General Trading License in UAE
General Trading License in UAE | How can you get a General Trading License in UAE?
Dubai is home to more than 200 nationalities, and it holds the title of the world’s most cosmopolitan city. Dubai is not only a place to run business, but also to share ideas, experiences and inspiration in an environment that provides unique opportunities to create lasting legacies.
The city has become a global hub for financial services, logistics, hospitality and trading is steadily growing in other sectors including healthcare, technology and renewable energy. Dubai has become an ideal location for association conferences, corporate meetings, business events and exhibition. There are many businesspersons interested in trading of variety of goods and commodities to various countries or within the country requires a general trading license to do the same.
What is a General Trading License in UAE?
A general trading license in UAE allows a company to export, re-export, import or trade different types of goods like food stuff, cloths, furniture, electronics, electrical items under one roof. Initially this types of license cost is high in main land, but in case a business man who is doing different products/goods trading it is suggestible to go for a general trading license in UAE as they can enjoy all these facilities in one license and not mandatory to open separate licenses.
Trading of Alcohol, Medicine, Cars, Chemicals etc. cannot be done through a General Trading License in UAE, which require special approvals from Concerned government authorities or municipality. However, these types of activities can be get approved from DED under commercial trade license.
How much will it cost to set up a General Trading License in Dubai?
The minimum capital requirement for setting up a Limited Liability Company (LLC) General Trading License in Dubai is AED 300,000/-. It is not mandatory to show a bank guarantee but require mentioning the same in the Memorandum of Association (MOA).
As per the Department of Economic Development (DED), Dubai a General Trading company can do business of importing, trading and re-exporting of any of the allowed goods and, the activities that need special can be a sole establishment (100% ownership with UAE or GCC National) or it can be Limited Liability company (LLC) or it can be a Single Owner (LLC-SO).approvals, can also be traded upon obtaining NOC from the competent department. The activity code for this license is 4690018.
A general trading license in UAE during the first year the approximate government cost for setting up a general trading license in Dubai is AED 25,000/- and from second year onwards it will be around AED 15,000/-. This type of license can be as legal holding structure within the UAE and other licensing authorities. With this license a businessperson can do storage and warehousing activity also.
How Can you Get a General Trading License in UAE?
You can get a general trading license in UAE by following a set of steps:
- Select one appropriate trade name and make a legal structure for your company
- You will have to choose the kind of business activities which should be included in the license of your business, a maximum number of 10 business activities are allowed per license
- Enter all the required details in the application and you may submit the application for initial approval
- External Approvals are also required depending on the type of your business activity you have chosen
- Assemble all the necessary and required documents like the Memorandum of Association (MOA), as well as all the approved documents which should be received from the relevant government authorities
- Finalize a business location and tenancy contract has to be attested by Ejari
- Submission of the application to Department of Economic Development (DED) to get the final license
- The necessary payment for the license should be made which also includes an issuance fee for obtaining the license
What are The Advantages of setting up a General Trading License in Dubai?
Zero tax: No corporate or personal tax- In UAE there is no corporate tax or personal tax for doing any type of business. A businessperson who is holding a license in UAE doesn’t have to pay taxes on profits or income.
Hassle free recruitment and unlimited availability of Employment visa. Companies do not have any restrictions on applying employment visa from the Ministry of Labour. The eligibility of the employment visa is based on the size of the office and selection of license activity. If you have a bigger office, then you can have more number of visas. The investor visa or employee visa holder can also sponsor spouse, parents, children and maid.
Limited restrictions on a minimum capital requirement: The Minimum capital requirement is only AED 300,000 and it is not mandatory to show the bank guarantee. It is not compulsory to deposit the share capital in the bank. Also 100% capital repatriation is allowed for UAE companies.
Easy process: The process of setting up company in Dubai Mainland is straight forward process and can complete the whole company incorporation process in 3-4 working days if all the documents are in place.
Very good Infrastructural facility: Availability of office spaces with flexible rent or lease plans with the best infrastructural facilities makes the businessmen happy to do business in Dubai.
Do Business anywhere: A Dubai mainland company can do business anywhere in UAE without any restrictions.
How can Emirates Chartered Accountants Group assist in setting up a General Trading License in UAE Dubai will include the following activities?
- Assistance with preparation of the required documentation and submission of the same at various departments of the Department of Economic Development, Dubai Municipality, Dubai Chamber of Commerce, in order to get requisite approvals.
- Other related activities required for setting up the General Trading License in UAE (including assistance with finding a local sponsor and effecting the partnership agreement)
- Registering the Company and obtaining the license from the Dubai Chamber of Commerce
Our Company Formation Team will work closely with the investor and complete the company incorporation process:
- Advise on every step of the process and provide the formats, proformas, forms, etc. required for the documentation at each stage.
- Vetting the documents before submission to ensure that all is in order.
- The fees and other direct disbursements to the authorities will be advised in advance, so that the requisite funds are made available at the time of making the submission(s).
- After the applications have been submitted, ECA will follow up to ensure that the process is smooth and completed with minimum delays.
Get in touch with our team for an initial consultation on how to Set up a General Trading License in UAE. Book a Free Consultation to Set up a General Trading License in UAE.