Category: Expert Columns

The United Arab Emirates is a country famous for its commitment to integrating futuristic technology in the daily lives of its people. This is where the implementation of augmented/virtual reality can impact the economy directly. Both AR & VR are metaverse enabling technologies, which support over 6,700 jobs and contribute around USD 500 million to the GDP. The Dubai government aims to create over 40,000 jobs & bring in over USD 4 billion (1 per cent) to the emirate’s economy with Metaverse and Web 3.0 based technologies. Several emirates such as Dubai, Abu Dhabi, Sharjah and Fujairah already have smart city initiatives in place, which aim to fulfil the following goals: 

• Resource utilisation for maximum efficiency 
• Integration of services 
• Creating enriching lifestyle & business experiences

Augmented/Virtual Reality: Impact on economy 

Augmented Reality and Virtual Reality can have a lasting impact on the UAE economy. As an industry, it is expected to boost global economy to USD 1 trillion (1.8 per cent) by 2030. In businesses, AR/VR can help with developing modern customer experiences, faster product development, improved workforce training, and ultimately better efficiency & collaborative willingness. A breakdown of both techs shows that AR will contribute USD 1.1 trillion to global GDP in 2030. Meanwhile, VR will have a USD 0.4 trillion contribution to the same.  

Difference between Augmented Reality and Virtual Reality 

Both VR and AR have been around for a while now. They have emerged as overarching trends that are gaining momentum. Augmented Reality (AR) refers to the enhancement of the physical world through the integration of digitally generated content. This includes visual elements, sound or other sensory stimuli. In AR, users can interact with people while remaining accessible on the digital plane (e.g. navigation applications, text messages, etc.).

On the other hand, Virtual Reality (VR) is a 3D simulation that submerses the user in an interactive environment. This immersive experience is created through the use of electronic devices like headsets. The Oculus is among the most popular VR hardware in the world right now. Currently, virtual reality is highly popular in the gaming industry, where it has applications in creating experiences that completely go against elements of reality. 

The impact of AR and VR in the UAE business world 

Augmented/Virtual Reality are no longer just used for experiential enhancement. As the technology has developed, businesses have started using them for enhancing product design & delivery and reducing risk. The biggest impact that augmented/virtual reality has on the economy is that it makes training employees and testing procedures far easier. This is especially relevant for simulating realistic on-job scenarios and recreating high-risk environments.

An example of this is Emirates NBD, one of UAE’s largest banks, forming their own Virtual Reality academy for their employees. The organisations use virtual environments to help employees go through real-life issues, but from the perspective of the customer. In the current marketplace, the integration of AR/VR can also help enhance your brand image as an innovative and forward-thinking company. Keeping up with the advances of time helps in creating better business networks, building beneficial partnerships, strategic investments and attracting fresh talent.

Businesses in Dubai have long since recognised the opportunities that AR/VR raise in creating new revenue streams while expanding existing ones. Industries like retail, hospitality and automotives are among the top three sectors which use augmented/virtual reality in their business practises to promote their products. Additionally, gaming and entertainment companies have already been using them to revolutionise their products’ experience.

Economic impact of Augmented/Virtual Reality on different sectors 

The impact of AR and VR in the UAE are not just limited to gaming. These technologies can help boost other industries such as e-commerce, retail and other consumer leisure experiences. Here is how augmented reality and virtual reality can help enhance the scope of operations of different industries.  

Healthcare 

Potential contribution to global GDP by 2030: USD 350.9 billion 

The biggest benefit of Virtual Reality in healthcare business is that it helps create risk-free simulations for medical students to practise their skills in the operating theatre. Augmented reality can also help improve communication with medical experts on a global level resulting in faster information sharing.

Virtual Reality has proven to be effective in treating medical issues such as balance disorder, cerebral palsy, Parkinson’s Syndrome, etc. The UAE’s Ministry of Health & Prevention (MoHAP) intends to integrate VR rehabilitation for physiotherapy. Virtual reality can reach even the remotest corners of the world to train medical experts. Thus, leading to better healthcare access and improve quality of service. 

