How to Get a General Trading License in Dubai, UAE?
The General Trading License in Dubai is one of the most sought-after and commonly issued trade licenses in the region. Dubai’s reputation as a premier global business hub, coupled with its strategic location, makes it an attractive destination for international entrepreneurs, particularly those involved in trading various goods.
A key advantage of the General Trading License is its flexibility. Unlike standard business licenses that restrict you to specific products, this license allows you to trade a wide array of goods without the need to modify your license. Whether you want to deal in electronics, clothing, stationery, or pet products, the possibilities are vast and unrestricted. This ease of adjustment makes the General Trading License ideal for businesses looking to diversify their product offerings in Dubai and across the UAE.
What is a General Trading?
General Trading involves the broad trade of various goods across different industries.
In Dubai, the Department of Economic Development (DED) is the official entity responsible for granting trade licenses. According to the DED, General Trading covers businesses that legally import, trade, and re-export goods. While some trading activities need no special permissions, others require specific approvals. For activities needing these approvals, businesses can apply for a General Trading License, provided they have the necessary No Objection Certificate (NOC) from relevant authorities.
A General Trading License is highly versatile, allowing companies to engage in diverse activities such as dealing with machinery, chemicals, real estate, and foodstuff trading, all under a single license.
However, it’s important to note that certain products, like firearms, vehicles, alcoholic beverages, chemicals, and medical supplies, require additional approvals from higher authorities or clearances from UAE municipalities.
Read Also: How to Get General Trading License in Dubai Free Zone?
Dubai General Trading License Activities
A Dubai General Trading License enables a wide range of trading activities, encompassing the import, export, and re-export of various goods. Here are some examples of what you can trade under a Dubai General Trading License:
- Electronics
- Fashion and Apparel
- Consumer Goods
- Toys and Games
- Furniture and Furnishings
- Food and Beverages
- Health and Beauty
- Automotive Parts
- Building Materials
- Stationery and Office Supplies
- Textiles and Fabrics
- Pet Supplies
- Sports Equipment
- Electrical and Plumbing Supplies
- Books and Publications
- Jewelry and Accessories
- Medical Equipment
- Gifts and Souvenirs
- Musical Instruments
- Safety Equipment
- Art and Craft Supplies
The general trading license allows the purchase, sale, export, and import of mixed goods. This means that this license allows you to trade toys and electronics at the same time. It stands true for any number of goods you might want to trade inside and outside the UAE.
Packages of General Trading License in Dubai
Difference between General Trading License vs Trade License in Dubai
A “General Trading License” and a “Trade License” are terms often used interchangeably, but they carry distinct meanings in Dubai’s regulatory context. Here’s an overview of the differences:
- Trade License:
- A trade license is a broad term referring to the official authorization required to conduct business activities legally within Dubai.
- It outlines the specific activities a business is permitted to engage in and is issued by the Department of Economic Development (DED) in Dubai.
- There are different categories of trade licenses based on the type of business activities, such as commercial, industrial, and professional.
- Trade licenses are typically specific to the type of business and its location.
- General Trading License:
- A General Trading License is a specific type of trade license that allows a business to engage in a wide range of trading activities across various industries.
- This license is ideal for businesses seeking the flexibility to trade in different types of goods, commodities, or products.
- It enables the holder to import, export, and re-export a diverse array of items under a single license.
- The regulations and permissions associated with a General Trading License can vary based on the jurisdiction and the DED’s rules in Dubai.
In Dubai, the General Trading License is particularly advantageous for businesses looking to operate with a broad scope, offering the ability to trade multiple types of goods without needing multiple licenses.
How to Get General Trading License in Dubai?
Acquiring a General Trading License in Dubai has become more straightforward due to recent regulatory changes. Previously, obtaining this license required a local sponsor with 51% ownership. However, amendments to the Commercial Companies Law (CCL) now permit 100% foreign ownership and profits for general trading businesses. Here’s what you need to do to get a General Trading License in Dubai:
Want to Get General Trading License in Dubai Free Zone @ AED 11,900
1. Documents Needed for Application:
a) If you’re a UAE resident:
Passport Copy
Copy of your UAE residence visa
Copy of your Emirates ID
b) If you’re not a UAE resident:
Copy of your passport
Copy of your UAE visit visa
2. Application Process:
Submit your documents to the Department of Economic Development (DED).
Receive a government payment voucher.
Pay the required fees.
Receive your general trading license.
This process is now more straightforward, empowering foreign entrepreneurs to have full ownership and control over their general trading business in Dubai.
Cost of General Trading License in Dubai
Acquiring a General Trading License in Dubai comes with a notable price tag, but its benefits outweigh the initial investment. With this license, you gain the flexibility to trade across multiple product categories under one umbrella, paving the way for extensive business growth and diversification.
