General trading license will allow your business to trade any type of goods within and outside UAE, except the goods which are not allowed or prohibited under the law and few other exceptions (for example to trade precious metals and stones, you need to setup a proper company in DMCC).
In a trading license, you are only allowed to trade goods falling under your registered activity; in some free zones you can select multiple activities, but only if they below to the same macro-sector.
A Harvard Business Review article on the topic argues that “great business models can reshape industries and drive spectacular growth.” If your company spots a new market opportunity, and shifts its operations to adapt to that opportunity, the growth potential can be huge. So to be restricted by a license, sometimes can reduce or stop development of your business.
Basically general trading license is more expensive than a trading license. But not everywhere. Fujairah’s Creative City free zone offers entrepreneurs the ability to combine more than one kind of business activity under the same license at no extra cost.
Say – for example – your background was in the IT sector, and you decided to launch an IT trading company in the UAE. Some of your business would involve importing materials which would be essential for running the business, and so a IT trading commercial license would almost certainly be the best option.
The business is a success and you soon get approached by a number of people who would love to learn from your expertise in the industry, and this sparks an idea – to set up a training school in the IT field.
However, in much of the UAE, your initial business license would prohibit you from launching this potentially lucrative new model as you would not be licensed to provide any kind of educational services. To launch the business, you’d need to apply and pay for a dual license – which can be expensive and inefficient.
And this is why Creative City’s general trading license is so special. As long as your original business idea and the new activity are permitted to be carried out in Creative City, there really is no barrier to diversifying your business and tapping into new opportunities.
Introducing Creative City
Creative City is located in Fujairah, in the east of the UAE and about 90 minutes from Dubai. The free zone was launched in 2007 and provides a business environment for a wide range of activities – anything from education to trading, event management to publishing, consultancy to broadcasting.