Training & development 

Potential contribution to global GDP by 2030: USD 294.2 billion 

AR and VR can create stimulating learning experiences hence leading to effective teaching. It will be possible to create extreme and unlikely environments to boost learner engagement and encourage participation. With the help of virtual classrooms, learning become more accessible, and can reduce the burden of additional costs such as travel, accommodation, etc. VR/AR can further add to the training of employees and create a safe space to experience otherwise impractical or unsafe environments. 

Products and service enhancement 

Potential contribution to global GDP by 2030: USD 359.4 billion 

Augmented/virtual reality can help create 3D prototypes that can completely revolutionise the design and manufacturing of products. This leads to an efficient, productive and improved end product. The Dubai Electricity and Water Authority (DEWA) provide smart helmets and goggles to their engineers and technicians ensure faster communication while conducting repairs.

The use or AR and VR in the manufacturing process can help create a faster workflow with a better understanding of the assembly process. This will lead to reduction in faulty manufacturing thus leading to reduced costs.

Process improvement 

Potential contribution to global GDP by 2030: USD 275 billion 

VR and AR are opening new channels into improving the accuracy of employees and processes. People in the tech field can use an AR interface to access repair diagrams in real time. This way, you can identify problems faster and conduct more efficient repairs/maintenance. The logistics industry also uses smart glasses which allows for workers to streamline their daily process. They can pick the product information, highlight the location, and display product details and packaging instructions. AR/VR can help to create an immersive retail experience, such as virtual fitting rooms or using AR apps to test furniture looks in the comfort of your home.

Bring in the future today 

Both Augmented Reality and Virtual Reality are essential parts of the 4^th Industrial Revolution that is taking place. The economic impact of artificial intelligence, metaverse, blockchain, Web3, AR/VR are far-reaching. It is bound to change numerous industries and Dubai aims to become the digital nexus for it. This makes it the ideal destination and time to invest in the artificial intelligence and augmented/virtual reality business.

Shuraa Business Setup is committed to helping emerging tech industries gain a foothold in the competitive market in the UAE. We track the latest business trends and follow UAE’s laws and customs to help you kick-start your virtual reality business in Dubai. Get additional benefits such as 100% company ownership, banking assistance, crypto payments, residency visa, PRO services and more. Call us at +971 44081900, WhatsApp on +971 507775554, or email at info@shuraa.com to get your journey going.

The UAE is on track to an unprecedented growth trajectory. The country is emerging from a shattering pandemic as well as a weak global economic recovery. The UAE began its monumental journey on the foundation of its tremendous oil reserves. But it is clear that UAE’s diversification to non-oil trade, a decision made over five years ago, is now seeing successful results.

UAE’s non-oil foreign trade came at a valuation of AED 1.637 trillion within the first nine months of 2022, a near 20 per cent rise from the same period as in 2021. In fact, the third quarter of the year saw a valuation of over AED 583 billion in non-oil trade. The total growth is expected to grow to AED 2.2 trillion by the end of 2022. 

UAE’s Non-oil trade: Visionary Leadership 

The World Trade Organisation predicted early on in 2022, a 3.5 per cent decline in international trade. However, Sheikh Mohammed bin Rashid Al Maktoum, the Vice President/Prime Minister of the UAE, and Ruler of Dubai, shared that the UAE saw a 19 per cent increase in international trade during the first nine months of 2022.

In his words, “The UAE is an exception in global trade and economy, as well as in services, infrastructure and international relations.”

The Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, spoke of the Projects of the 50, and the economic developments under their framework. The country’s foreign trade performance has become stronger because of the acceleration of the timelines of the trade agreements signing. This also includes the increasing partnerships with leading global markets.

UAE non-oil trade statistics, Q3 2022

UAE made history with over twenty-seven bilateral foreign trade agreements put in the works. The government has already established successful free-trade deals with countries like India, Israel, Indonesia, and South Korea, among others. Once the other agreements fall into place, it will lead to the emergence of a global economic strategy that can even battle long-term inflation.

Creating trade opportunities through diversification 

The UAE has consistently been moving towards economic diversification to reduce their dependency on oil. The transition is one from a conventional, labour-intensive economy to something that is more technologically driven, skilled labor, and knowledge based. There has been an increase in investment in sectors such as tourism, renewable energy, aluminium production, telecom, import/export, aviation at both the Federal and individual Emirate level.

