UAE‘s contribution to the world economy is substantial. As a world-class business capital, UAE houses companies ranging from small-time startups to multi-billion dollar conglomerates. With its highly lucrative investment policies, liberal trading laws and smooth access to the international market, UAE’s free zones make an exceptional location for general trading company formation.
What is a General Trade License?
A General Trade License refers to any type of retail and wholesale of goods, not pertaining limited to a specific product. A company that plans to open trading, export and import of products can apply for General Trading License. The license covers basically everything such as accessories, clothes, furniture, appliances, electronics etc. A general trading license is particularly useful for businesses that trade in mixed goods locally and internationally without applying for multiple licenses.
Advantages of Opening a General Trading Company
- Government facilitated easy application process
- Access to local, national and international markets
- Easy recruitment and multiple visa procurement
- Easy to sponsor dependents from around the world
- Can also be used as a legal holding structure within the UAE and other licensing authorities.
- 100% personal, corporate and income tax exemption
- Operational freedom and no requirement for annual auditing report
- All Types of Banking facilities for personal and corporate transactions
- Unlimited foreign currency exchange
Multiple free zone options available for a General Trading business in UAE
There are several free zone options available to start a trading company in UAE including Ras Al Khaimah Economic Zone (RAKEZ), Sharjah Media City freezone (SHAMS) and Ajman freezone (AFZA) provide sound options for General Trading activities, allowing businesses to engage in multiple product lines. These zones boast of modern infrastructure, state of the art facilities, high-tech logistics support, and numerous incorporation benefits. As commercial business zones, they offer specialized privileges to trading businesses regarding tax exemption, setup timeline, workspace, storage facilities, diverse business community and other operational incentives. Here are some advantages of establishing a General Trading Business in one of these free zones in UAE.
Rich Economic Landscape
Currently, with over 10,000 multinational companies, RAK freezone has transformed into a global destination for entrepreneurs, SMEs and Large Enterprises from more than 100 countries. Ajman free zone has played a major role in providing an investor friendly environment that has led to a GDP growth of 10% in Ajman in the last 15 years.
As a free zone entity, general trading businesses do not require a local partner to incorporate a company and own 51% shares. All the free zones in UAE allow 100% foreign ownership and 100% repatriation of capital funds.
Offices Around the World
RAK freezone Authorities have further extended their administrative support for investors living in India, Turkey, and Germany to facilitate remote setup. Ajman free zone is also expanding its reach to key markets with plans to open up global offices in Azerbaijan, China, Switzerland, Canada and Hong Kong.
Freezone General Trading License Cost
RAKEZ allows a strategic cost advantage over many free zones for that offer commercial licenses. The zone includes affordable preinstalled as well as customizable warehouse storage provisions with integrated insurance, security and utility services. Office leasing plans are flexible with step-in and pay options for entrepreneurs. Due to these inexpensive and full serviced features, the fDi Global Free Zones awarded RAKEZ the most cost-effective zone of 2017. Other freezones like Ajman and Sharjah Media City also offer low cost business setup options for general trading with packages starting from AED 17,200 in AFZA and 16,500 in SHAMS.
Manpower and Accommodation
Trading businesses can easily recruit resources for labor and professional job positions in the company through fast multiple visa processing. Most free zones in UAE provide facilities for on-site accommodation of labor.
Free zones in UAE enjoy consistent access to international markets in the Middle East, North Europe, Asia and North Africa through a vastly distributed network of multilane superhighways, modern airports connecting over 25 countries, 5 major seaports, and highways.
How IBG can Help
As UAE’s professional business setup agency, IBG Consulting specializes in general trading licenses for entrepreneurs, SMEs and large enterprises through our expert consultants, off-the-shelf as well as tailored packages for commercial licenses. We provide end to end consulting for your trading needs in zones such as RAKEZ, AFZA, SHAMS or any of the more than 50 free zone options in UAE, with full-featured business setup solution in competitive pricing and dedicated after sales service. Contact our consultants now or visit our website to learn more about our services.