If you’re thinking about setting up a trading business in Dubai, you’ll need to obtain a general trading license as part of the business setup process in the UAE.
A general trading license allows business startups in Dubai to conduct all of their trading activities under one license. With a trade license, your startup could become a key player in the supplies industry to support businesses with necessary goods across the country.
In short, just about everything – especially if you want to get into the goods supply startup business in the UAE. A general trading license will allow you to trade a wide range of goods, such as clothing, accessories and electronics – to list a few examples.
With a general trading license, there is no such requirement that the goods have to be related to one another, hence you can trade in as many diverse products as you like, from model trains to artisanal jewellery.
Other than regulated goods that are required to comply with health and safety standards, such as pharmaceutical products, frozen foods and weapons, the Department of Economic Development Dubai allows a startup business in the UAE with a general trading license to export, import or trade all other goods.
1) Choose jusrisdiction
Opting for a mainland general trading license in Dubai allows you to freely trade goods in the UAE. It is always recommended to go with a mainland license for general trading. If you opt for a free zone you will have limitations in moving around the goods. Get approval from the Department of Economic Development Dubai for a mainland general trading license.
2) Choose business activities
You may choose up to 10 activities for your general trading business. You can include all the activities which are regulated goods that comply with the health and safety standards and not the goods that require external approvals like guns, pharmaceuticals, etc.
3) Select a company name
Choose a name for your general trading business. Send it for initial approval. Read the dos and don’ts of naming a company in Dubai. Once its approved, you can apply for a general trading license.
4) Secure office space and warehouse
You have to rent out an office space and a warehouse. Since general trading is the trading of physical goods, you need a warehouse for storage. A mainland license allows you to get a warehouse without any limitations but with a free zone license, you will have certain limitations in the area of operation and storage. Some free zones like IFZA, allow you to operate with a virtual office. You can choose any depending on your business needs.
5) Customs clearance
Getting customs clearance is a primary obligation for any business that import goods into the country. For that, you must obtain an import code from the customs authority by paying the applicable amount. You can register with any customs authority in the emirates.
Depending on where you choose to set up, the cost of general trading licenses in Dubai, UAE are generally priced between AED 9,000 to 40,000.
Check out cost calculator to get an estimate of your general trading license in UAE.
Contact us to know more about the costs and processes for getting a general trading license in the UAE.