The booming commercial environment of Dubai has made it a global centre for investors and entrepreneurs. With its advantageous location, thriving economy, and investor-friendly rules, it should not be surprising that obtaining a general trade license in Dubai has become one of the most sought-after possibilities in the business world.
In Dubai, what is a General Trading License?
General trading refers to the flexible act of dealing in a wide range of goods across several industries. The Department of Economic Development (DED) is the issuing authority of general trading licenses in Dubai. The DED defines general commerce as commercial enterprises that import, trade, and re-export commodities by UAE government laws. A general trade license is a significant part of Company formation in Dubai. It enables businesses to operate in different industries, from trading machinery and chemicals to real estate and food, all under one license, even though some trading operations may need special licensing.
Applying for a General Trading License in Dubai
• Send the DED the necessary documentation.
• Obtain the voucher for the government payment.
• Pay the required fees.
• Obtain license
Business Activities Using A General Trading License
General trading licenses in Dubai open a wide range of business opportunities. The typical uses for a general trading license are as follows:
1. Import and Export
2. Online sales
3. Multiple product trading
4. Retail store operations
5. Trading of medical products
Types of Trading Licence in Different Jurisdictions
Dubai’s primary dominions are Mainland, Free Economic Zone, and Offshore. The licenses are also issued accordingly.
Documents required for a general trading License
Depending on the residency status of the business owner, a general Trading license requires the following documents.
For UAE Resident
• Copy of Emirate ID
• Copy of passport
• Copy of UAE resident Visa
For non-residents, the same documents are required, except for Emirate ID.
What are the benefits of having a General Trade License in Dubai?
Some of the main benefits are:
• Complete ownership of your company
• The ability to get the license from your home country without having to fly to Dubai
• The trade license can be issued in as little as an hour
• No requirement for office space.
• Profits and capital repatriated in full
• The number of products or activities carried out under a single license is unrestricted.
Obtaining a general trading license in Dubai- How much does it cost?
The cost of acquiring a general trading license varies. It varies across the different Emirates. Dubai has a higher trading license cost compared to others. The cheapest license one can get in IFZA – Dubai Silicon Oasis for AED 11900 with zero visa quota.
Generally, the general trading license cost break is as follows:
Business name reservation – AED 620
Initial approval fees – AED 120
Tashfeel fees for granting initial approval – AED 345
Tashfeel fees for MOA – AED 350
License fees – AED 12500 – 15000
DED Activity fees for general trading – AED 15000
Immigration card – AED 750
Total cost of a General Trading License (Approx.) – AED 29685
Conclusion
While obtaining a general trade license in Dubai is straightforward, foreign investors and first-time business owners may still find it challenging to do it alone. The best way is to take the assistance of a business setup consultant, such as an A&A Associate guide, and get expert to assist in obtaining the General trade license. They can take care of every essential need of the client related to the documentation, application, and follow-up process and ensure no overcharging on fees.