Starting a business in Dubai requires obtaining the appropriate licenses, and a General Trading License is a popular choice for those looking to trade a variety of goods. Here’s everything you need to know about getting a General Trading License in Dubai.
What is a General Trading License?
A General Trading License in Dubai allows businesses to import, export, and trade multiple types of goods, including furniture, electronics, clothing, toys, and industrial equipment. However, it’s important to note that restricted products like cars, alcohol, and medical items require specific licenses.
Benefits of a General Trading License in Dubai
There are several advantages to obtaining a General Trading License in Dubai:
- Local and International Trade: This license allows you to sell in Dubai’s local market and export globally.
- Low Tax Rates: Dubai offers one of the lowest tax environments in the world.
- Wide Range of Products: You can trade in multiple product categories except for restricted items.
- Simple Licensing Process: Obtaining a general trading license is straightforward, often taking just one week.
- Sponsorship for Dependents: Investors can easily sponsor visas for employees and family members.
- Prime Location for Global Trade: Dubai’s strategic location makes it a hub for international commerce.
- World-Class Infrastructure: Access to top-notch logistics, warehouses, ports, and airports.
How to Get a General Trading License in Dubai
Step 1: Choose Your Jurisdiction
Dubai offers two primary jurisdictions: Mainland and Free Zones.
- Mainland: Regulated by the Dubai Department of Economy and Tourism (DET), this option is best for businesses looking to trade within the UAE.
- Free Zones: Free zones like IFZA and RAKEZ offer 100% foreign ownership, low tax rates, and simplified business setup procedures.
Step 2: Choose a Business Name
Pick a name that adheres to Dubai’s business naming regulations. The name must not include offensive or religious words, and trademarks must be registered with the Ministry of Economy.
Step 3: Secure Office Space
Rent an office space if your trading business involves physical goods.
Step 4: Obtain Customs Clearance
Register with Dubai Customs and obtain an import code to trade goods internationally.
Documents Required for a General Trading License
For individual shareholders:
- A copy of your passport
- Passport-size photo
- Copy of your residence visa
- Copy of your Emirates ID
For corporate shareholders: Certificate of incorporation, memorandum of association, and stakeholder resolution.
Mainland vs. Free Zones: Which is Better for a General Trading License?
Mainland General Trading License
A Mainland General Trading License allows you to trade locally and internationally. Key advantages include:
- No restriction on the number of visas.
- Flexibility to scale up operations.
- Instant License option with one-year validity.
Free Zone General Trading License
Free Zones, such as IFZA, provide benefits like:
- 100% foreign ownership.
- Repatriation of profits.
- Custom duty exemption.
- Advanced logistics and warehousing facilities.
General Trading License vs. Trade License: What’s the Difference?
A General Trading License allows the trading of various goods, while a Trade License restricts businesses to specific types of goods registered under the license. General Trading Licenses offer broader flexibility, whereas Trade Licenses are product-specific.
cost of a general trading license in Dubai
On average, the cost of obtaining a General Trading License in Dubai ranges between AED 28,000 to AED 32,000. However, these costs may fluctuate depending on the jurisdiction (Mainland or Free Zone) and any additional services you require, such as visa applications or office space rentals.
Start Your General Trading Business with Bizinvestfirm
Bizinvestfirm provides an easy, hassle-free way to obtain a general trading license in Dubai. Our team of experts and network of Professional Partners will guide you through the process. Contact us to start your business journey in Dubai today.
