Perching on the Persian Gulf is the luxurious metropolis of Dubai which is a hub of businessmen who are trading and are looking out for a haven for these ambitious spirits. If you are someone who is setting your focus on such a dynamic market then getting a General trading licence should be your first stepping stone. While at first the procedure might seem daunting and time taking, however, if you follow this blog, you will get an idea as to how to start your journey in a cost effective way.
The price tag to get licence
The general trading licence cost in Dubai can be in a range between AED 15,000 to almost AED 50,000 and it can rise even more depending upon the area and the industry you are doing business in along with other factors that influence the figure.
The location of carrying out business
The most important factor to consider is the location where you wish to carry out your business. The mainland of Dubai would come with a higher price of carrying out business as compared to the free zones. These free zones, as the name suggests, are free of tax obligations and offer additional benefits as well. Owing to the need of having a physical office in the mainland, the licence rate is way higher than free zones which also allows you to have a virtual office space.
Size of the office space
The location as well as the size of the office space and other necessary spaces like warehouse and storage rooms also play an important role in impacting the cost of the licence and other cost factors. Choosing a good location within the prime location of Dubai can be costlier than having in the adjacent or peripheral areas. In the same way, the rent you have to pay is directly proportional to the size of the workspace.
Permits, approval, and structure of business
There can be instances where the products or services you intend to carry your business can influence the overall cost. This is because, these products or services can ask for additiona approvals or permits which can add to the list of expenses. It is therefore, very important to reserch the licence requirements for the commodity or service you are working with to get an idea of the expenses.
Additionally, the structure of the business depends on the number of partners as well as the managers working in your company that plays an important role in fixing the licence fees as some authorities have fixed the fees structure on the basis of the size and complexity of the company.
Conclusion
When the factors and quotes like the structure, costs, rents, permits, whether the business is carried on mainland or in Dubai free zone, and other legal obligations etc. are considered carefully by the relevant authorities, understanding the cost of obtaining general trading licence gets easier and the businesses can take an informed decision with regards to entering the market of Dubai.
