If you’re planning to start up a trading business/company in Dubai, you’ll require to obtain a general trading license as a part of the business setup procedure in the UAE.
A general trading license in Dubai which is also called an instant license allows business startups to quickly incorporate in mainland Dubai to conduct all of their trading activities under one license.
With general trading license, your startup could become a key player in the supplies industry to support businesses with necessary goods across the country.
What is General Trading License in Dubai?
The general trading license in Dubai is one of the most popular trading license for businesses that are looking to perform activities such as: trading, exporting, and importing commodities.
Businesses that trade in electronics, food, automobile, furniture, consumer goods, etc. need to get this license. It allows companies to trade goods locally as well as beyond the borders of the UAE.
Dubai General Trading License Activities
Here are the Dubai General Trading License activities:
- Retail activities
- Wholesale of goods
- Sales of services
- Trading of multiple goods
- Distribution of goods
- Storage of goods
- Import and export of goods
The general trading license allows the purchase, sale, export, and import of mixed goods. This means that this license allows you to trade toys and electronics at the same time. It stands true for any number of goods you might want to trade inside and outside the UAE.
However, the trade of goods like Alcohol, Chemicals, Medicine, etc. are not covered by the general trading license. You need special government approvals for those goods.
What are the Steps to Get General Trading License in Dubai?
There is a specific process you need to follow to obtain the general trading license in Dubai. The Department of Economic Development in Dubai is responsible for handling the registration processes of new businesses here. For several of these steps, you need to deal with the officials there.
There are processes and steps of obtaining the general trading license in Dubai include:
1) Select the Business Activities
The first step is to select the business activities you want to perform with your general trading license. To clarify, you can select a total of ten business activities with one general trading license in Dubai.
2) Select a Company Structure
You need to select a company structure for your general trading business in Dubai. Some of the popular company structures in Dubai right now are Sole Proprietorship, General Partnership, Civil Company, and Limited Liability Company.
3) Select a Trade Name
You need to select a trading name for your business. Keep in mind that the name you select must be unique in the UAE and cannot be in use by any other business in the country.
4) Get the Initial Approval
You need to get the initial approval from the Department of Economic Development in Dubai by filling out an application form with all the required information.
5) Obtain an Office Space
You need to rent or lease office space in Dubai. This is because the EJARI and the tenancy contract are mandatory documents required by the Department of Economic Development in Dubai. However, if you do not need a physical office space to perform your business activities, you can opt for a virtual office.
6) Get the External Approvals
After obtaining the office space, you need to get the necessary approvals from other government bodies. The extra approvals you need to obtain will depend on the business activities you have selected in step one.
7) Submit the Required Documents
You need to submit the required documents to the Department of Economic Development in Dubai. Besides the usual documents like passport and visa copies, any extra documents that you may need to submit will depend on the business activities you have selected.
Read More: how to get general trading license in dubai
