How to get a General Trade License in the UAE?
In recent years, foreign investors have been ardently aiming for Dubai as their new business location. With a diversified economy, excellent infrastructure, easy worldwide connectivity, and a unique low-tax regime, the UAE has always offered an incredible environment for business startups, and foreign investments. They regularly adapt their rules and regulations to match the best international standards and meet the requirements of new expatriates.
For setting up a limited company, it is highly essential to obtain a general trade license as your first and foremost step. This legal permit covers multiple trading activities in the same or different industries. Dubai offers 3 jurisdictions to new investors for a business setup or company formation in the Emirates – Mainland, Freezone, and Offshore. The person must decide the area of his business setup to get the trade license permit accordingly.
What is a General Trade License?
The Department of Economic Development (DED) is the platform responsible for issuing general trade license permits. Unlike certain license categories, this allows you to take part in various activities all over the UAE, boosting credibility and increasing your company’s awareness in the market, all under one single license.
Benefits of General Trading License in UAE:
– Opportunity to trade in almost any industry, excluding a few like tobacco, oil, and health and safety standards
– Ability to add multiple shareholders to your branch setups
– No restrictions on the number of employees and easy access to visas
– Low import duty fee
– Open to a wide range of banking facilities
– Friendly and less complicated legal procedures
– No repatriation of capital and no currency restrictions
A Step-By-Step Guide to Getting Your Trade License
Step 1: Register the company – The foremost task is selecting your business activities or listing multiple activities, if significant. Choose a name for your business (it should adhere to the naming conventions of the UAE government) and check if you are ready to be registered.
Step 2: Filing for approval – Once the trade name is registered, you must submit the initial approval form. Based on your business activities, you must apply for external approvals, if necessary.
Step 3: Gather the required documents – You must arrange the necessary documents like the Memorandum of Association (MOA), and other approved documents notarized with the Department of Economic Development (DED).
Step 4: Choose your location – You must decide on a location to set up your office and get the contracts attested by the EJARI.
Step 5: Complete your application and pay fees – You will need to complete your application form, provide a variety of paperwork, and pay the associated amount of the license (including an issuance fee for the license), as per the UAE trade license application.
Step 6: Receive your license and open a bank account – Getting your trade license takes a few days, after all the documentation and fees checks. Once you receive the final approval and trade license check, you must open a corporate bank account to avail yourself of various banking policies.
What are the general trade licenses that I can choose from?
The UAE must issue the four most common trade licenses, applicable to the company type, business activity, and industry type. It is a legal requirement to obtain one of these licenses, to set up a limited company in Dubai, or other Emirates.
1. Commercial License
A single commercial license allows the investors to perform up to ten commercial and business activities
The person can select from a variety of company formations and registrations
Business owners can apply for multiple residence visas for employees and company management
With a commercial license, it is easy to open a corporate bank account
Offers cost-effective trade license renewal procedures
2. Professional License
Aimed towards service-oriented companies like business consultancy, printing, and publishing, IT services, lawyers, teaching and training, doctors, engineering skills, medical and healthcare, financial services like auditing, accounting, and many more
There is a fixed annual fee for every business activity
Transparency of details for clients
Option of multiple visas for employees
3. Industrial License
License is issued for the production and manufacturing of new products from natural or raw materials
A company must operate from a physical office, warehouse, or industrial complex within the Freezone
The produced goods must be destined for national consumption
The company should positively impact the UAE consumer market
4. Tourism License
The license is issued by the Department of Tourism and Commerce Market (DTCM) and the Department of Economic Development (DED)
Enables businesses to operate in any of the tourism sectors in Dubai
Why choose INCORP to get a Trade License in the UAE?
INCORP has over 15 years of experience in business startups, brand setups, and company formations in the UAE. With our professional assistance, you will be guided through the entire incorporation process, license registrations, visa applications, and the latest government regulations, within your budget and without any delays.