An essential element that all investors need to operate a company is a business license. In the UAE, you’ll find a variety of business licenses available to start your business. However, here you will discover the information you need about the trading license in UAE, the most common one.

In this article, you will learn everything you need to know about the trade license in the UAE. For instance, you will learn how to obtain it and other relevant information. In addition, you can also discover interesting facts about the general trading license, which is also a common license. Let’s observe:

1. What is a trading license in the UAE?
2. Advantages you can obtain by having a trading license in this country.
3. How can you apply for a trading license in the UAE?
4. What is a general trading license?
5. What advantages does the general trading license offer?
6. How can you obtain a general trading license in the UAE?
7. What are the required documents to apply for these licenses?
8. How much can cost to acquire and renewing both business licenses?
9. What other licenses can you find available in the UAE?
10. How can Connectfz help you obtain these licenses in the UAE?

1. What is a trading license in the UAE?

A trade license is an important document that allows companies to carry out trading activities. It is mandatory in the UAE to obtain this license in order to operate a trading business legally. Besides, it represents an important cost during the business setup process. In other words, its cost is probably the most significant or highest one in the process.

The trading license in UAE can be found all across the country. In fact, it is the most common type of business license in the country. Whether you choose a free zone, a mainland, or an offshore location, you can apply for this license. Regardless of the type of company formation structure you choose, you can perform several activities with this license. For instance, these are some of the main activities that this license covers:

• Many types of commercial activities, such as selling products, goods, and services across the UAE.
• Exporting and importing different products and goods.
• Services of specific industries. In this case, it is for professionals who desire to offer their services. The professional trade license covers activities related to management, education, marketing, IT, healthcare, advertising, and accounting.
• Also, this license covers most of the activities that investors are allowed to carry out across the UAE.

If you set up a mainland company in Dubai, the Department of Economic Development (DED) will issue your trading license. On the other, if you set up a free zone company, the local authorities will issue it. If you need more information about this matter, keep reading this article to discover more details.

Here you can learn about some other interesting facts you should know about the trade license in Dubai.

2. Advantages you can obtain by having a trading license in this country.

You must take into consideration that these advantages may vary depending on the location. However, most of them are applicable in almost every location in the country. For instance, if you obtain a trading license in UAE, you’ll be able to have the following advantages:

• It is the most affordable business license in the UAE. For example, you can find this license in Dubai ranging between AED 30,000 and AED 40,000. However, some elements should be taken into consideration since they could influence the license’s cost. Therefore, it is important to analyze the cost before applying for a license.
• Another advantage is related to the time it takes to obtain it. Investors who apply for a trading license in UAE usually get it after 5 business days. Besides, the application process is simple and it does not require many documents to submit.
• With this license, local companies are able to enter into national and international trading activities.
• Investors also have the opportunity of applying for a general trading license after obtaining the trading license.
• In Dubai, investors can set up holding companies if they have a trade license.

Here you can learn about the business license in the Ajman free zones and the benefits it offers.

3. How can you apply for a trading license in the UAE?

If you’re planning to start a trading-related company, you’ll need to obtain a trading license in UAE. Therefore, you have to learn how the application process goes in order to obtain it. Let’s take a look at the steps that you must follow:

• Firstly, you must determine the category of your business. For instance, you can choose between categories, like a commercial, industrial, professional, etc.
• Secondly, it is necessary to choose your business activities (the main activity and adjacent activities). Besides, you also need to choose a proper trading name for your company.
• Thirdly, prepare the necessary documents and submit your application to the DED or the free zone authorities. After this, you must wait for the initial approval and then register your trade name.
• After completing the previous steps, you’ll need to rent or lease business premises according to the license you want.
• And lastly, you must submit the approvals to the authorities along with the final application and fees. After completing this process, the pertinent authorities will issue your license and you’ll receive it within a few days.

Here you can learn about the process to apply for a business license in the emirate of Sharjah.

4. What is a general trading license?

As for this type of license, it allows investors to trade a wider range of products and goods. The main advantage of the general trading license is that it allows you to trade different kinds of goods. In other words, these products and goods do not need to be related to each other. If you’re planning to trade products that are not alike, this is the business license you need.

