General trading in the United Arab Emirates (UAE) involves the import, export, and trade of various goods and products. This encompasses a wide range of physical products, including but not limited to furniture, electronics, clothing, toys, and industrial equipment. However, there are restrictions on certain products such as cars, alcohol, medical products, and weaponry, which require specific licenses to import or export.
It’s important to clarify that a ‘general trading license’ is different from a ‘trading license.’ While a trading license permits you to trade within a single product category of an industry, a general trading license allows you to trade in multiple products across various industries.
There are several compelling reasons to start a general trading company in Dubai:
- Local and International Trade: Obtaining a general trading license allows you to import or manufacture all goods listed in the license. This means you can distribute these goods in Dubai’s local market or export and re-export them to profitable countries.
- Low Tax Rate: The UAE has one of the world’s lowest tax rates, which is a significant incentive to start a business in Dubai. With a general trading license, you can manufacture products at the lowest possible cost.
- Wide Range of Products: You can trade a wide range of products with a general trading license, except for a few restricted products or sensitive materials. The initial high fees for the license pay off with ongoing benefits for several years to come.
- Simple Process: The process of obtaining a general trading license in Dubai is both profitable and easy. You can get your trading license from the Dubai Department of Economy and Tourism (DET) after submitting the required documents in just one week, unlike several other long registration processes.
- Easy Sponsorship for Dependents: The general trading license also offers investors the advantage of making it easier for their employees and dependents to apply for visas. By sponsoring their dependents, these traders can obtain UAE visas more easily.
Here are the primary steps to obtain a General Trading License:
- Choose Your Jurisdiction: Dubai offers two primary jurisdictions for businesses – Mainland and Free Zones. Mainland companies are regulated by the DET and require a UAE national as a partner or sponsor. Free Zones, on the other hand, allow foreign investors 100% ownership of their business without the need for a local partner. Free Zones offer several benefits, including low tax rates, 100% repatriation of capital and profits, easy business setup procedures, and simplified business regulations. They also provide access to state-of-the-art infrastructure, modern communication systems, and world-class logistics facilities.
- Choose A Company Name: Select a suitable name for your company that complies with the UAE’s naming conventions.
- Secure Office Space: Whether in Mainland or Free Zones, securing a physical office space is necessary.
- Obtain Customs Clearance: This is crucial for any business that imports goods into the country. To do this, you must obtain an import code from the customs authority and pay the applicable fee. You can register with any customs authority in the emirates.
If you plan to form a company with individual shareholders, you will need to provide the following:
- A copy of your passport
- Passport-size photo
- Copy of your residence visa
- Copy of your Emirates ID
Consulting with experts, such as those at Kelmer Group, can help streamline the process and ensure compliance with all legalities, making your venture into general trading in Dubai as smooth and profitable as possible.