What does it mean to have a General Trade License in Dubai?

Dubai is a hub of business and trade opportunities in the region. Many foreign investors and traders seek the land to set up their trading business in UAE. However, to set up a legitimate trade business, they need to acquire a Trading license uae issued by the Department of Economic Development. It is a document by the government that allows an individual or company to run trade activities in the UAE. It enables the license holders to run business operations like import and export of goods and other commercial activities. To get a general trading license in Dubai, you need to understand the classification of business or trade licenses in Dubai. The trade license is categorized into four parts depending on the nature of the business.

• Professional License: Needed for professionals such as doctors, lawyers, etc. rendering specific services
• Commercial or Trade License: licenses for those specifically involved in trade
• Industrial License: For industrial and manufacturing businesses
• General Trade License: For general trade, exports, and imports

You need to carefully choose the right type of license for your business in Dubai. Failure to do so can lead you to trouble and penalties later. You can also seek the services of an expert business formation company like LBMS to assist in finalizing the documentation and getting the right license for your business. Moreover, you also need to decide the area in which you are about to base your business such as;

• Mainland: to set up business in the heart of Dubai
• Free Zone: Setup business in a designated free zone and follow tax regime, and rules accordingly
• Offshore: Setup a business in the UAE’s jurisdiction after acquiring an offshore incorporation certificate

Each location has its perks and privileges that allow traders to run operations accordingly.
Benefits of Getting a Trade License in Dubai

A trade license in Dubai opens the doors to many opportunities for business operators. Some of the major advantages are;
Expand Local and International Trade – A general trading license enables you to send your products to not only local markets but also send them abroad to nearby international markets.

Improve Credibility – Most reputable companies prefer to build partnerships only with those who have the right credentials. A valid license is therefore important to improve the trust of clients as well as partners.

Tax Benefits – if you have a general trade license, you can set up a company anywhere in Dubai and enjoy the ease in taxes. That’s the reason why many foreign investors prefer to move to Dubai so that they can conduct business operations without having to pay hefty amounts in taxes.

Limited restrictions – the policies in Dubai are highly favorable for investors as they are fewer restrictions on trade under a valid general trading license.

Easy Set-Up – Getting a license and setting up a trading company is no issue in Dubai. You can also seek the services of a business setup company to help you in the initial phase.

Online Setup – you can also offer online services to a global clientele after acquiring an Online trade license Dubai.

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