Tourism is one of the largest contributors to UAE economic diversification. The country is home to world-class airlines like Emirates and Etihad, both contributing to the rise of the tourism industry. The constant innovations in the aviation and hotel service industries are further bolstered by the influx of traffic with large scale events such as EXPO 2020 and the FIFA World Cup 2022.

UAE is the land of emerging opportunities 

Dubai is currently seeing a major boost in foreign investment. The fact that UAE has one of the most open and dynamic economies is certainly a contributing factor. Additionally, there are several global business indexes that rank the UAE as a premier location attracting major international businesses. The country is also in the top 30 of the World Economic forum’s “most networked countries”, ranking ahead of all other GCC and Arab countries, as well as Italy, Turkey, and India.

There has never been a better time to invest in the UAE. With its high-paced developmental programs, the country is poised to emerge as a global soft power. Dubai especially is an ideal destination among expats looking for trade opportunities because of its liberal tax policies. And this is where Shuraa Business Setup is your trusted partner.

Shuraa offers end-to-end corporate solutions to investors who want to establish their business operations in the UAE. Our diverse range of services include company registration & licensing, PRO & Golden Visa, VAT, tax, and book-keeping, etc. The team consists of diverse corporate consultants who ensure that your Dubai business setup process is smooth & hassle-free.

Don’t hesitate to start your Dubai journey today. Contact us at:

Call: +971 44081900

WhatsApp: +971 507775554

Email: info@shuraa.com

Web 3.0 or more colloquially, Web3, is the current phase of the internet we are stepping into. Believed to have begun from mid-2010s, Web3 seeks to improve various aspects of the internet, while specially focusing on decentralised technologies. These technologies include Blockchain, Crypto, Metaverse, VPNs, NFTs, DeFi (Decentralised Finance) platforms, and more. To invest in Web3, entrepreneurs need to know the basics behind it.

The aim of Web3 is to create a more user-centric experience, where users can be in control of their own data. Consequently, users will shift to platforms that do not need third-party services or require verification for transactions. This means that users will soon shift into becoming owners.

Dubai is poised to become the next international hub for the Web3 wave. The Emirate is looking forward to welcoming entrepreneurs to invest in Web3 businesses and boosting the digital economy.  

How to invest in Web3?

The future of the internet lies in Web3. It is currently the premier investment option for long-term growth. In fact, the easiest ways to invest in Web3 are: 

Cryptocurrency investments 

The chief attraction behind cryptocurrency is that it does not depend on any single authority for validation. There is a general belief that cryptocurrency is free from any political governance or international authorisation. On the contrary, when it comes to actual implementation, crypto is heavily influenced by general market conditions.  

Cryptocurrency being a decentralised ledger system makes it useful for maintaining accurate transactional records as well as diversifying one’s investment portfolio. The most popular tokens are Bitcoin, Ethereum, Binance, etc. amid a growing base of digital currencies, all which implement the same Web3 technology. These digital tokens can be used for transactions (buying & selling) as crypto assets.  

Web3 investment funds 

Aside from cryptocurrency as an investment opportunity, Web3 investment funds are a profitable option to further diversify your portfolio. Additionally, investors can manage these funds passively or actively with investment distribution across a global range of Web3 projects.  

You can invest these funds in either pre-existing businesses or start-ups that are present in the Web3 space. Most of these companies dabble in blockchain technology, crypto platforms, or even DeFi tools. The ideal way to get maximum returns is by splitting your investments between small & large companies.  

NFTs 

The future of digital ownership lies in NFTs (Non-Fungible Tokens). They are one of the three pillars of Web3 along with crypto & metaverse. To sum it up, NFTs are digital assets built on the blockchain network making them similar to crypto tokens like Bitcoin or Ethereum. The appeal behind NFTs lies in the fact that no two NFTs are the same. They represent ownership of a specific asset.  

Why should you invest in Web3? 

The current social paradigm is thoroughly in the favour of the Web3 movement. Therefore, here are some of the top reasons why investing in Web3 is the next big thing: 

Privacy 

Web3 works on the foundation of decentralisation with increased privacy at its centre. Web3 ensures that users will be the owners of their own data. This allows for anonymous interaction with platforms and complete ownership over data that is likely to be shared with third-party distributors.  

