A Guide To Obtain A General Trading License In Dubai, UAE (2024)

Explore our guide to discover what a general trading license entails and how to obtain one for your business in Dubai. As one of the most sought-after and frequently issued trade licenses in Dubai and across the UAE, a general trading license holds immense significance. 

Dubai’s emergence as a premier business hub in the Middle East and globally is fueled by its advantageous geographic location, drawing substantial interest from entrepreneurs worldwide, particularly those engaged in commodity trading.

What is General Trading?

General trading is the purchasing and selling of goods from a range of sectors. The Department of Economic Development in Dubai is responsible for granting permits for this kind of business. This is how they explain it:

Businesses that import items from other countries, sell them, and occasionally reexport them are included in the category of general trading. The UAE government has given its full approval for this. Certain trade activities are exempt from specific permit requirements, whereas others do. Businesses that need special permission can apply for a general trading license. They must first, nevertheless, secure a certificate certifying that all pertinent departments are in agreement.

A general trade corporation is capable of carrying out a variety of commercial ventures. It can sell food, chemicals, real estate, machinery, and more with only one license.

What Is a General Trading License in UAE?

A general trading license in the UAE grants you the authority to import, export, and trade an extensive variety of goods and products. Renowned for its versatility, this license permits you to engage in trading a diverse array of items, with few exceptions such as tobacco and products failing to meet health standards. Discover the flexibility offered by a general trading license for your business endeavors in Dubai.

It’s important to note the distinction between a ‘general trading license’ and a ‘trading license.’ While a trading license restricts you to trading in a single type of product from one industry, a general trading license allows you to trade multiple products from different sectors.

Why do you Need a General Trading License in Dubai

Obtaining a Dubai General Trading License is essential if you’re from another country and aspire to establish a business in Dubai selling a variety of products. This license is particularly crucial if you intend to sell a wide range of items. Regardless of the diverse origins of the items you wish to sell, a general trading license covers them all. Acquiring a Dubai General Trading License is vital for launching a company in Dubai smoothly.

With a Dubai General Trading License in hand, your business gains the authority to buy and sell under this license. Once you’ve navigated this pivotal aspect of launching your company, you’re poised to become an influential participant in the realm of buying and selling, supplying essential goods to businesses in Dubai, the UAE, and beyond.

Why Consider Starting a Dubai General Trading License?

Starting a Dubai General Trading License offers a plethora of benefits that make it an attractive option for entrepreneurs:

1. Diverse Trade Opportunities: A general trading license in Dubai provides access to diverse trade opportunities, allowing you to import, produce, and sell a wide range of goods in both local and international markets.

2. Low Tax Rates: Benefit from the UAE’s low tax rates, which are among the world’s lowest, making it an ideal location to start a business and produce goods cost-effectively.

3. Flexibility in Product Trading: Enjoy the flexibility of trading a variety of products with minimal restrictions, enabling you to tailor your business operations to meet market demands.

4. Streamlined Licensing Process: Experience a profitable and transparent licensing process with the Department of Economic Development (DED), ensuring quick approval within one week.

5. Easy Visa Sponsorship: Facilitate visa applications for employees and dependents through the general trading license, simplifying the process of acquiring UAE visas.

6. Strategic Global Positioning: Leverage Dubai’s strategic location at the heart of the global trade map, providing abundant opportunities for the success of your trading business.

7. Outstanding Infrastructure Support: Benefit from Dubai’s top-notch infrastructure, including warehouses, logistics companies, seaports, airports, and simplified customs processes, enhancing the efficiency of your business operations.

8. Extensive Business Networks and Support Services: Access a wide range of support services, including logistics, warehousing, legal, marketing, and finance, to facilitate the growth of your trading company in the UAE.

9. Business-Friendly Environment: Operate in a business-friendly environment created by the Dubai government, ensuring smooth and transparent general trading.

10. High Demand: Capitalize on Dubai’s affluent population and booming economy, ensuring a ready market for the products you import.

