Author: Hanoof Al Naama
Published: March 12, 2024
Category: Trading
General trading is a broad category encompassing the buying and selling of various goods and commodities, and it plays a key role in the UAE's economic success. This versatile sector focuses on the physical movement of goods and encompasses a wide range of activities, including importing, exporting, and re-exporting.
The UAE's strategic location provides access to robust international connections with:
These partnerships offer a gateway to diverse trade opportunities, allowing businesses to tap into a vast and varied market.
While both general trading and e-commerce involve buying and selling products, there are important differences:
Important Note: With SPC Free Zone, entrepreneurs can choose up to five business activities under one license, streamlining operations.
When to Choose a Wholesale License:
When to Choose an E-Commerce License:
When to Choose a General Trading License:
When establishing your UAE general trading business, you can select from the following business activity codes:
Description:
Non-Specialized Wholesale Trade encompasses the wholesale distribution of a wide array of products across diverse industries. These wholesalers engage in buying goods in bulk quantities from manufacturers or distributors and subsequently selling them to retailers, businesses, and other wholesalers.
Product Categories:
Business Examples:
Regulatory Requirements:
| Requirement | Status |
|---|---|
| Third-party Approval | Not required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Description:
This category refers to wholesale trade activities where businesses engage in the distribution of diverse goods across different categories without specializing in any particular product niche. These wholesalers procure goods from manufacturers or suppliers and distribute them to retailers, businesses, and other customers, offering a wide variety of merchandise without emphasizing any particular specialization.
Key Distinction:
Unlike non-specialized wholesale trade, which may still involve a broad range of products but does not necessarily exclude specialization, this category specifically denotes wholesalers that operate without focusing on specific product types or industries.
Regulatory Requirements:
| Requirement | Status |
|---|---|
| Third-party Approval | Not required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Description:
General Trading Wholesalers typically refers to wholesalers that conduct trading activities across multiple product categories but may still maintain a degree of specialization or expertise in certain areas. While similar to "Non-Specialized Wholesale Trade" in terms of offering a broad assortment of goods, general trading wholesalers may have a more defined focus or expertise within the scope of their operations.
Characteristics:
Regulatory Requirements:
| Requirement | Status |
|---|---|
| Third-party Approval | Not required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Description:
General trading involves buying and selling a wide variety of products without specializing in any particular item. This business activity encompasses a broad range of goods and services, acting as a bridge between manufacturers, suppliers, and consumers. General traders often engage in import, export, and distribution activities, playing a crucial role in global commerce.
Regulatory Requirements:
| Requirement | Status |
|---|---|
| Third-party Approval | Not required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
For general trading businesses involving the import or export of goods, SPC Free Zone offers a streamlined process for obtaining a customs code.
If you are operating within the ports of Sharjah, SPC Free Zone issues a customs code in-house, simplifying the procedure for your business.
If your operations extend to a seaport in Dubai, SPC Free Zone is affiliated with the Ports Authority of Dubai, enabling you to leverage the SPC Free Zone license to acquire a customs code directly from the Dubai port authority.
SPC Free Zone offers the advantage of a dual license, allowing your business to operate in both the free zone and the mainland.
This guide provides comprehensive information about setting up a general trading business in the UAE through SPC Free Zone, including all available business activity codes, regulatory requirements, and support services available to entrepreneurs.