General Trading License
Due to a favorable business environment and government support, many entrepreneurs are choosing to start businesses in Dubai. The high demand for goods, ease of doing business, and proximity to emerging markets make Dubai one of the most desirable locations for new ventures.
However, obtaining a valid trade license from the Department of Economic Development (DED) is essential. There are specific rules and procedures that must be followed to acquire this license.
What is General Trading?
General trading involves a wide range of commercial activities across various firms engaged in importing and exporting goods permitted by the UAE government. Many activities do not require prior approval.
The Department of Economic Development is the authority responsible for issuing general trading licenses in Dubai.
What is a General Trading License in Dubai?
It’s important to distinguish between a general trading license and a regular trading license in Dubai. A general trading license allows businesses to trade in multiple categories of products, whereas a standard trading license restricts trading to specific products.
Why Start a General Trading Company in Dubai?
Starting a general trading company in Dubai offers several advantages:
Affordable Company Formation: Setting up a company is straightforward and relatively affordable. The process typically takes about one week, requiring submission of a business plan and necessary documents.
Multiple Visa Facilities: Business owners can apply for multiple employee visas, depending on office size. They can also sponsor visas for dependents such as spouses, children, parents, maids, and drivers.
Ability to Trade Locally and Internationally: General trading companies can import and export goods for sale in both local and international markets, maximizing business opportunities and profitability.
Fewer Trade Barriers: Startup costs and time requirements are comparatively low. Companies with a mainland trading license are exempt from paid-up share capital requirements and annual audits, enhancing business affordability and profitability.
E-Trading Capability: Dubai’s Business Regulation and Licensing sector has introduced an e-trader license, allowing UAE and GCC nationals to conduct business on various social media platforms.
Document Required to avail of General Trading License in Dubai
You can plan to start a general trading company in the mainland freezone with both individual and corporate shareholders using the documents listed below.
| Mainland | |
|---|---|
| Individual Shareholder | Corporate Shareholder (all the documents should be of the parent company) |
| A copy of your passport. | Certificate of incorporation. |
| Passport-size photo. | Certificate of incumbency or equivalent. |
| Copy of your residence visa. | Memorandum of association |
| Tourist visa copy/Entry stamp. | Board Resolution. |
| Copy of your Emirates ID. | Trade license of parent company |
| Tenancy / Ejari Contract (If any). | MoA or AoA of the parent company. |
| NOC from the Sponsor (If any). | All the documents should be attested by the UAE embassy and notarised by MOFA. |
| Name options (at least 3-4). | Authorised signatory’s passport copy |
| NOC from the Sponsor (If any). | |
| Name options (at least 3-4). |
| FREEZONE | |
|---|---|
| Individual Shareholder | Corporate Shareholder |
| Father’s Full Name | Board Resolution must be notarised but not attested by the local UAE Embassy or MOFA. |
| Clear Scanned Colour Passport copy (Shareholder/s and General Manager). | Trade License or equivalent. |
| Visa copy / last entry stamp in UAE (Shareholder/s and General Manager).. | Memorandum of Articles / Articles of Association. |
| Complete address details in the home country and residing country. | Certificate of Incorporation. |
| Passport-size photo. | Registry Extract. |
| A suggestion of 3 names for the new company. | Other legal documents. |
Other Benefits: Additional benefits include access to banking facilities for personal and corporate purposes, 100% repatriation of capital and profits, and exemption from depositing share capital in UAE banks.
How to Get a General Trading License in Dubai?
Obtaining a general trading license in Dubai involves five simple steps:
Choose a Trade Name and Corporate Entity: Select a unique trade name that complies with DED regulations. Decide on the legal structure for your company.
Choose Business Activities: Determine up to ten business activities to include in your license application.
Gather Required Documents: Prepare and submit the following documents:
- Signed license application by company managers or legal representatives
- Memorandum of Association (MOA)
- Attested company name approval letter from DED
- Passport copies of managing partners
Obtain Other Approvals: Depending on business activities, obtain necessary external approvals and apply to the DED.
Choose Location and Pay Fees: Finalize a business location, obtain a tenancy contract attested by Ejari, and pay all required license fees.
Upon completion of these steps, the Commercial Registry Authority will validate documents, add the company name to the registry, and publish documents to the Federal Ministry of Economy for approval. The DED will then issue the original trade license and commercial registration certificates, valid for one year.
Dubai General Trading License Activities: Activities permitted under a general trading license in Dubai include exporting, importing, and trading various goods such as clothing, accessories, furniture, and electronics. Special approvals are required for regulated products like alcoholic beverages and pharmaceuticals.
General Trading License Cost in Dubai: The cost of a general trading license in Dubai varies based on selected activities and jurisdiction.
End Note: For simplified assistance in obtaining a general trading license in Dubai, contact Sanad Services Center. Our advisors are ready to guide you through the entire process of setting up your business in Dubai.
Frequently Asked Questions (FAQs)
