An important part of the company setup process that you need to complete is related to the general trading license in Dubai, United Arab Emirates. It is an essential document that you will need to establish and run your business effectively in the country, and here you can learn how to obtain it.

In this article, you learn everything you need about the general trading license in the UAE and the way you can apply for it and obtain it to start making your company work legally and efficiently in the country. It is a key document that you will have to pay for if you, as an investor or entrepreneur, want to develop your own company. Let’s observe:

1. What is a general trading license in the United Arab Emirates?

2. What benefits can you get by having a general trading license in the UAE?

3. Two ways in which you can obtain a general trading license in Dubai.

4. The process to obtain a general trading license in Dubai effectively.

5. Documents you will need to complete the process.

6. Fees to acquire and renew your general trading license in Dubai.

7. Other types of trade licenses you might be interested in.

8. How can Connectfz help you obtain more relevant information regarding the general trading license?

1. What is a general trading license in the United Arab Emirates?

In order to make your company operate in any location in the UAE right after completing the setup process, you will need to apply for a general trading license, which is one of the business documentation that is required to operate any company established in the country, whether in Dubai or any other emirate.

In the case of entities located in the previously mentioned city, a general trading license in Dubai will be required if you are completing the setup process of your company in this location. The main reason why you need it is due to its main function, which is to allow investors and entrepreneurs to trade any kind of goods and products, and these goods do not need to be related to each other.

The main government authority that provides this license is the DED (Department of Economic Development) and it serves new investors, entrepreneurs, and corporate entities to help them develop their businesses in Dubai. A special consent from the pertinent ministries and approval from other authoritative establishments are also required to start a business in the country with a general trading license.

The general trading license will allow you to operate your firm and, besides, will provide you with certain advantages that you might find useful. Keep reading this article to learn about those benefits, the ways in which you can obtain the license, the process it takes to obtain it, and the documents you will need to complete the process.

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2. What benefits can you get by having a general trading license in the UAE?

When you receive your general trading license, you will be allowed to start trading more than one product and will also obtain other benefits, including these:

• 100% repatriation of capital and profits.
• 100% direct tax-free.
• The license makes easier the process to obtain employee visas.
• You will be able to use any currency.
• You can make use of any office location in Dubai.
• It is a problem-free legal process and ensures a simple setup process.

Keep in mind that this license must be renewed every one year in order to guarantee these benefits and avoid any legal conflicts that might emerge in case the license is not renewed in time.

3. Two ways in which you can obtain a general trading license in Dubai.

Depending on the location and the type of company that you want to run, you will have to choose a certain way to obtain this important document. There are only two ways in which you can acquire it; the first one is from Dubai Economy, and the second one is from Dubai Free Zones.

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3.1. General trading license from Dubai Economy.

You will have two choices when the time to acquire your general trading license in Dubai comes, and the first one is when setting up your business in the Dubai Mainland. In this case, you will get a general trading license from the Dubai Economy authority, which will allow you to get involved in the local trading in the country and open an office and store anywhere.

If you obtain the license from Dubai Economy, you can get these advantages:

• 100% capital and profit repatriation.
• UAE only has a 5% VAT on all trade transactions within the UAE.
• Easy bank account opening and transacting in more than one currency.
• Easy visa availability for your employees. Visa quota is awarded based on the office size that you will take.
• Easy company formation process in the Dubai Mainland.
• Since you will have an LLC (Limited Liability Company) business in the mainland, it will be easy to find a proper local sponsor for your company.

3.2. General trading license from Dubai Free Zones.

The second way in which you can obtain a general trading license in Dubai is from the Dubai Free Zone authority, and the cost of this license will depend on the free zone you choose, the business activities you will perform, visa quota, and many other relevant elements. A general trading license free zone can give you several benefits, including the following ones:

• Total control of your business and 100% foreign ownership.
• A fixed fee for an entire year and no annual audit is required.
• 100% repatriation of profits.
• No connection to the Labour Department.
• Eligibility to obtain a Tax Residency Certificate.

