Who hasn’t thought of the UAE at least once in their lives when it comes to investments?
Combining high economic stability and security with easy access to global markets, the UAE offers investors like you an excellent opportunity to start and scale their businesses.
Source: OEC
But before you get going, securing a valid general trading license in UAE(Dubai) can work wonders for you.
This legal permit allows you to conduct specific business activities in the UAE; without it, you could face heavy penalties.
It also boosts credibility and raises awareness of your company in the market in which you are operating.
If you’re considering starting a business in the UAE, this article will provide valuable insights into the general trading license in UAE.
It will demystify what it offers for your business in the UAE, the types of businesses it applies to, and the surprisingly straightforward application process, giving you the confidence to proceed.
General Trading License in UAE
A General Trading license in UAE is a popular business category that allows investors to trade in various products.
Global investors prefer the UAE for establishing a trading company due to its strategic location and business-friendly environment.
The Free Zones and Mainland offer a wide range of heavily discounted packages for obtaining a General Trading license in UAE.
Investors can efficiently conduct international and local trade operations in the UAE with a General Trading license and a business bank account.
This includes the ability to invoice from a UAE-based company and the necessary import-export code for trading commodities.
The UAE’s amended commercial company law allows expatriates to form 100% owned General Trading companies. In Dubai, setting up a General Trading company can be done in just 3-4 days with a virtual office setup.
Why Start a General Trading Company in Dubai?
Starting a general trading company in Dubai is not just a business move; it’s a gateway to many exciting benefits. These benefits will make you optimistic and excited about the opportunities a general trading license in UAE can bring to your business.
- Local and International Trade: Import or manufacture goods listed in the license and distribute them locally or export them to profitable markets.
- Low Tax Rate: Benefit from one of the world’s lowest tax rates, reducing manufacturing costs.
- Wide Range of Products: Trade in a diverse range of products, with some restrictions on sensitive materials.
- Simple Process: Submit the required documents and obtain your trading license from the Dubai Economic Department (DET) within a week.
- Easy Sponsorship for Dependents: Simplify visa applications for employees and their dependents.
- Center of Global Trade: Dubai’s strategic location offers numerous opportunities for business success.
- World-Class Infrastructure: Utilize excellent infrastructure, including warehouses, logistics, seaports, airports, and customs processes.
In Dubai, you’re not just starting a business but joining a community. Access various support services such as logistics, warehousing, legal, marketing, and finance to ensure your business thrives. This support will make you feel confident and supported in your business venture. - Business-Friendly Environment: Enjoy a supportive government and a booming economy with high consumer demand.
How To Get a General Trading License in(UAE) Dubai?
General Trade License UAE (Dubai) Cost
When considering the cost of a general trading license in Dubai, it’s essential to recognize its value in allowing you to trade multiple products under one license.
This offers greater scope for business growth and diversification, making it a cost-effective solution compared to a single-activity license.
The cost of a general trading license in UAE(Dubai) typically ranges from AED 15,000 to AED 50,000 or more. Several factors influence the total cost, including:
- Business location (Mainland or Free Zone)
- Warehouse size
- Office space requirements
- Additional approvals
- Business jurisdiction
- Visa applications
With Vytal’s expertise, you won’t have to worry about the complexities of these payments.
We ensure all transactions are transparent, helping you secure the most affordable general trading license in UAE without hidden costs.
Partner with Vytal to streamline your business setup and enjoy a hassle-free experience in Dubai’s thriving business environment.
Our comprehensive services include assistance with document preparation, visa applications, and office space acquisition, among others.
Steps to Obtain a General Trading License:
- Choose Your Jurisdiction: You can choose between the Mainland and the Free Zone, considering factors like ownership, location, and licensing requirements.
- Choose A Company Name: Follow Dubai’s naming guidelines to ensure compliance and protect your brand.
- Secure Office Space: Rent office space tailored for storage and efficient logistics.
- Getting Customs Clearance: Obtain an import code and register your business with the customs authority.
Required Documents:
- Individual Shareholders: Copy of passport, passport-size photo, residence visa, Emirates ID.
- Corporate Shareholders: Certificate of incorporation, certificate of incumbency or equivalent, memorandum of association, board resolution.
- General Trading License in UAE( Dubai): Mainland Vs. Free Zones
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General Trading License in UAE (Dubai Mainland)
Setting up a business on Dubai’s mainland has distinct advantages and drawbacks.
