UAE is popularly known as the business hub of the Middle East. Over the last 2 decades, there has been an immense growth in the financial, business, trade, and logistics sectors, due to which their contribution towards the world economy is substantial. There are many businesses interested in trading goods with neighboring countries; such people should have a valid general trading license to do the same.
What is a General Trade License?
A general trading license is a type of commercial license that allows the holder to import, export, and trade goods in, out, and within the UAE. Under a general trading license, you are free to trade in multiple, unrelated goods under a single license. This could be any number of goods, from auto parts to watches and everything in between.
Benefits of Having a General Trade License
A general trading license in Dubai can also be used as a legal holding structure within the UAE and other licensing authorities. The same is used for storage and warehousing.
The advantages of having a general trading license in Dubai are as follows:
- No Taxes: Any business would want to make trading tax-free. One of the most important advantages of having a general trading license in the UAE is paying zero taxes. The holder of such a license doesn’t have to pay taxes on profits, income, or on any other amount.
- Trade locally and internationally: By acquiring a general trade license, one can trade beyond borders. A trader can exploit all the possibilities of doing business in local, national, and international markets to gain profits.
- Straightforward Process: It is quite easy to get a general trade license in the UAE. This license is issued by the Department of Economic Development (DED) in Dubai. The whole process has been made hassle-free as an initiative from the government. In fact, applying for a general trade license is easier than setting up a company in a free zone. The whole process takes around 1 week once you share the necessary documents with the DED, and you are all set to start your business anywhere in UAE.
- Apply for Multiple Visas: After getting a general trade license, one can apply for multiple visas for their employees. It depends on the size of the office; the bigger your office, the more visas you can get. Additionally, the businessman can also sponsor visas for dependents, i.e., spouse, child, parents, maid, driver, etc. But one should ensure to get an expert’s advice before commencing since this is an important process.
- Auditing Is Not Mandatory: Unlike other jurisdictions, one doesn’t have to submit auditing reports to government authorities in the UAE if they have a general trading license. Therefore, they do not have to go through a yearly auditing process.
Apart from these, there are various banking facilities available for personal and corporate purposes. A company with a general trading license is allowed to have 100% repatriation of capital as well as profits. They do not have to deposit share capital in UAE banks. Due to these and several other facilities made available for the licensee, traders are getting wonderful opportunities to utilize their resources and become successful.
General Trade License vs. Commercial License
To be clear, there is no difference between a trade license and a commercial license. The commercial license is a type of trade license while a general trading license is simply a type of commercial license. The only difference between a general trading license and a regular trading license is that you are free to trade in multiple goods under a general trading license and only one under a regular trading license.
Applying for a General Trading License in Dubai
- When applying for a business license, the first step is usually to pick your business activity. As it is possible to list multiple activities under one general trading license.
- Having specified your business activities, the next step is to pick a company name. This is a tough task anywhere in the world, but here in the UAE, there are a few extra considerations to allow for. The UAE has strict naming conventions for businesses; however, these are mostly common sense and easy to adhere to.
- Your company name should not include any offensive or blasphemous language or make reference to known organizations and corporations, for example. You must also check that your chosen business name is available to be registered. A company formation expert can do this for you.
- With your name chosen, it is time to apply for your license. A company formation expert can help you with this step, managing the entire application process on your behalf.
The exact documents required to start a general trading company In Dubai will depend on your business activity and where you choose to set up. In most cases, however, you will be asked to provide:
- A copy of your passport – and that of any other shareholders
- A Memorandum of Association
- A copy of your signature
- A No Objection Certificate from your current employer (if applicable)
- Completed application form
- Two color passport size photos with white background
Starting A General Trading Business in Dubai
When starting a general trading business in Dubai, getting the right guidance beforehand is an important factor. That’s why it’s always advisable to undertake the steps with the assistance of a registered company formations agent to eliminate any potential hassles that might arise.
With many years of experience in company incorporation, Riz & Mona Consultancy can help you get your business up and running within a matter of weeks. We’ll manage the entire process on your behalf and correspond with all relevant authorities for you. All you need to do is wait for the green light to start doing business.