drugs, automotive, alcohol, etc., doesn’t come under a general trading license. Theat Shuraa will help you obtain a general trading license for your company.
Process for general trading license in Dubai:
The process for obtaining a general trading license in Dubai is hassle-free and straightforward. Follow the steps to process the license:
1. Decide the business activities and company’s structure
The Department of Economic Development (DED) maintains a list of permissible trading activities allowed in the UAE. You need to pick and choose depending on your venture’s nature and submit your preferred list to the authority. Moreover, finalize whether you want to launch your trading company in Dubai mainland or any of the free zones. A mainland establishment gives you access to Dubai’s lucrative local market, and a free zone formation offers 100% business ownership. Furthermore, you’ll need a reliable local sponsor to open an LLC in the mainland region, and Shuraa can become your silent business partner at a nominal cost.
2. Reserve a trading name
All trading companies in Dubai must reserve a legal trading name for their businesses. The name should be unique and indicative of your business activities. Refrain from using the name of any god (or a reference to them) in your business name and never try to gimmick someone else’s company’s name. Furthermore, never use derogatory terms or words that hurt the sentiments and religious beliefs of a community. Ensure to use the full name of a person if you wish to keep it as your official trading name in the UAE.
3. Obtain the initial approval
Once your proposed trading name is approved for your general trading license in Dubai, you need to obtain the initial approval from the concerned authority. You’ll need the payment receipt of the trade name reservation alongside a few other mandatory documents to get this approval. The process to obtain the initial approval becomes easier than ever when you hire local legal advisors to assist you with the same. Keep this approval handy as you’ll be needing it in the next steps of securing the general trading license.
4. Secure an office space
Be it a lavish office space or a spacious warehouse – general trading companies in Dubai need a business space to operate as planned. It’s better to find affordable office space on rent rather than purchasing any real estate in the UAE because it requires hefty investments upfront, and it might hinder your business aspirations. Therefore, go for rented space in the initial business phase and sign the tenancy agreement accordingly.
5. Apply for the license
You can apply for your general trading license in Dubai once you’re done with all the steps mentioned above. You’ll also need the initial approval document in this step, along with other documents needed for verification. Ensure that you fill in all the details correctly in the business license application and make the necessary payments within the defined time frame. Moreover, you’ll need to apply for additional approvals in case some of the business activities aren’t included in your general trading license.
6. Obtain customs clearance
It’s imperative to obtain clearance from the customs authorities for risk-free trading activities in the UAE. You must gain their consent if you’re importing goods in the Emirates. All you need to do is get in touch with any of the customs authorities and request an import code corresponding to your general trading license in Dubai. Once you have the import code, you can pay the necessary fee for the same, and you’re all set to carry out trading activities in the UAE.
7. Manage visas and open a bank account
The last step is to manage visas for your stay and your family’s stay in the UAE. You can apply for visas for your relatives, domestic staff, etc., depending on your plans. Finally, don’t forget to open a corporate bank account for your general trading company in Dubai. Ensure that you choose a reliable bank that offers long-term business benefits and hassle-free services.
General trading license benefits in the UAE are:
There are several advantages of launching a general trading company in Dubai. A few of them are mentioned below:
1. Forming a general trading company is a risk-free venture because it’s a booming industry and offers plenty of business scope. Furthermore, the tourism industry in UAE continues to expand at a rapid pace, and the same also boosts the revenue of general trading companies in Dubai.
2. It’s easy to obtain the general trading license and becomes a cakewalk with the assistance of the at Shuraa. The new-age investors and entrepreneurs are always looking for a business opportunity that’s free of any complications, and a general trading company is the first choice for such a venture.
3. Trading companies generate sizable revenue in the UAE, thanks to the several tax benefits and exemptions. They only need to pay a 5% VAT, and there’s no customs duty, corporate tax, etc., in Dubai. Moreover, the trading companies in Dubai also enjoy 100% repatriation of capital and profits.
What paperwork goes into obtaining a general trading license?
All companies in the UAE must comply with the paperwork requirements established by the governing bodies. Here’s a curated list of documents you’ll need to obtain a general trading license in Dubai:
- Passport copies of all the partners in the company
- Passport size photographs of the applicant in compliance with the photography protocols
- MoA and LSA agreements
- approval letter issued by the concerned authority
- Office/warehouse tenancy contract alongside a detailed location plan
- NOC letter from your current sponsor
Shuraa – your business companion
Your choice to obtain a general trading license in Dubai is the correct one because it’s one of the best business sectors in the UAE and will continue to grow in this fast-paced world. The best way to acquire this license is by collaborating with Shuraa Business Setup. We have already helped more than 25,000 clients with their business formation requirements and would love to assist you in launching your general trading company in Dubai. Our will take care of the documentation, licensing, banking, and everything else.