Foreign investors need to understand the type of licenses they should obtain to expedite the process of setting up a business in Dubai mainland. Foreign investors who wish to trade in a wide category of products need to obtain a General Trading License in Dubai mainland. However, like every other trading license in Dubai, this license also has several benefits and restrictions. Business setup consultants in Dubai can provide investors with robust advice on the features and scope of a General Trading License. Read ahead to gain more insights on getting a trade license in Dubai mainland:
What is a General Trading License in Dubai?
A Dubai mainland General Trading License is required when an entrepreneur wants to sell products belonging to multiple categories under a single license. It is a type of commercial license issued by the Department of Economy and Tourism (DET), which is the competent authority issuing business licenses in Dubai. As per DET, a trading license is issued to commercial firms engaged in importing, trading and re-exporting any of the permitted goods.
The trading activities that require special approvals, can also be traded under the General Trading License upon obtaining NOC from the competent departments or ministries. The DET issues the General Trading License in Dubai mainland under the activity code 4690018. Providers of business setup services in Dubai can help foreign investors to apply for the license.
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How does a General Trading License differ from a Commercial License?
Even though a trading license in Dubai is a specific variety of a regular commercial license, both are not the same in terms of the scope of activities a license holder is allowed to perform. A commercial license permits the license holders to trade a limited number of products. However, it permits license holders to trade in a diverse range of products under a single license. Business setup advisers in Dubai can provide more insights into the differences between a regular commercial license and a General Trading License.
What is the Best Legal Structure for a Dubai General Trading License?
As per the rules of business setup in Dubai mainland, entrepreneurs applying for any trade license need to determine an appropriate legal structure for their proposed company. A legal structure can be determined based on the number of shareholders in the proposed business entity in Dubai mainland. A General Trading company in Dubai mainland can be registered as a Limited Liability Company (LLC).
Unlike in the old times, there is no need to appoint a UAE national as a local sponsor to open a general trading company in Dubai mainland. This means foreign investors can have 100% ownership in their general trading business in Dubai mainland. Company formation consultants in Dubai can help foreign investors set up a general trading LLC without any hassle.
Benefits of the General Trading License in Dubai
It is a good strategy to select a Dubai mainland trading license after understanding the full range of benefits it offers. Foreign investors who are new to the region should know about the advantages of business licenses by consulting with business setup experts in Dubai. The following are some of the key benefits of a Trading License in Dubai:
- Ability to sell multiple goods of different natures under a single license
- 100% ownership over the company
- Ability to trade goods anywhere in the UAE without any restriction
- Dubai’s strategic location gives easy access to all the major international markets
- Access to world-class infrastructure in the emirate
- Presence of citizens and expatriates with high disposable income
How to Get a General Trading License in Dubai?
The process of getting a General Trading License in Dubai mainland involves certain pre-defined steps set out by the DET. Company formation advisers in Dubai can help aspiring entrepreneurs manage each of the steps. The following are the key steps for company formation in Dubai:
- Choose the business activities
- Select a name for the General Trading Company
- Determine an appropriate legal structure
- Get DET’s initial approval
- Lease or rent a shop and get the tenancy contract attested (Ejari)
- Obtain external approval if any special activity is involved
- Submit all the documents and pay the fees
- Receive the Dubai mainland General Trading License
Avail of the Best Business Setup Services in Dubai
A General Trading License in Dubai mainland is the key to trading a diverse range of unrelated goods under a single license. However, getting a trading license involves certain steps and requirements for which the advice of business setup consultants in Dubai such as Jitendra Business Consultants (JBC) is essential. JBC is one of the leading providers of business setup services in Dubai with years of experience.
JBC’s team of highly qualified consultants is well-versed in UAE immigration laws and labour laws. We can assist the investors in selecting business activities, determining appropriate legal structure, drafting documents, obtaining external approvals, opening a bank account etc. JBC’s PRO services will make it easier for investors to obtain UAE residence visas for business owners, employees, family etc. We also provide value-added services such as VAT registration, accounting and corporate tax services across the UAE. Contact JBC today to quickly obtain a General Trading License in Dubai mainland.