Dubai is a favorite fertile soil for business start-ups, and with various business industries, millions of business owners throng every year in Dubai. Dubai maintains a mass market for any industrial sector, and the investors need a license in Dubai to conduct business in the country for business incorporation officially.
Trading is one of Dubai’s leading businesses. Due to its highly strategic location, it has always considered a business hub for international trade. The desire for a general trade license in Dubai has seen a rise with developments in trade activities. There is a considerable demand for all forms of products in Dubai because there is a significant ex-pat community residing in Dubai.
A General Trading License in Dubai allows companies to export, re-export, import, or trade various goods under one roof, such as clothing, furniture, food, electronics, and electrical supplies. Trade of alcohol, vehicles, medication, chemicals, etc. cannot be achieved without a UAE General Trading License, requiring special permits from the government or municipality in question. Under commercial trade licenses, however, these types of activities may be authorized by DED.
Most business people are choosing to start a new company in Dubai due to a favorable market climate and government funding. Massive demand for products, business-friendliness, and proximity to emerging markets, make Dubai one of the most sought-after start-up locations. However, to go through the process, you need to have a valid trade license from the Department of Economic Development (DED). A set of policies and procedures must be followed to issue this license.
The prime requirement when starting a business in the UAE is to receive a license for the same. It is the Department of Economic Development (DED) that issues licenses in this country. The type of grant that you need to obtain depends on the operation that your company is. Exploring different permits can be a challenging experience for entrepreneurs looking to start a company in Dubai. This blog will help you in getting out how to get a general license to trade in Dubai.
General Trading License
Simple terms, let's assume you have an established business that is precisely about importing, selling, exchanging, and transporting goods, then you will have to apply for a General Trading License. If you have several trade exchanges in the same or dissimilar market, then a general trading license is mandatory. Dubai saw a steady rise in demand for this license as the country was in favor of doing business. Though comparatively more expensive, the general trading license can be a benefit to many. It provides versatility and independence to trade in just about any legal commodity according to the DED rules and the department's list.
According to the list, several products are not authorized to import or export even if you have the license. You must get specific permission from the UAE Municipality. The products you need to seek approval include pharmaceutical products, guns, automobiles, and alcohol. These products can only be traded via a Commercial Trade License.
Dubai offers its businessmen three critical options for setting up a business in the Emirate, i.e., setting up a firm in the mainland, free zones, or offshore. A business person must determine from which region he/she wants to receive a Dubai trade license. Offshore and free zones both have their advantages and disadvantages.
Advantages of General Trading License in Dubai
- 100 percent tax-free of any kind
- Allows you to exchange several products with one license
- No currency constraints
- Quick to obtain a work visa
- The hassle-free legal process to get a license
- Low Custom Import
- Securing domestic and international markets
- An audit is not necessary for the company
Steps to Issue a General Trading License in Dubai
- Choose a trading name and legal framework suitable for your company
- Decide on all business operations to be included in the license (up to 10 per license)
- Fill in and submit your initial approval application
- Depending on the type of company you are doing, get external approvals if necessary
- Arrange all documents required, such as the Memorandum of Association (MOA), and all documents authorized by the relevant government authorities
- Decide on a place of business and obtain a tenancy contract certified by Ejari
- Submit a letter to the DED for final license
- Make the required license payment including an issue fee to receive the license
The company will send the supporting documents to the Commercial Registry at the Department of Trade License and Commercial Registration to get a new trading license from a free zone or offshore.
Documents Required to Submit for a General Trading License
- The licensing authority should be issued by managers of the company or its legal representatives.
- A memorandum of agreement
- Attested letter of authorization from DED for a company name
- A copy of the management participants' passport
The documents will be verified by the Commercial Registry for authentication, after which your company name will be added to the Registry. The DED would then front up the documents for the journal to the Federal Ministry of Economy. The ministry will receive its letter of approval once the documents are released. The DED will receive a single trade license and commercial registration credentials once the licensing procedures are complete. Note, the general permit for trading is valid for a limited year after which you can submit for renewal.
Steps for Trade License Renewal in Dubai
Every company in Dubai needs to renew its Trade Licenses yearly. Licenses are legal permits that allow businesses to operate within the UAE according to business processes. The consent also needs to comply with government guidelines. This move will boost your company towards faster growth and more substantial revenues. The steps renewing trade license are -
- Throughout Trade license renewal, the rental agreement should be valid.
- Receive approval from Ejari, the Real Estate Regulatory Authority, if you intend to renew your tenancy contract.
A legitimate Dubai trade license helps companies fulfill their business needs.
Different Costs Involved in Issuing a Trade License in UAE
Fees for Voucher Payment
This fee covers Trade Name Booking, Initial Authorization, and License Issuing. Based on business operations, the charge is subject to change.
Fees for the Outsourced Centre
The outsourced centers will charge a total of AED 2000 for the Dubai General Trade License.
Initially, you don't have to pay one year for any leasing expenses.
It is regarded as a passing rate, which depends mainly on the business activities and paid accordingly.
This service is express. If you want your trade permit to be processed immediately, all you need to do is pay an extra sum on AED 3000.
Thus, you've come across the process of getting a Dubai trade license. Now it is difficult to receive a permit in a foreign country if you are not familiar with the rules and procedures. The hectic aspect that one has to go through is during the renewal of the trade license process. The best you can do at this time is to alk with a business analyst who recognizes your needs and can have a personalized solution.
We at Commitbiz Business Setup Consultants have our professional team to help business people set up their trading firm in Dubai, UAE. We are one of Dubai's top business specialists and have been dealing with company registration processes that hold a package of numerous tasks from the setup process to licensing. Our experts are armed with up-to-date expertise in developing businesses. If you have any queries about setting up a business or having a license for such an enterprise, please feel free to contact us. We would be more than pleased to assist you.