General Trading License in Dubai: Cost, Process & Benefits

  • Home
  • Blog
  • General Trading License in Dubai: Cost, Process & Benefits
blog image

Introduction

Planning to start a trading business in Dubai? You need a general trading license in Dubai. This license is one of the most versatile business permits available, allowing you to trade in a wide range of products across multiple categories.

Unlike specialized trading licenses that restrict you to specific product lines, a general trading license gives you the flexibility to import, export, and distribute hundreds of different products. It’s perfect for entrepreneurs who want to maximize their business opportunities in one of the world’s leading commercial hubs.

In this guide, we’ll cover everything you need to know about obtaining a Dubai general trading license, including costs, permitted activities, renewal requirements, and the complete application process.

What Is a General Trading License in Dubai?

A general trading license in Dubai is a commercial permit issued by the Department of Economic Development (DED) or relevant free zone authorities. It allows businesses to trade in multiple product categories simultaneously.

Key Differences:

  • General Trading License: Trade in hundreds of products across different categories
  • Specific Trading License: Limited to particular product types (electronics, textiles, food, etc.)
  • Professional License: For service providers only
  • Industrial License: For manufacturing and production

This license is ideal if you want the freedom to trade diverse products without being restricted to a single niche.

General Trading License Dubai Activities List

The general trading license Dubai activities list is comprehensive and covers numerous product categories. Here are the main trading activities:

Popular Trading Activities:

  • Consumer Goods: Electronics, home appliances, furniture, textiles
  • Food & Beverages: Packaged foods, beverages, snacks (excluding alcohol)
  • Building Materials: Construction supplies, hardware, sanitary ware
  • Automotive Parts: Vehicle accessories, spare parts, tires
  • Medical Equipment: Healthcare devices, medical supplies (with approvals)
  • Cosmetics & Personal Care: Beauty products, perfumes, toiletries
  • Stationery & Office Supplies: Paper products, office equipment
  • Toys & Gifts: Children’s products, novelty items
  • Textiles & Garments: Clothing, fabrics, accessories
  • Electrical & Electronics: Cables, components, household electronics

You can select multiple product categories under one general trading license, giving you maximum business flexibility.

Benefits of a General Trading License in Dubai

Why choose a general trading license?

1. Maximum Flexibility

Trade in hundreds of products without needing separate licenses for each category.

2. Business Expansion Opportunities

Start with a few products and easily expand into new categories as market demands change.

3. Strategic Location

Dubai’s position as a global trading hub connects you to markets in Asia, Africa, Europe, and beyond.

4. Tax Advantages

Benefit from zero personal income tax and competitive corporate tax rates (subject to recent regulations).

5. World-Class Infrastructure

Access state-of-the-art ports, logistics facilities, and free zones that streamline import/export operations.

6. Credibility & Trust

A registered general trading license enhances your business reputation with suppliers and clients worldwide.

General Trading License Cost in Dubai

The general trading license cost in Dubai varies based on location, office requirements, and additional services.

Estimated Cost Range:

  • Mainland General Trading License: AED 20,000 – AED 40,000 annually
  • Free Zone General Trading License: AED 15,000 – AED 30,000 annually

Factors Affecting Cost:

  • Number of activities selected
  • Office space size and location
  • Warehouse requirements
  • Number of visa allocations
  • Mainland vs free zone setup
  • Additional government approvals
  • Import/export permits

Additional Costs to Consider:

  • Office/warehouse rent: AED 15,000 – AED 100,000+ annually
  • Security deposit: Usually 5-10% of annual rent
  • Business setup consultancy: AED 5,000 – AED 15,000
  • Visa costs: AED 3,000 – AED 5,000 per visa

Always request a detailed breakdown from your business consultant to understand total investment required.

Step-by-Step Process to Get a General Trading License in Dubai

Applying for a Dubai general trading license involves several key steps:

Step 1: Choose Your Business Structure

Decide between:

  • Limited Liability Company (LLC): Most common for mainland
  • Free Zone Company (FZC/FZE): For free zone setups
  • Branch Office: If you have an existing company abroad

Step 2: Select Your Trading Activities

Choose from the general trading license Dubai activities list. Select all categories you plan to trade in.

Step 3: Register Your Trade Name

Pick a unique business name that complies with UAE naming regulations. Avoid religious terms, offensive words, or names similar to existing companies.

Step 4: Get Initial Approval

Submit your application to:

  • DED for mainland licenses
  • Relevant free zone authority for free zone licenses

Step 5: Secure Office and Warehouse Space

You’ll need:

  • A registered business address
  • Warehouse or storage facility (size depends on your trading volume)
  • Tenancy contract (Ejari registration for mainland)

Step 6: Obtain Import/Export Codes

Register with Dubai Customs and obtain:

  • Importer/Exporter code
  • Customs registration

Step 7: Open a Corporate Bank Account

Choose a UAE bank and open a business account for trading transactions.

