Upload
zak-alba
View
220
Download
0
Embed Size (px)
Citation preview
7/24/2019 General Trade License in Dubai and the UAE
1/11
General Trade License in Dubai and the UAE
Following the triumphant bid of Dubai to host EXPO 2020, the
foreign trade is expected to touch 4 rillion Dirham! "n fact in
20#$, Dubai trade hit #,$%2 rillion and was the ma&or contributor
in Dubai's (DP with a close to $0)! *eedless to sa+ that that the
demand for goods has drasticall+ increased and faorable trading
enironment has been achieed!
he popularit+ of the demand for a (eneral rading license inDubai and across the Emirates on arious licensing &urisdictions
has immanentl+ increased as well! his actiit+ is a top choice of
inestors and is aailable in all &urisdictions!
General Tradingrefers to an economic actiit+ in which
commercial -rms engaged in importing, trading and re.exporting
of an+ of the goods and products mentioned in details in trade
categor+, except actiities that need special approals!
"f +ou hae multiple trading actiities that are in the same or
di/erent industr+ then (eneral rade license encompasses it all! "t
is important to note that there are regulated products such as
alcoholic beerages, pharmaceutical products, and froen goods
and so on! 1ou reuire a special approal from the respectie
authorit+!
The Common Uses of General Trading License in Dubai and
UAE are as follows:
For local whole sale in the 3E!
For retailing!
http://businessetupindubai.blogspot.com/2015/03/business-setup-up-your-guide-in-uae.htmlhttp://businessetupindubai.blogspot.com/2015/03/business-setup-up-your-guide-in-uae.html7/24/2019 General Trade License in Dubai and the UAE
2/11
For importing and re.exporting to neighboring (55 countries
and other nations!
For absolute international trading which is basicall+ for
inoicing purposes whilst products does not enter the 3E
(eneral rading 6icense in Dubai can also be used as legal
holding structure within the 3E and other licensing authorities!
he same is used for storage and warehousing!
he uestion of where it is -tting to incorporate a general trading
license depends on +our purpose! he ownership of the compan+
will also determine +our drie on where to setup this up! 7tart.up
cost could be another factor! 6et me answer each and eer+
consideration on this blog!
For those who would require doing actual general trading
operation in Dubai and the UAE
he best &urisdiction if +ou are to do trading operations in within
Dubai, other Emirates and een international mar8ets is to
register the business in Dubai Department of Economic
Deelopment 9DED:! ;hile there said actiit+ can be approed in
bu Dhabi, 7har&ah, &man, uwain orFu&airah! Dubai still has the edge for its business Eco.s+stem!
he facilities aailable in Dubai such airports, seaports, ma&or
roads and highwa+s, properties and other economic
deelopments can put +ou into a global stage all at once!
7/24/2019 General Trade License in Dubai and the UAE
3/11
he mar8et itself constitutes high olume of demand for +our
goods as compared to other emirates! he aailabilit+ of support
serices that can bac8 +ou up is also a factor for +our growth!
ere are the ad!antages or bene"ts of a General Trade
License in Dubai
5an rade 6ocall+ ? "nternationall+ . On a legal perspectie,
a general trade license holder in Dubai can trade directl+ within
Dubai and other emirates!
6ocal Distribution @ 1ou can be an agent for free one
companies and international companies
ax free &urisdiction @ Dubai does not impose taxation in
income, pro-t, and een on products!
*o paid up capital @ he minimum share capital is $00,000
ED which is not reuired to be deposited in a 3E ban8!
*o udit @ 3nli8e other &urisdictions, it is not mandator+ to
submit an audit report, although, in the memorandum of
association, +ou will resole to hae a +earl+ audit in a corporate
capacit+!
Aer+ 6ow "mport Dut+ @ B) is leied on import which is a
global standard elsewhere
Prestigious OCce or 7tate of the rt ;arehouse Facilit+ @
Dubai is all about propert+ and facilit+ deelopment, needless to
sa+ that when +ou are Dubai, +ou are respected!
7/24/2019 General Trade License in Dubai and the UAE
4/11
anpower @ 1ou can hae multiple isas in +our compan+
and the sie of the oCce does not determine the number of
emplo+ees +ou can hire
an8 facilities @ 1ou hae a wide range of options for +our
personal and corporate ban8ing reuirement on multiple
currencies!
;hile there are pros in incorporating the general trade license in
Dubai, there are cons that come along! oweer, " want to
highlight the iable solution and put some safeguards for +our
business interest!
ere are the disad!antages of a General Trade License in
Dubai
Ownership @ general trade license in Dubai reuires an
Emarati shareholder who will hae to own B#) of the compan+!
he 4%) can be owned b+ expats!
#olution:(et an indiidual or corporate sponsor from a startup
business consulting -rm! a8e sure that +ou are appointed as the
anaging Director of the compan+ and +ou hae full powers to
run the business! 1ou can insist on haing these etched at the
emorandum of ssociation! 1ou can also reuest to hae signing
powers in the "mmigration and 6abor departments!
igh 7etup 5ost @ s compared to free one incorporation,
Dubai's setup cost is a bit higher! his is because in Dubai, it is
mandator+ for +ou to lease a commercial space which basicall+
eats up most of +our budget!
7/24/2019 General Trade License in Dubai and the UAE
5/11
#olution:1ou can contact business centers or sericed oCce
proiders for +ou to hae read+.made oCce facilities! usiness
incubation is another option +ou can loo8 at!