Privacy is now one of the most important social movements to emerge within the tech industry. Web3 companies are now updating their policies to align with the promises of privacy and security. Modern internet users are therefore seeking to invest in such Web3 businesses. 

Security 

The implementation of blockchain technology ensures that hacks that target data centres and data mining organisations are protected. This is done by decentralised encryption & storage of data. The principle of Blockchain works on distributed ledger which lets the user store records in various locations. The result is that altering records through unethical means becomes virtually impossible, leading to safer digital processes.  

Diversification 

When it comes to intelligent fiscal management, diversifying your portfolio is an essential aspect of it. Among the asset classes of stocks, bonds, alternative investments, etc. You can also add cryptocurrency tokens to add to the value of your portfolio. Crypto remains unaffected by market trends, conditions, or other economic factors. All the power remains in the hand of the users, which can sometimes be better than most traditional investments.  

Futureproof 

Investing in Web3 technologies like blockchain or crypto seems like a natural economical evolution. Though the debate surrounding Web3 is still ongoing, all major global corporations are keenly observing the Web3 movement. Additionally, regulated financial institutions like banks are also leveraging on the security & privacy provided by Blockchain and developing internal systems for their operations. 

Early investment benefits 

Currently, the Web3 sector is showing the most promise and room for growth. Even large tech companies like Facebook are rebranding themselves to embrace the new wave of the internet. Bitcoin is undoubtedly the most popular cryptocurrency in the market right now. Now, is the right time to take advantage of this growing industry. Early investors can expect immense returns over the year.  

Looking to diversify your portfolio by investing Dubai. Connect with reliable corporate consultants like Shuraa to start your global business operations today.  

Starting your own Web3 venture in Dubai 

The Web3 phase has led to the formation of brand-new business opportunities that never existed before. Commercial entities can start evolving their business operations and modernise their platforms. In fact, incorporating blockchain technology as a verification tool for different applications or utilising the Metaverse as a new form of marketplace are just a couple of examples as to how Web3 can affect global commerce.  

However, this is where experts like Shuraa Business Setup come in. With over 26 years of experience in end-to-end corporate consultancy, Shuraa is a one-stop shop for all your UAE company formation needs. Invest in your Web3 business and also get benefits like free lifetime residency, tax exemptions, free VAT consultancy & more. Contact us today:

Call us: +971 44081900 

Text us: +971 507775554 

Email us: info@shuraa.com

One of the most important aspects of starting a business in the UAE free zone is managing your finances. The way you opt to track and record your finances can make or break your company over time. Hence, it’s important to build financial literacy for entrepreneurs.

Once you understand and opt for an ideal solution, your company can grow much faster and efficiently. Continue reading to learn about why it is important, how to manage it, VAT and more.

Financial literacy for business

When starting your company, the cost of license isn’t the only key expense that you need to take into consideration. Although it does play an important role, it definitely is not the only essential expense.

There are other crucial spendings that you have to take into consideration. These include salaries for your employees, marketing budget, operational costs, office rents and much more.

After the process of your company setup is complete, you will most likely need access to capital down the line. This can be accomplished through business financing.

Regardless of the size of the company, most businesses seek capital infusions in order to meet short-term obligations. In addition, accounting roles are often overlooked but in fact, it plays a crucial role in the way your company functions.

The hack to balance your business’ finances

• Maintain accurate records and track them regularly
• Ensure you have a separate bank account for your business to keep a clear records of the flow of cash within the organisation
• Set aside savings from your income to be prepared for any setbacks
• Set a clear budget and compare the spendings every month to ensure you stay on track
• Keep track of other records such as VAT as well

Understanding Value Added Tax and the importance of bookkeeping

Value Added Tax is often referred to as VAT in the UAE. It was introduced in 2018 on 1st January and has been implemented as the general consumption tax of goods and services. This applies to all goods exchanged within the territorial area of the UAE.

The Federal Tax Authority’s VAT eligibility criteria are dependent on a company’s total turnover and total taxable expenses. Once a company is formed, they can register for VAT under one of two categories.