The cost for a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000, and sometimes even higher. Various factors influence this figure, including your business location, warehouse size, office requirements, necessary approvals, chosen jurisdiction, and visa applications.
When partnering with Company setup experts, you can navigate the process with confidence, ensuring transparency and efficiency in managing costs. Their expertise ensures that you secure the most cost-effective general trading license in the UAE, without encountering unexpected expenses along the way.
Essential Requirements for General Trading License in Dubai
a) For a company formation in Dubai with individual shareholders, you’ll need:
Passport Copy: Clear and legible for identification.
Passport-Size Photograph: Recent with a white background.
Residence Visa Copy: If applicable, to validate residency.
Emirates ID Copy: Essential for identity verification.
b) To obtain a general trading license in Dubai with corporate shareholders, ensure you have:
Certificate of Incorporation: Officially establishes and registers your company.
Certificate of Incumbency or Equivalent: Details current corporate structure.
Memorandum of Association: Outlines company objectives and regulations.
Board Resolution: Authorizes general trading activities and supports license application.
Also Read: How to Start Foodstuff Trading Business in Dubai
Benefits of General Trading License Dubai, UAE
Here are the advantages of having a general trading license in Dubai, UAE:
Full Ownership: You can own your business entirely, with 100% control.
Quick License Issuance: You can get your trade license in just an hour.
Flexible Office Requirement: No need for an office to obtain the license.
Profit and Capital Repatriation: You can repatriate 100% of profits and capital.
E-commerce Vendor: You can become a vendor on platforms like Amazon and Noon.
Multiple Activities: There’s no limit to the number of activities or products under one license.
Diverse Business Scope: You can engage in various businesses without distribution restrictions.
Remote Application: Obtain the license from your home country without traveling to the UAE.
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Frequently Asked Questions On General Trading License in Dubai
What is a general trade license?
A general trade license enables you to conduct various activities across different industries, including trading goods like clothing, electronics, and furniture. It covers aspects such as importing, exporting, and wholesaling/retailing these products.
Read Also: how to get trading license in Dubai
How can I obtain a general trading license in Dubai, UAE?
To start a general trading business in Dubai, you must acquire a general trading license from the Department of Economic Development. Follow these steps:
- Select a Company Name and Legal Structure
- Finalize the Business Activity
- Apply for the general trading license
- Submit the necessary Documents
- Obtain other Required Approvals
- Choose the Location and Pay the Fees
What is the validity of a Dubai general trade license?
A general trade license in Dubai is valid for one year, after which you’ll need to renew it. The renewal extends the license for another five years.
How much time is required to obtain a trading license in Dubai?
The process of obtaining a general trading license in Dubai is typically straightforward. You can expect to receive the license within ten days after submitting the required documents.
What are the benefits of having a general trading license in Dubai?
A General Trading License in Dubai grants access to the city’s free zones, providing advantages such as tax exemptions and full foreign ownership. This is especially beneficial for businesses seeking to establish themselves in Dubai, a global trading hub facilitating international connections.
How much does a general trading license cost in the UAE?
The cost of a general trading license in the UAE varies based on factors like jurisdiction (free zone or mainland), specific authority, intended business activities, business size, and additional services required. Generally, prices range from AED 15,000 to AED 50,000 or more.
What is the process to start a general trading business?
To start a general trading business in Dubai, obtain a general trading license from the Department of Economic Development, which oversees business registrations. Some business activities may require approvals from other government and non-government entities.
How much does it cost to renew a general trading license in Dubai?
Renewal costs for a general trading license in Dubai depend on factors such as jurisdiction, license type, and additional services needed. Typically, renewal expenses range from approximately AED 8,000 to AED 15,000 for a standard renewal. For precise quotes, consult with company setup consultants or relevant authorities.
How do general trading companies operate?
General trading companies in the UAE are authorized to engage in activities such as exporting, importing, marketing, purchasing, and selling permitted products. They operate under a general trading license obtained from the Department of Economic Development in their respective economic zones. Assistance from Business Setup Consultants facilitates the setup process.
How Company Setup Consultants Can Assist You?
Establishing a general trading business in Dubai, UAE, is highly sought-after, and for good reason. However, securing the best deal for a general trading license can pose challenges. That’s why it’s essential to connect with the right experts who can offer guidance and support in navigating the process of forming your company in a new country.
With over a decade of experience, Company Setup Consultants has been dedicated to assisting foreign investors and entrepreneurs in establishing and managing their businesses in Dubai and the UAE. Our track record speaks for itself—we’ve successfully aided 25,000 entrepreneurs, both local and international, in fulfilling their UAE company registration needs.
To explore further information and seek assistance from our experienced business consultants, you can reach out to us via:
- Phone: +971582595164
- WhatsApp: +971582595164
- Email: info@companysetup.ae
