For new business setups it could be quite a challenging task to choose which kind to license to start with. It really depends on your business activity.
Businesses wishing to host trade, import and export of any tangible goods should apply for general trading licenses. This enables them not only to trade locally but internationally as well. If a business decides to trade, import or export goods like textiles, household items, electronics, food, non-food etc. they should go for a general trading license. If a business has an interest in multiple trading activities across different categories which fall within or outside an industry, general trading license covers it all.
Certain goods such as guns and ammunition, medicinal products, vehicles, and alcohol are not permitted to be traded on a general trading license as these may require external approvals from higher authorities and clearance from government bodies. However, after obtaining approvals, these have to be traded under the commercial license.
In many instances, general trading is easier to form as compared to various free zones. New laws have facilitated the process, for example, DED registration has sped up – without any signing of lease agreement upfront.
Many entrepreneurs anticipate that general trading license is costlier than others but in reality, the costs only vary by a difference in comparison to free zones.
Under general trading licenses, businesses can operate anywhere in the UAE.
General trading licenses can facilitate unlimited workforce as long as set up in the mainland.
Unlimited shareholders are allowed in general trading license – both individuals and corporates.
No requirement for upfront share capital and annual audits are not a necessity.
A simple procedure for sponsoring dependents; entry permit, status, medical, EID, and stamping.
WWMS is amongst one of the few business solution companies in UAE offering general trading licenses. When setting up a general trading license it is mandatory to approach a UAE local sponsor or local service agent and to be nominated as a 51% ownership representative – however drafting a side agreement for securing the rights, interests, and revenues of investor is at the core of our hearts so we facilitate this process. Next step involves choosing a company name and its availability for registration. After this deciding on MOA, the percentage of shares held by shareholders follow. Once finalized, submissions of documents including copies of shareholders passports and visas have to be submitted to apply for trade license, immigration and residence visas.
Usually it takes around 21 working days to complete the process from A-Z.