In summary, starting a Dubai General Trading License offers a multitude of benefits that can lead to sustained success and market presence in the dynamic business landscape of Dubai and the UAE.

Advantages of Setting up a General Trading Company in Dubai

Dubai offers high-quality office spaces with flexible rent or lease plans and top-notch infrastructural amenities, providing an excellent environment for companies to conduct their operations efficiently.

Establishing a corporation in the UAE is straightforward, with all paperwork completed within 3-4 working days, facilitating a swift setup process.

Unlike many other jurisdictions, there’s no need to provide a bank guarantee or deposit share capital with the bank in Dubai. Additionally, UAE enterprises benefit from 100% capital repatriation, enhancing financial flexibility.

The UAE provides businesses with a low corporate tax environment. Investors with a license in the UAE are only required to pay taxes on earnings or revenue exceeding the threshold of AED 375,000, which is significantly lower than global standards.

Setting up a business in Dubai incurs minimal expenditures and time. Holders of mainland trading licenses are exempt from paid-up share capital requirements and routine audits, boosting profitability and affordability. Consequently, there are no trade barriers restricting business operations in the UAE, fostering a conducive environment for trade and commerce.

Establishing a general trading company in Dubai offers numerous benefits, making it an attractive destination for investors and entrepreneurs seeking to expand their business ventures in the region.

What Kinds of Business Licenses Are Available in Dubai, UAE?

In Dubai, UAE, there are primarily four types of business licenses available, although additional specialized licenses may exist in various economic zones within the city. These four licenses are the most sought-after in Dubai Mainland. Here are the four main types of business licenses available:

1. Commercial Trade License: This license is for businesses engaged in buying and selling goods. Activities may include trading, importing, exporting, renting, brokering, and more.

2. Professional Trade License: Businesses offering services to individuals or other businesses obtain this license. It covers a wide range of professional services.

3. Industrial Trade License: Businesses involved in manufacturing products within the country obtain this license. Ownership of physical office space in the country is a requirement for obtaining this license. Activities permitted include importing raw materials, processing, packaging, selling, and exporting finished products.

4. Tourism Trade License: This license is for tour-organizing businesses, including travel agencies, hospitality businesses, tour operators, etc. It was introduced by the government to regulate the UAE’s tourism industry.

It’s important to note that even if your business is in Dubai but trades internationally, you still need a commercial trade license. Additionally, holding a professional license in Dubai Mainland allows access to lucrative government contracts.

How To Get a General Trading License in Dubai?

Below are the steps to get a General Trading license in Dubai:

Choose Your Jurisdiction:

Determine whether you want to set up your business in the mainland or opt for a Free Zone in the UAE. Consider factors such as ownership requirements, proximity to markets, and industry-specific infrastructure available in Free Zones.

Choose A Company Name:

Select a name for your business that complies with Dubai’s naming guidelines. Ensure the name is not offensive, adheres to transliteration rules, and accurately represents your business category. Consider registering trademarks and franchises to protect your brand identity.

Secure Office Space:

Obtain suitable office space for your business operations. Depending on your chosen jurisdiction, this could involve leasing office space in the mainland or opting for flexi-desk solutions in Free Zones.

Get Customs Clearance:

Obtain customs clearance for your business activities, especially if you plan to import or export goods. This involves registering with the Dubai Customs Authority and fulfilling any requirements related to customs declarations and documentation.

By following these steps diligently and complying with the regulatory requirements, you can successfully obtain a General Trading license in Dubai and establish your business presence in the city.

How To Get a General Trading License in Dubai?

For Individual Shareholders:

1. Copy of Passport: A clear copy of the passport of the individual shareholder.
2. Passport-size Photo: Recent passport-size photograph of the individual shareholder.
3. Copy of Residence Visa: Copy of the residence visa of the individual shareholder (if applicable).
4. Copy of Emirates ID: Copy of the Emirates ID (Identity Card) of the individual shareholder.

