First of all, what do you mean by Trading license?
A trading license is an agreement/certificate that gives the permission to the person seeking to commence a particular trade or business in a particular area or location. However, the license does not allow the holder to commence any other business other than it is issued for.
In Dubai it is a certificate achieved by a company to commence the required business activity under the legal authority, Department of Economic Development (DED). The certificate is given by the concerned judiciary and without the certification no business man is allowed to start a business in Dubai. Along with the Dubai chamber of commerce and industry support, Department of economic development (DED) controls the legal procedures of trading licenses.
Different types of trading license available in Dubai
Every business is categorized under some specific group by Department of economic development (DED). The different types of trading license in Dubai are:
- General trade license
- Professional trade license
- Commercial trade license
- Industrial trade license
- Set up general trading license
First thing first, before applying for a trading license is to find out the business activity. Various business activities can be put under a single general trading license. Once you are done with the business category, the next step is to select a company. Before you set up a general trading license, Dubai has some strict rules to name a business and can be done easily if you adhere to the rules. The company name that you choose must be available for registration and also it must not be offensive to hear.
Each business activity will have different documents to submit for getting a general trading license. However, the common and main documents to provide to set up general trading licenses are:
- Properly filled application form
- Copy of passport of the owners
- Two passport sized photographs with background in white
Reason for applying for trading license in Dubai?
Dubai is world’s best business hub and there are many reasons to start a business here. The companies in Dubai gets an attractive tax protocol with a 0% rate on corporate as well as personal income. If you set up a general trading license for a company in the Dubai free zone, you will be exempt from customer taxes also. Business setup have complete freedom to deportee profits and invested capital.
Cost for setting up General Trading License in Dubai
The basic capital required for setting up a Limited Liability Company (LLC) General Trading License in Dubai is AED 300,000/ -. According to the DED (Department of economic development), General trading organization can do the matter of importing, trading and re-exporting out of any of the permitted merchandise and the exercises that need extraordinary can be a sole foundation or it tends to be limited liability organization or it very well may be a single owner approval, can likewise be exchanged after acquiring No objection certificate from the competent office.
- Set up Professional trading license in Dubai?
Professional trade license in Dubai is required to carry out the business in the areas like services providing, professional business, art and crafts. Once you set up a professional trade license you get 100% foreign ownership and profits.
Who requires a professional trading license in Dubai?
- Management consultancy
- Event management
- Marketing consultants
- Businessmen Forum
- Law firms and associates
- Accounting organizations
- Set up commercial trade license
If your business is dealing with selling and buying of goods or any other commercial activity, you need a commercial trade license. The license holder must strictly adhere to the business activity plan for the business activity plan.
Who requires a commercial trade license in Dubai?
- Trading Electronics
- Trading Chemicals
- Car rental services
- Broadcasting and communication
- Trading home appliances
- Imports and exports
- Set up Industrial Trade License
If your business is involved in manufacturing and industrial activities, then you need to register for a trading license in Dubai free zone. This trading license in Dubai allows the organizations to convert resources that are natural or raw through plants, factories and refineries. The owner must have their own office space or warehouse in Dubai for getting Industrial license.
Who requires an Industrial trading license in Dubai
- Steel and iron casting
- Engines manufacturing
- Machinery manufacturing
- Storage and packaging
- Manufacturing furniture
- Food products manufacturing
Dubai is the most cosmopolitan city in the world and it has 200+ nationalities. Dubai is a place to run your business smoothly and every person in the city has something to share or get inspired. Dubai is an ideal spot for your corporate meetings, association conferences, exhibitions and other corporate events. Being a trading hub, many businessmen are interested in trading various commodities and goods within the country as well as to other countries. To fulfill your trading businesses, it is important to set up general trading license. To get a trading license contact Business consultants in Dubai.