How to Get a General Trade License Dubai

23 October 2020

Dubai is one of the most admired cities for various types of businesses. Many entrepreneurs prefer trading in the UAE because of the tax-free environment. General trading is among the most profitable business ventures in Dubai. This is due to the huge local demand for various supplies because of the diverse cultures in the region. This includes essential items and even machinery.

As an entrepreneur or an aspiring business person, you should know that all businesses in the UAE require a trading license. It’s necessary to understand the different types of licenses. A general trade license allows you to conduct all your business activities with a single license.

Contents

1 General Trading License/Business in Dubai
2 Steps to Get a General Trade License in Dubai

General Trading License/Business in Dubai

A general trading license is ideal if you’re looking to start a business in the UAE. This license covers multiple trading activities in the same or various industries. These activities include import, export, and other activities like trading in electronics, furniture, clothes, etc. You should also get a general trading license if you wish to venture into the wholesale business.

This license allows you to trade in Dubai and other Emirates. However, you should understand regulations on specific products like pharmaceutical products, alcohol, and frozen goods. Many opportunities allow entrepreneurs to explore multiple businesses. There are 3 options for entrepreneurs to set companies in Dubai; the Free Zones, Mainland, and Offshore.

Steps to Get a General Trade License in Dubai

The thought of conducting multiple tax-free businesses is very attractive to many individuals. However, you can’t do business in Dubai without a trading license. Below are the steps you need to follow to obtain your general trade license.

Choose a Location

You need to understand the different types of jurisdictions for business activities; these are the Offshore, Mainland, and Free Zones. There are 48 Free Zones in Dubai to choose from; they give you 100% ownership of your corporate and personal income. A Mainland business requires you to have a sponsor who will own 51% of the shares. An Offshore business operates in a different jurisdiction from its parent company which is usually in another country.

Business Activities

A general trading license allows you to conduct multiple businesses; you can choose up to 10 business activities. Apart from the restricted products like pharmaceuticals, guns, alcohol, and tobacco, you can trade in any other business.

Choose a Trade Name

One of the first steps is to choose an appropriate name for your company; this is one of the most important parts of your business. Choose a memorable, catchy name; it should help potential customers understand the type of business you run. You also have to follow name rules and regulations in the UAE. For instance, the name and the type of business should not contradict, you should not choose a name under copyright by another business in the UAE, it should not contain indecent or obscene words and should not offend the public, and you should not include God’s name or His attributes in English or Arabic. You can make your work easier by consulting a legal expert from a law firm in Dubai to guide you on how to choose a name.

Apply for the License

You need to apply for the license and submit various documents these include;

A license application signed by the manager or legal representative
Memorandum of association
A copy of your passport
2 color passport photos with a white background
A No Objection form from your employer (where applicable)
Passports of all the partners
Complete application form.

You can consult your legal advisor from a law firm in Dubai if you’re not sure you’ve got the right documents. The Commercial Revenue Authority reviews and validates your documents; your business name is then included in the Commercial Registry. The Department of Economic Development forwards these documents to the Federal Ministry of Economy responsible for publication. After this, the ministry issues an approval letter. The next step is for the Department of Economic Development (DED) to issue you with a commercial registration certificate and original trade license. Your license expires after 1 year. Once renewed; the license is valid for 5 years.

Choose a Business Premise

You need an office and a warehouse; you need to store your goods. A Free Zone license has limitations on the location of warehouses to choose, while a Mainland license has more freedom. Some Free Zones are more flexible; for instance, IFZA allows entrepreneurs to operate in virtual offices. Consider the location of the warehouse and your office, size, security for your goods, utilities, storage environment, and climate control like having an AC for hot weather.

General trade businesses are some of the most lucrative businesses to start in Dubai. You can trade include 10 activities and enjoy a tax-free lifestyle. However, every company in the UAE requires a license. It’s necessary to follow all the steps for the license application to save time and avoid issues.

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Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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5 Reasons Why Your Business Needs a Lawyer

