Trading is one of Dubai’s leading businesses. Due to its highly strategic location, it has always been 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.
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.
Steps to Issue a General Trading License in Dubai
The management of a company needs to follow the steps provided below to obtain a General trading License:
Choose Trade Name
Choose a trading name and legal framework suitable for your company. Make sure that the name is not already being used.
Decide the business activities
Decide on all business operations to be included in the license. A single license can mention up to 10 business activities.
Submit the application
The management needs to submit the application to receive the initial approval for starting the business. All the fields in the application should be filled in an error-free manner.
Get external approvals (if required)
Depending on the structure of the company and also the business activity performed, the management needs to obtain external approvals from the relevant authorities.
Keep documents handy
All the important documents which will be required for completing the process of obtaining the General trading license must be kept at hand. The Documents include a Memorandum of Association (MoA), Articles of Association (AoA), Business plans, copies of passports of the shareholders, etc.
Choose a Location
The next step for the management should be to choose a place of business and obtain a contract certificate by EJARI from the Dubai Land Department.
Send a letter to DED
Finally, the management needs to submit a letter to the DED regarding the license and also make the required payments including the fees 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 Obtain the License
Make sure that all the necessary documents are prepared to be used by the concerned authority. The documents to be submitted for a general trading license are:
- A license application signed by the company managers
- A Memorandum of Association
- Company name approval letter from DED
- Passport copy of the Partners
The documents will be checked for authentication by the Commercial Registry after which the name of your company will be added to the Registry. The DED will then frontward the documents to the Federal Ministry of Economy. After the documents are published, the Ministry will issue its approval letter.
Upon completion of the licensing procedures, the DED will issue the unique trade license and commercial registration credentials. Remember that, the general trading license is valid for one year after which you can apply for a renewal.
When it comes to starting a company in the UAE, the primary requirement is to obtain a license for the same. Licenses in this country are issued by the Department of Economic Development (DED). The type of license you need to obtain depends on the business activity your business is into. Exploring various types of licenses can be a daunting task for entrepreneurs who want to start a company in Dubai. This guide will help you in understanding how to obtain a general trading license in Dubai.
For more information about the process of obtaining a General Trading license feel free to Contact Us.
1. What is the process to obtain a General Trading License?
The steps to obtain a General Trading License is as follows:
- Choose a Trade Name
- Decide the Business activities
- Submit the application
- Get external approvals (if required)
- Keep documents handy
- Choose a location
- Send a letter to the DED
2. What are the documents required for obtaining a General Trading License?
The important documents required for obtaining a General Trading License are as follows:
- Signed application by the management
- Memorandum of Association (MoA)
- Article of Association (AoA)
- Approval letter from DED
- Copies of Passport of the shareholders
3. Which authority issues general trading license in Dubai?
The Dubai Department of Economic Development is the authority that issues General Trading License in Dubai.
4. Why should a company get General Trading License?
A general Trading License will allow the company to conduct trading, Distribution, storage etc of a number of goods across different sectors.