How to Get a General Trading License in Dubai
In the modern business world, almost everyone agrees that the UAE is a fantastic location to launch a new company or grow an existing one, and for good reason.
Dubai, the capital of the United Arab Emirates, is one of the most sought-after travel destinations in the world. Its stable economy, favorable location, and government initiatives attract international investors and enterprises.
In the event of sudden market changes, you want options even if your business is highly field-specific. Increased trading in a wider range of items is one approach to offering this diversity. The General Trading License is helpful in this situation.
What Is a Dubai General Trading License?
Businesses can carry out a variety of trade operations in Dubai with a general trading license, such as importing, exporting, distributing, and selling different goods and products. Businesses operating in various trading industries can benefit from this kind of license because it is very adaptable.
It enables business owners to trade any goods except those prohibited by the government. They can also engage in multiple activities simultaneously under a single license. This is far more advantageous than a standard trading license, which allows you to trade a particular item that is directly associated with the license.
The following are some of the main benefits of getting a Dubai general trading license:
Diverse business scale:
A general trading license allows companies to explore several industries, sectors, activities, and goods, allowing them to adjust to changing market conditions. Dubai offers a wide range of commercial prospects.
Potential for expansion:
A general trading license allows businesses to expand by attracting more shareholders and a large workforce. It also enables access to visas, which is crucial for domestic and international growth.
No duties or currency restrictions:
A general trading license enables international commerce and financial operations. It allows businesses to conduct transactions in any currency and enjoy zero import taxes. Finally, the UAE allows international businesses to return their revenues and cash.
Logistical freedom:
The United Arab Emirates, particularly Dubai, has the infrastructure to support both domestic and international trade. This location places it at the center of major shipping lanes and global supply chains.
You will directly access Dubai’s key seaports, airports, transportation networks, warehouses, and offices. This gives you the best logistical capabilities, whether you choose to live in a free zone or on the mainland.
UAE Trade License Cost
The cost of a general trading license in the UAE depends on several factors. These factors include the emirate you choose, the type of business operations you plan, your business structure, and whether you opt for a free zone or mainland location.
In Dubai, a general trading license typically costs between AED 12,500 and 35,000. If you decide to operate on the mainland, the lowest pricing range is raised to AED 25,000 to AED 35,000.
If you’re searching for the least expensive choice in the United Arab Emirates, consider free zones in the northern emirates, such as SHAMS (Sharjah Media City) in the Emirate of Sharjah, where a General Trading License costs AED 6,500.
It should be mentioned that there are extra costs associated with obtaining a general trading license that you should be aware of before applying for one. These costs could significantly raise the total cost of starting a business when taken together.
The following expenses should be taken into account when applying for a general trading license in the UAE:
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License application fees:
A non-refundable application fee should generally be paid to the appropriate government agency when applying for a general trading license. The application fee may change depending on the licensing authority and the emirate.
Trade name registration:
You might have to pay fees to the appropriate authorities in order to register your trade name, commonly referred to as a business or trade name. In order to legalize your business operations, this registration is necessary.
Office and warehouse rent:
You must have a physical office or business space in the United Arab Emirates in order to receive and keep a General Trading License. The location, size, and amenities can all significantly impact the cost of renting office space or a warehouse.
Government and regulatory fees:
The licensing procedure may be subject to additional government and regulatory fees. The type of business, the number of partners or shareholders, and the planned business activities are some examples of the variables that may affect these fees.
Local sponsorship or partner fees:
You could require a local sponsor or partner if you are a foreign investor and do not own all of your company. The price can vary since local sponsorship is usually negotiated between the parties.
Legal and consultation fees:
Many companies collaborate with legal counsel or business consultants to manage the licensing procedure and guarantee adherence to UAE legislation. Fees may apply for this professional assistance.
Visa and immigration fees:
Visa processing fees, medical exams, Emirates ID cards, and other immigration-related costs apply to resident visa applications. These costs also apply to your staff and partners.
Renewal fees:
Generally, general trading licenses must be renewed once a year, and the renewal process includes expenses.
Value-Added Tax (VAT) registration:
You could have to pay administrative fees to register for VAT, depending on your business’s sales and operations.
To meet all requirements, understand costs, gain expertise, and seek advice from a business consultant or legal specialist with UAE experience. This expert can help ensure your business establishment is compliant and cost-effective.
Furthermore, remember that rules and costs might change, so staying current with the most recent information from the appropriate government agencies is essential.
Activities under the General Trading License in UAE
A general trading license makes it possible to trade a wide range of goods, including machinery, food, electronics, and textiles. If you intend to engage in international trade, be knowledgeable about import and export laws and customs procedures.
In Dubai, a general trading license can be used for the following typical activities:
Import and Export:
Companies who hold a general trading license are able to export products from Dubai to foreign markets and import goods from other nations into Dubai. This covers many things, including consumer goods, machinery, textiles, electronics, and more.