A general trading license free zone is also available for mainland companies. In that case, the DED (Department of Economic Development) will provide the license. On the other hand, the local free zone authorities are responsible for providing this license to free zone companies. However, it’ll be necessary special consent from the relevant ministries or approval from other authorities.

Here you can learn more about the general trading license in Dubai and the process to obtain it.

5. What advantages does the general trading license offer?

Besides allowing you to trade more goods, you can also enjoy other benefits that this license offers. For example, these are the main advantages that you can obtain with the general trading license:

• 100 percent direct tax-free.
• 100 percent of repatriation of profits and capital.
• No currency restrictions.
• In Dubai, you can use any available office location.
• Having a general trading license allows you to obtain employee visas.
• The process to apply for is simple and fast.

Although almost all goods are registered under this license, it is important to remember that there are some exceptions. For instance, the general trading license does not cover sensitive materials and other specific items. If you need more information about this, you can contact the DED (Department of Economic Development) or your business partner.

Here you can learn relevant information about the Restaurant License in Dubai and how to apply for it.

6. How can you obtain a general trading license in the UAE?

Depending on the jurisdiction you choose, you’ll have two main options to choose from. If you choose to set up a mainland company, you must obtain your license from the mainland authorities. On the other hand, choosing a free zone company requires obtaining the general trading license from the free zone authorities.

Each of those options offers different advantages. Nonetheless, the process to acquire the general trading license in UAE is the same. Therefore, if you want to apply for this license, you must follow the following steps:

• Firstly, choose a company formation structure and designate a proper trade name for your business.
• After that, you need to complete the initial approval form and then submit it to the authorities. Consequently, you will obtain the necessary approvals.
• You must prepare the required documentation, which we will discover below.
• Make sure to select the ideal location for your business and obtain the tenancy contract.
• Lastly, you will receive your general trading license after the authorities issue your documents.

Here you can learn what you need to know about the Multi-year Business License in the UAE.

7. What are the required documents to apply for these licenses?

If you want to apply for the trading license in UAE, you will need to submit these documents:

• A duly filled and signed application form.
• The original and a copy of the company’s statutory documents.
• The approval letter of the company’s trade name.
• A letter that attests to the approval for setting up the company.
• The tenancy agreements.
• Passport copies of the shareholders.

In case you want to apply for a general trading license, prepare and submit the following documents:

• A duly filled and signed general trading license application.
• Passport copies of the shareholders.
• The Memorandum of Association.
• The shareholder agreement.
• Attested trade name approval letter from the relevant authorities.

8. How much can cost to acquire and renewing both business licenses?

Before applying for a license, you must remember that costs can vary depending on the location. For instance, the general trading license cost in Abu Dhabi could be very different compared to Dubai. On the other hand, its cost ranges between AED 15,000 and AED 40,000 in Dubai. The renewal fee is between AED 8,000 and AED 15,000.

As for the trading license, you can also find different costs according to the jurisdiction and company structure. For example, it costs around AED 11,500 for free zone companies in Dubai. In the case of mainland companies in Dubai, it costs AED 15,900 approximately. The renewal fee is around AED 8,000.

9. What other licenses can you find available in the UAE?

In case you want to develop other business activities, you might find interesting other business licenses. For example, if you want to carry out industrial activities, such as manufacturing goods, you’ll need an industrial license. You can find many other licenses across the UAE, including the following ones:

• Service license.
• Professional license.
• Freelancer license.
• E-commerce license.
• Food license.

As we previously mentioned, all locations are different. Therefore, you might find other business licenses available. Make sure to select a suitable location.

10. How can Connectfz help you obtain these licenses in the UAE?

In the UAE, you’ll have countless opportunities to set up a company successful. During the business setup process, you will need to apply for a suitable business license. For example, you can apply for a trade license or a general trading license. However, you can make the application process easier with Connectfz by your side.

Our professional team offers the best packages for you in several free zones across the UAE. These packages include the licenses you need and visas too. Besides, they are affordable enough to help you spend as little money as possible during the setup process.

On the other hand, we also offer the best support services to help your company grow exponentially. For instance, we can help you find and hire the best employees with our recruitment services. Or if you need to improve your HR department, our HR consultancy services are what you need. Feel free to contact us and request many others of our services.

Would you like to contact Connectfz to know more about these and other types of business licenses available in the UAE? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.