Obtaining a General Trading Licence in Dubai Freezone in 2022
Dubai being the centre of trade in the UAE. The general trading licence has become increasingly popular. Furthermore, UAE free zones are in close proximity to the sea and airports, making them the perfect location for international trade. Over the years, the Dubai economy has been growing at a steady pace, which has created multiple opportunities for entrepreneurs.
This is the reason why entrepreneurs around the world want to set up a business in Dubai, UAE.
Why a General Trading Licence?
Obtaining a general trading licence ensures that the company can be involved in selling, distributing, storing, importing, exporting, and re-exporting goods around the world.
A general trading licence covers specific activities; these include goods such as foodstuffs, furniture, electronics, etc.
You can trade almost any kind of good. However, goods such as medical drugs, weaponry, and alcohol must be traded only after getting special permission from various government organisations.
The main difference between a general trading licence and a regular trading licence is that you can trade multiple commodities under one licence, whereas in a regular trading licence you can trade only one commodity under a single licence.
The main difference between general trading in free zones and the mainland is that you need to pay an Additional AED 15,000 excluding the trading licence for general trading on the mainland Dubai. On the contrary, there are no additional fees for trading licences in freezone Dubai, and you are not required to have a warehouse in a freezone and operate through a virtual office.
The main reason why a general trading licence is highly sought after is because of the UAE's tax advantage. The country allows imports and exports of goods without any additional customs tax. In addition, setting up a business in Dubai Freezone is comparatively easier.
Best and Cost-effective Free Zones for General Trading Licences
1. RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ is one of the free zones in the UAE that permits a variety of activities to be carried out. Rakez Freezone is divided into educational, e-commerce, media, and commercial activities.
If you want to carry on manufacturing activities, RAKEZ has got a solution for you. RAKEZ also offers other types of business activities, but manufacturing is the thing mainly focused on here. The reason for this is that it provides industrial plots and customizable warehouses for development.
One of the biggest advantages of RAKEZ is its strategic location. It is situated close to the seaport and in close proximity to RAS Al Khaimah Airport
2. The Jebel Ali Free Zone Authorities (JAFZA)
JAFZA offers different kinds of licences, such as industrial licence, trading licence, service licence, and e-commerce licence, among many more. JAFZA is suitable for multinational conglomerates or companies because of its popularity.
It is awarded as the best freezone in Dubai Port World. JAFZA is situated very close to the JEBEL ALI seaport, one of the largest container ports in the Middle East.
In addition, JAFZA overshadows other zones in terms of stunning features offered and, in addition, it has got an ISO certification and allows a variety of business activities.
3. Sharjah Publishing City Free Zone (SPCFZ)
The attractive feature of SPCFZ is that it offers dual licencing. So an investor who forms a company is eligible to have a dual licence.
Before forming your company in SPCFZ, you must be aware of the business structures offered in this zone. They are
- A Free Zone Company
- Free Zone Establishments
- Branch company
SPCFZ offers world-class infrastructure and a business environment for entrepreneurs. It is the first publishing and printing freezone in Dubai. Apart from publishing and printing, SPCFZ offers IT-related businesses, e-commerce, consulting and trading.
One important advantage of SPCFZ is that it allows investors to perform 5 different business activities under one licence without any extra charges. So, if you are interested in printing and publishing, SPCFZ is the best option for you.
4. Dubai Multi Commodities Centre (DMCC)
This is one of the free zones that offers dual licences to investors. DMCC is known as the number one freezone in Dubai. The benefit of a dual licence is that you can grow or expand your business onshore or on the mainland of Dubai. To get a dual licence, you will require a mainland licence and a DMCC licence together.
The licence obtained in DMCC can be used to carry out six different business activities. It is not restricted to service, industrial or general trading, and it can also be used to engage in crypto trading.
5. Sharjah Media City Free Zone (SHAMS)
This zone permits investors to register a business without any attested documents or approvals.
SHAMS also offers various licence to investors including trading, service, freelance and holding licence. You don't have to break the bank to start a business in SHAMS; it is one of the most cost-effective free zones in the UAE, with low renewal and upfront costs.
6. The International Free Zone Authority (IFZA)
IFZA is one of the most stable economic zones in Dubai for establishing a business, which is why investors prefer to set up their business in IFZA
The licences offered by IFZA include e-commerce, consulting, service, commercial and trading licences, and many more.
The major advantage of IFZA is that you don't need to have a physical office to set uup business in IFZA. This gives advantage to investors who want to set up their virtual office in dubai.
7. Fujairah Creative City Free Zone
The last one in the list is FCCFZ Free Zone. This zone does not require a visa or for company formation. As a result, it is the best and most cost-effective freezone.
You can set up a business with the least amount of effort and this zone does not require documents attested to set up your business.
FCCFZ allows you to carry out activities such as consulting, media, events, educational sectors, etc.
Let's see the process involved in obtaining the general trading licence in the column below.
Decide on the ideal company structure.Decide on the company structure that most suits you, whether it
- Free Zone Establishment (FZE)
- Free Zone Company (FZCO)
- Branch Company
Apply for Business Registration
provide all the required documents to concerned government departments. The documents required are
- Application form completed
- A copy of the owner's or owners' passport
- Photocopy of the visa
- A copy of your Emirates ID (if you have one).
- Two passport-size colour photos with a white background
Additional documents can also be required depending upon the selected freezone
Pay the licence fee.
After paying the licence fee, the process is over and you will obtain your trading licence .
Obtaining a trading licence in the Dubai free zone is a simple process. Our expert business setup consultants can walk you through the entire process, from obtaining the necessary documents to understanding your needs and recommending the best freezone and the cost of a general trading licence in Dubai, UAE.
If you want to start a general trading company in Freezone Dubai, contact Al Hadif Business Setup at +971558104646.
Talk with a Business Setup Consultant to know which business license in Dubai to opt for!