Get the Cheapest General Trading License in the UAE

Entrepreneurs from every corner of the world start businesses in the UAE for many reasons.

One major draw is its location. At the crossroads of Africa, Asia, Europe, and, of course, the Middle East, it is a prime location from which to trade with many vast and emerging markets. But to take advantage of this location, you’ll need a trading license. And if you wish to trade multiple goods, a general trading license in the UAE is crucial. Working with an experienced company setup specialist can make all the difference in carrying out an efficient and smooth trade license application.

Worldwide Formations has a long-standing reputation for delivering clear and effective business solutions. We are the most trusted business setup advisors in the UAE, providing end-to-end guidance on securing a general trading license, from documentation to regulatory approvals. 

In this article, we will cover the key factors you’ll need to consider when obtaining yours here in the UAE. We’ve listed the steps to start your general trading business, the documents you’ll need, and how you can secure the cheapest trading license in the UAE.

 

What is a UAE general trading license?

A general trading license allows the holder to import, export, and trade goods across and outside the UAE.

It differs from other licenses in that you are free to trade in numerous and unrelated goods under a single license. So, you are free to buy and sell auto parts, carpets, garments, office equipment, textiles, watches and almost everything in between.

Cheapest general trading license in the UAE

The cheapest general trading license in the UAE is issued by Sharjah Publishing City Free Zone (SPC Free Zone) and costs AED 6,500.

Located just minutes from Dubai International and Sharjah International airports, SPC is a great location for businesses wishing to import and export goods to and from the UAE. It is open to more than 1,500 business activities and offers coworking spaces, private offices, warehousing, retail space, storage, and more.

Whether you set up a general trading company in Dubai, Sharjah, or elsewhere, you will need to account for further costs on top of your license fee. Visa requirements, office space, additional permits and approvals, labor costs, and much more will also play a part in the amount you’ll pay to start your general trading business in the UAE.

Benefits of having the cheapest general trading license in the UAE

Let’s start with the most obvious benefit of obtaining the cheapest general trading license in the UAE – it costs less than the others. That means more vital funding for marketing, hiring employees, investing in your offering, or simply keeping in reserve should you need it later down the line.

Then there are many benefits of obtaining any business license in the UAE. For one, the country still levies 0% on personal income and it has one of the lowest taxes on corporate income at 9%, for profits that exceed AED 375,000. The current level of VAT is also low at just 5%.

On top of this, the UAE benefits from a robust and time-tested relocation and immigration process – a key factor behind over 80% of its residents coming from overseas.

When you get your UAE general trading license in a free zone, the benefits keep coming. On top of guaranteed 100% foreign ownership, you can also take advantage of zero currency restrictions, 100% customs tax exemption and capital and profit repatriation – perfect for trading businesses.

Steps to start a general trading business

Although applying for the cheapest general trading license in the UAE is a relatively simple process, it is much easier with the help of a local expert. So, first things first, instruct Worldwide Formations to manage the process for you.

After a short consultation to get to know your requirements, we’ll guide you through the following process and liaise with all relevant authorities on your behalf.

Step 1: Decide on a company name

One of the first steps to undertake is choosing a company name. Keep in mind that your trading name cannot be the same as another business and, if you are planning to use your own name for the business, it has to be your complete name – no initials or abbreviations are allowed.

You are also not permitted to use any names that could be deemed offensive or blasphemous.

Step 2: Business activities

Next, you’ll need to select your business activities. You can choose more than one when applying for your general trading license, but all will need to be stipulated on your application.

Failure to declare activities may cause issues when running your business. Your dedicated contact at Worldwide Formations will work with you at this stage to ensure you are correctly licensed for your chosen activities.

Step 3: Decide on a location

This is about more than choosing whether to set up near the airport or in downtown. You must choose whether you are going to start your business in a free zone or go with a mainland company formation.

When you decide on a business set up in a UAE free zone, you can take advantage of the benefits mentioned above such as 100% customs tax exemption. However, you will need a branch or distributor to trade directly with the UAE market.

Worldwide Formations can help with this step, too, taking the time to understand your requirements before advising on the best way forward.

Step 4: Applying for visas

Finally, you’ll need a UAE residency visa to live and work out here. This is quite an involved process, including a medical, fitness test, blood test and chest X-ray. However, with Worldwide Formations providing expert visa assistance, obtaining your visa is easy. Get in touch to find out more.

Documents required to get the cheapest general trading license in the UAE

When applying for the cheapest general trading license in the UAE, you’ll be required to submit several pieces of official documentation. These include:

• A photocopy of your passport
• A photocopy of your visit or residency permit
• A copy of your signature
• A No Objection Certificate (if applicable)
• A business plan (if applicable) 

Why choose Worldwide Formations?

The process of starting any business in the UAE has been designed with speed and simplicity in mind. However, there are still some nuances and complexities that require expert guidance. Worldwide Formations can help.

We’re your experts for business setup in the UAE. With vast experience helping entrepreneurs obtain their general trading licenses and start up in the UAE, we’ll manage the whole process for you to make it as smooth as possible.

Find out how you can benefit from our international team and local knowledge. Contact us today for a free consultation – and you could be trading within just a few days.