One of the world’s business hubs with the fastest population growth is Dubai, attracting investors and entrepreneurs from around the globe. If you plan to start a business in Dubai, you must obtain a General Trading License. In this blog, we will discuss the process for obtaining a general trading licence in Dubai, the cost of the licence, and the requirements for obtaining it.
A General Trading License is a permit that allows businesses to import, export, and trade in various activities under one licence. The licence covers multiple activities such as commodities, goods, services trading, e-commerce and consulting services.
The business must be registered with the Department of Economic Development (DED) to apply for a General Trading License in Dubai. The DED is the government entity that regulates business activities in Dubai. Obtaining a General Trading License in Dubai involves several steps, and it is advisable to seek professional guidance to ensure compliance with local laws and regulations.
Before applying for a General Trading License, the business owner must decide on the activity they want to carry out under the license. It is important to note that some activities require additional permits and approvals from relevant authorities.
The next step is to choose a legal entity for the business. Business owners can choose from several legal entities, such as a Limited Liability Company (LLC), Free Zone Company, or a Branch of a Foreign Company.
Business owners must reserve a trade name with the DED. The trade name must be relevant to the business activity and comply with local laws and regulations.
Business owners must obtain initial approval from the DED for their chosen business activity and legal entity.
Once the initial approval is obtained, the business owner can apply for a General Trading License. The application process involves submitting the necessary documents and paying the required fees.
The cost of a General Trading License in Dubai can vary depending on the business activity and legal entity chosen. A General Trading License for an LLC can range from AED 15,000 to AED 20,000, while a Licence for General Trading in a Free Zone can range from AED 15,000 to AED 25,000. It is important to note that the licence cost is not the only expense in setting up a business in Dubai. Other expenses include visa fees, office rent, and additional administrative costs.
In conclusion, obtaining a General Trading License in Dubai is a crucial requirement for businesses wishing to engage in city trade activities. Getting the licence involves several steps, and it is advisable to seek professional guidance to ensure compliance with local laws and regulations. The cost of the right can vary depending on the business activity and legal entity chosen, and it is essential to consider all expenses involved in setting up a business in Dubai.