Wholesale Trading:
Buying products in large quantities and reselling them to retailers, other wholesalers, or even customers directly is known as wholesale trade.
Retail Sales:
Although wholesale trade is a general trading license’s main focus, retail sales may be permitted under the license’s particular terms and conditions. Opening shops or selling goods online are examples of retail activities.
Trading in Food and Beverages:
Both perishable and non-perishable food goods may be traded under this license. Activities related to importing, distributing, and selling food may fall under this category.
Trading in Electronics and Appliances:
Businesses can trade gadgets, appliances, electronics, and accessories.
Trading in Building Materials:
Companies can exchange building and construction materials, which are highly sought after because of Dubai’s development and construction projects.
Trading in Industrial Machinery and Equipment:
Trading in industrial machinery, equipment, and tools used in various industries is covered by the license.
Automotive Trading:
It allows trading in automobiles, auto accessories, and auto parts.
Pharmaceutical and Medical Equipment Trading:
Although specialist healthcare licenses may be needed for some medical operations, a general trading license can cover trading in pharmaceuticals, medical supplies, and equipment.
Textiles and Apparel Trading:
Businesses can trade textiles, clothing, fashion accessories, and similar products.
Toys and Games Trading:
Another option is to trade games, toys, and recreational items for adults and kids.
Office Supplies and Stationery Trading:
The trading of stationery, office supplies, and similar goods may be covered by this license.
General Commodities Trading:
It enables companies to deal in various commodities, such as raw resources, agricultural goods, and more.
Ways to Secure a General Trading License in Dubai
The following are important things to know when getting a general trading license in Dubai:
Business Eligibility
Generally, both foreign investors and UAE citizens can get general trading licenses. A local partner, who must be a UAE national or a business based in the UAE, may be required by foreign investors to own a majority (51%) of the company.
Company Structure
Based on your unique needs and the involvement of partners or shareholders, you can select the best legal form for your company, such as a sole proprietorship or Limited Liability Company (LLC).
Licensing Authority
On the mainland of Dubai, you must apply for a general trading license from the Department of Economic Development (DED) or the appropriate government in the particular emirate where you intend to conduct business. When establishing your business in a free zone, submit an application to the authorities of the free zone.
Minimum Capital Requirement
The DED may evaluate your company’s activity and demand proof of sufficient capital for trading operations. The DED may still assess your company’s financial strength despite not having a set minimum capital requirement for a general trading license.
Office Space Requirement
You must have a physical office or commercial space in Dubai to be eligible for this license. The area should be appropriate for your company’s operations and adhere to DED guidelines.
The size of your facility also affects how many employees you can hire. Free zones offer prepared office packages that are only available to a specific number of workers.
Renewal and Compliance
Once you have the license, you need to make sure that you continue to follow DED rules, which include renewing it once a year.
Regarding the actual process of obtaining a general trading license, the processes involved are as follows:
- Apply for your company’s registration and choose a name that complies with the DED’s naming guidelines.
- Describe your company’s legal structure and determine if you require a local sponsor or partner to satisfy the ownership criteria.
- Specify the trading activities you intend to carry out using your general trading license, ensuring that your chosen activities correspond to the kind of license.
- Obtain a leasing agreement for the office space and find a physical office or commercial space in Dubai that satisfies the DED’s requirements for your business operations.
- Compile and submit the required paperwork, which usually consists of the lease agreement, the Memorandum of Association (MOA), copies of the partners’ or shareholders’ passports, and other relevant paperwork. Depending on several variables, including your residential status, the company’s size, legal structure, and operations, the documentation required may change.
- Apply to the appropriate authority organizations for your general trading license.
- After making the required payments, watch for your application’s approval.
- Get your General Trading License as soon as the authorities provide their approval.
Summary
The general trading license is an excellent method for growing operations and accessing new markets without needing to get separate licenses for each trading field, business activity, and market. UAE authorities have made the licensing processes easier. However, staying informed about changes to business licensing and regulatory requirements is crucial.
To obtain a general trading license in Dubai, it is advised to collaborate with a local specialist or advisor who can help you navigate any potential obstacles and ensure complete compliance with all applicable laws.
Our professionals at JSB Incorporation can guide you through this procedure and guarantee a successful application. To begin, get in touch with us right now.
Book your free consultation call today to get started.
FAQs
You can apply through the Department of Economic Development (DED) or a free zone authority.
You'll need a passport copy, visa, proof of residency, trade name approval, and tenancy contract.
It typically takes 3–7 working days to obtain the license, depending on the process.
Yes, in Dubai-free zones, 100% foreign ownership is allowed without needing a local sponsor.
A General Trading License allows global import, export, and trading activities.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com