A general trading license in UAE is a great option for anyone who wants to get into imports and exports of a variety of goods. You can select many different activities under general trading license in Dubai and also have the option to add new ones in the future.
A major benefit of a Dubai general trading license is that it allows you to trade in a wide variety of goods, outside of a few industries where there are restrictions, such as oil or tobacco. In addition, the goods that you trade in do not need to be related to each other. As long as you steer clear of prohibited items, you can choose almost any combination.
Step 1: Decide on a free zone or mainland license
Okay, let’s get started. The first decision to make is whether a free zone or mainland setup is better for your company. With a mainland setup, you can trade with the UAE market (without needing a local agent), plus you can potentially take on government contracts.
Then there is the UAE free zone option which offers 0% tax rate, the ability to repatriate 100% of your profits, full customs tax exemption, no currency restrictions, and so on. While your free zone company is not able to trade directly with the UAE market, there are options which enable you to do so, should you need it in the future.
Generally, a mainland license will be optimal as you can then freely trade goods in the UAE, while a free zone will be limited in this aspect.
Step 2: Choose your business activities
You can select up to 10 activities. As mentioned, these cannot be any of the goods that need further approvals such as pharmaceuticals and firearms.
Step 3: Select your company name
Next up is picking a name for your company. The UAE is fairly strict when it comes to naming companies, so it’s important to be aware of the regulations. Essentially, you must avoid any language that could be seen as offensive or blasphemous. You must also avoid any name that is already held by a well-known organisation.
If you’re naming your company after yourself, ensure that you don’t abbreviate your name. So Mark Johnson Trading is fine, but M Johnson Trading is not. Of course you will also need to ensure your chosen company name is still available for you to register. This part of the process, like many others, is much smoother if you choose to set up with a company formation specialist like Creative Zone.
Step 5: Make your license application
If you are taking the free zone route, then you can apply directly to your chosen free zone. For the mainland option, you can apply to the Department of Economic Development (DED).
The key is to make sure that your application is mistake-free, to avoid possible delays or rejection.
Working with a company formation specialist from the outset means you can have peace of mind knowing that your application is complete, as well as having access to professional advice at each step of the process.