Dubai, a business hub, offers entrepreneurs access to different markets across Africa, Asia, and Europe. While several businesses are thriving in the Emirate, the trading business is one which attracts entrepreneurs from across the world. To start a trading business in Dubai, you must obtain a general trading license. Whether you want to kick-start an import business in Dubai or commence a commercial entity, a general trading license is a must.
Possessing this license ensures that no penalties are imposed by relevant authorities for engaging in a trading business. Read on to understand the details of the legal document.
What is a General Trading License in Dubai?
A general trading license in Dubai is a trading permit that allows an entrepreneur to trade multiple products like goods and services supplied by other commercial business entities.
Permitted Business Activities for Availing Dubai General Trading License
If you avail of a general trading license in Dubai, there are certain business activities which are permitted. Some of them are listed below:
Import/Export
Wholesale business
Trading of goods/products
Note: Some business activities, such as pharmaceutical products, alcoholic beverages, and frozen goods, are restricted.
How to Obtain a General Trading License in Dubai?
Now that you know the kind of business activities that are permitted, let us understand the process of obtaining the general trading license:
Finalise the Jurisdiction
For setting up a business, the emirate provides two jurisdictions, namely Dubai Free Zone and the mainland. Both jurisdictions offer certain advantages and follow a set of regulations laid out by the authorities. You need to finalise a jurisdiction depending on the business activity you want to indulge in.
Choose a Company Name
You need to select a trading name based on the trade name guidelines and obtain initial approval from the authorities.
Register the Business
Fill the initial approval form and submit it to the government authorities. Once the form is accepted, apply for the trade license.
Avail Entry Permit
Sign up for e-channel services to simplify the registration process by applying for an entry permit. It is a short-term visa activated for a period of 60 days.
Change of Status
You can change the status of the entry permit after receiving it while staying in the emirate.
Emirates ID Registration
To apply for the Emirates ID card, you must undergo a medical examination. After receiving the result, submit the application. This ID card is required to open a bank account and rent a home, among other things.
Necessary Documents Required to be Submitted
You must submit the following documents to get the general trading license in Dubai:
Passport-sized photograph
Copy of residence visa
Copy of passport
Copy of Emirates ID
Benefits of Having a Dubai General Trading License
As mentioned earlier, you can start a business in Dubai either in the mainland or the freezones. Let us understand the benefits for setting up a business in these jurisdictions:
In Dubai Mainland
Dubai has comparatively less Value Added Tax (VAT) for all trade transactions.
You can start a business and get access to the local market with a general trading permit.
You can enjoy a 100% return on capital and profits.
Multi-currency banking transactions and account options are accessible.
In Dubai Free zones
Enjoy complete business control with 100% company ownership.
You get a multi-year license package with a variety of residence visa quotas.
Obtaining a tax residency certificate is easier with a general trading license.
There is no requirement for yearly auditing.
Profit repatriation is accessible.
Difference between a Trade License and a General Trading License
All businesses must obtain a trade license to engage in commercial activities. While trade and general trading licenses seem to be similar, there are certain key differences. Let us take a look at them:
Trade License
General Trading License
Permits trading of one group of products.
Permits trading of multiple products within and outside of Dubai.
Grants one business activity.
Grants multiple business activities.
Obtaining a different license is necessary to trade other goods, not permitted under the trade license.
Trading of any type of goods is allowed for having this license.
Why BSW?
Before applying for a business license in Dubai, it is advisable to seek proper guidance from a professional service provider. Contact Business Setup Worldwide (BSW) to obtain the services required for company formation in Dubai. We have served more than 7,000 clients across 30+ locations. Availing a general trading license can be easy with us as our experts are well-versed with the guidelines and the processes.
Frequently Asked Questions
1. What is a general trading license?
Startup companies in Dubai can manage all of their trade activities under a single license, thanks to general trading licenses. As a result, your firm may establish itself as a significant force in the supply sector, supplying items to businesses all around the nation.
2. What is the cost of a general trading license in Dubai?
AED 28000 TO 40000.
3. What distinguishes ordinary trade from a trading license in the United Arab Emirates?
A businessperson who wants to import and export goods into the UAE needs a general trade license. A general trade license covers all your commercial operations, whether in the same or a different industry.
4. Which department deals with the business license in Dubai?
