Do you want to get a general trading license in Dubai? If yes, now is the time. Everyone is aware of Dubai’s next-gen technological advancements. Also, it’s on the way to becoming a smart city and is already one of the best business hubs in the world. Besides, all the other facilities and ease of doing business attract entrepreneurs from across the globe to Dubai.
According to the statistics, Dubai issued 45,653 new business licenses in the first half (H1) of 2022. This shows a 25 percent growth from the (H1) last year. Moreover, it indicates that the emirate has accelerated the pace of its economic growth and diversification.
Under such circumstances, getting a general trading license in Dubai allows you to explore various business activities through a single license. The best part is that you’re not restricted to doing one particular business. Moreover, you can trade in multiple products simultaneously and indulge in imports and exports.
So, if you are planning to start a new business, Dubai is the best place for the same. Also, you need not worry if you’re unfamiliar with the business setup process. This blog will walk you through everything there is to know about getting a general trading license in Dubai.
Benefits of Getting a Trading License in Dubai
Once you get your general trading license, you’re eligible for various Dubai general trading license activities. You can use it for import, export, and trade. In addition, it is used for trading in multiple products. Unlike the other trade licenses for specific activities, a general trading license allows you to conduct various business activities through a single license only.
Now, Before we dive into the process and the other necessary details, let’s take a look at the benefits of getting a trading license in Dubai.
1. Diversity and Options
According to a report, among legal forms, sole establishment companies topped the list with 30%, followed by civil companies with 25%, and limited liability companies with 22%. This indicates that the Dubai government gives you many choices for doing business. You’re not just bound to one type of legal business structure. However, an LLC is among the most preferred options for general trading businesses.
2. Ease of Company Formation
The company formation process in Dubai is quite easy. Moreover, it’s relatively affordable. Therefore, it is hassle-free for you to start a company in Dubai. Also, the Dubai government is available to help you at every step. This makes the entire process quick too.
3. Get Multiple Visas
Getting a general trading license in Dubai makes you eligible for multiple visas. Having multiple visas allows you to keep a physical presence in Dubai. Moreover, you can also recruit more talent with ease for the business. You can get multiple employee visas. But the number of visas you can get depends on the size of your office.
3. Do E-Trading
Another perk of getting a general trading license in the UAE is that it allows you to do e-trading as well. You will have to get an additional e-trading license for the same. But, given the demand, technological advancements, and preference for online shopping, e-trading is a great way to earn profits.
4. Zero Tax Payment
Almost everyone is familiar with Dubai’s no-tax policy. Consequently, many budding entrepreneurs are attracted to business setups in Dubai. You don’t have to pay any type of personal or corporate tax in Dubai. There may be a certain percentage of VAT levied on specific items. However, no other taxes besides that. Also, how can one forget the 100% repatriation of profits?
Documents Required for Trading License in Dubai
Now that you know the benefits of getting a general trade license in Dubai, you must know the documents you’ll need. You must gather various documents to apply for a general trading license in Dubai. The business formation consultants or legal experts at UAE Expansion can provide you with a detailed list. However, to give you a fair idea, here is a list of a few prominent documents.
- 1. A completed application form which describes what your business does and the goods and services you will be trading in.
- 2. Copies of your passport and passport size photos.
- 3. A copy of your residence visa (if applicable)
- 4. Emirates ID copy (if applicable)
Steps to Geting a Trading License in Dubai
The process of the general trading license application is quite simple. You can get a detailed process from the legal experts at UAE Expansion . However, to give you a basic idea, here’s an overview of the same.
- 1. Choose the legal form of your business. It could be a public partnership, sole proprietorship, or LLC. Also, note that it’s best to go for an LLC if you want to start a general trading company.
- 2. Decide on the Dubai general trading license activities you wish to conduct. Also, don’t forget to register them with the DED.
- 3. Select your choice of business location. You have the option to start your general trading business in a free zone or Dubai mainland region.
- 4. Reserve a trading name for your business. You must be careful here. Ensure that the name you choose doesn’t overlap with an existing firm. Also, there are a few more naming guidelines you must follow. A legal expert can guide you better here.
- 5. Fill out the application form and attach all the required documents. Next, submit it to the concerned legal authorities.
- 6. Once your application and documents are approved, you can collect your general trading license.
What Is the Cost of a Trading License in Dubai?
Although it is challenging to give an accurate break up of Dubai’s general trading license cost, we can give you a rough estimate. So, if you decide to set up a general trading business in the Dubai mainland, a general trading LLC license cost in Dubai will be anywhere around AED 15,000 to AED 28,000. But, if you decide to go for a free zone setup, the general trading license cost in Dubai could be between AED 9000 to AED 22,000.
Get Your Trading License in Dubai Through UAE Expansion
After reading this blog, we’re optimistic that you are equipped with the basic information about a general trading license. However, to get a detailed plan, application process, and cost break up, you need to get in touch with a legal expert. The legal experts at the UAE Expansion are well-versed in Dubai’s general trading license application process.
Hence, they can assist you at every step, making the process seamless and quick for you. Moreover, they can get your license at highly affordable rates. So, all you need to do is give them a call, and they will take care of the rest.