Dubai is a top destination for business and trade. Many people from all over the world come here to start their own companies. If you want to sell, import or export a variety of products, you need a General Trading License in Dubai. This license allows you to trade a variety of items such as clothing, food, electronics, furniture and more - all under one license. It is a great choice if you want to do business in more than one sector without having to obtain separate licenses.

To obtain this license, you will need to follow some legal steps. You need to register your business with the Dubai Department of Economic Development (DED). You will also need to follow local regulations and may need to show that you can manage the money required to run a trading business. If you are a foreigner and want to move to Dubai to start your company, it makes it easier to get a general trading license in a strong and growing economy.

What Is Meant by General Trade?

General trade in the United Arab Emirates (UAE) refers to the import, export and distribution of various goods and products. It covers the trade of a wide range of physical goods, including furniture, electronics, clothing, toys and industrial machinery. However, some products, such as vehicles, alcohol, medical supplies and weapons, are subject to restrictions, and businesses are required to obtain special licenses to deal with their import or export.

What Is a General Trading License?

A General Trading License in Dubai allows you to trade in a variety of goods. You can import, export, distribute and sell multiple products under a single license. It is a flexible option for businesses that trade in a variety of goods. This license allows you to carry out multiple activities at once, except for trading in items that are not permitted by the government. It is better than a regular trading license, which allows you to trade only one type of product specified in the license.

Here are some of the key benefits of obtaining a General Trading License in Dubai:

Work in Multiple Sectors

Dubai offers a wide range of business opportunities. With a General Trading License, you can work in multiple industries, sell different products and change your focus as needed. You don’t have to rely on just one product or market.

Easy to Grow Your Business

This license makes it easy to expand. You can add multiple business partners and hire more people. You also get visa support, which helps you grow your business in Dubai or other countries.

There Are No Import Taxes or Currency Controls

You don’t have to pay import duties, and you can use any currency to do business. This helps when doing business with other countries. Also, the UAE allows you to take all your profits and capital back to your home country without any problems.

Why Start a General Trading Company in Dubai?

Starting a general trading company in Dubai is a smart choice that has many benefits. For example:

Trade Within And Outside The Country

With a general trading license, you can import goods, manufacture locally, sell in the UAE, or ship to other countries.

Easy Setup Steps

Setting up your general trading company is easy. You just need to provide the necessary paperwork to the appropriate office.

Low Business Taxes

The UAE has very low taxes, which helps you save money when manufacturing or selling products in Dubai.

Sponsor Your Family And Staff

You can use your company license to apply for visas for your family and workers.

Great Location for Business

Dubai is located at the top of the world map, which gives your business more opportunities to grow.

Many Product Options

This license allows you to sell many types of products, except for some items that are not allowed by law.

Business-Friendly System

Dubai regulations make it easy to run and grow a trading company with clear and fair support from the government.

Modern Business Facilities

Your company can use high-level services such as warehouses, ports, airports and easy customs assistance.

Useful Business Services

In Dubai, you will find many useful services such as legal help, storage, transportation, marketing and banking.

How to Get a General Trading License in Dubai

Here are the key things you need to know when getting a General Trading License in Dubai:

Business Eligibility

UAE citizens and foreign investors can apply for a General Trading License. If you are a foreigner, you may need a UAE citizen or a local company to hold 51% of the shares of your business.

Office Space Requirement

You must have an office or commercial space in Dubai. It must be suitable for your type of business and comply with DED regulations. The number of employees depends on the size of the space. Free zones offer ready-made offices with a set limit of staff.

Minimum Capital Requirement

There is no set capital amount for this license, but the DED may examine your business plan and ask you to show sufficient funds to run your trading company.

Company Structure

Choose the right setup for your business, such as a limited liability company (LLC) or the only ownership. It depends on whether you have a partner or they own the company alone.

Licensing Authority

If you plan to work in the Dubai mainland, apply through the Department of Economic Development (DED). If you choose a free zone, send your application to the Authority of that free zone.

Renewal and Compliance

Once you have your license, follow the DED rules and renew it every year to keep your business legal.

To obtain a General Trading License, follow these steps:

Choose a name for your company that complies with the DED’s naming regulations and register it.

Decide on the legal setup for your business and check if you need a local sponsor or partner to follow the ownership laws.

Choose trading activities you want to take out and make sure they are fit under the General Trading License.

Find and rent an office space in Dubai that matches your business needs and get a lease agreement.

Prepare all the necessary documents such as the Memorandum of Association (MOA), lease agreement, passport copies of all partners or owners and any other papers. What you want depends on your visa status, business size, type and other details.

Submit your license request to the appropriate authority either the DED or the Free Zone Office.

Pay the fee and wait for your license to be approved.

Once approved, get your General Trading License and start your business.

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General Trading License Steps in Dubai:

Step 1: Choose Your Jurisdiction

Dubai offers you two main options for starting your business - mainland or free zone.

Mainland companies follow the rules set by the Dubai Department of Economy and Tourism (DET) and usually require a UAE citizen as a partner or sponsor. Free zones, on the other hand, allow foreign owners to own 100% of the company without the need for a local partner.

Free zones like IFZA are great for traders and investors. They offer low taxes, full profit return, easy setup, and simple regulations. You also get access to good infrastructure, fast internet, and robust logistics, which helps with international trade.

Dubai has more than 30 free zones. Every different industry focuses on, such as technology, media, healthcare and transport. When choosing a free zone, consider location, setup costs, support services and license types.

Both mainland and free zone business setup have their own advantages. But if you are in trading, free zones offer more flexible rules and are more business friendly. Choosing the right setup will help you benefit the most from your general trading license in Dubai's fast growing market.

Step 2: Choose a Company Name

Choose a name for your trading company and submit it for initial approval. Make sure you comply with Dubai’s rules for business names. Once it’s approved, you can begin the licensing process.

Here are some rules to follow:

• The name should be in Arabic or English and should not contain special signs or symbols.

• Don’t use vulgar, religious, or political words.

• Avoid names that start with “Universal” or “International.”

• The name must be different from others already in the system.

• If it is a trademark, you need to register it with the Ministry of Economy.

• Names of countries or governments require special approval from their embassies.

Step 3: Secure Office Space

Since general trade involves physical goods, you may need to rent an office or storage space for your items.

Step 4: Obtain Customs Clearance

If you are planning to import goods into the UAE, you must obtain customs clearance. This means applying for an import code at the customs office and paying a fee. You can register at any customs department in the UAE.

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FAQs: People Also Ask

Q1. Do I need a trade license to sell online in the UAE?

Yes, you must have a trade license to sell online in the UAE. Whether you are planning to start an e-commerce store or sell items online, a trade license is essential to run your business legally.

Q2. Is it mandatory to have a trade license to set up a business in the UAE?

Yes, every business in the UAE must have a trade license. The Department of Economic Development (DED) issues trade licenses and monitors business activities. This license acts as an official approval that allows companies to operate legally in the country.