How to Get a General Trading Licence in Dubai?

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Introduction

Want to start your new business in Dubai? Well, it is a great idea because Dubai is the best destination to start the business journey as you will get multiple opportunities, high-end resources, and support. Apart from all the research and planning, the foremost thing you need to know is about general trading licences in Dubai. It is the initial step to get approval to kick-start your business.

Wondering how to apply for it? We have brought you a complete guide to getting a general trading licence.

What is a General Trading Licence in Dubai?

A general trading Licence in Dubai is an access to get approval for exporting, re-exporting, importing, and trading a broad range of goods using a single Licence. This Licence gives your business the flexibility to handle various types of products. This is the answer to – what is general trading licence.

Unlike other specific Licence categories, this Licence gives you permission to trade various commodities, excluding certain prohibited items such as tobacco, oil, and goods that fail to meet health and safety regulations. The Licence’s flexibility enables you to engage in various trade activities while adhering to restrictions on certain products. Therefore, you can trade anything, starting from furniture items to electronics.

Importance of a General Trading Licence for Businesses

A general trading licence is important for businesses because it gives you legal permission to operate your business within a specific jurisdiction. Moreover, it ensures your business complies with local standards and regulations.

People who want to start a business in Dubai often seek this Licence as it comes with many advantages. It allows investors to seamlessly trade both locally and internationally, supporting their business growth across the country.

As discussed earlier, businesses get a permit to operate in various industrial sectors with this licence. This gives the business the best flexibility to expand its operations without the necessity for applying multiple Licences.

The Licence allows businesses to take part in the importing, exporting, and distribution of different product types. You can conduct business across various industrial sectors such as medicine, electronics, construction, textiles, food, etc.

What activities are covered under a General Trading Licence?

Check out Dubai’s general trading licence activities:

Retail store deals

Multiple product trading

Online selling

Medical supplies, if approved by the DHA

Documents Required for a General Trading Licence

To obtain this Licence in Dubai and start your business, you must submit the required documents to the relevant authority. The following are the necessary documents you need to provide:

Licence Application

Name Approval letter from DED

MOA

Fee payment receipt

Passport copy of the shareholders and the investor

How do you get a general trading licence in Dubai?

Here is the process to get a General Trading Licence in Dubai;

Step 1: Registration of your business

The foremost thing to do is to pick up your business activity. Next, choose the trade name of your business and make sure it meets the country’s naming conventions.

Step 2: Register for E-channel services

Next, move ahead to register for e-channel services. It will streamline the process by eliminating unnecessary paperwork. Once successfully registered, you can apply for an entry permit, which is a temporary visa that holds validation for up to sixty days. This online system accelerates your application process, making it more efficient.

Step 3: Activation of Status Change

After receiving your entry permit, you can proceed with activating your status change. Based on your nationality, you can also activate it by re-entering and exiting the UAE.

Step 4: Registration of Emirates ID

Next, the final process is an application to register your Emirates ID card; you must undergo a medical test. It must include general blood tests and other important check-ups. After receiving your test results, you can proceed with applying for your Emirates ID registration. This card is mandatory to create your bank account, sign phone contracts, and rent property in Dubai. It serves as a vital identity document for various essential services.

General Trading Licence Cost in Dubai

Here is the overview of general trading licence costs in Dubai;

General Trading Licence Cost Details	Amount
Initial Approval Fees	AED 120
Trade name reservation cost	AED 620
Tasheel Charges for initial Approval	AED 345
Tasheel Charges for MOA	AED 350
Licence Fee	Between AED 12500 – 15000
DED Activity Fees	AED 15000
Immigration Card	AED 750
General Trading Licence Fees in Dubai	AED 29685

Note: These fees are indicative and may vary depending on changes in government regulations or service provider policies. It’s advisable to consult with an expert or licensing authority for the latest costs.

Benefits of a General Trading Licence in Dubai

Check out the benefits of getting this Licence in Dubai;

Get the opportunity to trade in various industrial sectors, excluding restricted sectors

A general trading Licence allows businesses to engage in various sectors, providing flexibility in choosing products and services. However, certain industries, such as oil, tobacco, and those violating health or safety standards, are restricted.

Add multiple shareholders

This Licence permits businesses to increase their shareholder base as they grow, offering more opportunities for investment. It enables the expansion of ownership, which can improve capital and operational capabilities.

No restrictions on the number of employees you hire

With this Licence in hand, there are no limitations on the number of employees you can hire for your business. This flexibility helps businesses scale quickly by building larger teams to meet operational demands.

Get rid of import duties and 100% repatriation of business profits in the UAE

Businesses with this Licence benefit from the UAE’s tax-friendly environment, with no import duties on goods. Additionally, they can fully repatriate profits, making it easier to transfer earnings abroad.

Get access to high-end logistics and warehouse support

Dubai’s strategic location and world-class infrastructure provide businesses with excellent logistics services and warehouse facilities. This support streamlines the supply chain, reducing costs and enhancing operational efficiency.

Get visa applications for an increased number of employees on larger premises

With this licence, businesses can apply for a higher number of employee visas if they lease larger premises. This facilitates hiring more staff to manage growing business operations and increase workforce capacity.

How to Renew General Trading Licence in Dubai?

Renewing your trade Licence in Dubai is crucial to ensure your business remains legally compliant. Failing to renew it can result in penalties and disruptions, as operating without a valid Licence is illegal in Dubai. To avoid these issues, renew your Licence on time and consult a business setup specialist if you need assistance with the process.
The Licence can be renewed online through the DED website, either before or after its expiration.
Here is the Licence renewal process:

Go to the Business Dashboard page and select Renew Licence under My Transactions.

In the Licence renewal information section, enter the Licence number you wish to renew in the designated text box.

Click the Renew button.

The Difference Between General Trading Licence and a Regular Trade Licence

General Trading Licence	Regular Trade Licence
This Licence allows businesses to engage in a wide range of trading activities, including importing, exporting, and trading multiple goods such as clothing, electronics, furniture, etc.	This Licence limits trading activities to specific categories defined by the DED. Some businesses require additional approvals from relevant authorities.
It provides flexibility to trade in multiple types of goods, including unrelated items across various industries, except for restricted products (e.g., weapons, alcohol, pharmaceuticals).	It covers trading in a specific category of goods or services, with limitations on the range of products based on the type of Licence issued.
Allows businesses to trade a broader range of goods but does not cover restricted products like firearms, alcohol, or medical supplies, which require special approvals.	For certain types of businesses, approval from additional ministries or authorities is required, such as the Ministry of Health for pharmaceutical products or the Ministry of Economy for insurance companies.
This Licence is more expensive due to its broader scope of activities and the ability to trade in a wide variety of goods.	It is generally less expensive as it is limited to specific trading activities.
It offers greater flexibility to handle various types of goods, even across different industries, without needing a separate licence for each.	Best suited for businesses focused on a single type of trade or industry, as it has more specific limitations.

Frequently Asked Questions on General Trading Licence in Dubai

How long does it take to get a General Trading Licence?

In Dubai, it just takes one week to get a trading Licence from DET after the successful submission of all the required documents.

Can I apply for a General Trading Licence online in Dubai?

Yes, you can apply for the licence online through authorised online portals.

What is the difference between a mainland and a free zone General Trading Licence?

The major difference is that companies with mainland general trading licences are permitted to operate freely all over the UAE without any restrictions. And, with a Free Zone licence, companies are only permitted to operate within the Free Zone areas or outside the UAE.