General Trading Licenses in Dubai’s free zones are gaining popularity due to the country’s prominent trading industry. The UAE’s strategic location near ports and airports makes it an ideal hub for international trade. Growing opportunities for entrepreneurs have driven interest in starting businesses here.
Discover more about obtaining a general trading license in a Dubai free zone.
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Understanding General Trading Licenses
A general trading license in the UAE grants a company the legal authority to buy, sell, store, import, export, and re-export a diverse range of goods using a single license.
This license encompasses various activities, including trading goods like food, electronics, furniture, etc. While many goods can be traded, specific items like medical drugs, weapons, and alcohol might need special permission.
The key distinction between a general trading license and a regular trading license lies in the scope. With a general trading license, you can trade multiple unrelated goods under one license. In contrast, a regular trading license confines you to a single commodity.
a). Difference Between Free Zones and Mainland:
In mainland trading, there’s an extra AED 15,000 charge apart from the license cost. Free zone trading, however, doesn’t have such charges. Free zones allow virtual offices instead of physical warehouses.
b). Advantages of General Trading License:
UAE’s tax benefits and customs tax exemptions make the general trading license appealing. Business setup in UAE’s free zones is streamlined.
c). Cost and Procedure:
cost of General trading licenses in Dubai start at AED 11,900. Prices vary by chosen free zone. Registration typically takes 3-4 days with minimal paperwork for free zone companies.
How to Get General Trading License in Dubai Free Zone?
Obtaining a General Trading License in a Dubai Free Zone involves these steps:
- Choose the Right Free Zone: Select a suitable free zone for your business. IFZA (International Free Zone Authority) is a popular choice.
- Decide on Structure: Choose your company structure among Free Zone Establishment (FZE), Free Zone Company (FZCO), or Branch Company.
- Apply for Business Registration: Initiate the application process.
- Submit Required Documents: Furnish necessary documents, which usually include:
- Completed application form
- Passport copies of owner/owners
- Visa copies
- Emirates ID copies (if applicable)
- Two passport-sized photos with a white background
Additional documents might be needed, depending on the chosen free zone.
- Pay License Fee: Pay the required license fee.
After completing these steps and the necessary procedures, you’ll receive your General Trading License.
Why Start a General Trading Company in Dubai?
Setting up a general trading company in Dubai presents entrepreneurs with a myriad of advantages and opportunities, rendering it a strategic business choice. Here are key reasons to contemplate initiating your general trading enterprise in Dubai:
Local and International Trade Opportunities:
Acquiring a general trading license in Dubai facilitates the import, manufacture, and distribution of a wide array of goods within the local market or for export and re-export to lucrative international markets.
Low Tax Rates:
Dubai, being situated in the UAE with one of the world’s lowest tax rates, offers a significant incentive for businesses. A general trading license in Dubai allows cost-effective manufacturing of products.
Diverse Product Range:
With a general trading license, businesses can trade in a broad spectrum of products, barring only a few restricted items or sensitive materials. The initial investment in obtaining the license yields long-term benefits.
Simplified Registration Process:
The process of obtaining a general trading license in Dubai is not only profitable but also streamlined. The Dubai Economy (DET) typically issues the license within one week upon submission of required documents, in contrast to lengthy registration processes elsewhere.
Facilitated Sponsorship for Dependents:
General trading licenses make it easier for investors to sponsor visas for their employees and dependents, streamlining the process of obtaining UAE visas.
Strategic Global Trade Hub:
Dubai’s central geographical location in global trade enhances the potential for business success, providing numerous opportunities for international trade.
World-Class Infrastructure:
Dubai boasts world-class infrastructure, including well-equipped warehouses, efficient logistics services, top-notch seaports, airports, and a seamless customs process, facilitating smooth business operations.
Extensive Business Networks and Support Services:
The UAE hosts a plethora of businesses that offer support services for trading companies, encompassing logistics, warehousing, legal, marketing, finance, and more.
Business-Friendly Environment and High Demand:
Dubai’s government fosters a business-friendly environment, ensuring transparency and efficiency in general trading. Additionally, the affluent population and thriving economy in the UAE contribute to a high demand for imported products, ensuring market viability.
How much is a free zone trade license in Dubai?
In Dubai, the cost of a Free Zone trade license can vary depending on the specific Free Zone and type of license you choose. Typically, these licenses need to be renewed every one to three years. The annual fees for licenses range from AED 10,000 to AED 50,000.
How can I get trade license in Dubai free zone?
Here’s how you can get a trade license in Dubai Free Zone:
- Pick Your Business Activity: First, decide what type of business you want to do.
- Choose a Business Name: Select a unique name for your business.
- Decide on Location: Choose where you want to set up your business in the Free Zone.
- Complete the Application: Fill out the necessary paperwork and pay the required fees.
- Get Your License: Once approved, you’ll receive your trade license. After that, you can open a business bank account and start your operations.
What is the cheapest free zone trade license in Dubai?
The most affordable Free Zone trade license in Dubai is available at the International Free Zone Authority (IFZA). It costs AED 11,900 and doesn’t include visas. This is considered the cheapest and best Dubai Free Zone license option in 2023.
How We can Help You?
Company Setup Consultants ensures a seamless process for obtaining your UAE free zone general trading license. Our consultants will assist you from understanding regulatory demands and costs to acquiring approvals. If you’re looking to set up a general trading company in Dubai, get in touch with us today.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