In today’s business climate, it’s not only the large companies that need to have a lawyer working for them. Legal complications and lawsuits can arise when you least expect it, and often for reasons you hadn’t even considered; it’s, therefore, vital that you are protected. If you’re unsure just how important business law attorneys are, keep reading. Here are five reasons why having a relationship with one is so crucial. 1. Ensure Agreements and Contracts are Airtight: Many businesses don’t consider the importance of agreements and contracts until a problem arises, and by then it’s usually too late to do anything about it. A business lawyer will be able to advise you on the types of contracts that you need, and what they need to contain, whether you work with employees, freelancers or contractors. Having a lawyer set these up early can help to avoid costly oversights further down the line. 2. Help You Through a Lawsuit: If you are ever hit with a lawsuit or threatened with legal action, you’ll be a step ahead if you already have an attorney on your team. Your attorney will already understand the ins and outs of your company and will have constructed the legal agreements mentioned above that are designed to protect you. They will be able to advise you on whether the defendant has a case, and be able to help you through the process. 3. Help You Avoid Mistakes You Weren’t Aware Of: Running a business can feel like a legal minefield sometimes, and a business lawyer can help you to avoid many of the mistakes most business owners didn’t even realize were problems. This is true both for large businesses and small, as well as solo entrepreneurs. Hiring an attorney who has a specific interest in your business could help you to save a significant amount of time, worry, and stress. 4. Can Make it Easy to Get Paid: In business, it’s not uncommon for certain clients or customers to drag out payments, often beyond the predetermined schedule you’d set up. Many business owners end up spending a long time chasing these payments, which can take them away from the more important matters of their business. And, in some cases, the clients don’t pay at all. A business lawyer can draft a letter suggesting that you will be taking immediate action if your accounts aren’t paid up in full. This is often enough to motivate a client into taking the required action. 5. They Can Refer You to Other Professionals: Most business attorneys have contacts in other industries and this can be really useful, especially for small businesses and startups. If you have specialized tax queries or need help with something else really specific, your lawyer should be able to put you in touch with a recommended professional who can help. A well-connected lawyer can truly be worth their weight in gold. Hopefully, after reading this article you now understand why a business attorney is so important. Read Also: 6 Tips For Effective Crisis Management 3 Reasons Why You Might Need A Family Lawyer 4 Reasons Your Home Business Needs A Virtual Receptionist Why You Should Choose To Have An Asset Protection For Your Business Don’t Battle It All Alone: 5 Reasons Why You Need An Adoption Attorney

Picking the Right Law Firm for You and Your Family

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Q&A: Things You Need To Know About SSDI

In the United States, almost 10.9 million people receive Social Security Disability Insurance or SSDI benefits. This benefit offers them an average pay of $12,000 per year. Despite the benefits SSDI offers, for most of our working lives, SSDI remains a background concern. Most people avoid this insurance program because of how much the federal government charges to run this program. However, people are now getting aware of the importance SSDI has to offer. What Is Social Security Disability Insurance? Social Security Disability Insurance is a federally supported benefit program. The sole purpose of this program is to offer financial assistance to individuals with disabilities. In general, the SSDI benefits can only be offered to individuals who can no longer work or for at least 12 months because of their disability. SSDI is an earned benefit. This means that in order to benefit from this program, you must invest in this program and accumulate credit points. 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The general rule states that an individual will keep receiving the benefits till they recover and get back to work. If the medical condition is not improving, they will keep getting benefits. However, the benefits will not continue indefinitely. The official will keep a close eye on what the individual is doing to recover themselves. That being said, with advanced medical science and rehabilitation techniques, many people recover from injuries and disabilities. When an individual is receiving the benefits, officials will keep track of them, and the individual will be responsible for answering any question asked by the officials. Do You Need To Stop Working To Collect The Retirement Benefits? No, you don’t have to stop working to receive retirement benefits. Once you have crossed the retirement age, you can work and still enjoy the retirement benefits. But, if you are below full retirement, your monthly benefits will be reduced. Only after you reach retirement age will the reduction be eliminated. And the benefits will be increased to make up for what you have lost over time. How Can You Boost The Number Of Benefits? The longer you wait for the payment, the more amount you will receive. Let’s understand this by an example. Let’s just say you were born in 1960. This means your current age is 62. So, if you start receiving the benefits, it will be 70% of your last paycheck. However, if you wait for more than 5 years till you reach 67 and then claim the benefits, you will get 100%. This is because delaying past full retirement age and Social security increases your benefits by 8% per year until you hit 70. After 70, it becomes constant. Do You Owe Taxes On Social Security? Social Security Disability benefits are subject to tax. But most people end up not paying taxes on it. The taxation of SSDI benefits depends on your total income. However, there is a way to avoid paying tax on your SSDI benefits. If your total income - one-half of your disability benefits + tax-exempt interest - is below the bottom line where taxation starts. If you are single, the threshold of the tax amount is $25,000. And if you are married and file the benefits jointly, the amount increases to $32,000. Additionals: How To Replace Your Social Security Card OnlineIs Social Work Getting Enough Praise In Today’s Society?Social Entrepreneurship – Entrepreneurship Strategies And Many More!Why You Should Hire A Social Security Disability Attorney Vs. Taking On The Legal Matters Yourself!

How to Get a General Trade License Dubai

General Trading License/Business in Dubai