General Trade License In UAE – Dubai Trade License

16 Apr General Trade License In UAE – Dubai Trade License

Knowing the essentials – acquiring a Dubai trade license

Before a company can start doing business in the UAE , it must produce documentation proving it has obtained a general trade license as well as all the legal permits and qualifications to operate locally. This involves a long and extensive process of submitting applications and producing proper documentation. Moreover, the requirements vary based on the type of business you are trying to establish.

For companies in the health, food, and industrial sectors, requirements are likely more extensive and standards more stringent as compared to companies involved in general trade. This is because companies in these industries are required to meet safety and health standards before being allowed to operate. If you are unfamiliar with these requirements, you will likely spend a long time trying to navigate the process.

Make sure you are not mired by the bureaucratic process with the help of fast, efficient, cost-effective business solutions from Business Setup Consultants – the leading corporate services provider in the UAE today.

What Is Trade License In Uae?

A trade license is a mandatory legal requirement for conducting any commercial or business activity in the United Arab Emirates (UAE). It is an official document issued by the respective economic department or free zone authority that grants businesses the permission to operate lawfully within the UAE.

The trade license serves as a comprehensive regulatory framework, specifying the nature of the business, its permitted activities, ownership structure, and location. It ensures that companies comply with the UAE’s commercial laws and regulations, fostering a transparent and well-governed business environment.

Helping clients acquire the right license for their business at the shortest time possible

In Dubai, there are three license types an entity must choose from in order to operate within the legal boundaries of the city. Acquiring the right type is essential for a general trading company to be given permission to conduct business locally. The three types are as follows:

• Commercial Trade License – this type is provided to companies that are structured to engage in any kind of local trading of goods or services.
• Industrial License – this type is given to entities that are looking to engage in any type of manufacturing or industrial operation.
• Professional License – this type is issued to professional service providers, artisans, and craftsmen.
• Tourism Trade License: Designed for businesses operating in the tourism and hospitality sector, including travel agencies, tour operators, and hotels.

Our company setup specialists in Dubai will help you identify which license is most applicable for your trade . After we have determined the most appropriate option, our professional consultants will guide you through the process of applying and qualifying for a license.

Advantages of Having  a General Trading License in Dubai UAE

Trade Flexibility with a Wide Range of Products

A Dubai general trading license grants businesses the flexibility to import, export, and trade a wide range of products and commodities. This versatility allows companies to diversify their product offerings, adapt to changing market demands, and explore new revenue streams without the need for multiple specialized licenses.

Access to the Lucrative UAE Market and Beyond

Dubai’s central location and world-class infrastructure make it an ideal hub for businesses seeking to tap into the lucrative UAE market and the broader Middle East region. With a general trading license, companies can seamlessly distribute their products and services across the UAE and leverage Dubai’s strategic position as a gateway to neighboring countries and international markets.

Streamlined Business Setup Process

Compared to obtaining multiple specific licenses for various trade activities, a general trading license simplifies the business setup process in Dubai. This streamlined approach reduces the administrative burden, saves time, and allows companies to focus their resources on core business operations more efficiently.

Potential Tax Benefits

The UAE, including Dubai, offers a favorable tax environment for businesses. With a general trading license, companies can benefit from the UAE’s low corporate tax rates, currently set at 9% for taxable income exceeding AED 375,000 (approximately $102,000). Additionally, the UAE has an extensive network of double taxation avoidance agreements, further enhancing the tax benefits for businesses operating internationally.

How To Get Trade License In UAE (4 Steps for General Trading License)

Establishing your business in the UAE and unlocking its vibrant trade potential begins with acquiring a trade license. For companies seeking versatility, a General Trading License offers a comprehensive solution. Here’s a high-level overview of the process involved:

1. Initial Business Setup and Company Registration:

The initial approval steps involve defining your business structure (sole proprietorship, limited liability company, etc.) and selecting a suitable trade name. You’ll need to register your company with the relevant authorities, which may vary depending on your chosen location (mainland or free zone). This stage also involves securing a physical office address within the UAE (except for specific free zone options).

2. Choosing the Right License Type (Mainland or Free Zone):

A crucial decision lies in selecting the appropriate license type – mainland or free zone. UAE Mainland licenses, issued by the Department of Economic Development (DED) in each emirate, grant access to the entire UAE market but may involve higher costs and specific ownership restrictions. Free zone licenses, offered by designated free zone authorities, provide benefits like tax exemptions and full foreign ownership, but may limit direct mainland trading activities. Carefully consider your business goals and operational needs to make an informed choice.

3. Obtaining Necessary Approvals and Permits:

Depending on your chosen business activities, additional approvals from relevant government entities might be required. These could include permits from health authorities for food-related businesses or environmental clearances for specific industries. Consulting with business setup specialists can help identify and navigate this process.

4. Finalizing the License Application and Payment:

Once you’ve completed the initial formalities, it’s time to submit your formal application for the General Trading License. This will involve filling out application forms, providing necessary documentation, and paying the associated license fees. The specific documents and fees may vary depending on your chosen emirate and business structure.

Remember, this is a simplified overview. Business Setup Consultants can provide invaluable assistance in navigating the intricacies of obtaining your General Trading License, ensuring a smooth and efficient process for your company’s successful launch in the UAE.

Complete support for every trade and business from our comprehensive range of solutions

Licensing is performed by specific governing Dubai trade license authorities for various industries. These are the following governing licensing bodies and their particular industries:

• UAE Central Bank – Banking and financial institutions
• Finance and Industry Ministry – Manufacturing
• Economy and Commerce Ministry – Insurance and related businesses
• Health Ministry – Medical and pharmaceutical sector

For companies whose trade is in the oil and gas sector of Dubai, additional approvals and endorsements are required by other Dubai government agencies. These special requirements must be fulfilled before a company can proceed with business establishment and operations.

General Trading License Cost In Abu Dhabi 2024

Currently, the Abu Dhabi government has waived license and registration fees for new companies for the first two years. This means you could potentially avoid the standard first-year cost of AED 15,000 for license fees and AED 3,500 for registration.

However, it’s important to consider that there might still be other associated costs involved in obtaining a General Trading License in Abu Dhabi, even in 2024. These could include:

• Business Setup Fees: Companies offering business setup services may charge fees for their assistance with the application process.
• Visa Fees: If you plan to employ staff, you’ll need to factor in visa application fees.
• Other Permits and Approvals: Depending on your specific business activities, additional permits or approvals might have associated fees.

For a more accurate estimate of the total cost involved in obtaining your General Trading License in Abu Dhabi, it’s recommended to consult with a reputable business setup consultant. We can assess your specific needs and provide a more comprehensive breakdown of potential costs.

Expedite Your License Acquisition Process Today

Why waste your valuable time working with mediocre service providers? If you want truly proficient trade license acquisition solutions, partner with the leading specialized business service providers in the country today – Business Setup Consultants. 

To find out more about our services, feel free to get in touch with us today.

You can call us through our contact no. +971 4 430 1245. You can also visit our office at Jumeirah Lakes Towers, Dubai.