Step 8: Receive License Issuance

Once approved and fees are paid, collect your official license certificate.

Step 9: Apply for Visas

Apply for investor, partner, and employee visas as needed for your business operations.

General Trading License Renewal Dubai

Every trading license must be renewed annually. The general trading license renewal Dubai process requires careful planning.

Renewal Timeline:

Begin renewal 30–60 days before expiry to avoid penalties and business disruption.

Documents Required:

  • Original license certificate
  • Valid tenancy contract (Ejari for mainland)
  • Passport copies of shareholders/partners
  • Memorandum of Association (MOA)
  • Previous year’s financial statements (if applicable)
  • No Objection Certificate from landlord

Late Renewal Penalties:

Failing to renew on time results in:

  • Fines ranging from AED 1,000 to AED 10,000
  • Potential license suspension
  • Immigration fines for expired visas
  • Inability to conduct business legally

Set up automatic reminders or hire a PRO (Public Relations Officer) service to manage renewals seamlessly.

Mainland vs Free Zone General Trading License

Choosing between mainland and free zone depends on your business model and target market.

Mainland General Trading License:

Advantages:

  • Trade anywhere in UAE and GCC countries
  • Access local UAE market directly
  • No restrictions on business activities within UAE
  • Can bid for government contracts

Requirements:

  • Local service agent required (UAE national holding 0% shares)
  • Higher setup costs
  • More documentation required

Best For: Businesses targeting the UAE local market and wanting unrestricted operations.

Free Zone General Trading License:

Advantages:

  • 100% foreign ownership
  • No local sponsor needed
  • Simplified setup process
  • Tax exemptions and incentives
  • Modern office facilities

Limitations:

  • Cannot trade directly in UAE mainland (without a distributor)
  • Restricted to free zone and international markets
  • Need mainland distributor for local sales

Best For: Import/export businesses, companies serving international markets, and those wanting full ownership.

Popular Free Zones for Trading:

  • Jebel Ali Free Zone (JAFZA)
  • Dubai Multi Commodities Centre (DMCC)
  • Dubai Airport Free Zone (DAFZA)
  • Dubai South
  • Ajman Free Zone

Common Mistakes to Avoid

1. Underestimating Space Requirements

Many traders don’t allocate enough warehouse space, leading to storage issues and additional costs.

2. Selecting Insufficient Activities

Add all potential product categories upfront. Adding activities later involves amendments and extra fees.

3. Ignoring Customs Regulations

Different products have different import requirements. Research compliance needs for each category.

4. Poor Location Choice

Choose your office/warehouse location based on logistics efficiency, not just cost.

5. Missing Renewal Deadlines

Late renewals disrupt business operations and damage your trading reputation.

6. Inadequate Capital Planning

Trading businesses require significant working capital for inventory. Don’t underestimate cash flow needs.

Conclusion

Obtaining a general trading license in Dubai opens doors to unlimited business opportunities in one of the world’s most dynamic trading environments. Whether you’re importing electronics, exporting textiles, or distributing consumer goods, this license provides the flexibility and credibility you need.

Understanding the general trading license cost in Dubai, exploring the comprehensive general trading license Dubai activities list, and staying compliant with general trading license renewal Dubai requirements will position your business for long-term success.

Dubai’s strategic location, world-class infrastructure, and business-friendly regulations make it the perfect base for trading operations targeting regional and global markets.

Ready to start? Research mainland vs free zone options, calculate your total investment, and take the first step toward building your trading empire in Dubai today.

Frequently Asked Questions

Q1: Can I start with a general trading license as a sole proprietor?
For mainland, you need at least one partner (can be 100% foreign-owned LLC). Free zones offer options for single-owner companies (FZE).

Q2: How long does it take to get a general trading license in Dubai?
The process typically takes 2–4 weeks once all documents are submitted and approvals obtained.

Q3: Do I need a physical warehouse for a general trading license?
Yes, most authorities require proof of warehouse space. The size depends on your trading volume and product types.

Q4: Can I trade in food products with a general trading license?
Yes, but you’ll need additional approvals from Dubai Municipality and must comply with food safety regulations.

Q5: What’s the minimum share capital required?
For mainland LLC, there’s no minimum capital requirement, but it should be reasonable for your business scope. Free zones have varying requirements.

Q6: Can I convert my general trading license to a different license type later?
Yes, you can amend your license or apply for a new one, though it involves additional processes and fees.

Ready to launch your trading business in Dubai? Contact a licensed business setup consultant today and turn your commercial vision into reality!

Leave a Reply

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