03 Nov How to Get a General Trading License in Dubai?
Nowadays, almost every entrepreneur knows that Dubai is a wonderful place to expand any business. Dubai is one of the best countries to start a new business because it has a supportive government, a no-tax system, and a great demand for goods. However, if you are aware of all the opportunities and want to start a business in Dubai , you must get a general trading license from the Department of Economic Development (DED) .
To learn more about a general trading license and how you can get it, please keep on reading.
What is a General Trading License in Dubai?
A General Trading License is a type of business license issued by the Dubai Department of Economy and Tourism (DET) or Dubai economic department in Dubai. It permits the holder to engage in various trading activities, including importing, exporting, and re-exporting goods and products. This license covers a broad spectrum of trading activities, making it a versatile option for businesses involved in the buying and selling of goods on the UAE mainland or free zones like Meydan free zone.
Under a General Trading License, businesses can trade in a variety of products, such as textiles, electronics, machinery, furniture, and other consumer goods. However, it’s important to note that certain products, such as alcohol, pork products, and specific regulated items, may have additional licensing requirements or restrictions for industrial license.
What is the Importance of a General Trading License in Dubai?
When entrepreneurs try to start a business in Dubai , the most important thing they should have is a professional license. A general trade license enables you to have various trading activities in the same or different industries. Moreover, with this commercial trade license, you can import, export, and trade products of various categories, including accessories, electronics, machinery, furniture, and clothes.
As compared to the particular commercial license category, a general trade license allows you to sell more products. Furthermore, if you are interested in the wholesale business, this trading license is a must-have for you.
Eligibility and Requirements
As the Dubai economy continues to thrive and diversify, obtaining the right business license is crucial for companies looking to establish a trading presence in this dynamic emirate.
To obtain a General Trading License in Dubai, United Arab Emirates, businesses must meet specific eligibility criteria and fulfill several requirements. These may vary depending on the legal status of the applicant (individual or company) and the specific circumstances for company registration and business structure.
For individuals, the primary requirements include:
- Legal age (21 years or above)
- Valid residence visa (for non-UAE nationals)
- Minimum capital requirement (varies based on the proposed activity and jurisdiction)
- Suitable office space or a physical trade location
For companies, the requirements typically include:
- Appropriate legal structure (e.g., Limited Liability Company, Dubai Free Zone Company) for offshore company formation
- Minimum capital requirement (varies based on the proposed trading activity and jurisdiction)
- Appointment of a local service agent (for non-UAE companies)
- Suitable office space or a physical trade location
Additionally, applicants must provide various documents, such as passport copies, Emirates ID, business plan, and any other relevant approvals or certifications required for their specific trading activities.
how to get general trading license in dubai
How to Get General Trading License in Dubai?
You can follow the below-mentioned steps if you want to start a general trading company in Dubai and get the required license .
- Choose the location from where you want to get a Dubai trade license. For this, you have 3 options: Free Zones, Dubai Mainland, and Offshore. Moreover, the Dubai general trading license cost in Dubai varies with location.
- Select a trading name for your company that is unique and according to the rules of DED Dubai. Also, choose a legal structure for the company.
- Fill out the application and submit it to the higher authorities for initial approval.
- Get the required external approvals based on your business activity.
- After getting the initial approval, you need to gather all the necessary documents , for example, the Memorandum of Association (MOA).
- Obtain a tenancy contract attested by Ejari after you have decided on the business location.
- Apply to the Department of Economic Development (DED) to get the final trading license.
- Give the required fee payments and original documents to obtain the general trading business license.
The whole process of acquiring the general trade license in Dubai takes a week after you have submitted the required documents to the DED. You can use this license for a year.
What are the Required Documents to get a General Trading License in Dubai?
The documents that are required to get a general trading license in Dubai are:
- A shareholder agreement and a Memorandum of Association.
- License application signed by the company’s managers or their official representatives.
- Copy of the partners’ passports.
- An approval letter of an attested trade name from the DED.
Advantages of a General Trading License
Obtaining a General Trading License in Dubai offers several advantages for businesses:
Flexibility:Â
This license allows businesses to trade in a wide range of products and services, providing flexibility in their operations and the ability to adapt to market demands.
Import and Export Capabilities:Â
Holders of a General Trading License can import and export goods, enabling them to source products from various markets and expand their reach globally.
Business Growth and Expansion:Â
With the versatility of this license, businesses can explore new trading opportunities, diversify their product portfolio, and capitalize on emerging market trends, facilitating business growth and expansion.
Limitations and Restrictions
While the General Trading License offers numerous advantages, it’s essential to understand its limitations and restrictions:
Prohibited Activities:
Certain activities, such as trading in prohibited or regulated goods (e.g., weapons, narcotics, etc.), are not permitted under this license.
Renewal Requirements:Â
General Trading Licenses are typically issued for a specific period and must be renewed periodically, usually annually or biennially, to maintain compliance.
Additional Approvals:Â
Depending on the nature of the trading activities, businesses may require additional approvals or licenses from relevant authorities, such as the Ministry of Health, Ministry of Environment, etc.
To ensure compliance with all relevant regulations and to navigate the licensing process effectively, it is highly recommended to seek professional guidance from experienced business consultants or legal experts in Dubai or other emirates like Abu Dhabi for company setup, offshore license, free zone license, or instant license.
Conclusion
In conclusion, through the above-mentioned steps, you can get a general trading license and start a business in Dubai. If you want any help regarding obtaining a general trading licence in Dubai, you can send us an email at info@businessetup.com , or call us at +971 4 4301245
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