Entrepreneurs choose Dubai since it is a rapidly advancing economy among all the perfect locations for businesses to grow. Investors are now leaning more towards Dubai than any other city due to the opportunities it offers and the strategic location it has in the Middle East. Getting a is the perfect option if you are a business aspirant. The prominent emirate of the United Arab Emirates provides you with the best of world-class infrastructure, a favorable tax regime, and more.
Performing any legal trade activities requires an appropriate license in Dubai. Different trade activities you will be permitted to perform with a license include importing and re-exporting, manufacturing products, distribution of products, etc. Reading the following article on ‘The Benefits of a General Trading License in Dubai: What You Need to Know‘ can help you gain more information on this license option for your business ideas.
What is a trade license?
You need a legal document that serves as proof of eligibility for you to run trading activities anywhere. A trade license works as a legal document that satisfies this purpose when it comes to running a business in Dubai. A major benefit of having a general trading license is that it authenticates your company’s existence in the location while ensuring compliance with local rules and regulations. Any trading activity inside the territory without a trading license will be considered illegal and can get you into trouble by facing fines or penalties.
Dubai offers different trade licenses according to the business activities a company undertakes and its nature. A general trade license is among the most popular due to its versatility. We will go further into the details of the general trading license in the following headings.
What is a general trading license in Dubai?
As mentioned above, you will be legally permitted to run trade activities like export, re-export, import, and trade any number of unrelated goods under one general trading license. You can do trade activities with every other product that does not fall under the prohibited category of products in Dubai, including tobacco and oil. Another category of prohibited goods is those that do not comply with the health and safety standards required by the legal authorities in the region. The list of products that can be traded with a general trading license comes under a broad range of categories, such as furniture, food, electronics, pet supplies, etc.
Benefits of acquiring a general trading license
Most investors who are putting their money in Dubai prefer a general trading license due to its benefits, which enable investors to trade easily across local regions and internationally. Following are some of the advantages you could enjoy with a general trading license.
Flexibility in trade
A general trading license is the perfect option if you are planning to trade multiple products. It allows you to run your business without having to obtain distinct licenses for each category of trade you run.
Convenience of tax exemptions
Importing and exporting goods for your trading activities could be done without complying with taxes and customs duties. However, this benefit is only applicable to products that are not sold in the UAE.
Profitability from an expansive market
There is a high demand for various goods and services across the expansive global market you can access from Dubai. You can build a highly lucrative business using the opportunities in the market and the amenities offered by the location and the government.
Credibility for your business
Having a valid trade license means your company is an authentic entity that works by adhering to the regulations. This will create a good reputation, trust, and brand image among the people.
Getting a general trading license in Dubai
The following session includes the route you have to take for the acquisition of a general trading license for your business in Dubai.
Decide on the trading activities and legal framework
You have to submit the list of business activities you are planning to conduct as the first step in getting your trading license. Besides, you need to choose a legal framework for the business from Free Zone and Mainland after researching how each can help your business in various ways. The preparation of a properly curated business plan that outlines your objectives, strategies, budget, and market analysis should be done with the help of the best .
Choose a company name:
Finding a unique and suitable name for your company is the next step. The name you choose should reflect your business activities and comply with the naming rules of the Department of Economic Development (DED). The company name should be chosen after thorough research across the market to avoid later legal problems like copyright issues.
Apply for approval:
Submission of the application form along with the required documents to the DED or one of its authorized service centers is the next phase in the license acquisition. You may have to get both internal and external approvals from different legal authorities. Various documents you should present include:
- A copy of your passport
- One copy of your visa or entry stamp
- A passport-sized photo
- A no-objection letter from your sponsor, if applicable to your trade activity
- A memorandum of association (MOA) or a service agent contract as per your legal form
- A lease contract or an Ejari certificate (proof of office space)
The external approvals you may have to gain as per the products you choose to trade include different government authorities, including:
- The Ministry of Health
- The Ministry of Environment and Water
- The Dubai Municipality
- The Emirates Authority for Standardization and Metrology
Pay the fees and receive your license
Paying the fee depending on the features, including the legal form of your company, the number of shareholders, the location of your office, and the type and number of activities, is the final step to receiving your general trading license.
You will get a general trading license to conduct business activities in Dubai once your application is approved.
Get your general trading license effortlessly.
There are experts at Damaar Business Consultants with years of experience in the business sector of Dubai to help you with all your doubts in the acquisition process of a general trading license. The benefits you can enjoy through us include expert guidance and advice, a fast and easy application process, competitive and transparent pricing, a dedicated account manager, and more.