The city of Dubai is famous for its extravagance, luxury, and glamour. The exotic shopping malls, record-breaking buildings, and the exceptional climate are some of the things that attract people from all over the world to tour Dubai or even relocate to the city.
Besides the tourist attractions, Dubai is also a favorable business environment. The strategic location at the crossroads of three continents which are Europe, Asia, and Africa makes it easier for businessmen to access goods and to also venture into new markets. In the last two decades, Dubai has experienced immense growth in business and trade as the demand for goods and services increases by the day. This has encouraged many entrepreneurs to start businesses in Dubai. However, before you start a business in Dubai there are several procedures you must follow. First of all, you have to acquire a general trading license Dubai to be able to do business in the city.
What Is A Dubai General Trading License?
If you intend to trade in several unrelated goods such as food, clothes, electronics, furniture, toys, and perfumes among other products then you need to acquire the general trading license. One great benefit of having this license is that apart from trading in Dubai, you can also do business in the other Emirates.
Here are a few steps on how you can get your Dubai General Trading license.
1) Choose a Name and the Legal Structure for Your Business
The first thing you will need to do is to pick a business name and the legal structure for your business. In Dubai, the federal law recognizes legal structures such as General partnership, share partnership, partnership in commendam, public shareholding, private shareholding, joint venture, and limited liability. Carefully consider your legal structure before making any decision.
2) List All the Businesses That You Need To Be Included In the License
Determine all the businesses that you will want to be included in your license. Remember it’s only a maximum of 10 businesses that are allowed per license.
3) Fill Your Application and Wait For Initial Approval
For the initial approval, you will need to submit a duly filled application form, passport copies of the owners and two colored passport pictures. The photos should have a white background.
4) Arrange All Your Documents and Get Them Approved
You will also be required to arrange all the necessary documents. These are the Memorandum of Association, a duly signed license application, an approval letter of your company name from the DED, and passport copies of all managing partners. These documents must be checked and validated by the Commercial Registry Authority.
5) Choose a Business Location
Once your documents are in order, you need to look for business premises and get a tenancy contract. In Dubai, your business location must be evidenced by an attested tenancy contract otherwise you will not be registered.
6) Submit Your Application and Wait For Final License
When all your documents are ready, you should submit them to the DED and wait for the final license. Upon completion of the procedure, the DED will issue you with an original General trading license that is valid for one year. If you wish to renew your license, be sure to seek approval from the authorities.
7) Make the Requisite Payments
You will now be required to make all payments including insurance fees for the license.