How to Get a General Trading License in Dubai

Are you considering relocating to Dubai as a foreign entrepreneur to tap into its thriving economy? Dubai offers a plethora of opportunities for businesses across various industries. One such option is obtaining a general trading license, which permits entrepreneurs to engage in diverse commercial activities such as food, electronics, furniture, clothing, fashion, and beyond.

What is a General Trading License in Dubai?

A General Trading License in Dubai is essentially a permit that allows business owners to engage in a wide range of commercial activities within the emirate. With this license, entrepreneurs have the flexibility to operate in various industries, from food and electronics to furniture, clothing, fashion, and more. It serves as a foundational requirement for establishing a general trading company in Dubai, enabling entrepreneurs to conduct business activities seamlessly within the local market.

A general trading license in Dubai is distinct from a standard trading license in its scope and flexibility. Unlike a trading license, which restricts business operations to a single product category within an industry, a general trading license provides the freedom to trade in multiple product categories across various industries. This broader permission enables businesses to diversify their offerings and tap into different markets without the need for separate licenses for each product or sector.

In simple terms, obtaining a General Trading License opens the door to a diverse array of business opportunities, empowering entrepreneurs to navigate and thrive in Dubai, growing economy.

Also Read : Gold Trading License in Dubai – Cost & Steps Involved

How To Get a General Trading License in Dubai?

Obtaining a general trading license in Dubai involves a series of crucial steps. Here’s a comprehensive guide:

Step 1: Choose Your Jurisdiction

Dubai offers two main jurisdictions for businesses: Mainland and Free Zones.

• Mainland: Regulated by the Dubai Department of Economy and Tourism (DET), mainland companies require a UAE national as a partner or sponsor.
• Free Zones: Designed for foreign investors, Free Zones like IFZA allow 100% ownership without a local partner. They offer advantages such as low tax rates, 100% repatriation of capital and profits, streamlined setup procedures, and simplified regulations. Additionally, Free Zones provide access to advanced infrastructure, modern communication systems, and top-notch logistics facilities tailored for international trade. Dubai hosts over 30 Free Zones, each catering to specific industries like technology, media, healthcare, and logistics. When selecting a Free Zone, factors such as location, infrastructure, cost, and available licenses should be considered.

Step 2: Choose A Company Name

Select a name for your general trading business and submit it for initial approval, adhering to Dubai’s naming guidelines:

• The name must be transliterated into Arabic or English without special characters or icons.
• Offensive, blasphemous, or brand-related names are prohibited, as are words tied to religion, countries, or regions.
• Certain words like “Universal” or “International” cannot begin the name.
• Duplicate names in both languages are checked.
• Trade names are categorized into premium categories A and B.
• The name must not contain obscene words or offend public decency.
• Approval from the embassy is required for names of countries or governments.
• The name remains valid for six months and requires renewal.
• Trademarks are registered with the Ministry of Economy.
• A franchise can use a trade name upon submission of the contract to the Department of Economic Development.
• Failure to obtain a trade license leads to trade name cancellation.
• The Department of Economic Development can cancel or amend a trade name if terms are breached.
• Fees must be paid within 72 hours of payment authorization issuance.

Step 4: Secure Office Space

Given the physical nature of general trading, renting office space for storage may be necessary.

Step 5: Obtain Customs Clearance

For businesses importing goods into Dubai, obtaining customs clearance is essential. This involves acquiring an import code from the customs authority and paying applicable fees. Registration with any emirate’s customs authority is permissible.

Why You Need a General Trading License in Dubai?

A General Trading License in Dubai is essential for anyone looking to conduct business activities within the emirate. It serves as official permission from the government to engage in a wide range of commercial endeavors across various industries. Without this license, entrepreneurs would be limited in their ability to operate legally within Dubai’s business landscape.

In essence, obtaining a General Trading License is crucial for establishing legitimacy and compliance with local regulations. It not only enables entrepreneurs to conduct business activities smoothly but also opens doors to a myriad of opportunities in Dubai’s thriving economy. Whether you’re a small startup or a large corporation, having a General Trading License is a fundamental step towards success in the dynamic business environment of Dubai.

 

What Is A General Trading Company in Dubai?

A General Trading Company in Dubai is a type of business entity that is authorized to engage in a broad spectrum of commercial activities within the emirate. This includes buying, selling, importing, and exporting various goods across different industries such as food, electronics, textiles, furniture, and more.

One of the key features of a General Trading Company is its versatility. Unlike businesses with narrow scopes, a General Trading Company has the flexibility to operate across multiple sectors, allowing entrepreneurs to explore diverse opportunities within Dubai’s vibrant market.

In essence, a General Trading Company serves as a hub for commerce, facilitating trade and transactions across various products and industries. By harnessing the expansive reach of such a company, entrepreneurs can capitalize on the dynamic business environment of Dubai and tap into its ever-growing economy.

Also Read : ECommerce License in Dubai – Cost & Requirements

What Are the Documents Required for a General Trading License in Dubai?

