If you plan to start a business in Dubai, one of the most versatile options is the General Trading License. This type of license allows companies to trade a wide range of goods. Dubai is a global hub for trade, making it an ideal location to set up a general trading business. With its strategic location, world-class infrastructure, and business-friendly regulations, getting a General Trading License in Dubai can open doors to many opportunities.
In this step-by-step guide, we will walk you through the process of obtaining a General Trading License in Dubai, from the initial decision-making phase to successfully securing your license.
What Is a General Trading License?
It is crucial to comprehend the meaning of a General Trading License before proceeding with the processes. Businesses can transact in a variety of items across numerous industries both domestically and abroad with a General Trading License. You can deal in commodities like electronics, food items, furniture, textiles, and many more with this license. It’s crucial to remember that some forbidden items, such as medications or firearms, can need further permissions.
Step 1: Determine Your Business Activities
Selecting the products you wish to trade is the first stage in the process of acquiring a general trading license. This is an important stage because the jurisdiction in which you should apply for the license will depend on your business activity. Depending on their nature, certain commodities could additionally need extra certificates or permits
Make sure the products you plan to trade are legitimate and adhere to Dubai’s laws. Proceeding to the following phase is possible once you have a comprehensive understanding of your business activity.
Step 2: Choose Between Mainland or Free Zone
Selecting whether to locate your company in a free zone or on the mainland will be one of the most crucial choices you have to make during the process. Each approach has benefits and drawbacks.
- Mainland: You can trade both domestically and internationally in the United Arab Emirates with a General Trading License on the mainland. Additionally, you will be free to deal directly with government agencies and the UAE market.
- Free Zone: Free zones give tax advantages and 100% ownership to international investors. Nevertheless, unless they collaborate with a local distributor to trade in the UAE market, businesses established in free zones are limited to trading within or globally.
Step 3: Choose a Business Name
One of the most important steps in the licensing procedure is choosing a suitable business name. Dubai has extremely rigorous naming requirements that your company’s name must adhere to. The name shouldn’t be similar to the names of any well-known businesses, nor should it contain any derogatory language or references to religion.
After deciding on a name for your company, you must register it with the appropriate free zone authorities or the Department of Economic Development (DED). Once approved, you can move on to the following phase.
Step 4: Submit the Necessary Documents
To apply for a General Trading License, you’ll need to gather and submit several documents. These documents typically include:
- A filled-out application
- Copies of the stockholders’ passports
- A copy of the approval for your trade name
- An association memorandum (MOA) with a regional sponsor (for enterprises based on the mainland)
Step 5: Secure Office Space
To get a General Trading License in Dubai, you must be able to show that you have a real office. Securing office space is essential, regardless of whether you are establishing in a free zone or on the mainland. The type of business you run will determine the size and location of the workplace.
If your business is located in a free zone, you may find that co-working spaces or serviced offices provide an affordable alternative. Businesses located on the mainland must rent a specific office space.
Step 6: Apply for the License
The moment has come to submit your application for a general trading license once you have all of your paperwork together and your office space reserved. The Department of Economic Development (DED) will oversee the application procedure if you are applying on the mainland. You must submit an application to the appropriate free zone authorities for firms located in free zones.
Generally speaking, the approval procedure takes a few days, however this can change based on your business’s needs and the products you want to trade.
Step 7: Pay the Fees
Choosing to apply for a general trading license in a free zone or on the mainland will affect the cost. A number of payments will need to be paid, including as license fees, registration fees, and office space rental prices.
On the mainland, the price is typically a little bit more because local sponsor costs must also be taken into consideration. The price schedule is frequently simpler in free zones, but before moving forward, it’s crucial to be aware of all related expenses.
Step 8: Obtain Additional Approvals (If Necessary)
Certain things, such food items, medical supplies, or dangerous chemicals, could need special permissions from the government. Before you can start trading, you must get the required approvals from the appropriate government departments if your firm involves such products.
To guarantee adherence to Dubai’s regulatory framework, this is a crucial step.
Step 9: Receive Your General Trading License
You will obtain your General Trading License upon evaluation and approval of your application. Best wishes! You now have a formal trading license in Dubai.
Once you have your GTL, you can begin trading, importing, and exporting products inside Dubai and internationally. To continue conducting business lawfully, you must make sure you adhere to the rules and renew your license on a yearly basis.
Step 10: Open a Corporate Bank Account
To carry out commercial operations, you must open a corporate bank account after obtaining your general trading license. Along with other paperwork including a company’s memorandum of agreement (MOA), proof of shareholders, and office lease agreement, the majority of banks in Dubai demand a current trade license.
To manage your funds and build credibility with suppliers and customers, you must open a corporate bank account.