• Total sales
• Total expenses

These include the VAT amount paid for any expenses spent for your business. This could include costs such as VAT paid for machinery or other equipment. However, this is not applicable to tax paid internationally. 

For instance, if you were to purchase machinery internationally and paid tax for the equipment’s spendings, it will not be included as VAT expenses in the UAE. It would instead be considered as 0 rated VAT.

You must also take into consideration of the two types of VAT registration services in the UAE:

1.  Mandatory VAT Registration

2.  Voluntary VAT Registration

Mandatory VAT Registration in UAE

It is applicable on individuals or companies that have an annual turnover of AED 375,000 or more. If your business falls in this category, you are required to get a Tax Registration Number (TRN) to conduct your business in the UAE. You can then implement VAT on your supplies and collect VAT on behalf of the FTA. If you do not register for mandatory VAT, you will be required to pay a fine.

You are eligible to apply for Mandatory VAT Registration if you satisfy either of the following criteria:

• Your business turnover and imports were over AED 375,000 during the last 12 months
  OR
• You anticipate that your business turnover and imports in the next 30 days will be more than AED 375,000

Voluntary VAT Registration in UAE

It can be applied by individuals or companies that have an annual turnover of over AED 187,500 but less than AED 375,000. If your business falls in this category, you may apply for VAT registration and get a TRN, voluntarily. Should you choose to not register for VAT, you will not be fined nor will you face any legal issues as long as your total turnover is still below AED 375,000.

You are eligible to apply for Voluntary VAT Registration if you satisfy either of the following criteria:

• Your business turnover or taxable business expenses or imports were more than AED 187,500 in the last 12 months
  OR
• You anticipate that your business turnover or taxable expenses or imports in the next 30 days will be more than AED 187,500

When you do not have a Tax Registration Number (TRN), you are not eligible to mention VAT in your invoice. You will only be eligible to do so once your TRN has been generated. If you proceed to mention VAT in your invoice without a TRN number, there will be a penalty from the FTA. In addition, it is important to ensure that your company keeps records of all spendings and earnings of each year.

Need additional guidance?

Shuraa will help you get started with your company and ensure that the entire process runs smoothly.

Shuraa has been one of the leading business setup companies in the UAE for over 26 years. Furthermore, our goal is to help entrepreneurs build a foundation in the UAE’s thriving economy, from start to finish.

To get in touch with our expert business consultants, call us on +97144081900. Send a WhatsApp message for a chat query on +971507775554. You can also email us at info@shuraa.com. You can also get in touch with our international tax experts, visit https://bit.ly/2Wphtcq.

Entrepreneurs looking to forge a business partnership in Dubai could either be seeking to fulfill pre-requisite for governmental formalities or actually run the company operations together. Here is the why and the what of business partnership in the UAE. The following column will elaborate on legal aspects of a general partnership firm.

Why Seek a Business Partnership in the UAE?

For those looking to connect with potential business partner in the UAE to run the company, the primary reasons may include investment. One may have a great business idea but not enough money to go ahead with it. Here, convincing a trustworthy partner who is not only ready to invest in your business, but also believes in your plan is crucial.

Other major reasons for seeking a business partner includes value-adding prospects. Your partner may help you expand to a bigger marketplace or provide you with networking and marketing opportunities.

Moreover, a having a partner allows both parties to pool in your skills, knowledge, and financial assets to grow your business together.

What does a getting into a business partnership in Dubai look like?

First, one could be looking for a business partner in Dubai for legal reasons. Although the country now allows 100% foreign ownership, certain business sectors are regulated, and therefore, it is recommended that you partner with a local. This is applicable to quite a few commercial and industrial business activities, and to health and educational sectors. This, however, depends on the nature of the business activity and the requirements. Nevertheless, the local will be a sleeping partner and facilitate your company’s legal registration and supporting services such as licensing and visa related documentation.

More importantly, it is possible to change the corporate structure post the necessary formalities as it is flexible.

Entrepreneurs who want to have an active business partnership in Dubai have a few legal aspects to be mindful about:

1. Ownership and role distribution

The partners should be clear on the percentage of company ownership. They should also outline their specific roles and duties.