The documents needed to obtain a general trading license in Dubai vary based on whether your company has individual or corporate shareholders:

For Companies with Individual Shareholders: If forming a company with individual shareholders, you must provide:

• A copy of your passport
• Passport-size photo
• Copy of your residence visa
• Copy of your Emirates ID

These documents are essential for verifying your identity and residency status in Dubai.

For Companies with Corporate Shareholders: If forming a trading company with corporate shareholders, the required documents include:

• Certificate of Incorporation: A legal document confirming the company’s creation and registration with the relevant government authority.
• Certificate of Incumbency or Equivalent: Lists current shareholders, directors, and officers of the company.
• Memorandum of Association: Legal document outlining the company’s objectives, powers, and rules.
• Board Resolution: Authorizes the company to engage in general trading activities and approves the application for a general trading license.

These documents verify the legal existence of the company and authorize individuals to act on its behalf.

It’s important to note that document requirements may vary depending on the jurisdiction where you establish your general trading company in Dubai. Additional procedures, such as document attestation by relevant authorities or obtaining a no-objection certificate from your current employer (if applicable), may also be necessary.

Activities under General Trading License in Dubai

General trading encompasses a wide array of business activities, and in Dubai, it opens doors to various ventures. Here are some of the most prevalent activities permitted under a general trading license:

• Import & Export: Facilitating the trade of goods between Dubai and other countries, involving bringing products into the country for sale or sending them abroad for distribution.
• Retail Store: Operating a physical store where customers can purchase a diverse range of products directly.
• Online Selling: Engaging in e-commerce activities, selling goods through online platforms to customers locally or internationally.
• Trading Multiple Products: Dealing in a broad spectrum of products across different industries, providing flexibility and opportunities for diversification.
• Medical Products (Dubai Health Authority Approval Required): Handling the trade of medical supplies and equipment, subject to approval from the Dubai Health Authority to ensure compliance with regulations and standards.

These activities represent just a fraction of the possibilities available under a general trading license in Dubai, illustrating the versatility and potential for entrepreneurs to explore various avenues within the emirate’s thriving business landscape.

Cost of General Trading License in Dubai, UAE

In Dubai, obtaining a general trading license involves a slightly higher cost compared to licenses for single activities. However, it offers significant advantages by allowing trading across multiple products under one license, fostering business growth and diversification. This makes it a more cost-effective option in the long run.

The cost of a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000 or more. Several factors influence the total cost, including the business location, warehouse size, office space, additional approvals, chosen business jurisdiction, and visa applications.

At RadiantBiz, our experts ensure transparency and authenticity in all transactions related to obtaining a general trading license. We strive to secure the most affordable general trading license in the UAE for our clients, eliminating any concerns about additional expenses associated with incorporating a general trading business in the country.

Also Read: Gold Trading License in Dubai

Benefits of Starting a General Trading Company in Dubai

advantages of launching a General Trading Company in Dubai:

• Diverse Opportunities: Dubai’s dynamic economy offers a plethora of opportunities across various industries. With a General Trading Company, you can tap into multiple sectors, from electronics and fashion to food and more, maximizing your potential for success.
• Flexibility: Operating under a General Trading License provides flexibility to engage in a wide range of commercial activities. This versatility allows you to adapt to market trends, explore new ventures, and diversify your business portfolio as needed.
• Global Connectivity: Situated at the crossroads of continents, Dubai serves as a global trading hub. Establishing a General Trading Company here provides access to international markets, facilitating import and export activities and fostering connections with businesses worldwide.
• Business-friendly Environment: Dubai offers a conducive environment for business growth and innovation. With its favorable regulatory framework, state-of-the-art infrastructure, and robust logistical network, setting up a General Trading Company becomes seamless and efficient.
• Tax Benefits: Certain Free Zones in Dubai provide tax exemptions and incentives for businesses, including General Trading Companies. This favorable tax regime allows you to optimize your profits and reinvest in your business for further expansion.
• Strategic Location: Positioned strategically between East and West, Dubai’s geographical location offers strategic advantages for trade. It serves as a gateway to emerging markets in the Middle East, Africa, Asia, and beyond, enhancing your business’s accessibility to a diverse customer base.
• Reputation and Credibility: Operating from Dubai lends credibility and prestige to your business. The city’s reputation as a global business hub enhances your brand image and instills confidence in potential partners, investors, and customers.

In summary, starting a General Trading Company in Dubai presents a host of benefits, ranging from diverse opportunities and flexibility to global connectivity and tax advantages

General Trading License in Dubai: Mainland Vs Free Zones

Dubai provides two primary avenues for obtaining a General Trading License: through Dubai Economy in the mainland or via Free Zones. Each option offers distinct advantages and considerations, detailed in our comprehensive Dubai business setup guide.

General Trading License in Dubai – Mainland

Investors aiming to establish wholesale and retail businesses in mainland Dubai typically opt for a General Trading License issued by Dubai Economy.

General Trading License in Dubai Free Zones

UAE’s Free Zones streamline the company formation process, offering advantageous packages for General Trading Licenses. IFZA, for instance, provides tailored solutions that meet diverse investor requirements.

