UAE is the main business hub in the Middle East because of ease of operation and ease of accessibility. UAE provides a very conducive business climate for entrepreneurs. Company formation is hassle-free and there is the presence of modern infrastructure. A great demand for goods, availability of labor and the geographical advantage of its nearness to the developing markets are also some of the advantages here.
For starting a new business in the UAE a valid General trade license is required from the Department of Economic Development (DED). This write up discusses how to get General Trading License in UAE. With this license, multiple trading operations like a wholesale business, Export, Import, trading of goods like furniture, electronics, accessories, clothes etc., except certain regulated products, can be done within the UAE.
To get a General Trading License in the UAE the following Steps need to be followed:
- The suitable trade name has to be selected and the legal structure for the company decided.
- choose the business activities which is to be mentioned in the business license (a maximum of 10 per license is permitted)
- For initial approval, submit the filled in the application form
- On the type of your business activities mentioned and external approvals will be required. Apply for the same if required.
- Organize all the requisite documents like the Memorandum of Association (MOA), and all such documents approved by the related government authorities
- choose a business location and execute a tenancy contract which needs to be attested by the authority
- Application to the DED to get the final license
- Payment the requisite fee for the license, including the fee for issuance of the license
As part of the process of how to get General Trading License in UAE, it is important to know the documents that are to be submitted. The following document will be required:
- An application for license duly signed by the managers of the company or the company’s legal representatives
- A copy of the Memorandum of Association (MOA)
- Approval letter from DED, approving company name; duly attested.
- Copies of Passports of the company’s managing partners
After checking and validating the documents, the Commercial Registry Authority will add the company name to the Commercial Registry. The documents will be forwarded by the DED to the Federal Ministry of Economy for publication. After the documents are published, including the MOA and the entry of the company name application, the approval letter of the ministry will be issued. After the licensing procedures are complete, the DED will issue the original trade license as well as the commercial registration certificates.
To obtain a trading license that is valid for doing business in the free zone or as an offshore entity, the company will have to submit to the Commercial Registry at the Trade license and Commercial Registration Department, the original documents.
Once the General Trading License is obtained it remains valid for a year. After one year it needs to be renewed and the renewed license becomes valid for further 05 years.
A general trade license issued in the UAE can be proof of a legal holding structure of a Company within the UAE and needs to be submitted to the other licensing authorities. This general trading license can also be used for warehousing and storage.