There are a number of processes involved in obtaining a general trading license in the United Arab Emirates. The process may differ based on whether you are establishing your business on the mainland or in a free zone, but it is generally the same. An outline of the procedures is provided below:

Step-1: Establish the Organizational Structure: You must choose the business structure before submitting an application for a general trading license. Establishing a business in the United Arab Emirates can be done in two main ways:

• • Mainland Setup: This gives you the freedom to run your company anywhere in the United Arab Emirates. A general trading license can be owned by an expat fully. There will be an additional activity fee of AED 15000.
  • Free Zone Setup: You can take advantage of 100% foreign ownership if you intend to operate out of one of the UAE’s free zones. Free zone businesses, however, are only allowed to operate inside the free zone or outside of the United Arab Emirates.

Step 2: Select a Trading Task: A comprehensive list of trading activity is provided by the UAE and can be examined with the appropriate authorities. Since the trade activities will determine the scope of your license, you must choose and identify the exact items or services you plan to trade in order to obtain a general trading license. Which activities are classified as “general trading” will be determined by the licensing authority.

Step 3: Put Your Trade Name on Hold: You must select a business name that accurately describes your company’s activities and conforms with UAE naming laws. Your trade name should be distinct and cannot be used in conflict with those of other businesses. Additionally, the name must to be polite and devoid of any derogatory language. The Department of Economic Development (DED) on the mainland or the appropriate free zone authorities can handle the simple trade name reservation process.

Step 4: Send in the Necessary Records: In the UAE, applying for a general trading license usually requires the following paperwork:

• • Copies of the shareholders’ and company owners’ passports
  • Copies of visas (where applicable)
  • The existing sponsor’s No Objection Certificate (NOC) is required for foreign nationals who are already living in the United Arab Emirates
  • A business strategy detailing the goods or services that are being provided
  • Evidence of residency, if the company is based on the mainland
  • Trade name registration legal records, such as the Articles of Association (AOA) and the Memorandum of Association (MOA)

Step 5: Pick a Site for Your Company: Whether you are establishing your business on the mainland or in a free zone will determine where it is located.

• • Mainland: Companies operating on the mainland are free to select any business site that meets the necessary requirements. There will need to be a business lease arrangement.
  • Free Zone: Businesses in free zones usually have a range of packages available and operate out of office buildings or business centre’s located within the free zone.

Step 6: Get the Permit: You can get your General Trading License from the Department of Economic Development (DED) or the appropriate free zone authority when your paperwork have been examined and accepted. The license must be renewed every year and normally has a one-year validity period.

Step 7: If necessary, register for VAT: If your company’s yearly revenue surpasses a certain amount, which is presently AED 375,000, you must register with the Federal Tax Authority (FTA) for VAT (Value Added Tax).

Step 8: Create a Bank Account for Your Business: You can open a business bank account in the United Arab Emirates after getting the General Trading License. Business accounts are available from a number of UAE banks, both domestic and foreign, and the application process usually calls for your trade license, passport, and visa.