Dubai has consistently maintained its position as a leading global business hub, with remarkable growth observed in various sectors such as trade, finance, and logistics. In light of this, establishing a general trading company in Dubai can prove to be a highly advantageous investment opportunity.
If you’re considering starting a general trading company in Dubai and need guidance, we’ve simplified the process for you. Follow our step-by-step guide to obtaining a general trading license in Dubai.
The government ensures growth in every sector, offering appealing market opportunities for foreign investors. Given Dubai’s global trading prominence, starting a business here is advantageous for both investors and new entrepreneurs.
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What is the DED general trading license?
The DED general trading license, also known as the mainland trade license, is issued by the Dubai Department of Economic Development. It permits the holder to engage in trading activities across the UAE mainland, offering more flexibility compared to free zone licenses that are restricted to specific zones.
Benefits of the DED General Trading License
The DED general trading license in the UAE offers flexibility and convenience for entrepreneurs. Some benefits include:
a). Wide Range of Trade:
You can engage in trading various goods, except for restricted industries, without the need for additional licenses.
b). Single License for Multiple Goods:
The general trading license allows you to trade unrelated products, from food and clothing to electronics and construction materials.
c). Ability to Expand:
While specifying your initial trading activities, you can add more later to diversify your business.
d). Streamlined Process:
The license application process is straightforward, enabling efficient setup and operation of your trading business.
e). Enhanced Market Reach:
With a general trading license, you can trade across the entire UAE mainland, maximizing your market opportunities.
Steps to Start a General Trading Company in Dubai
Starting a general trading company in Dubai can be a straightforward process with the assistance of a local company setup expert. Here are the five steps involved:
Step 1: Determine business activities:
Specify the goods you intend to trade and ensure they align with your business goals.
Step 2: Choose a company name:
Select a name that adheres to naming conventions and avoids offensive or well-known terms.
Step 3: License application:
Work with a company setup agent to complete the application form and provide necessary documents such as articles of incorporation and passport copies for shareholders. The general trading license can be obtained online in just 30 minutes.
Step 4: Visa application:
Apply for the required visas, including residency visas for yourself, employees, and domestic staff. Follow the five-step process, including entry permit, status adjustment, medical and fitness test, Emirates ID registration, and visa stamping.
Step 5: Bank account opening:
Choose a suitable local or international bank and open a corporate bank account. Familiarize yourself with different financial institutions and their requirements. Ensure you have a UAE business license, and some banks may require shareholders to have a residency visa. Minimum balance requirements typically range from AED 10,000 to AED 150,000. The account is usually opened within two to four weeks upon successful application.
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Steps to Get a General Trading License in Dubai
Here are 8 straightforward steps to obtain a general trading license for your business in Dubai, UAE:
- Select a trade name for your company.
- Define and plan your business activities.
- Apply for initial approval from the Department of Economic Development (DED).
- Obtain any necessary external approvals, if required.
- Prepare the Memorandum of Association (MOA) and have it signed by your partners.
- Choose a suitable business location and acquire a tenancy contract, duly attested by Ejari.
- Submit your license application to the Department of Economic Development (DED).
- Pay the required fee for the issuance of the license.
Read Also: How to Get Consultancy License in Dubai
When applying for a general trading license in a free zone or offshore jurisdiction, it is necessary to submit the original documents to the Commercial Registry at the trade license and commercial registration department. Once the Department of Economic Development (DED) obtains approval from the trade license and commercial registration department, they will proceed to issue the general trading license for your business. Simply put, submitting the required original documents and obtaining approval from the relevant department will enable you to obtain your general trading license.
How much does it cost to set up a general trading company in Dubai?
The cost of general trading license in Dubai typically ranges from approximately AED 15,000 to AED 50,000 or more. The total expense depends on factors like business location, warehouse size, office space, additional approvals, business jurisdiction, and visa applications.
Read Also: How to Get Commercial License in Dubai
Required Documents for Starting a General Trading Business in Dubai
Here are the typical documents needed:
- License application signed by all stakeholders and legal representatives.
- Passport-sized photographs of all business partners.
- Copies of passports for all business partners.
- Copies of visas for all business partners.
These documents are essential for the application process and to initiate the setup of your general trading business in Dubai.
How to set up a general trading company in Dubai?
Here are the simplified steps to start a general trading company in Dubai:
- Choose Your Business Activities: Decide what type of products or services your trading company will deal with.
- Pick a Company Name: Select a unique and appropriate name for your company.
- Apply for a License: Submit your license application to the relevant government authorities.
- Obtain Visas: If you plan to hire foreign employees, arrange for their work visas.
- Open a Bank Account: Set up a business bank account to manage your finances.
How can I start a general trading company in UAE?
Starting a General Trading Company in the UAE – Step by Step
- Craft a Business Plan: Begin by creating a comprehensive business plan outlining your goals and strategies.
- Select General Trading as Your Business Activity: Specify “General Trading” as your chosen business activity.
- Choose a Company Name and Apply for a License: Pick a unique company name and proceed to submit your licensing application.
- Decide on the Commercial Jurisdiction and Location: Determine the appropriate commercial jurisdiction and physical location for your business.
- Secure a Local Sponsor: Find a local sponsor who will assist with certain legal requirements.
- Acquire an Office and Warehouse: Secure suitable office and warehouse spaces to meet your business needs.
What is the cheapest general trading license in UAE?
If you’re seeking the most budget-friendly general trading license in the UAE, consider the SPC Free Zone. Here, you can obtain your trade license for approximately AED 6,500.
What is a general trading company in Dubai?
A general trading company in Dubai and the United Arab Emirates is a business entity that is involved in the import, export, and trade of a wide variety of goods and products. This type of company engages in the trading of a diverse range of physical products, including items such as furniture, electronics, clothing, toys, as well as various types of industrial and manufacturing equipment. Essentially, a general trading company in Dubai has the flexibility to deal with a broad spectrum of goods, making it a versatile player in the import and export industry.
Can I sell online with general trading license in Dubai?
Absolutely! With a general trading license in Dubai, you have the flexibility to conduct both online and offline sales, operating through physical retail or wholesale establishments. The current surge in online sales, driven by the COVID-19 pandemic and increased home-stays, makes this license especially advantageous. Additionally, if needed, you can import goods for local sales under this license.
How do general trading companies work?
General trading companies have a broader scope of operations, spanning multiple fields, and emphasize business investment over basic trading activities. Conversely, specialized trading companies operate within a specific field and prioritize trading operations within that particular sector.
Start Your General Trading Company in Dubai with Company Setup
Now that you have a clear understanding of the steps and required documentation for starting a general trading business in Dubai, why delay any further? Establishing a general trading business in Dubai promises lucrative profits, and the government of Dubai is known for its supportive and collaborative approach, simplifying the setup process.
If you still have any doubts or uncertainties about establishing your general trading business, consider partnering with a trusted business setup consultancy like Company Setup Consultants. Our experienced consultants specialize in business setup in Dubai and can provide the guidance and expertise you need to ensure a smooth and successful setup process.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
