General Trading License in the UAE
A general trading license allows companies to engage in the trading of multiple products under a single license, including unrelated goods like electronics, textiles, food items, and construction materials.
This license is ideal for businesses looking to import, export, and distribute products within the UAE and globally. It is issued by both mainland authorities and free zones, providing companies with operational flexibility.
Scope of a General Trading License
– Import and Export: Businesses can trade products across borders without restrictions.
– Retail and Wholesale: Allows companies to set up stores, distribution centers, and warehouses.
– Diverse Product Range: Covers multiple types of goods under one license, such as electronics, fashion, food, and machinery.
Advantages of a General Trading License
- Operational Flexibility: Trade various products without needing separate licenses.
- Access to UAE Markets: Businesses can operate across the mainland and free zones.
- Customs Exemptions: Companies benefit from customs duty exemptions in certain free zones.
- Tax Benefits: Enjoy corporate tax exemptions in free zones, along with VAT relief on exports.
- Visa Sponsorship: General trading companies can sponsor multiple visas for employees and dependents.
Steps to Obtain a General Trading License
- Define the Business Activities: Identify the goods the company will trade.
- Choose the Location: Determine whether to operate in the mainland or a free zone.
- Register the Company: Submit an application to the DED or the chosen free zone authority.
- Obtain Approvals and Open a Bank Account: Once the license is issued, the company can open a corporate bank account.