If you’re an entrepreneur planning to start your business in the UAE, then you need to have the right license. It is extremely crucial to get a proper understanding of the general trading license in Dubai so that you can establish your business.
A company formation specialist and consultant can eventually help you in the process. They can help you understand the process of obtaining a trading license in Dubai. There are different licenses in Dubai. Therefore, you need to understand the prominent benefits of each.
How to start a general trading company in Dubai?
If you want to obtain a trade license in Dubai, you need to follow all accurate measures for starting a trading company. The steps to start a general trading company in Dubai include:
Develop the business plan
You can never start a company in Dubai if you do not have a strategy. A good business plan should consist of proper research regarding products, activities, competition, and more. These basic factors will determine the success of your business.
Know where you want to set up
The jurisdiction where you wish to set up a trading company will play an important role in obtaining a general trading license in Dubai. There are different types of zones where you can set up the business- mainland, offshore, and free zones. Each of these zones has a particular benefit to offer.
It is crucial that you choose a jurisdiction depending on the country you reside in. If you want maximum exposure for your business, you should consider establishing it in the Dubai mainland.
Work with a local agent
Your local agent will help you understand the general trading license cost in Dubai. Your consultant will help to bridge the gap across different businesses thereby determining the success.
It is crucial that businesses opt for proper legal formalities. Any company involved in importing, exporting, or trading needs to have a general trading license in Dubai. A local business setup consultant or agent such as Business Link UAE can assist you in the entire process.
Want to Know More About Trading Activity in Dubai?
Entrepreneurs that have multiple business activities can rely on a trade license in Dubai to cover it all. The activities that are usually covered by a trade license include the export and import of goods such as furniture, electronics, clothes, and more. If you want to indulge in wholesale business in Dubai, you can always depend on a general trade license.
Furthermore, having a general trade license will allow you to conduct business anywhere with Emirates or Dubai. However, this license will be applicable only for certain regulated products like frozen goods, pharmaceutical goods, and beverages. Considering the rise in national and international market trades, the business owners are getting general trading licenses in Dubai.
How to obtain a general trade license in Dubai?
You must follow all the legal procedures to obtain a general trade license in Dubai. The steps to obtain the license include the following:
Have a trade name and corporate entity
Businesses applying for general trade licenses need to book a trade name in Dubai DED. At the same time, it is crucial that they determine their business entity.
The trade name should comply with the rules set by DED. It is necessary that they identify the corporate entity to initiate the process.
Know what business activity you want to conduct
You must be very careful while selecting the business activity. You should make sure to list them down so that you can include them in your business license.
Choose company name
You need to choose an accurate trading name for your company. Once you select a name, you need to send it for approval as well. You should be familiar with the laws of the company, especially the do’s and don’ts. You can name your company only when you get the approval.
Choose an office space
You need to select an office location as well. It is crucial that you rent the warehouse as well. General trading will require you to have physical goods. With the help of a mainland license, you can get any warehouse.
However, for the Freezones you will have certain restrictions. It is necessary that you choose an office space depending on the requirement of your business.
Gather the documents
You need to get external approval along with all necessary documents. You should make sure to arrange documents such as the Memorandum of Association and more. This will further help to regulate your business.
Customs clearance is necessary if you want to import certain goods within the country. The customs authority will provide you with an import code using which you can import products within the country. Furthermore, you can also register the company with a customs authority.
Submit the application
After you have filled in the application, you need to submit it to the Department of Economic Development.
Pay the fees
You will need to pay a certain fee for getting the approval of your document. It is crucial that you apply for a valid license under the offshore and free zone. Furthermore, you should consider submitting all the original documents to get a commercial License in Dubai and Commercial Registration Department.
What are the documents needed?
If you are applying for a general trading license in Dubai, you need to submit the following documents:
- Passport copy of management partners.
- Memorandum of Association.
- License Application Signed by the Company managers.
- Attested a copy of the name of the company.
The Commercial Registry Authority is responsible for checking and determining the validity of documents. Once all the documents are verified, they will be added as a part of the Commercial Registry. The Ministry will provide an approval letter only if the documents are considered to be valid.
The general trade license will be valid for a year. However, you can apply for the renewal only after getting approval from the authorities. The renewal of the license will be valid for five years from the date of renewal.
Why should you opt for a general trading license?
A general trading license in Dubai can prove to be extremely beneficial. Working in close association with the consultation company will help you determine the general trading license cost in Dubai.
Furthermore, it will also help you get the flexibility of holding companies which can further be used for warehousing and storage. Some of the common advantages of opting for a general trading license in Dubai include the following:
- Local and international trading provision.
- No currency restriction.
- Auditing is not compulsory.
- There is no requirement to opt for paid-up capital.
- Easy access for getting visas for employees.
- Low import duty.
- Various banking facilities.
- Tax-free jurisdiction.
Business Link UAE- Your one-stop solution for Business License
Do you want to obtain a general trading license in Dubai? Business Link UAE can assist you in the entire process. Having a general trade license can prove to be extremely beneficial in the long run.
Once you have the license, investors will be all around you. However, one of the common mistakes people make is being unaware of the entire process. Business Link UAE can help to ease the process of obtaining the general trading license. If you want to do a business setup in Dubai, contact us.
For more info
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