Are you looking to set up your business at a strategic location that allows easy trading with endless opportunities for growth? A general trading licence in Dubai can make this possible! According to the government of UK publications, over 5,000 British companies are currently operating in the UAE. Some of them are BP, Shell, Rolls Royce, Standard Chartered, and HSBC.
The UAE government has enacted several economic and institutional measures to achieve a fully diverse economy. This, along with Dubai’s current cultural and ecological benefits, has made it one of the most appealing sites for new organizations. As a result, some of the world’s most prestigious corporations already have headquarters in Dubai, and new enterprises are springing up daily. Hence, if you plan to get a general trading licence in Dubai, you are on the right track. It will allow you to trade food, electrical devices, fashion attire, furniture, jewellery, etc.
What Is the Process To Get a General Trading licence in Dubai
Decide on a location
To start a trading firm in Dubai, you have three options: Mainland, Free Zones, or Offshore. You can freely trade products in the UAE if you get a mainland general trading licence in Dubai. For ordinary commerce, it is generally advisable to have a mainland licence. However, if you choose a free zone, you can have restrictions on moving your items around.
Choose your trading activity
The UAE’s Department of Economic Development (DED) maintains a list of authorized business activities. For your ordinary trade business, you may pick up to 10 activities.
You can include all operations that are regulated commodities that fulfil health and safety requirements but do not require external approvals, such as weapons, pharmaceuticals, and so on. Furthermore, you must select the activities you intend to do based on the nature of your business and submit a list of those activities to the authorities.
Select your company name
The rules governing company names in the United Arab Emirates are simple and not uncommon. You can’t, for example, use the same or a very similar name as a globally recognized company, use inappropriate language, or include God’s names in your brand.
Furthermore, companies are not permitted to use insulting remarks or language that offend a community’s sensibilities or religious beliefs. Moreover, if you want to name it after someone, be sure to include their complete name.
It’s crucial to note that the restrictions differ slightly depending on whether your company is based offshore, on the mainland, or in one of the UAE’s free zones. Offshore companies have the most freedom, followed by free zones — while the mainland has the most restrictions. Hence, it is advised to check with the relevant authority to check for the limitations depending on where you wish to set up your business.
Get the initial approval
You’ll need to get the initial permission when your company name has been authorized. For your general trading licence in Dubai, you must contact the appropriate government.
To receive this permission, you’ll need the trade name registration payment receipt with a few other legal papers, such as the Memorandum of Association (MOA) from the relevant government agencies.
Furthermore, if all your documentation is in order, you will receive an initial permission certificate stating that the authorities have no objections to you forming a business in the UAE.
Lock a physical space
General trading business in Dubai needs an official location for their operation. It is preferable to rent rather than buy an office space in the UAE since you will have to pay a large deposit. You must register your office space with Ejari and establish your rental contract before applying for a trade licence.
A mainland licence permits you to open a warehouse with no restrictions but a free zone licence restricts operations and storage. Some free zones, such as IFZA, allow you to run your business from a virtual office. Depending on your requirements, you can select any of these.
Submit your general trading llc licence application
Once you’ve completed all of the above stages, you can quickly apply for your general trading llc licence. In this phase, you’ll also need the first permission document, as well as any additional legal papers required for verification.
Make sure you fill out the application accurately and double-check everything before submitting it. Complete all needed payments within time. Furthermore, if some of your business operations aren’t covered by your general trading licence, you may need to seek extra permissions.
What Is the Cost To Obtain a General Trading licence in Dubai?
General trading llc licence cost in Dubai is around AED 300,000. For the first year, the approximate general trading licence cost in Dubai is AED 25,000. From the second year, it will cost you AED 15,000. Depending on where you decide to set up your organization, the general trading licence cost in Dubai may vary.
What Are the Important Documents Required To Obtain a General Trading licence in Dubai
Obtaining a general trading licence in Dubai requires you to submit a few necessary documents with the applications. Following is the list of documents that you will need for obtaining a trade licence in Dubai:
- General Trading licence application signed and completed by the investor/manager
- Memorandum of Association, Shareholder Agreement, Entry Stamp, and other relevant papers
- Affidavit of Trade Name Approval from Dubai Economy or the relevant Free Zone Authority.
- Copy of the Shareholders’ Passport
What Are the Benefits of a General Trading licence?
- All commercial transactions inside the UAE are subject to a 5% VAT, which represents considerable tax savings as opposed to other European and Asian areas.
- In addition, there are no customs duties, corporation or income taxes, or any fees to pay in Dubai.
- DED’s General Trading licence allows you to open a business anywhere in the UAE and actively engage in the local market.
- The procedure of forming a company in the UAE mainland is simple. The most popular company structure is a limited liability company (LLC).
- Using the services of Business Consultants to find a local sponsor for an LLC firm is simple.
- Employees have easy access to visas. The size of the investor’s office determines the visa quota.
- Opening a bank account and dealing in many currencies is simple.
Get Your General Trading Licence With Shuraa
The benefits of a general trading licence in Dubai are endless! With only 5% VAT, zero income tax, and endless opportunities, companies can generate profiting revenues and keep thriving. Dubai offers flexible spaces and top-notch infrastructural facilities to conduct hassle-free trade.
Shuraa can help you acquire this licence without much hassle. Our adept consultants will assist you through the entire process, ensuring that you have all your necessary documents in place. All you need to do is get in touch with us and let us take care of the rest!