(oernment
7/24/2019 General Trade License in Dubai and the UAE
6/11
discussing an o/shore compan+ in a trading perspectie! ence,
o/shore are simpl+ a license and a ban8 account!
ere are the ad!antages or bene"ts of a General Trading
!ia an %&shore Compan$ in Dubai
#00) foreign or expat ownership is permitted and #00) tax
and dut+ exemption
Full repatriation of the o/shore companies pro-ts and capital
is allowed!
he compan+ can own real estate properties in the 3nited
rab Emirates and an+where else in the world sub&ect to approal
b+
7/24/2019 General Trade License in Dubai and the UAE
7/11
"t is important to note that o/shore companies are no longer
being entertained b+ international ban8s within the 3E! 6ocal
ban8s howeer are still accepting account openings for such
purpose! *eedless to sa+ that +ou are not to use an o/shore
compan+ for tax easion and to fund terrorist actiities!
ere are the disad!antages of a General Trading !ia an
%&shore Compan$ in Dubai
5annot conduct actual general trading actiit+ within the
3E @ 1ou are limited to do international trading onl+!
#olution:1ou need to appoint an agent or a distributor that has
the proper license to conduct +our desired trading actiit+! 1ou
can also deal with shipping and 6ogistics 5ompan+ who usuall+
hae a general trading license alongside their main business!
5annot rent a commercial space @ eing an o/shore which
literall+ means not distant from the shore, +ou cannot least an
oCce or a warehouse facilit+!
#olution: "f there is a need to receie communication, meet and
greet clients and all other admin support! 1ou can hire business
centers or een corporate serices proiders for this purpose! For
storage within the 3E, +ou ma+ contact logistics companies! *o Aisa ailable @ "f +ou are loo8ing at haing isas in the
compan+, o/shore is not the right setup for +ou business!
#olution: "ncorporate a main land or free one compan+ and be
sure to hae proision for isas according to +our reuirement!
7/24/2019 General Trade License in Dubai and the UAE
8/11
For those who would require a general trading operation
within the UAE but requires '(( ) ownership of the
compan$
"f +our purpose is to basicall+ be able to do general trading within
Dubai and the 3E, but +ou are not 8een in engaging an Emarati
*ational as a partner, +ou can go ahead and incorporate a
general trading compan+ in the free ones!
1our primar+ consideration should be the location of the free one
if it is near the airport or seaport! "n this case +ou can select to be
in Dubai ;orld 5entral 9D;5: which is in the heart of the l
a8toum "nternational irport! 1ou can also chec8 out Gebel li
Free Hone, which boast its own sea port and is accessible to Dubai
airport! Dubai ulti 5ommodities 5enter 9D55: is also a good
option to consider!
"f +ou are considering the cost of setting up the business and +ou
are willing to compromise on the location of the business, +ou can
consider registering at 5reatie Hone @ a Fu&airah free one that
has oCces in Dubai!
7/24/2019 General Trade License in Dubai and the UAE
9/11
Hero Duties @there is no duties leied on importing and
exporting!
inimal setup cost @ Free ones o/er a Jexi des8 or smart
des8 facilities which basicall+ trim down the amount of spending
on a full.blown oCce space!
7ingle ;indow for all +our transactions @ here will be
dedicated business support serices including integrated online
facilities for +our transaction! 1ou deal with one authorit+ for
licensing, wor8 permits, isas and all +our needs!
an8ing Facilities @Gust li8e in Dubai, +ou can ta8e adantage
of ban8ing facilities within the 3E in di/erent currencies
according to +our reuirement!
Free one companies are licensed to operate within the free one
and international mar8et! (eneral trading actiities in the free
ones are encouraged and if +ou wish to do the same in Dubai,
+ou need an agent or a local distributor!
ere are the disad!antage a General Trading License in
UAE Free *ones
5annot trade directl+ within Dubai and 3E @ 1ou are limitedto the free one &urisdiction and international mar8et! 1ou can
trade howeer B) will be imposed on +ou!
#olution:1ou need to appoint a distributor haing the competent
permit or license! he terms and conditions of +our engagement
will be based on mutual agreement between +our agent and +our
compan+!
7/24/2019 General Trade License in Dubai and the UAE
10/11
5annot ta8e an oCce outside the free one @ 1our choices of
oCce space is onl+ within the free one properties and facilities!
1ou cannot lease an oCce space within Dubai or other Emirates!
#olution:usiness centers and 7ericed OCce allows +ou to use
their facilities for re.mailing and their conference rooms!
lternatiel+, if there is drastic need to hae a presence in Dubai,
+ou can setup a branch of the free one compan+, which +ou own
#00)!
6imited Aisa >uota @ "n a small oCce +ou can hae up to 4.Kisas depending on which &urisdiction +ou are registered! he sie
of the oCce basicall+ determines the number of isas that +ou
can obtain!
#olution:"f +ou wish to hae around 2B or more isas in the
compan+ free one ma+ not be the ideal setup for +ou because
these will double +our expenses in terms of the amount of rent!
1ou can register +our compan+ in Dubai to obtain unlimited isas!
*ow that +ou hae an oeriew of the arious uses of a general
trading license, +ou can select which -ts +our reuirement! *ot
eer+one will tell +ou all these information so be careful! ost
business consultant will adise +ou to setup in Dubai because
the+ will earn more, some will adise +ou to be in the o/shore orfree one because it is easier to incorporate! "n the end, +ou can
alwa+s decide for +ourself!
" personall+ adised and incorporated general trading companies
in Dubai and other &urisdictions, it is a straight forward application
process and there is no special approal reuired! 1ou can
7/24/2019 General Trade License in Dubai and the UAE
11/11
follow six eas+ steps!Do not forget to appl+ or obtain +our
importLexport code!
http://businessetupindubai.blogspot.com/2015/03/six-easy-steps-on-how-to-setup-your.htmlhttp://businessetupindubai.blogspot.com/2015/03/six-easy-steps-on-how-to-setup-your.html