2. Monetary assets

Before partnering, the stakeholders involved must also decide on financial points such as drawing salaries, profit and loss allocation, and reinvestment for business growth.

3. Decision making

This is the most important part of your business’ functional aspects. These include processes, assignments, hiring and managing employees, marketing, day-to-day management, long term plans, and final say.

4. Financial functions

Another important aspect of business partnership in Dubai is banking. The partners need to allocate transactions, signatures, and loans.

5. Disputes

It is likely that your company may hit a roadblock arising from difference of opinion between stakeholders. However, the partners must prepare a solid contract to deal with matters of trade secrets.

6. Exit or death

What happens in situations when either of the partner passes away or wants to exit the business or simply retire? The business partnership contract should define aspects such as:

• The fate of his/her share and profit
• Distribution of pending profit to his/her family members
• The process of new partner finalization and onboarding
• Retirement provision
• Document modifications

How to find a business partner in Dubai?

Looking for a business partner in Dubai, UAE may take a while as it is a huge decision for your company. However, when you have found one or even more, you can form a company with a limited liability structure or a civil company with general partnership contract.

Also, if you already have an LLC, and seek investment, you can approach outside investors, also known as angel investors. You can bring them on board for a limited time period by temporarily pledging shares.

– Mona Salim, Overseas Business Development Manager

Free zone company formation offers numerous advantages to investors. One of which includes the option to mix activities under one license.

Over the years, the UAE has become one of the leading and most favourable business hubs in the world. The constantly evolving economy and its major advancements has provided the business community many opportunities to grow and thrive. This as a result has attracted global investors and entrepreneurs from around the globe.

Free zone company formation in particular stands out because of its various benefits. Some of these benefits include hassle-free company incorporation, no currency restrictions, exemption from corporate tax for 15 years. The rules and regulations of the free zone jurisdictions always stay the same. Not to mention, free zone is the only jurisdiction in the UAE that allows investors to mix free zone activities under one license.

Continue reading to learn more about the process and benefits of mixing activities.

What are professional and commercial licenses?

To simply state it, a professional license is a skill based license and is given to those who want to conduct business in the service sectors. These include service providers such as craftsmen, artisans or individuals in the educational sector. In most cases, service providers are not required to have a degree. However, in certain cases such as service providers in the educational field will require to have a degree as well as gain additional approvals from government bodies.

On the other hand, a commercial license is given to companies that are involved in any sort of commercial trade activity. Commercial licenses are more specific in nature and are limited to specific products as opposed to general trading licenses.

Why mix commercial and professional licenses as one in a free zone?

There are many benefits when it comes to mixing free zone activities under a single license. One of the main points that stands out is that this is only possible in free zones and cannot be done so on mainland.

Mixing activities under a single license would not only save time but would also be much more cost efficient and requires less documentation. It would also give you the option to have multiple businesses under a single brand and website domain.

For instance, you can have up to 3 activities under 1 license in IFZA free zone. This gives you the option to mix and match activities to fit your preference and the nature of your business. Not only that, you also get the opportunity to obtain 1 free investor visa for life with IFZA’s package. This package would cost approximately AED 21,900.

Benefits of forming your company in IFZA:

Some of the unique benefits of forming your company in IFZA include:

• No requirement for the investor to submit an annual audit report
• No paid-up share capital requirement
• Up to 3 years visa for owners and employees
• No requirement for employee guarantee deposit to the free zone
• Permission to have a virtual office
• No requirement of investors to be physically present during company formation
• No NOC required from the current visa sponsor

What is the process of obtaining a mixed license in Dubai free zone?

Determine the type of license and business activity

Choose the ideal free zone for your business

Determine the type corporate structure

The types of legal structures that you can form in a free zone are:

1. Free Zone Company Limited Liability Company (FZC LLC)
2. Free Zone Establishment Limited Liability Company (FZE LLC)
3. Branch Company
4. Free Zone Company
5. Free Zone Establishment

Application and submission of all required documents

Once the previous steps are complete, you must acquire the following:

1. Application
2. Immigration card
3. Entry permit
4. Stamping, medical test & Emirates ID

The various documents that you must submit to open a business in Dubai free zone are:

• Passport copy
• Visa copy
• Emirates ID copy (if applicable)
• Passport photo
• Business plan (only applicable for certain free zones & certain activities)

Depending on the free zone that you opt for, you may have additional steps and documents that you will have to submit.

