The Ultimate Guide to General Trading License: Crucial Procedures & Instructions - Marque way
 

The Ultimate Guide to General Trading License: Crucial Procedures & Instructions

June 9, 20210

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The Ultimate Guide to General Trading License: Crucial Procedures & Instructions

Dubai has long emerged as one of the most promising places in the world for trading and entrepreneurship. Its unique strategic position and 0% tax rate on both personal and corporate income allow you convenient trading along with the potential for a significant profit margin.

If you are a trader or an entrepreneur looking for opportunities in the UAE, it is important to know about the licensing program you need to undergo to become a licensed trader or entrepreneur in the country. Your license depends upon the kind of product you aim to sell.

What is a General Trading License?

General Trading License is a specific type of license that falls under the commercial license category of the UAE. It allows the holder to trade multiple goods under the name of a single company. The Department of Economic Development allows the trade of all goods that comply with health and safety standards with a General Trading License. These include food items, clothing, footwear, electronic items, specific types of jewellery, toys, etc. Goods that cannot be traded using a General Trading License include those that require additional licensing such as frozen foods, pharmaceuticals, tobacco, oil, and weapons. 

How to Obtain a General Trading License?

The process involved in acquiring a General Trading License is fairly easy to understand. There are, however, a few avenues you need to consider while processing your application. A company formation consultant can help you with it. These include:

  • Choosing an ideal Location

As mentioned earlier, Dubai has become a global hub for trading. Within Dubai, you can choose between the mainland, free zone, and offshore to set up your business. The most convenient of the three is the mainland which allows you to execute trading operations freely in the UAE. Setting up in the free zone would provide you with a 100% exemption from customs tax. However, the movement of goods has restrictions in the free zone, and it might interfere with your business. The ideal location would therefore depend upon the type and varieties of goods you want to trade. Choosing between convenience, mobility, and exemptions is key to achieving the highest possible profit.

  • Choosing your Business Activities

General Trading License is a kind of a jack of all trades license that allows you to import, export, and trade a wide variety of goods under a single license. All goods that comply with the health and safety standards of the UAE could be traded using a General Trading License. Another convenience attached to it is that you can deal with goods that are completely unrelated to each other at the same time. You must specify the goods and activities you intend to deal with in your license for you to become eligible in dealing with the same. Commodities that are not mentioned in your license cannot be traded.

  • Choosing a Name for your Company

The naming of your organization can be an easy and challenging thing at the same time. Dubai has strict naming conventions you need to adhere to while considering a name for your company. Regardless, these conventions are more or less straightforward and easy to understand. A broad outline of the rules involved is as follows.

  • The company name must not include any offensive language
  • The chosen name must not be attributed to god.
  • The name you choose must not make any reference to existing organizations.
  • The name must have relevance to the business you plan to engage in.
  • The chosen name must be available for registration.

There are a few subsections to these broad terms, and while they are easy, they could prove to be confusing and weary. Enlisting the services of a consultant could be particularly helpful in the naming process.

  • Securing infrastructure

General Trading License enables you to trade physical goods. As such, it is important to secure warehousing and office facilities for your company. Having proper infrastructure at the optimum location can be key to the growth of your company. The mainland is the easiest and most convenient location to have your warehouse and office if you are looking for a free flow of goods in the UAE. The free zone has limitations in terms of storage and operation, but it offers a 100% exemption on import goods. There are also certain free zones that allow you to operate using a virtual office. Consider all aspects of your business before finalizing the location of your infrastructure.

  • Customs Clearance

If your business venture involves the import and export of goods, securing clearance from Customs is crucial. For this, you need to have an import code from the Customs Authority. This can be obtained by paying the required amount and registering with any of the eight Customs Authorities in the UAE.

  • Documents

Having the correct set of documents is important in securing any kind of official approval and it is no different with a General Trading License. As it provides approval for the trade of a large set of different goods, the exact documentation could change depending upon the goods, type of business, and location of your business. Some documents are common to all General Trading License applications. They are:

  • The completed application form
  • Passport copy of the proposed owner(s)
  • Passport size copies with white background.

Ensure Easy, Reliable, and Efficient License Acquisition

A General Trading License provides your company with a plethora of business avenues and opportunities. Its acquisition process is aided by the flexible regulatory procedures and quick timelines set by the UAE authority to encourage trade and entrepreneurship. There are, however, several elements that require preparation, consideration, and consultation during the application process of a General Trading License. Marque Way, with its significant experience and professional standards, offers top-of-the-line consulting services at any stage of your company formation. Join hands with Marque Way for a hassle-free licensing experience!   

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Copyright by Marqueway