A general trading license in UAE on the Mainland provides easy access to established markets and urban centers, making it an ideal choice for businesses looking to tap into Dubai’s thriving economy.
However, it’s important to note that a UAE national partner is mandatory in Mainland businesses to ensure local involvement in your venture.
This partner will hold a 51% share in the company, but a side agreement can be made to protect the investor’s interests and maintain control over the business.
Despite this, the competitive pricing packages available for company formation in the Mainland make it an attractive option for many investors.
Dubai Free Zones General Trading License
Dubai’s Free Zones offer an appealing alternative for those seeking complete foreign ownership and specialized infrastructure.
Establishing a company in any of Dubai’s Free Zone jurisdictions provides the invaluable advantage of 100% foreign ownership and access to state-of-the-art facilities tailored to specific industries.
Certain Free Zones require a minimum share capital of AED 1 million to obtain a general trading license in UAE . Still, this investment is often offset by the benefits of streamlined processes and dedicated support for international businesses.
Mainland vs. Free Zones: Key Considerations
When deciding between the Mainland and Free Zones, it’s crucial to weigh several factors:
- Ownership Structure: Mainland requires a UAE national partner, while Free Zones allow 100% foreign ownership.
- Location: Mainland businesses benefit from proximity to established markets and urban centers. Free Zones offer specialized infrastructure and strategic locations suited to specific industries.
- Licensing: Free Zones typically offer more efficient procurement processes for licenses tailored to international businesses’ needs.
Carefully consider your business goals and operational needs when choosing between Mainland and Free Zones. Each option presents unique advantages that can significantly impact your company’s success.
Instant License Option
Dubai Economy offers an Instant License with a one-year validity that does not require office space.
This option is particularly beneficial for startups and small businesses, as it allows them to establish their presence in Dubai without the immediate need for physical office space.
However, the investor must secure physical office space to renew the license after one year.
How Vytal Can Help You
Navigating the process of obtaining a General Trading license in UAE(Dubai) can be complex, but Vytal is here to assist.
Our team of experts provides comprehensive support, from choosing the proper jurisdiction and securing office space to handling all documentation and ensuring compliance with local regulations.
Partner with Vytal to streamline your business setup and take full advantage of the UAE’s thriving business environment. Contact us today to get started on your journey to success in Dubai.
FAQs
How Much Does a General Trading License in UAE (Dubai) Cost?
The cost of a trade license in Dubai can vary widely based on several factors, including the type of business, location (Mainland or Free Zone), and specific business activities. On average, the cost ranges from AED 15,000 to AED 50,000.
What are the three types of business licenses in the UAE?
The three main types of business licenses in the UAE are:
- Commercial License: For trading activities.
- Professional License: For service-oriented businesses.
- Industrial License: For manufacturing and industrial activities.
How long is a trade license valid in the UAE?
A trade license in the UAE is valid for one year. It must be renewed annually to remain active.
Which trade license is best in Dubai?
The best trade license for your business depends on your specific activities and goals. A general trading license in UAE is ideal for general trading, while a Professional License is best for service-oriented businesses.
What is the difference between commercial and trade licenses in Dubai?
In Dubai, a commercial license is specifically for trading activities, allowing businesses to buy and sell goods. A trade license is a broader term encompassing various licenses, including commercial, professional, and industrial permits, depending on the business activities.
Can I freeze my trade license in Dubai?
You can freeze your trade license in Dubai for a certain period. This is useful if you temporarily halt business operations without canceling the permit.
How much is a general trading license in UAE( Sharjah)?
The cost of a general trading license in UAE(Sharjah) varies but typically starts from AED 15,000, depending on the specific business requirements and additional services.
How can I reduce my trade license fee in Dubai?
To reduce your trade license fee in Dubai, consider setting up your business in a Free Zone with lower setup costs, take advantage of discounts and promotional offers, and choose a package that fits your specific needs without unnecessary add-ons.
How can I get a discount on a trade license in Dubai?
You can get a discount on a trade license in Dubai by:
- Looking for promotional offers from Free Zones.
- Engaging with corporate service providers like Vytal, who can negotiate better rates.
- Choosing bundled services that offer cost savings.
What happens if I don’t renew my trade license in Dubai?
If you don’t renew your trade license in Dubai, your business will be considered illegal, and you may face penalties, fines, and legal action. Additionally, your business activities will be halted, and you might incur additional fees for late renewal.