General Trading License in UAE
Technical Services Licence
January 28, 2019
Legal Translation Services
February 20, 2019How to get General Trading license in UAE
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.
7 Benefits of General Trading License
- Easy Setup
- Cost-effective
- Flexi Setup
- Multiple visas
- Multiple shareholders
- Minimal obstacles
- Ease of sponsoring dependents
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.
Procedure for setting up a General Trading Company
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.
7 Major Steps For General Trading License Setup In UAE
- Choose a trade name
- Decide the business activity
- Submission for initial approval
- Check for external approvals (if required any)
- Arrange MOA and approved documents from authorities
- Choose an office space and tenancy contract attested by Ejari
- Submit all documents to DED to get the final license
Usually it takes around 21 working days to complete the process from A-Z.
Documents Required for Genaral Trading License Set Up
- Application for license signed by stakeholders
- MOA
- Attested trade name approval from DED
- Passport copy of partners.
1 Comment
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