How to Get a General Trading License in Dubai
Are you a foreigner and looking to relocate to Dubai to set up your business in one of the highly emerging economies? Choices are endless when it comes to operating a business in Dubai. You can get your general trading license in Dubai where you are allowed to combine different commercial activities in any of the industries including food, electronics, furniture, clothes, fashion, and more. However, you need to obtain a general trading license in order to register your general trading company in Dubai.
What is a General Trading License in Dubai?
A general trading license in Dubai is a license that allows you to import, export, and trade goods and products under this license category. Unlike, other license types, a general trading license enables you to trade in a broad array of goods – however, except a few products that are prohibited in the country such as tobacco and other goods that do not comply with health standards.
Why You Need a General Trading License in Dubai?
If you’re a foreign national and want to start a trading company in Dubai that sells unrelated products, you’ll need to get a general trading license. Getting a general trading license is a must, especially if you plan to get involved in multiple trading activities. Even if these activities are spread across different industries, a general trading license will cover them. That’s why getting a general trading license should be one of the most important steps for easy and smooth company formation in Dubai.
Once you’ve got your general trading company license in Dubai, your business startup in Dubai is allowed to conduct all of its trading activities under this one license. Once you get this important aspect of company formation in Dubai done, your startup is poised to become a key player in the supply and trading industry, providing businesses across Dubai, the UAE, and even other countries with necessary goods.
Steps to Get a General Trading License in Dubai
The Department of Economic Development (DED) currently offers quick licensing processing for a general trade corporation. To obtain a general trade license in Dubai, the following steps must be done during business registration:
- Get approval for the company name – Present the Department of Economic Development with three to four possibilities for your company name reservation.
- Choose Legal Structure & Define Business Activities – To continue your application for a trade license choose a legal structure for your business as well as define the business activities that you intend to carry out.
- Submission of documents – To complete the application, you must go to one of the recognized centers. A passport copy, residence visa copy or visit visa, and Emirates ID are all essential documents for starting a general trading company in Dubai. After you have submitted your application to the center, the DED will give you a payment voucher for the license after fully validating the documents. You must pay the specified cost in order to get your trade license.
How to Renew a Trade License in Dubai
Renewing your Trade License in Dubai is a straightforward process, but it’s important to begin before your current license expires to avoid penalties. Here’s how you can renew your Trade License:
- Obtain Necessary Approvals
- Clear Any Fines
- Update Tenancy Contract
- Gather and Submit Documents
- Pay Renewal Fees
Types of Trade Licenses in Dubai, UAE:
Starting a business entity in Dubai, UAE requires a trade license applicable to the company type, industry, and business activity. This applies to foreign companies setting up business in Free Zones. These are the four most common Dubai trade license types available for Free Zone companies:
- Commercial License for general trading businesses
- Professional License for service-related businesses
- Industrial License for manufacturing goods
- Tourism License for travel and tours
1- Commercial License:
The Commercial License is also known as the general trading license or business license. It is the most widely applied for and issued trade license type in Dubai’s Free Zones. This license type applies to businesses involved in commercial activities and trade activities in Dubai and the UAE. These activities usually include importing products, export, and goods and commodities trading. The Commercial License serves as both regulation and protection for companies operating in Dubai’s Free Zones. This qualifies a company for various business support structures specific to industries such as startup incubators, banking support, as well as business-specific trade incentives.
2- Professional License:
As the name suggests, a professional license is for professionals of any field. Each professional license requires a local sponsor or service agent. Importantly, granting of a professional license is on the basis of the qualification and expertise of the individual. For example:
1-Doctors
2-Lawyers
3-Engineers
4-Accountants
3- Industrial License:
An Industrial License in Dubai and the UAE is essential for activities such as casting, moulding, or processing. This also includes any production of raw materials and semi-finished goods and supplies. Any organisation that requires such a license must register with the Department of Economic Development (DED). Furthermore, the Chamber of Commerce and Industry is also involved with an Industrial License in Dubai and the UAE. This is according to the statutory requirements in the UAE.
4- Craftsmanship License:
A Craftsmanship license is issued to a person who practices a craft for a profit. A craftsman is dependent on their physical effort and skills. For example, plumbers, blacksmiths, and carpenters. A company hiring a craftsman requires them to apply a license for them. Each craftsmanship license requires a local sponsor. The local sponsor has no equity participation or liability to the business. Nor can the person represent the office or take part in its management. UAE sponsorship will be on the fixed annual fee.
5- Tourism License:
A Tourism License is a trade license for companies that specialise in Travel and Tourism activities. The procedure for forming a company related to tourism activity is simple. It can be an LLC or 100% local establishment for tourism activity. The company needs to appoint a Tourism manager. The manager should have a Tourism Degree or Diploma at the time of registering a company. He or she can be the partner of the company. Examples of companies that need a Tourism license are:
1-Hotels
2-Travel agencies
3-Cruise boat rental
4-Tourist camps
5-Floating restaurants
6- Agricultural License:
Agriculture License is for owners of arable land, livestock farms, and fisheries. Also, people are involved in activities such as cultivation and harvesting of crops, trading of pesticides and crops. Additionally, the installation of greenhouses and providing agricultural consultancy needs an agriculture license.