Choose an office space/ opt for virtual office (depending on the free zone)

Open a bank account

Obtain your mixed license with now with Shuraa Business Setup

If you want to start your business and have the option to mix free zone activities, look no further. Shuraa will help you get started with your company and ensure that the entire process runs smoothly.

Shuraa has been one of the leading business setup companies in the UAE for over 26 years. Furthermore, our goal is to help entrepreneurs build a foundation in the UAE’s thriving economy, from start to finish.

Our expert consultants will guide you through the entire process — from registering your business and helping you understand the entire process.

To get in touch with our expert business consultants, call us on +97144081900. Send a WhatsApp message for a chat query on +971507775554. You can also email us at info@shuraa.com.

General trading licenses in Dubai free zones have become increasingly popular. This is because the trading industry is one of the most prominent industries in the country. 

The UAE free zones are in close proximity to sea ports and airports, making it one of the most ideal locations to trade internationally. Over the years, the country has been progressing considerably which has also increased opportunities for entrepreneurs. This is the reason why many entrepreneurs from around the world want to start a business in the UAE.

Continue reading to learn more about general trading license in Dubai free zone.

General trading license 101

Acquiring a general trading license in the UAE would mean that a company is legally authorized to sell, distribute, store, import, export and re-export goods under one license. 

General trading license covers an array of activities, these include any type of goods such as foodstuff, furniture, electronics, etc. Although almost any kind of goods can be traded, there are certain products that are not permitted to be traded or require special permission from various Municipalities. These products include medical drugs, weaponry, and alcohol, to name a few.

There is one main difference between a general trading license and a regular trading license. When it comes to general trading license, you’re free to trade in multiple goods under one license. This includes trading unrelated goods. On the contrary, with a regular trading license, you can only trade a single type of commodity under the license.

The difference between general trading in free zones and mainland is that you will need to pay an additional charge of AED 15,000 excluding license cost for general trading on mainland. On the other hand, there are no additional charges for general trading in free zones. Moreover, you also do not require to have a warehouse in free zones and can proceed with just a virtual office.

One of the main reasons why general trading license is highly sought after is because of the UAE’s tax advantages. The country also enables import and export of goods without any customs tax. In addition, setting up a business in the UAE free zone is considerably easier.

General trading license cost in Dubai starts from AED 11,900. However, the price may vary depending upon the free zone you opt for. In addition, you can register free zone companies within 3-4 days. Moreover, free zone authorities require minimum paperwork to set up a company.

How to Get General Trading License in Dubai Free Zone?

In order to obtain a general trading license, the following are the steps:

1. Choose your preferred jurisdiction

There are many free zones in the UAE amongst which you can select the most suitable one for you. One of the most popular choices for investors is International Free Zone Authority (IFZA).

2. Decide the ideal company structure

In order to process, you must select one of the following company structures that is most suitable for you. 

• Free Zone Establishment (FZE)
• Free Zone Company (FZCO)
• Branch Company

Apply for business registration

3. Submit of all required documents

The following documents need to be submitted to the relevant authorities:

• Completed application form
• Passport copy of the owner/owners
• Visa copy
• Emirates ID copy (if applicable)
• Two coloured passport sized photographs with white background

There may be a requirement to submit additional documents depending upon the selected free zone.

Pay license fee

Once you have paid the fee and the process has been completed, you will obtain your license.

Obtain your general trading license with Shuraa

Shuraa ensures that the entire process of obtaining your general trading license in the UAE free zone runs smoothly. Our business setup consultants will guide you through the entire process from regulatory requirements, understanding general trading license cost in the UAE, all the way up to the process of obtaining approvals from the authorities.

If you would like to set up a general trading company in Dubai, contact Shuraa Business Setup today. To get in touch with our expert business consultants, call us on +97144081900. Send a WhatsApp message for a chat query on +971507775554. You can also email us at enquiry@shuraa.com.

Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.