Starting a general trading business in Dubai is a lucrative opportunity, given that you know all the costs involved, including the general trading license cost in UAE. Given the UAE’s booming economy, accessibility to emerging markets, and high demand for goods and services, it is not a surprise that you are persuaded to start a general trading business here.
In fact, Dubai issued a total of 24,662 brand-new business licenses in the last year. Out of these, commercial licenses account for 43%, and general trading is just one of the many activities covered under this license type.
So, if you want to learn about general trading license costs in UAE, keep reading.
Benefits Of General Trading License in Dubai
Launching a general trading venture in the UAE benefits investors who enjoy the government’s several business-friendly reforms. Here are some more benefits of a general trading license in the UAE:
1. Domestic and Foreign Trade
Each product included in the general trading license can be imported or produced by traders. These traders expect to make their trade profitable by taking advantage of the Dubai government’s business initiatives, affordable labor, and other incentives.
If you hold a general commerce license, there are numerous options for you to manufacture or import. Additionally, the domestic and foreign trade opportunities may increase your business’s ability to conduct worldwide business.
2. Affordable Setup Costs
This license can help your company run smoothly and is also an economical alternative. A general trading license cost depends on the location you choose for your business, including its specifications and other factors. It’s a one-time investment with continuous returns and endless opportunities to expand.
3. No Tax and 100% Repatriation
Since the license holder is exempt from taxes on earnings and revenue, there is zero tax to pay. Also, The UAE has no restrictions on the repatriation of an entity’s capital or its entire profit stream.
4. Obtain Several Visas
Once you have a general trade license, you can apply for numerous visas for your personnel. But it’s essential to remember that as the number of visas increases, the number of offices you’ll need to obtain corresponds in number. This aspect, though, is dependent on the office setting.
Documents Needed To Open a General Trading Company in Dubai
All companies operating in the UAE must adhere to the documentation requirements established by the governing organizations. To apply for a general trading license in Dubai, you will need the following documentation:
- Passport copies
- Passport size photographs
- Entry visa or stamp page
Furthermore, your need for extra documentation and approvals will depend on your trading activity and preferred place of business. You can talk to our professionals at UAE Expansion to prevent mishappenings. They will assist you in ensuring that your documentation is accurate and comprehensive.
How to get a General Trading License in Dubai?
A trading license is required for every trading business in Dubai. The process doesn’t take very long when you follow the proper steps. The following is a brief overview of the process:
1. Choose Your Business Activities
Select the commercial endeavors you want to list on the general trading license. You can include all goods that are approved and adhere to health and safety regulations, but not commodities like firearms, prescription medications, and many more. Therefore, decide the things you want to import and export.
2. Reserve a Trade Name
Reserve a trading name in order to establish your business. Ensure you avoid using insensitive terminology that could cause your trade license to be rejected. Our experts can help you with the naming process based on name availability and understanding of the extensive naming guidelines.
3. Choose Your Company Structure
Choose a corporate structure that is suitable for your firm. It will determine the amount of responsibility that lies on your shoulder. A limited liability corporation (LLC), a branch office, or a sole proprietorship are all legal business structures you can opt for in the UAE.
4. Choose a Location for Your Company
In the trade license application, you must specify the location of your business premises. Decide whether you want to set up in a free zone or the mainland for this purpose. Both locations have their own set of pros and cons.
While the former offers more freedom to conduct your business, the latter allows you to bid for government projects. But that’s not all. There is more that must be considered. After deciding, you must also enter into a rent or lease agreement to get office space.
5. Apply for a Trade License
Send all the appropriate documentation to the concerned department to apply for your trade license. You must also pay the relevant fees within the timeline.
You may also need extra approvals for some activities and goods. Our consultants can help you obtain these additional permits and the necessary approvals from the relevant authorities.
6. Get Your License
Once the authorities review your documents, they will issue your license, given that there are no errors. After receiving your license, you can sponsor the visas of your dependents and employees. Also, you may open a corporate bank account for your company’s financial transactions. Remember to maintain your license and meet all compliances to stay out of trouble.
How Much Does a General Trading License in UAE Cost?
The general trading license cost in UAE is determined by various factors, including the nature of the business, the number of visas required, the structure of the company, additional approvals, and many more. Moreover, the cost could go up depending on the products you wish to sell, some of which would need special approval from the UAE government.
So, considering everything, a trade license can typically cost you between AED 15,000 and AED 50,000 in Dubai. You can explain your company’s needs to our consultants to get exact pricing estimates. Our experts will consider all the aspects and tell you the exact UAE general trading license charges. Furthermore, they will ensure that you do not overpay for any of the expenses.
Start Your General Trading Business
The consultants at the UAE Expansion can simplify the application process for you. Our experts are knowledgeable and have years of experience you can benefit from.
We will take care of everything, including ensuring that the documents are valid and obtaining preliminary approvals. Moreover, we can provide you with all the sources you need regarding the UAE general trading license. In addition, we can customize business setup solutions based on your company’s particular requirements. Give us a call right away.