General Trading License in UAE
The traders prefer to obtain a General Trading License in the UAE. They can do trading business in multiple products with a single General Trading license in the UAE. International and local trade in the UAE contributes significantly to the economic growth. The UAE is an ideal destination for global entrepreneurs. In the UAE, the general trading license can be obtained from the Free Zones and the Mainland at heavily discounted cost.
Investors can easily conduct trade in the UAE by obtaining a General Trading License. All sales transactions, including international and local, can be invoiced from the UAE without any hassle. They can easily open a business bank account for the newly formed company.
The entrepreneur must obtain an import-export code from the Customs to ship goods internationally. They can take the assistance of logistics providers to move goods to and from the port to the distributor's office or to stores directly. Foreign investors can form 100% full owned General Trading Company in the UAE.
The General Trading Company License can be obtained from the Licensing Authority within 2-3 Working Days after submission of the documents. Having an office space or warehouse unit is essential for processing the General Trading Company License.
Scope of General Trading License in Dubai
Several business activities can be clubbed under the general trading license category. It includes wholesale imports, import-export of essential goods, clothes, foodstuffs, machinery, electronics, etc.
Most of the Free Zones allow an addition of 5-7 activities under a single General Trading License. Similarly, the Mainland of the UAE allows up to 10 activities under the General Trading License. The advantages of obtaining a General Trading License is the investor can conduct trade in multiple items, unlike a specific license.
For example, using a General Trade License, one can sell all essential items like home essentials, clothes, personal care products, etc.
General Trading License Cost in Dubai
The cost of a General Trading License in Dubai starts from around AED 40,000. It includes tradename approval, initial submission, and the virtual office contract fee.
Obtaining the General Trading License in Dubai will help the investor to enter the local UAE market as well as trade internationally. Furthermore, with the General Trading License, the investor can start their distribution unit in the UAE.
The cost of obtaining a General Trading License in the Free Zone and Mainland varies slightly. Also, a few Free Zones offer a General Trading License with a virtual office setup or shared desk. However, for opening a corporate bank account and gaining credibility in the market, having a physical office space for a general trading company is ideal.
How to get a General Trading License in Dubai
Obtaining a General Trading License in Dubai starts with choosing the business jurisdiction – Free Zone or Mainland. For more localized sales and trade operations, the Mainland is the right option, and for international sales and exports, the Free Zone will be a good choice.
Below are the steps for obtaining a General Trading License in Dubai.
- Choose the right jurisdiction - Freezone or Mainland, and the business activities under the general trading License.
- Choose the trade name for your company and the legal structure (Limited Liability, Free Zone Establishment/Company).
- Fill out the initial approval form and submit it to the licensing authority (Free Zone or Mainland)
- Choose the ideal business location and obtain the Tenancy Contract & Ejari for the physical office.
- Obtain the Trade license by submitting all the required documents for review.
Documents required for getting a General Trading License in Dubai
- Signed and duly filled out the General Trading License application by the investor/manager
- Memorandum of Association, Shareholder agreement, and other required documents
- Attested Trade Name Approval Letter from the Dubai Economy or the respective Free Zone authority
- Passport copies and a passport-size photograph of the Shareholders
Two Ways of Acquiring a General Trading License in Dubai
The General Trading License in Dubai can be obtained from the Dubai Economy and Dubai Free Zones. The General Trading License from the two business jurisdictions of Dubai are offered for investors at various cost range. Depending on the specific business requirement, the investor can take the General Trading License in Dubai from the Dubai Economy or Free Zones. There are various facilities that both business jurisdictions offer investors.
A) General Trading License in Dubai - From Dubai Economy
The General Trading License in Dubai from the Dubai Economy is ideal for those investors who wish to open a wholesale and retail business to tap the local UAE market.
There is an Instant License issued by DED, which has a one-year validity, and that does not require office space. However, after one year, the investor must renew the license by securing a physical office space for the company to conduct any form of trade.
The cost of setting up a general trading company in the mainland includes several components. The trade license fee, virtual office rent with Ejari for 1 year, and the pre-approvals in total will cost around approx. AED 41,683.
Why Take a General Trading License from Dubai Mainland?
The General Trading License from the Dubai mainland provides the investors with flexibility and the ability to scale up. Also, they can open a store or office anywhere in Dubai using the general trading license.
Additionally, for a Dubai Mainland General Trading License, there is no restriction on the number of visas under the company. Depending on the office space acquired, the investor can employ staff accordingly.
Obtaining a General Trading License from Dubai Mainland - Advantages
- The UAE only has a 5% VAT on all trade transactions within the country
- Significant tax benefit when compared to other European & Asian regions.
- General Trading License from DED enables you to take an office anywhere in the UAE and actively engage in the local market
- Company Formation in UAE Mainland is a seamless process. LLC Company Structure is popular among investors
- Easy visa availability for employees. The visa quota is awarded based on the office size taken by the investor
- Easy Bank Account opening and transacting in multi-currency
- 100% profit and capital repatriation
B) General Trading License from Dubai Free Zones
UAE Free Zones are ideal for setting up a General Trading Company. General trading is one of the most sought-after license types by investors in the UAE. Taking a General Trading License Package from a Free Zone has its obvious benefits, such as 100 % foreign ownership, no import duty for imports to the Free Zone, access to world-class office, logistics, and warehouse facilities, and more.
A general Trading License Package in the Free Zone with 1 visa quota starts from Approx. 15,700 AED. General Trading License Cost goes up to AED 50,000 and more, depending on the location of the Free Zone, business activities, visa quota, and various factors.
Why Take a General Trading License from Dubai Free Zones?
The Free Zones of UAE offer exclusive low-cost general trading license packages that suit all investors' requirements. UAE Free zones offer Multi-Year General Trading License Packages with a wide choice of Residence Visa Quotas for hiring employees.
Additionally, the Free Zone General Trade License enables investors to facilitate international trade easily due to advanced logistics and warehouse support available at the Free Zones.
- 100% expatriate ownership
- Total control of Business
- Fixed fee for whole year
- 100% repatriation of profits
- Eligibility to obtain Tax Residency Certificate
- Customs duty exemption
- Dedicated customs check at the premises (Designated Free Zones)
Where to get the Cheapest General Trading License in UAE?
The Cheapest General Trading License in the UAE can be obtained from Sharjah Media City. It costs around AED 8050 with a Zero Visa Quota. The Cost of a General Trading License in the UAE varies across Emirates.
The General Trading License Cost in Dubai is generally higher than in the other Emirates of the UAE. The Cheapest General Trading License in Dubai can be obtained from the Dubai Silicon Oasis -IFZA at AED 11,900 with a Zero Visa quota.
Having a Free Zone General Trading License has many benefits. The company can avail itself of the warehousing facilities provided by the Free Trade Zones. Most of the Free Zones in the UAE offer a wide range of warehouse options. Ranging from food storage and cold storage to customised warehouse spaces. The Free Zones have it all for the investors.
How Aurion will assist you?
The general Trading License in the UAE is subject to a one-year renewal. All business owners must renew the General Trading License to continue their business operations every year.
For instant license from Dubai DED, the renewal will require having a physical office space as a requirement. AURION will provide complete assistance in renewing your general trading license in the UAE at the right time without any hassle.
Also, the expert Business Consultants will handhold you throughout the Trade Licensing process and ensure you obtain the General Trading License in the UAE in the most seamless way.
