General Trading License in UAE is the most in-demand business license by global investors. IT enables them to conduct various trade operations such as export, import, distribution, storage, and re-exports from UAE. The investor will have the flexibility to trade in a variety of goods in the local UAE market, GCC region, and the rest of the world.
Henceforth, the scope of a General Trading License in UAE is huge. Specific licenses that only allow to trade of specified goods, but the general trading license can accommodate more variety of goods under the single trade license.
General Trading License in UAE – Key Highlights
With the trade of goods ranging from foodstuffs to electronics, the company can trade a vast number of items under the same Business License type. Investors prefer to set up a Limited Liability Company on the mainland and obtain a General Trading License in UAE to target the local market.
Additionally, The company can conduct trade operations in GCC and international regions as well. Free Zone General Trading License in UAE is the right fit for businesses that aim to expand their market into new geographies. Especially for those who operate in overseas, export, and re-export sectors.
Free Zones have their benefits in facilitating global trade operations due to the easy access to Airports, Seaports, and other infrastructures. Thus, it helps businesses seamlessly connect with the rest of the world.
Obtaining the General Trading License in UAE – Steps Explained
To obtain a General Trading License in UAE there are certain steps. It starts from selecting the right trade name for the company to obtaining the trade license.
The investor has to choose a trading name for the company and a business type. Limited Liability Company is the most common business type in the Mainland of UAE. The next step is choosing the right business activities for the company. It is an important step as the business is dependent on the chosen business activities. A General Trading License can have up to 10 activities under the same license in UAE.
Apply for General Trading License from the Department of Economic Development (DED) for opening a Limited Liability Company. Else, submit the documents to the respective Free Zone for obtaining the General Trading License from them.
Certain business activities under general trading (medical devices, heavy equipment, used cars, spare parts, foodstuff, etc.,) would require special approvals. Submit all the required documents and clearances to the concerned authorities ( DED or Free Zone based on your decision).
Limited Liability Company in UAE Mainland
LLC Company setup allows 100% ex-pat ownership. There is no requirement for a UAE National as a partner for setting up a company in the Mainland of UAE. The company can have 2 to 50 shareholders. Partner agreement has to be made legally and must comply with the UAE business laws.
Once you receive the initial approvals, look for a business location, and prepare the tenancy contract for renting the office space. Upon submission of the tenancy contract to the DED, and payment of the fees you will be issued the General Trading License.
The steps in issuing a General Trading License from any of the Free Zones in the UAE are also quite similar. There will be 100% foreign ownership which is the major highlight for the popularity of Free Zones among foreign investors.
What are the Advantages of Setting up a Limited Liability (LLC) General Trading Company in Dubai?
1. Zero Taxation Policy
There is no corporate or personal income tax in the UAE. However, there is a 5% VAT on all transactions initiated within the region. Also depending on where the business is established, there are few exceptions in the VAT levied.
Read more on VAT Registration in UAE here.
2. Flexibility in Hiring
A mainland company has more flexibility in terms of adding employees to your company. Employee visas in the mainland of UAE are based on office size and the selected business activity.
3. No Requirement of Minimum Capital
There is no requirement for any paid-up capital required to be shown for LLC Company Formation in the Mainland of UAE. Hence, the process of LLC Company Setup is more streamlined and easy.
4. Easy Company Registration Process
There are minimum documentation and processes involved in the issuance of a General Trading License and setting up an LLC Company in the Mainland of UAE.
The process of LLC Company Setup in UAE takes less than a week and your General Trading License and new company documents will be in your hand.
5. Top-Class Infrastructure
UAE is known for its world-class infrastructure and business support ecosystem. It has got some of the worlds-best office spaces and locations for company setup.
The secure banking network, Government support, and world-class amenities make it the perfect location for business sustainability.
6. Doing Business Anywhere in the UAE
LLC Business Setup enables you to operate anywhere in the UAE. Based on your requirements and budget you can choose an office space and facilitate trade operations using your trade license and newly formed LLC Company.
General Trading License from Free Zones of UAE
A General Trading License from the Free Zones of UAE is also an equally prospective option for foreign investors. There are enormous business benefits to obtaining a General Trading License from the UAE Free Zones.
Choosing a General Trading License under a Free Zone
If the investor is keen on the overseas market, export, and re-exports, a Free Zone General Trading License would be the right fit for the business to flourish easily,
Free Zones have their benefits in facilitating global trade operations due to the easy access to Airports, Seaports, and other infrastructures.
Thus, it helps your business to seamlessly connect with the rest of the world.
Free Zone Benefits
- 100 % foreign Ownership,
- 100% profit repatriation,
- Fully-furnished office spaces,
- No customs duty on imports,
- In-house customs check,
- Custom-made warehousing facilities,
- Easy access to Airports & Seaports,
- and many more,
Export companies aiming at the international market as well as trading companies importing and selling in the UAE prefer Free Zones due to the above business benefits.
To know more, read: Ways the Free Zone Companies can trade in the Mainland of UAE
Connect with our Expert Business Consultants to know more about General Trading licenses in UAE.
Contact: Aurion Business Consultants