For Corporate Shareholders:
1. Certificate of Incorporation: Official certificate proving the legal incorporation of the company.
2. Certificate of Incumbency or Equivalent: Document confirming the current officers and directors of the company.
3. Memorandum of Association: Legal document defining the company’s constitution and structure.
4. Board Resolution: Official resolution by the company’s board authorizing the establishment of a trading entity in Dubai.

These documents serve to verify the identity, residency (if applicable), and legal existence of the shareholders, as well as authorize trading activities for the general trading license in Dubai.

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UAE General Trading License Activities

Activities covered by a General Trading License in the UAE encompass a wide range of business operations. Some common activities include:

1. Import & Export: Facilitating the trade of goods between international markets and the UAE.
2. Retail Store: Operating retail outlets to sell various products directly to consumers.
3. Online Selling: Engaging in e-commerce activities to sell products through online platforms.
4. Trading Multiple Products: Dealing in a diverse range of products across different industries.
5. Medical Products: Trading in medical products, although approval from the Dubai Health Authority may be required for certain items.

Dubai offers the option to obtain a General Trading License either in the Mainland or within its Free Zones. While both options provide competitive packages for company formation, Free Zones may require a minimum share capital of AED 1 million for a General Trading License.

The cost of obtaining a General Trading License in Dubai may vary, typically ranging from AED 15,000 to AED 50,000 or more, depending on various factors such as business type, jurisdiction, office space, additional approvals, and visa applications. However, by partnering with experts like Unicorn Global Solutions, businesses can ensure transparency and authenticity in payment transactions, securing the most cost-effective solution for their General Trading License in the UAE. Unicorn Global Solutions oversees all transactions to provide clients with the cheapest options available, without incurring additional costs for incorporating a general business in the UAE.

Difference between general trading license and regular trade license

Here’s a breakdown of the key differences between a General Trading License and a Regular Trading License:

General Trading License:
– Allows trading a wide range of products.
– Permits trade across multiple industries.
– Cost of license is comparatively higher.
– Offers a wide scope of business diversification.

Regular Trading License:
– Allows trading only one group of products.
– Limits trade to only one industry.
– Cost of license is comparatively lower.
– Provides no scope of business diversification.

What is the Duration for Getting a Trade License in Dubai?

The duration for obtaining a trade license in Dubai varies depending on several factors. Generally, it can take anywhere from three days to four weeks to receive approval for your trade license. However, this timeline is subject to factors such as the completeness of your documentation and the specific business activities you intend to undertake.

To expedite the process and ensure swift approval, it is essential to ensure that all your documentation is complete and accurate. Thoroughly review your application materials before submission to ensure that nothing is missing or incorrect. Doing so increases the likelihood of a prompt issuance of your trade license.

What is the Instant Trade License in Dubai?

The Instant Trade License in Dubai is a type of trade license that allows individuals or entities engaged in commercial or professional business ventures to obtain their license within minutes. This streamlined process is particularly beneficial for those looking to start their business activities quickly and efficiently. With expert assistance, obtaining an Instant License becomes a straightforward process, enabling entrepreneurs to commence their business operations promptly.

Get Your General Trading License with Unicorn Global Solutions

Get your General Trading License with Unicorn Global Solutions Business Setup. General trading is one of the most sought-after business licenses in the UAE, and for good reason. However, finding the best deal for a general trading license in Dubai can be challenging. That’s where Unicorn Global Solutions comes in.

With over 20 years of experience, Unicorn Global Solutions Business Setup has been assisting foreign investors and entrepreneurs in setting up and managing their business ventures in Dubai and across the UAE. We have helped 35,000 entrepreneurs, both local and international, with their UAE company registration requirements.

Our team of experienced corporate advisors provides end-to-end business setup services. Whether you have questions about obtaining a general trading license in Dubai or need assistance opening a business bank account, you can rely on us for transparent and reliable support throughout the process. Text us on WhatsApp or call us today.

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