The General Trade License in Free Zones empowers investors by:

• Allowing 100% foreign ownership
• Ensuring complete business control
• Offering a fixed fee for the license term
• Facilitating 100% repatriation of profits
• Providing exemptions from customs duties

These benefits make Free Zones an attractive choice for international trade, supported by advanced logistics and warehouse facilities.

 

Difference Between General Trading License and Trade License in Dubai:

General Trading License in Dubai: A general trading license permits businesses to retail and wholesale any goods within and outside the UAE, except prohibited items requiring specific approvals.

Scope of General Trading License in Dubai: The scope of a general trading license in Dubai is extensive compared to a trade license. Businesses holding a general trading license can engage in importing and exporting a wide range of goods, unrestricted by specific exemptions.

Trade License: A trade license restricts businesses to trading only in specific types of goods registered under the license. Businesses must adhere strictly to the goods specified in the license and cannot trade in other products without obtaining additional licenses.

Scope of Trade License: The scope of a trade license is confined to the specific goods listed in the license. For example, a business holding a trade license for selling clothes cannot legally sell any other product unless they obtain a separate license for those goods.

Why Choose RadiantBiz to Set Up Your General Trading Business in Dubai, UAE?

Why selecting RadiantBiz to establish your General Trading Business in Dubai, UAE, is a wise choice:

Expertise and Experience: RadiantBiz boasts a team of seasoned professionals with extensive expertise in setting up businesses in Dubai. With years of experience in the industry, we possess in-depth knowledge of the local regulations, procedures, and best practices, ensuring a smooth and hassle-free setup process for your General Trading Business.

Comprehensive Services: We offer a comprehensive range of services tailored to meet your specific business needs. From company registration and licensing to visa processing and office setup, RadiantBiz provides end-to-end solutions, saving you time, effort, and resources.

Personalized Approach: At RadiantBiz, we understand that every business is unique. That’s why we take a personalized approach to cater to your individual requirements and preferences. Our dedicated team works closely with you to understand your goals, offering customized solutions that align with your vision and objectives.

Transparency and Integrity: Transparency and integrity are at the core of our values. We believe in fostering trust and building long-term relationships with our clients. With RadiantBiz, you can expect transparent communication, honest advice, and ethical business practices every step of the way.

Efficiency and Reliability: We prioritize efficiency and reliability in all our services. Our streamlined processes and proactive approach ensure timely delivery and adherence to deadlines. With RadiantBiz by your side, you can rest assured that your General Trading Business setup will be handled efficiently and professionally.

Ongoing Support: Our commitment to your success doesn’t end with the setup process. We provide ongoing support and assistance to help you navigate the complexities of running a General Trading Business in Dubai. Whether you need guidance on compliance issues, expansion strategies, or any other aspect of your business, RadiantBiz is here to support you every step of the way.

In summary, choosing RadiantBiz for setting up your General Trading Business in Dubai, UAE, offers a combination of expertise, personalized service, transparency, efficiency, and ongoing support, making us the ideal partner for your business 

Are you ready to setup a business in Dubai with RadiantBiz? If you want to learn about starting business in UAE, you can contact us by calling +971 50 797 4832 or sending a WhatsApp message to +971 50 777 5554. You can also email us at info@radiantbiz.com for assistance.

FAQ – General Trading License in Dubai

• What is a general trading license in Dubai?
  The General Trade License in Dubai offers investors the ability to conduct international trade effortlessly, with advanced logistics and warehouse support available at Free Zones. It allows for 100% foreign ownership, total business control, fixed fees, and full repatriation of profits.
• What are the activities for general trading license in Dubai?
  A General Trading License permits engaging in various trading activities like importing, exporting, re-exporting, distributing, and storing goods, providing the flexibility to explore diverse business opportunities without constraints.
• What are general trading items in Dubai?
  General trade products in Dubai include mechanical items like ceiling fans and sewing machines, consumer products like bicycles and gym equipment, as well as kitchen appliances, food processors, brewing equipment, and garment care appliances.
• What is the cheapest trade license in Dubai?
  The IFZA Free Zone offers the most economical trade license in Dubai, priced at AED 12,900 without visas, or AED 11,900 with visa-free company setup, making it a cost-effective option for entrepreneurs.
• How much is a general trading license in UAE?
  The cost of a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000, depending on factors such as business location, warehouse size, office space, additional approvals, jurisdiction, and visa applications.
• How do I start a general trading business?
  Starting a general trading business involves developing a comprehensive business plan that considers market conditions, competition, products, employees, office space, initial investment, marketing strategies, financing, and potential investors.
• What is the difference between general trading and a trading license in UAE?
  While a trading license permits commercial activities in the UAE, a general trading license is broader, allowing companies to import, export, and distribute a wide range of goods, offering greater flexibility and scope for business operations.
• How much does it cost to renew a general trading license in Dubai?
  Renewing a general trading license in Dubai Mainland typically costs between AED 8,000 to AED 15,000, depending on the business license type. For the general trading category, the fee is usually around AED 15,000.
• How can I cancel my general trading license in Dubai?
  To cancel your general trading license in Dubai, follow these steps: review cancellation requirements, settle financial obligations, gather necessary documents, visit the Department of Economic Development (DED), submit a cancellation application, and pay applicable fees.