Getting a license is the first step if you want to start a business in UAE. Before applying for a license you need to study and analyze all the available options of licenses in UAE. The UAE government is providing so many types of licenses to support the businesses in their country with lots of benefits. It is fairly easy for anyone to choose the apt license for them as UAE licenses are easy to understand. For example, if you are having professional services then you need to apply for professional service license. If you are into manufacturing business then the license for you is an industrial license. If you are into trading goods then you need a commercial licence. Once you have an idea about all the license then you can easily choose the one you need for your business. Company formation in UAE is much easy than you think.
What is General trading Licence?
A general trading license is for allowing all the entrepreneurs or start-ups to allow them to do business/ trading in UAE under one license. With general trading license you can trade any goods from clothes, toys, electronics etc. without any restrictions. That is the major benefit of General trading Licence in UAE. In short, with a general trading license you can do business of any goods except the regulatory goods such as pharmaceutical supplies, frozen foods, weapons etc. that is the goods that need to comply health and safety standards. General Trading Licence is always a better option for startups if you are into trading.
Why you should choose General Trading License?
When it comes to doing business in the UAE, there are plenty of reasons why start-ups choose UAE for their business. There is nobody who doesn’t know UAE is the hub of world business. It turns out to be the world’s centre of business is because of their well supportive and encouraging business environment that they provide for their natives as well as for foreigners.
UAE is one among the few countries that offer 0% tax regimes on both personal and corporate incomes. Moreover, they provide 100% tax exemption from customs tax for the businesses in free zones of UAE.
The major benefit of General Trading License is that the goods that you intend to trade need not be related. Means you can trade clothes, toys and car parts or anything you wish under one license. With a General Trading License you can trade like anything, you need not worry about the category of goods that you want to trade which is a great flexibility in the field of trading. Unlike other licenses, under General trading Licence Dubai, you can employ any number of employees and you can get a visa for your employees easily. Only the company premises matter when it comes to employee visa. If you have a large company premise then you can apply for more employees. Also if you are planning to bring your spouse, children, parents or even someone for domestic help, the procedures are simple and only a very slight chance of visa rejection. Usually no visa rejection at all.
Procedures to apply for General Trading Licence in Dubai
Before applying for the license, you need to prepare a detailed report on the following points. Then it will be easy for you to make decisions at every stage. We will see different steps for the Setup general trading Business Dubai. Though different Emirates have different rules for General Trading License, key factors remain the same only.
Choose the location
Before applying for the license, the first step is to find out the perfect location for your business. For mainland trading you will have to take mainland trading license which will allow you to do trading anywhere in the mainland. If you are looking for free zone license then there will some restrictions on where you can do the trading also regarding moving the goods from free zone.
Choose the business activities
Under General trading License Dubai you can include any 10 business activities which need not be related. You cannot trade the goods that come under the regulation of food and safety department. Apart from that, any goods can be traded.
Choose your company name
Choosing the company name is always the toughest part. UAE have some strict rules to follow while naming your company, at the same time it makes sense also. Once you choose the name, you can apply for initial approval, if it gets approved then you can apply for License.
Rent out office space
Now you need to rent out office space and warehouse for storing your physical goods. For mainland trading there is no limitation in the space that you can rent out for warehouse. But in free zone there is a limitation of space that you can hire and in IFZA they even allow you virtual space according to your requirement.
If you need to import goods to UAE then you need to take customs clearance from the respective customs authority. By paying the applicable fees, you can get the import code and you are ready to go with your business.