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Information & Importance of General Trading License in Mainland

By Akshat - 03 Jan 2022 Last Updated: 05 Jan 2022
Information & Importance of General Trading License in Mainland

Table of Contents 

  1. 1. What is a General Trading License?
  2. 2. What is the Procedure to obtain a General Trading License in the UAE?
  3. 3. What are the Benefits of a General Trading License in the Mainland?
  4. 4. Documentation required to get a Trade License in the Mainland
  5. 5. Cost of Obtaining a General Trading License in the UAE
  6. 6. Conclusion

In the UAE, trade is one of the most essential business activities. Because of its strategic location, this coastal city has traditionally been a major hub for international trade. Our study further explains the information and importance of a General Trading License in the Mainland.

What is a General Trading License?

Because of the ease of conducting business, the great demand for goods, and closeness to emerging markets, Dubai is one of the best places to start a new firm. To carry it out, however, the investor must first obtain a legitimate trade license from the Department of Economic Development (DED), which requires him or her to fulfill a number of rules and procedures. Many consumers desire to take advantage of the duty-free import and export privileges, therefore general commerce is one of the most popular economic activities in the UAE. A general trade license enables an investor to deal in nearly any commodity that is permitted by the Department of Economic Development's Activity List.

Also, it is vital to obtain a trade license in Dubai whether you wish to take advantage of Dubai's wealthy local market or use tax incentives to re-brand your product. In order to import, manufacture, distribute, or re-export any goods in the country, this will be required. Depending on the type of goods, numerous sorts of trade licenses are available in Dubai. The general trade license is the most well-known of these. The general trading license, as the name suggests, deals with the trade of most products that are utilized in any market. It is necessary if you wish to launch a trading company in Dubai. Distinct licenses are necessary for specific items. In the case of Dubai, special licenses are required for the sale of medical equipment, alcohol, and other things. However, the majority of common items will be covered by a general trade license. It is for this reason that it is more expensive than other trading licenses, but it is well worth the money.

What is the Procedure to obtain a General Trading License in the UAE?

The procedure to apply for a General Trading License in the Mainland are given below:

  • You must specify the types of business activities that should be included in your company's license; each license is limited to a maximum of 10 business activities.
  • After you've filled out all of the essential information in the application, you can submit it for preliminary approval.
  • Depending on the type of business activity you've chosen, you'll also need external approvals.
  • Assemble all required and necessary paperwork, such as the Memorandum of Association (MOA), as well as all approved documents that should be acquired from the appropriate government agencies.
  • Ejari must attest to a tenancy contract and finalize a company site.
  • Submission of the completed license application to the Department of Economic Development (DED).

What are the Benefits of a General Trading License in the Mainland?

The major advantages are elaborated below:

Easy Setup

The simple setup method is one of the main reasons for the general trade license's acceptance in the UAE. The UAE's new creativity has simplified the process to the point where you may be listed with the Dubai Department of Economic Development (DED) in less than 90 minutes if you meet the appropriate conditions for a license.

Low Costs

With a general trading license, the traditional assumption is that starting a business in the UAE is a costly proposition. However, in reality, the prices are equal to alternative options such as forming a free zone corporation.

Location Preferences

Unlike some other methods of company formation, starting a firm with a general trade license allows business owners to rent office and storage space anywhere in the UAE.

Simple to Use for Multiple Visas

General mercantilism licenses are extremely popular among firms with large workforces since they allow for an unlimited number of visas once set up on the inside. When it comes to increasing the number of visas, it's important to keep in mind that the number of offices you'll need to obtain will increase in lockstep. The general guideline is that each visa requires one hundred square feet of office or warehouse space. In some circumstances, though, this may be possible to navigate.

Several Shareholders

There are no restrictions on the number of shareholders in a single license, therefore you can set up your General Trading Business with multiple shareholders.

Comparatively Low Barriers to Entry

General trade licenses provide businessmen with an occasional barrier to business ownership in a variety of ways, thanks to their quick and simple application process. To begin with, direct pricing is the lowest because there is no need for paid-up share capital when starting a mainland general trade company. Furthermore, common mercantile or trading firms are exempt from the annual audit.

Easy to Apply for Dependents Visas

Obtaining a General Trading license in the UAE merely creates a patron to utilize for visas for yourself and your employees; you'll also be able to sponsor dependents and family members under your sponsorship. Whether you require a visa for a partner, child, maid, or driver, the process is straightforward. A medical examination is followed by Emirates ID registration and visa stamping.

Documentation required to get a Trade License in the Mainland

The documentation required is given as follows:

  • License Application
  • Passport copy of the investor or the shareholders (if any)
  • Name Approval letter from DED
  • MOA (Memorandum of Association)
  • Business plan
  • Fees payment receipt

Cost of Obtaining a General Trading License in the UAE

The DED's Dubai Mainland Trade License is the sole license that allows you to trade directly with local clients, whilst the DED's Free Zone Trade License allows you to trade with international and B2B (Business to Business) markets.

The cost of a general trading license in Dubai ranges from AED 30,000 to AED 40,000, depending on your business activities.

Conclusion

Obtaining a trade license in Dubai is typically seen to be a difficult task due to the extensive paperwork and other papers required. Dhanguard assists its clients in obtaining trade licenses by providing paperwork support through its team of specialists and extensive network of professionals. Please contact us if you require any services related to trade licenses in Dubai, and we will gladly assist you.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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