UAE free zones provide a wide range of advantages for those who decide to start setting up their companies in these locations, including no import duty from imports to the free zone, 100% foreign ownership, access to world-class infrastructure, efficient logistics and warehouse facilities, tax exemption in most free zones, and many other benefits. Besides, the company formation process is very smooth and easy.

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4. The process to obtain a general trading license in Dubai effectively.

If you need to obtain a general trading license in this emirate, you will have to follow some steps to successfully apply for it and receive it. The first one you must follow before starting the process is choosing the most appropriate jurisdiction for your business, which can be a free zone or the mainland. Then, you will have to follow these steps:

• Choose the trade name for your firm and the legal structure.
• Fill up the initial approval form and submit it to the pertinent Dubai authorities.
• Obtain the required approvals for your company in case it is required.
• Prepare the paperwork that you will need to complete the process. This includes relevant documents that you will discover if you continue reading this article.
• Choose the ideal location for your business and obtain the Tenancy Contract and Ejari.
• Receive your trade license by submitting all the required documentation and fees.
• Apply for residence visas and open a corporate bank account.

4.1. The process to renew your general trading license.

Renewing the general trading license is a must if you want your company to stay working in the country. You will only have to follow three simple steps to renew the license:

• Make sure your Tenancy Contract is valid for at least one month from the date of your application.
• Show your application and complete all the DED service center requirements.
• Collect the form from the Department of Economic Development and process your fee.

When you are done with all these steps, you will be able to receive your renewed general trading license and continue running your business legally and efficiently.

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5. Documents you will need to complete the process.

As for the required paperwork you will need in this process, there are four main documents that you will need in order to complete your application process and acquire your own general trading license in Dubai, which are the following ones:

• A passport copy of the shareholders.
• A signed and duly filled General Trading License application by the investor or manager.
• An attested trade name approval letter from the Dubai Economy or the pertinent free zone authority.
• A Memorandum of Association, shareholder agreement, and other required documents.

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6. Fees to acquire and renew your general trading license in Dubai.

The general trading license cost in Dubai will depend on the exact location in which your company will be set up, the business activities that your company will perform, and many other elements. This license is usually priced between AED 15,000 and AED 40,000. In any case, you can find a cost calculator on the web and obtain an estimate of your own license or contact us to obtain more information about it and the exact price of your license.

Remember that this license must be renewed every one year to avoid legal problems that might keep your company from doing its usual activities. The renewal cost of the general trading license could be from AED 8,000 to AED 15,000, depending on your location. With a business setup consultant, you can obtain more information regarding this matter.

7. Other types of trade licenses you might be interested in.

In Dubai, you will be able to find the other three types of trade license that you might need to run your business, which are:

• Commercial/Trade License: this type of license is required to perform industrial, commercial, and consulting activities.
• Professional License: if you are a foreign investor or entrepreneur, this license will allow 100% ownership for you, and you will be able to obtain the advantage of a sole proprietorship.
• Industrial License: with this license, your company will be able to import raw material, manufacturing, and exporting finished products.

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8. How can Connectfz help you obtain more relevant information regarding the general trading license?

If you have already decided to set up a company in the UAE and need help to achieve your goal, you can get professional support by contacting our Connectfz team, and we will fulfill your business requirements at any time. By requesting our guidance and services, you will be able to speed up the process to obtain a general trading license in Dubai.

Connectfz offers you professional tips and recommendations that you should follow to obtain better results, and also high-quality services to make your business more efficient in less time. You can ask for our many different services depending on the needs you have to fulfill to ensure better and more efficient operational procedures.

Among our wide range of services you might need, you will find our recruitment and staff outsourcing services to obtain the best employees without spending too much of your time. Another service you might find useful is our payroll and HR consultancy services, which will make outstanding improvements in your HR department.

Would you like to contact Connectfz to obtain more information about how to obtain a General Trading License in Dubai? If you have any question, do not hesitate to call us on +97143316688 or email us at info@connectfz.ae, and you will talk to one of our representatives that will gladly answer all of your questions.