Dubai is a favorite ground of business startups and millions of business investors every year throng in Dubai with numerous business industries. Dubai holds a mass market for any industry, and for business incorporation, in Dubai, the investors need a license to operate in the country officially.
Trading is one of the essential businesses in Dubai. It has always considered a business hub for international trade due to its strategic location. With progress in trade activities, the demand for general trade license in Dubai has seen a surge. Currently, there is a massive market in Dubai for all types of products, as there is a large ex-pat population living in Dubai.
A general trading license in Dubai allows a company to export, re-export, import, or trade different types of goods like clothes, furniture, foodstuff, electronics, and electrical items under one roof. Trading of Alcohol, Cars, Medicine, Chemicals, etc. cannot be done through a General Trading License in UAE, which requires special approvals from the concerned government authorities or municipality. However, these types of activities can be get approved from DED under commercial trade licenses.
Advantages of Obtaining a General Trading License in Dubai
Below are the advantages of a general trading license in Dubai:
- The local and international trading facility
- No mandatory auditing
- Hassle-free lawful process
- The wide range of banking facilities
- Easy contact with visas for employees
- No currency restrictions
- Low import duty
Getting a general trading license in Dubai can be of enormous advantage to a businessman. Due to the pro-business strategies of the government, stockholders are gathering to start a company in Dubai.
Steps to Obtain the General Trading License in Dubai
The steps to get your trade license in Dubai is simple and straight-forward. It includes –
- Decide on the business activity. You can include all the activities which are regulated goods that comply with the health and safety standards and not the goods that require external approvals; guns, pharmaceutical, etc.
- Select a company name. This is a difficult task anywhere in the world, but here in the UAE, there are a few extra deliberations to allow for. Dubai has strict naming conventions for businesses. However, these are mostly common sense and easy to adhere to. Your trade name should not include any offensive or profane language or refer to known organizations and corporations, for example. You must also check that your chosen trade name is available to be registered.
- Apply for the license. to apply for this license, submit a set of documents required to the Department of Economic Development (DED), and if all the documents are in place, pay fees and obtain the license
The documents required for submitting to the DED are –
- A license application signed by the company managers or their legal legislatures
- Copy of Memorandum of Association
- Approval letter of company name from DED
- Passport copy of the shareholders/owners
The Commercial Registry Authority will check and validate all the documents. The company name will be added to the Commercial Registry, after which; the DED will forward the documents to the Federal Ministry of Economy for the journal. Once the documents are publicized, the ministry will provide its approval or endorsement letter. Upon completing the licensing procedures, the DED will issue the individual trade license and commercial registration credentials.
Steps for Trade License Renewal in Dubai
All businesses in Dubai need to renew their Trade Licenses every year. Licenses are legal approvals that enable businesses to function according to the business processes in the UAE. The license must also agree with the guidelines of the government. This step can quicken your businesses towards faster growth and more significant revenues. The steps renewing trade license are -
- The tenancy contract should be valid during the renewal of the Trade license.
- When you need to renew your tenancy contract, do get the approval from Ejari, the Real Estate Regulatory Authority.
A valid Trade License in Dubai, helps entrepreneurs complete their business needs
To get your license for the DED or any free zone authority, contact Commitbiz. Our consultants can help you with the process in a hassle-free manner.