Posted in

General Trading License in Dubai: The Complete Guide to Starting a General Trading Company in UAE

Dubai’s strategic location between Europe, Asia, and Africa makes it one of the most powerful trading centers in the world. Its pro-business environment, zero personal income tax, and access to international markets attract investors seeking stability and growth.

Getting a General Trading License in Dubai allows you to trade, import, and export a wide range of goods — all under one license. From electronics and textiles to furniture and household items, the opportunities are vast.

What is a General Trading License in Dubai?

A General Trading License in Dubai is a business permit that allows entrepreneurs to trade in multiple product categories under one umbrella. You can deal with almost any legal goods, making it ideal for import-export businesses or large-scale distributors.

Key Activities Covered Under the License

You can trade in:

  • Consumer electronics and appliances
  • Furniture, décor, and fittings
  • Clothing, accessories, and textiles
  • Food and beverages (non-regulated)
  • Toys, stationery, and household goods
  • Cosmetics and skincare products

Some regulated items (like medical or chemical products) may need extra approvals.

Types of Business Structures for General Trading in UAE

Mainland Company

Mainland companies are licensed by the Department of Economic Development (DED) and can trade freely within the UAE market. You can also participate in government contracts and open branches across the country.

Free Zone Company

Free zones such as DMCC, JAFZA, and DAFZA offer 100% foreign ownership, complete profit repatriation, and zero income tax. They are ideal for international traders who deal mainly in imports and exports.

Offshore Company

Offshore entities can conduct global trading but cannot directly operate within the UAE market. These are mainly used for asset protection, tax efficiency, and holding investments.

Organizing Your Trading Activities

Before applying for your General Trading License in Dubai, it’s crucial to define your activities clearly. Identify your products, analyze the market, and determine your business structure — whether sole proprietorship, partnership, or LLC.

This preparation helps you avoid compliance issues later and ensures a smoother licensing process.


Choosing the Right Legal Jurisdiction

Your jurisdiction determines your ownership rights, trading scope, and cost structure.

Benefits of Each Jurisdiction

JurisdictionOwnershipMarket AccessVisa LimitTax Benefits
MainlandUp to 100% (corporate model)Full UAE marketUnlimitedPartial
Free Zone100%Free zone + globalLimited0% income tax
Offshore100%Global trade onlyNone0% income tax

Steps to Get a General Trading License in Dubai

Step 1: Create a Business Plan

Start with a solid business plan covering:

  • Your product range
  • Market competition
  • Capital requirements
  • Logistics and operations
  • Marketing strategy

This document acts as the roadmap for your business and may also help in getting investor support or funding.


Step 2: Choose Your Jurisdiction

Decide whether to operate from the mainland, free zone, or offshore depending on your business needs.

  • Mainland = Local trading + flexibility
  • Free zone = Full ownership + tax benefits
  • Offshore = Global operations + privacy

Step 3: Appoint a Sponsor (Mainland Only)

Mainland setups require either a UAE national sponsor or a corporate sponsorship model. The latter allows you to retain full control through a legally binding agreement protecting your investor rights.


Step 4: Complete Legal Formalities

You’ll need to:

  1. Choose and reserve a trade name
  2. Get initial approval from the DED
  3. Draft a Memorandum of Association (MOA)
  4. Secure a tenancy contract (Ejari registered)
  5. Obtain external approvals if your product category demands it

Step 5: Apply for the License

Submit your documents to the DED or relevant free zone authority. After fee payment and verification, your General Trading License in Dubai will be issued, allowing you to start operations legally.


Documents Required for General Trading License

  • Passport copies of shareholders
  • Visa and Emirates ID copies (if applicable)
  • MOA or LSA agreement
  • Tenancy contract (Ejari)
  • Trade name approval certificate
  • Application form

Cost of General Trading License in Dubai

The total cost depends on location, business activities, and office space. On average:

  • Mainland license: AED 25,000 – AED 40,000
  • Free zone license: AED 12,500 – AED 25,000

Some free zones offer startup packages that include office space and visa quotas.


Benefits of Getting a General Trading License

  • 100% profit repatriation
  • No personal or corporate income tax
  • Freedom to trade multiple goods
  • Easy global import/export access
  • Unlimited employment visas (mainland)
  • Opportunity to expand into new markets

Best Locations for Setting Up a General Trading Company

Some of the most preferred business locations include:

  • Dubai Mainland (DED) – Best for local trading
  • Jebel Ali Free Zone (JAFZA) – Ideal for logistics and bulk import/export
  • Dubai Multi Commodities Centre (DMCC) – Perfect for commodity and B2B trade
  • Dubai Airport Free Zone (DAFZA) – Best for fast logistics and air freight operations
  • Sharjah Media City (Shams) – Suitable for budget-friendly startups

Reliable Business Setup Consultants in Dubai

Setting up a business in the UAE can be simple with the right guidance. While many entrepreneurs manage the process independently, others prefer assistance from professionals.

Companies such as Shuraa, Virtuzone, and Damaar CDA Corporate have built strong reputations for helping investors navigate the licensing process smoothly. They assist with everything — from trade name approval and document preparation to visa processing — ensuring compliance with all DED and free zone regulations.

Working with such experienced firms can save valuable time, especially for new investors unfamiliar with UAE’s business laws.


FAQs About General Trading License in Dubai

Q1: How long does it take to get a General Trading License in Dubai?
A: Usually 5 to 10 working days, depending on document readiness.

Q2: Can I trade multiple products under one license?
A: Yes, a general trading license allows for diverse product categories except restricted goods.

Q3: Do I need a local sponsor for a mainland company?
A: Yes, but corporate sponsorship options allow 100% control for foreign investors.

Q4: Can a foreigner get full ownership in Dubai?
A: Yes, especially in free zones or under new UAE business ownership rules.

Q5: What’s the renewal process for the trading license?
A: It must be renewed annually through the DED or free zone authority.

Q6: Do I need an office space for my license?
A: Yes, either a physical office or a flexi-desk depending on jurisdiction.


Conclusion: Building a Profitable Trading Business in UAE

Getting a General Trading License in Dubai is one of the best ways to enter the UAE market and expand globally. The process is straightforward when done right — from planning and selecting the right jurisdiction to completing legal formalities.

Dubai continues to attract global investors with its low taxes, advanced infrastructure, and open trading policies. Partnering with reliable consultants such as Shuraa, Virtuzone, or Damaar CDA Corporate can make the setup faster and stress-free, helping you focus on what truly matters — growing your trading business successfully.

"Step into the web of streetwear with SP5DER. Explore our exclusive collection of innovative hoodies, t-shirts, and tracksuits designed for the fearless. Embrace the fusion of bold design and unmatched comfort. Shop the latest drops now."

Leave a Reply

Your email address will not be published. Required fields are marked *