What is a General Trading Company?
General Trading Company (General Trading) or Public Trading Company, refers to a company engaged in importing, exporting, and trading various goods. These companies can operate in diverse fields such as apparel, electronics, home appliances, food products, toys, industrial equipment, and more. However, certain goods like vehicles, alcoholic beverages, medical products, and weapons require special licenses and cannot be traded under a general trading license.
By registering a company in Dubai, you can obtain a 2-year UAE residence permit which is also is renewable. recommended. For more information, we suggest reading the article "Dubai Residency through Company Registration".
What is a General Trading License?
A General Trading License is a type of license that allows companies to operate in multiple different sectors. With this license, investors can trade various types of goods for Export or Import Choose. For example, if your license is issued for selling clothing, you will not be allowed to operate in the electronics sector unless General Business License Have it.
On the other hand, Standard Business License Only allows the company to operate in a specific field. However, a general business license enables investors to trade in Several different fields and provides for companies that intend to Various fields It is considered an ideal option for those who are active.
Another point is that Standard Business License Usually, Lower cost It has, but General Business License Due to the wide scope of activities, it is possible that More expensive .
General Trading License in Dubai: A general trading license allows businesses to retail and wholesale any goods within the UAE and outside the UAE, except prohibited goods that require approval from authorities.
Persian Translation
General Trade License in Dubai: This license allows businesses to sell goods wholesale and retail within and outside the UAE, except for prohibited items that require approval from authorities.
Steps to Establish a Public Trading Company in Dubai
Setting up and registering a general trading company in Dubai undoubtedly has its own specific process, which is carried out in several different stages. Although the experts at the Step in way team will fully guide you during the company registration, it is still helpful to have a brief overview of the process:
Choosing the Type of Company
Company in Dubai Mainland
Companies registered in Dubai Mainland can operate directly in Dubai's domestic market and other Emirates. This type of company is suitable for those who intend to have direct interaction with the local market. The advantages and disadvantages of choosing Mainland are as follows:- Ability to trade in Dubai's domestic market and other Emirates
- No limitation on the number of work visas
- Possibility of partnership with local companies
- Access to large and diverse markets
- Requirement of a local partner in some sectors (with 51% share)
- Higher costs for office rent
Company in Free Zones
Dubai's Free Zones have attracted many foreign investors due to tax benefits and favorable business regulations. Companies registered in these zones can enjoy 100% foreign ownership. Some advantages and disadvantages of registering a company in Free Zones include:- 100% foreign ownership
- Tax exemption for a specified period
- Ability to repatriate 100% of profits to the home country
- Lower costs for office rent
- Access to advanced infrastructure and logistical services
- Restriction on direct trade with Dubai's domestic market
- Need to cooperate with a local distributor for sales in Mainland
Choosing the Company Name
Choosing a company name is one of the important steps in company establishment. Sometimes, failure to comply with regulations can delay your company registration by weeks. The company name must meet the following conditions:
- It should be in Arabic or English and not use special characters.
- It should not include offensive, religious, or political phrases.
- It should not conflict with the names of other companies.
- If the names of countries or governments are used, approval from the relevant embassy is required.
For more information on this topic, we recommend taking a look at the article "Guide to Choosing a Company Name in Dubai".
Preparing the Required Documents
- Copy of all partners' passports
- Passport photo according to Dubai's photography regulations
- Office or warehouse lease agreement
- Trade name registration letter from the relevant council
- MoA and LSA agreements
- No Objection Certificate (NOC) from the current service agent
Company Registration and License Issuance
After preparing the documents, you must submit them to the Dubai Department of Economic Development (DED). After reviewing and approving the documents, your trade name will be added to the commercial registry system, and your documents will be sent to the Federal Ministry of Economy for publication. After publication, the Ministry of Economy will issue a confirmation letter for you.
Obtaining Trade and Customs Codes
The final step is obtaining the trade and customs codes. For importing and exporting goods, you must obtain these codes. They are issued by the Dubai Customs Department and are essential for conducting your commercial activities.
