Why should someone apply for a general trading license in Dubai for a business setup?Business Registration Dubai
However, for company setup in Dubai, you need to have a valid trade license from Department of Economic Development (DED) or relevant free zone authority if you are forming free zone company. If you want to trade in mixed goods, you will need a “general trading license”. Let’s look at it in detail.
What is General Trading License?
A businessman wishing to import and export goods and products such as clothes, accessories, furniture, cosmetics, toys or electronics etc. must apply for general trade license in Dubai. A general trading license in UAE allows companies to trade in multiple goods. This means that you can import, export or trade any number of products under the same license. However, there are certain products such as guns, cars, alcohol and medical products which you cannot trade in UAE under general trading license as these products require approval from higher authorities and clearances from UAE Municipalities. If you do get approval to trade them, you will be issued a commercial license for these products.
Advantages of Having General Trading License in the UAE
Applying for general trading license in UAE is extremely straightforward process in fact is easier than setting up company in free trade zones. . The license is issued by Department of Economic Development (DED) Dubai. They have made the whole process hassle free and very quick – it only takes one week to issue general trading license once you submit required documents to DED and you are good to go.
There are low barriers to entry. Along with fast and easy application process, in a general trading license, upfront costs are minimal as there is no requirement for paid up share capital when establishing a mainland general trading business in Dubai.
Tax Free Trading:
The holder of general trading license in Dubai need not to pay taxes on profit, income or any other amount.
Trade locally and internationally
Acquiring a general trading license in Dubai allows you not only trade locally within UAE but also with markets around the world. You as a trader have the benefit to trade beyond borders and exploit all the business opportunities of trading with local, national and international markets to reap profits.
Easy to Apply for multiple visas
Usually businesses with large workforces go for general trading license as it allows them get unlimited visas when forming a Dubai mainland company. However, number of visas also depend upon your office space. When you want to increase the number of visas you will have to make a corresponding increase in your office size. Bigger your office is, more visas you can obtain. In Dubai, general rule of thumb is 100 sq. ft. of office or warehouse space per visa. You can also negotiate with DED on that matter in the case for example a domestics cleaning company having more than 500 employees who are not working in office need not to have a 50,000 sq. ft. of office space.
Easy to sponsor dependents:
Not only for employees, businessman can also sponsor for visas for dependents such as spouse, children, parents, maid etc. the process is pretty straightforward but quite important: you will need entry permit, status adjustment, a medical fitness test, then Emirates ID registration and visa stamping. Our advice to you in this matter would be to consult an expert to ensure that before you start an application process you and sponsor meet the entry criteria.
Auditing is not mandatory
Businesses having general trading license in Dubai do not go through yearly auditing process. They are saved from the hassle of submitting auditing reports to government authorities in UAE.
Affordable setup costs
Setup with multiple shareholders: general trading license allow entrepreneurs to go for company formation in Dubai with multiple shareholders. There is no limit on number of shareholders you can start with, however generally accepted limit is 50. Shareholders can be individuals or corporate entities.
Apart from these benefits, general trading license owners have various banking facilities available for personal and corporate purposes. They are also allowed to have 100% repatriation of capital as well as profits. They are not required to deposit share capital in UAE banks.
Abovementioned benefits of having general trading license in Dubai encourage foreign entrepreneurs to utilize their resources in Dubai through business setup in Dubai and be successful.
If you want information on how to get business license in UAE, contact our business setup consultants at Business Registration Dubai. Send us your query at firstname.lastname@example.org and we will be glad to help.