The United Arab Emirates (UAE) offers a dynamic and business-friendly environment, making it an attractive destination for entrepreneurs looking to establish their businesses. One of the most popular licences available in the UAE is the general trading licence. This licence allows businesses to engage in a broad range of trading activities, such as importing and exporting goods. However, it is important to note that there are restrictions on certain products such as cars, alcohol and medical products and a specific licence is required to import or export them. The UAE's general trading licence is available in both mainland and free zones, each offering distinct advantages. This comprehensive guide explains the process of obtaining a general trading licence in the UAE, helping entrepreneurs understand the requirements, eligibility criteria, challenges, opportunities and steps involved.
The first step is deciding whether to set up in the mainland or a free zone. Consider your target market, budget and business needs when making this decision. If your aim is to access the UAE local market directly, the mainland might be the best choice. For a cost-effective set-up, a free zone might be more suitable.
Choose a name that is in line with UAE’s naming conventions. Ensure that the name reflects your business activities and does not contain offensive language, religious references or trademarks.
Outline the products or services you intend to trade. It is important to ensure that your business activities fall within the scope of the general trading licence and do not require special approvals.
Typically, the following documents are required to obtain UAE's general trading licence: • Passport copies of shareholders and partners • Proof of residence for shareholders • A completed application form • Business plan (if required by the jurisdiction) • Office lease agreement (for mainland businesses) For trading companies with corporate shareholders, the following additional documents are required:
This legal document confirms the establishment of the company and its registration with the relevant government authority.
This document lists the current shareholders, directors and officers of the company.
This document outlines the company's objectives, powers, and regulations.
This document authorises the company to commence general trading and approves the application for a general trading licence.
Submit your licence application along with the required documents to the relevant authority—the Department of Economic Development (DED) for mainland businesses or the specific free zone authority. DED is the government authority responsible for regulating and licensing businesses in the UAE.
After reviewing your application, the authorities will grant approval. Once the application is approved, you will receive your general trading licence, which allows you to commence your business activities.
If your business involves importing or exporting goods, register with the UAE Customs Department to ensure the smooth processing of goods.
To manage transactions and maintain business finances, open a corporate bank account. This usually requires the trade licence, passport copies and additional documentation.
A general trading licence in the UAE typically remains valid for one year from the date of issuance. It is crucial to manage the cost by renewing the business licence before it expires to avoid unnecessary expenses and interruptions to business activities. Failure to renew within the valid period results in immediate licence expiration and suspension of business activities. Staying informed about renewal deadlines is essential to ensure the smooth operations of your business in the UAE.
Ras Al Khaimah Economic Zone (RAKEZ) offers a general trading licence in its free zone, allowing businesses to engage in the import, export and re-export of a wide range of goods. With straightforward eligibility criteria and a streamlined visa application process, RAKEZ ensures a smooth business set-up journey. Entrepreneurs benefit from flexible office space lease options tailored to operational needs, fostering efficient trade operations. This licence allows commercial firms to trade diverse products across multiple sectors, excluding items needing special government approvals like pharmaceuticals or hazardous materials. Offering 100% foreign ownership, tax benefits, and a streamlined registration process, RAKEZ is ideal for entrepreneurs seeking to establish and expand trading businesses in the UAE's dynamic free zone. Explore the business opportunities in the UAE with RAKEZ to bring your entrepreneurial ambitions to life. For more information, contact RAKEZ: Phone: +971 7 204 1111 Email: info@rakez.com
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