Cost of registering a General Trading company in Dubai
The cost of registering a General Trading company in Dubai varies depending on the location, office rent, and other factors, and on average ranges between 15,000 to 50,000 AED Is located.
| Cost item | Cost range (AED) |
|---|---|
| Cost of registering an LLC company | 10,000 to 15,000 |
| Document translation | 1,000 to 3,000 |
| Legal advisor | 5,000 to 10,000 |
| Office rent | 30,000 to 50,000 |
| Issuance of Work Visa | 1,000 to 3,000 |
Additional notes:
- Cost of registering an LLC company Includes all legal procedures and obtaining the necessary certificates for company registration.
- Document translation Is essential in languages approved by the Dubai government for company registration.
- Legal advisor Recommended to ensure all company registration steps are carried out correctly and legally, but using this service is optional.
- Office rental for the company Varies depending on the office location, size, and facilities; commercial and central areas have higher costs.
- Issuance of Work Visa Mandatory for company managers and employees, with costs varying based on the number of visas issued.
- Annual company license renewal fee Must be paid separately and depends on the type of license and company activity.
For more information about the details of annual costs, the article «Annual company renewal fees in Dubai» Read it.
Benefits of a general trading license in Dubai
Registering a trading company in Dubai can offer many advantages for applicants and foreign investors. These benefits and privileges have made the general trading company one of the most popular and sought-after types of companies in Dubai. Some of the most important advantages of registering this company include:
Ability to trade in multiple sectors
With a general trading license, you can operate in various fields such as clothing, electronics, food, toys, industrial equipment, and more. This type of trading will definitely help increase your business profitability.
Access to global markets
Dubai, as a global commercial hub, provides access to regional and international markets. Since trade in Iran faces many restrictions, Dubai is undoubtedly the smartest destination.
Tax exemptions
Companies registered in Dubai’s free zones benefit from tax exemptions. Companies with annual revenues up to 375,000 AED are exempt from tax, and amounts exceeding this are taxed at only 9%.
100% foreign ownership
According to new laws enacted by the UAE government, registering a general trading company in Dubai does not require a local sponsor or partner, and full ownership of the company remains with the investor.
Advanced infrastructure
Dubai has advanced logistical and commercial infrastructure that enables companies to easily import and export their goods. Naturally, utilizing such facilities can foster the growth and prosperity of your business.
Besides the general trading company in Dubai, there are other types of companies that might be more suitable for you. For a more detailed review, we recommend the article "Which company should we register in Dubai."
What points should be considered when registering a general trading company?
Registering a general trading company in Dubai, also known as a general commercial company, undoubtedly requires attention to specific points. Observing and remembering these points can greatly contribute to the success of your application and the development of your business. Some of these important points include:
Choosing the Right Business Partner
If you intend to register your company in the mainland of Dubai, selecting the right local partner is crucial. The local partner should be a trusted and experienced individual who can help grow your business.
Using Consulting Services
Using consulting services from specialized companies in the field of company registration in Dubai can facilitate the company registration process. These companies can assist you in preparing documents, choosing a company name, and obtaining licenses. We are also here alongside you exactly for this purpose.
Precise financial planning
Establishing a company in Dubai requires initial investment. Precise financial planning and reviewing costs related to office rent, obtaining licenses, and other ancillary expenses are very important.
Familiarity with customs regulations
For companies intending to import and export goods, familiarity with Dubai's customs regulations and obtaining a customs code is essential. This helps you avoid customs-related issues.
Marketing and branding
After establishing the company, proper marketing and branding to attract customers and increase sales is very important. Utilizing digital marketing strategies and participating in trade exhibitions can help grow your business.
I suggest for more information the article "Company registration in Dubai" as well.
Final words
Establishment Public commercial company in Dubai can provide countless opportunities for your business growth. By choosing the company type, preparing the necessary documents, and obtaining General Business License, you can easily operate in regional and global markets. Considering the ever-changing laws and regulations of Dubai, it is necessary to always receive the most up-to-date information from reliable sources to make the best decisions for your business. Our experts are precisely here to assist you with this task. You can for more information and consultation, through Contact Methods contact us.
