Googling to know how to get a trade license in Dubai? Then you are the right place. We will help you understand the step by step procedures to get a general trading license in Dubai. Before going deep into the details about Dubai trade license, take a look at Dubai as a trading hub.
Dubai is one of the most important trading hubs of the Arab region. The strategic location of Dubai gives it a clear advantage over other Asian and European trading destinations. Due to this advantage, the region witnessed significant growth in areas like logistics, retail and trade in the recent past. The immaculate infrastructure facilities, inexpensive energy, the most updated and flawless communication systems make Dubai the most preferred trading destination of traders and international businesses. Well equipped sea-port and airport facilities with impeccable cargo-handling capabilities make Dubai an international cargo hub.
Get your Trading License in Dubai
Traders around the world like to exploit these facilities to their advantage. Businesses who would like to conduct trading of goods and commodities, both local and international, should acquire a legitimate general trading license in UAE.
Here is the complete steps for getting a general trading license in Dubai.
A general trading license is required for those businesses who would like to engage in more than one trading activities that are not related to each other. This means that these activities need not belong to the same industry. A wide variety of activities require a single General trading license to operate in the UAE. And some of these activities are furniture or toy trade, trading of electronic items, jewellery, spare parts, all sorts of imports and export, etc. Wholesale trading companies also require a valid General Trading license to go about their operations in the UAE. Certain restrictions are applicable in the trading of certain products like tobacco and beverages that have alcoholic content etc. To engage in the trading of these restricted products, the business needs to apply for external approval from the competent authority.
You may set up a trading company in the UAE mainland, free zone or offshore jurisdictions. The benefits and drawbacks vary with the jurisdiction. Therefore, an investor should first determine the jurisdiction from which he/she needs to apply for the trade license.
Documents required for the issuance of General Trading license
- Application with the signature of the manager of the business.
- Proof of business name approved by the DED (Attested).
- Partner’s passport (copy)
Step-by-Step Instructions to acquire a General Trading License in Dubai
The instructions are presented in a brief and lucid manner.
- Determine an apt trade name for your trading concern.
- Assign a suitable legal form.
- Finalize the business activities that are meant to be listed in the license.
- Get the application for Initial approval, duly fill the application and submit the same.
- Restricted activities require external approval. If your trading activity necessitates additional approval, apply for the same without delay.
- Submission of all the relevant documents.
- Find a suitable location that is apt for establishing the trading concern. Prepare a Tenancy agreement and attest the same.
- File the Final License form at the Department of Economic Development, Dubai.
- Pay the license fee.
Validity and Renewal of General Trading License
The validity of the General Trading license from the date of issuance is 1 year. Prior approval is necessary for renewing the license after it becomes expired. For the purpose of renewal, you need to submit the expired license along with the proof of approval to the Dubai Department of Economic Development. The validity of the renewed license is 5 years.
General Trading license cost in Dubai
Considering many factors, the license may cost you approximately AED 40,000.
Benefits of acquiring a General Trading license in UAE
Tax exemption – the license owner enjoys tax exemption in connection with profits and income thus the advantage of zero tax.
Repatriation benefits – the business is eligible for complete repatriation of profits and assets.
Simple and uncomplicated formalities – The license issuance formalities are easy and direct. Once the documentation part is through, the issuance formalities can be accomplished within 10 days.
Multiple visa benefits - The license sets the opportunity for getting multiple visas for the staff or workers of the license holder. The number of employee visa issued is based on the area of the office space. Greater the area, the greater the number of visas issued.
Exemption from annual Auditing – the license holder need not submit the annual auditing report.
Enhanced possibilities of trading – Every trader likes to exploit the markets to their fullest potential. The license holder can conduct local, national and worldwide trade by acquiring a General Trading license in UAE.
Sponsoring visas - Visa sponsorship benefit is also available for the dependants of the license holder.
Acquiring a General Trading license in Dubai or UAE offers a lucrative opportunity for traders and investors. It provides a stable and reliable platform to generate more revenue and aids in business expansion in the most legitimate manner.
We at Kiltons perform the A to Z procedures to help you get a license and associated business setup in Dubai and UAE. Get in touch with our team for the best plans and packages.