Many entrepreneurs start businesses in Dubai due to the favorable business environment and government support. In addition, the emirate is one of the ideal places to start a new business because of its ease of doing business in emerging markets and the high demand for commodities.
However, you must have a valid license from the Department of Economic Development (DED). In addition, you must follow a set of rules and procedures to obtain this license. General Trade License in Dubai includes exporting, importing, or trading goods or products such as clothing, accessories, furniture, electronics, etc. In addition, whoever wishes to engage in wholesale trade must also have a trade license.
It is essential to regulate your products, such as alcoholic beverages, pharmaceuticals, frozen products, etc., which require special approval from the relevant authorities to be marketed. Traders have the advantage of exploring all business possibilities due to the vast opportunities in local, national, and international markets. For example, to set up a company in Dubai, a business person must specify where he wants to obtain a trade license.
What is the general business in Dubai, UAE?
A general trading company is registered with a general trading license allowing the import, export, and distribution of goods and products. Under this license, entrepreneurs can sell multiple products from different industries, which may be outside of one another. For example, under this license, you can trade furniture, appliances, clothes, etc.
In addition, some items need to be approved by the higher authorities before they can be legally circulated in the market.
What makes the UAE or Dubai an ideal location for general trading?
Business companies in Dubai often have connections throughout Africa, Asia, and Europe. Accessibility and distribution are critical to successful import and export. Moreover, central location and connectivity help create efficient business ventures in the UAE. The strategic location is the front line of the central hub. Here are some key reasons why the UAE is an ideal location for trading.
Business companies in Dubai have a well-organized economy. Company formation is entirely directed by the Ministry of Economic Development and determined by support measures taken in court proceedings. Therefore, Dubai’s trade is a critical way to boost the economy.
The government has an attractive trade policy for general trading companies in Dubai. The country offers several tax incentives and low import and export duties. As a result, companies are free to enact free trade policies and open trade relationships.
To avoid double taxation, a business company in Dubai enjoys tax exemptions, including business partnerships and international agreements. In addition, the government has been encouraging business activities in Dubai by creating a favorable tax regime for investors.
Steps to Open A Trade Company in Dubai
Undernoted documents are required to open a consolidated trading company in Dubai.
- License application signed by a legal representative or official
- Copy of passport and partner’s visa
- Letter from the Ministry of Economic Development to approve the company name
After submitting all these documents, officials will check and verify your company name with the commercial register. Then, the Ministry of Economic Development will send your file for publication to the Federal Ministry of Economics. If successfully posted, the Ministry of Education will issue an approval letter.
Advantages of Set Up A Dubai General Trading Company
The great thing about starting a business is that any subsequent venture can benefit. Some of these benefits are:
Start an Affordable Company
Company formation is relatively affordable and simple. However, some business owners must submit a business plan with the necessary documents and revenue projections. The whole process takes about a week.
Various visa facilities
Visa services in Dubai provide entrepreneurs with access to various visas. Having multiple visas will allow businesses to maintain a physical presence in Dubai and help secure further assistance. After obtaining a general trade license, multiple visas can be applied for employees. Again, it depends on the size of the office, as the more prominent your office, the more visas you will get. Employers can also sponsor visas for dependents, i.e. spouses, children, parents, maids, drivers, etc. But ensure to get expert advice before starting, as it is a necessary process.
Ability to trade locally and internationally
Public trading companies can sell or distribute import and export goods in domestic and foreign markets. This will allow traders to take advantage and get profit by doing business in local, national, and international calls.
Fewer trade barriers
The start-up cost and time required are relatively low. Also, mainland business license holders are exempt from any paid-in capital or audits conducted annually. This dramatically improves profitability and affordability for businesses.
Conduct electronic transactions
The Business Licensing and Regulation Department of the Dubai Economic Development Department recognizes the need for e-commerce regulation and therefore offers e-commerce licenses. The license will allow UAE and GCC nationals to conduct business on various social media platforms.
Many banking services are also available for personal and corporate purposes. For example, a business with a general trade license may have a 100% return on principal and profits. This is because they do not have to deposit funds in UAE banks.
Steps to Open a Trading Company in Dubai
With the help of local entrepreneurship experts, starting a standard business company in
Dubai takes just five easy steps:
1: Commercial Activities
The first step in obtaining a general business license is deciding on your business activities. Next, you must select each commodity you wish to trade. There are thousands of potential options, so you’re sure to find one or more that matches your business.
2: Company Name
Next, you need to choose a business name. Note that you must adhere to a strict set of naming conventions. Any offensive or profane language should be avoided. If your business is named after you, avoid well-known organization names and acronyms. Your company’s onboarding agent will check the availability of the chosen name before registering you.
3: Apply for a License
You can now apply for your Continental General Trading License if you work with a company formation agency such as VVAS. You can create and manage applications to ensure a fast and smooth setup. In most cases, you will usually ask to provide the following:
- Completed application form.
- Memorandum of Association.
- Copies of passports of all shareholders.
- A brief description of the planned business activity.
The general business license is an instant license, which means it only takes 30 minutes to complete the registration online.
In addition to applying for a license, you can also apply for any visa you may need. This includes residence visas, company employee visas, and visas for domestic workers, such as housekeepers or drivers. The number of visas you can apply for depends on your company size, the method of formation you choose, and your income in the case of dependent visas.
5: Bank Account
The final step in setting up a general trading business in the UAE is opening a corporate bank account. Many local and international banks exist, but opening an account can be complicated for foreign business people. Therefore, before applying, you should familiarize yourself with several financial institutions to find the one that best meets your business needs and is most likely to provide you with business banking services. Your company’s configuration agent can help you with this process.
Ready to start a general trading business in Dubai?
We hope this step has clarified that creating a trading license in Dubai can be simple if you have the proper knowledge. However, it requires some level of prior knowledge of the process. Also, it is important to note that the application process will only go smoothly if your permit application is complete and error-free when submitted.
In short, VVAS experts can set up your company in your name, complete your license and visa application, and take care of all the necessary administration, leaving you free to continue your business.
Many commercial activities, such as wholesale and retail, import and export of primary commodities, clothing, food, machinery, electronics, etc., fall under the authority of the general trade of the UAE. Therefore, all permitted products can be traded using the UAE General Trade License. A general license allows a business to sell more goods than a specific license category. For example, with a general business license, it is possible to sell packaged food, daily necessities, clothing, personal care items, and all the necessities.
If you want to get into the technical situation of setting up your business, then we are here to help you with our Business Setup Services that offer hassle-free solutions for your new setup. VVAS is one of the most prominent partners for entrepreneurs that provide the best business Setup in UAE. Hire today.