Dubai is famous as a global trading hub, attracting entrepreneurs from across the globe. The Emirate is a perfect location to launch trading activities due to its strategic location, world-class infrastructure, and supportive government policies.
For setting up a trading business in the Emirate, it is important to obtain the general trading license in Dubai. It offers flexibility and access to a wide range of opportunities.
What is General Trading?
General trading refers to the buying, selling, importing, and exporting of a wide variety of goods. Unlike specialised trade licenses which have limitations, a general trading license in UAE allows companies to deal in multiple products, such as electronics, food, clothing, furniture, and machinery.
The flexibility which comes with obtaining the license makes it a popular choice for entrepreneurs looking to explore different markets without restrictions. The Department of Economic Development is the authority that needs to be approached for availing a general trading license in Dubai.
What is a General Trading License in Dubai?
A general trading license allows entrepreneurs and businesses to export, re-export, import and trade any number of unrelated goods under one license. However, there are certain commodities which cannot be traded with the help of this license. Such products require special approvals or clearances from different UAE authorities.
It needs to be mentioned here that a ‘trading license in Dubai’ and ‘general trading license in Dubai’ are quite different. While a trading license allows business owners to trade specific types of goods for which the license is registered, a general trading license allows businesses to trade in multiple products across various industries within and outside the UAE.
What are the Benefits of a General Trading License in Dubai?
Starting a general trading company has numerous advantages, making it a smart business decision for traders. Some of the top benefits of securing a general trading license include:
- Diverse Trading Activities: Allows businesses to engage in trading of a variety of products under one license, including goods like electronics, furniture, clothing, and more.
- Global Reach: Allows businesses to easily import and export goods across international markets.
- Access to Local Market: With a Dubai mainland general trading license, you can trade freely within the UAE market.
- Flexibility: Enables businesses to trade across multiple product categories under the same license.
- Investor-friendly Environment: Dubai’s taxation policies, strong legal framework, and modern infrastructure support business growth across all sectors.
- Eligibility for Visas: Allows investors and entrepreneurs to avail visa services in Dubai for their employees as well as residency purposes.
These benefits make the general trading license in UAE a perfect choice for entrepreneurs aiming to expand their business footprint.
Mainland vs Free Zone General Trading License
When planning business setup in UAE, entrepreneurs often have to decide between setting up the business in the mainland or in any of the free zones. Here is a general comparison of securing a general trading license in the respective jurisdictions:
Dubai Mainland General Trading License
For starting a trading business in the Dubai mainland, you are required to secure a general trading license for smooth operations. Some key features include:
- Enjoying complete access to the UAE market and the ability to trade directly with local companies.
- A local service agent or sponsor is required depending on the chosen business activity and legal structure.
- No restriction on the number of residence and employment visas.
- Offering a wide range of opportunities for Dubai mainland company formation.
Free Zone General Trading License
For launching trading activities in the free zones, entrepreneurs require a free zone general trading license in Dubai. Some key features include:
- 100 percent foreign ownership without requiring a local sponsor.
- Access to state-of-the-art infrastructure.
- No personal income tax and low corporate tax rates.
- Ease of doing business and simplified business setup process.
- Exemption of custom duty
Both options come with their advantages, and the right choice depends on the business model and target audience.
Dubai General Trading License Activities
A general trading license in Dubai permits a wide range of business activities. Some of the major general trading license activities include:
- Import and export of goods and commodities
- Trading of goods or products like clothes, accessories, furniture, and electronics.
- Wholesale businesses
- Ecommerce businesses
It is important to note that regulated products such as alcoholic beverages, pharmaceutical products, frozen goods, and so on require special approval from the respective authority to be traded.
General Trading License Cost in Dubai
Having an estimate of the cost of a general trading license in Dubai helps investors plan their budgets effectively. There are many factors that influence the cost such as the jurisdiction, number of business activities, registration fees, office rent, government approvals and external clearances.
At Commitbiz, we simplify the process by offering tailored packages for businesses. Our general trading license in Dubai packages start from AED 35,000, covering essential documentation, approvals, and setup support. With our expertise, securing the license becomes smooth, transparent, and hassle-free.
Documents Required to Secure General Trading License in Dubai
You can plan UAE free zone company formation or in the business setup in the mainland, with both individual and corporate shareholders using the documents listed below:
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Type of Jurisdiction |
Individual Shareholder |
Corporate Shareholder (all the documents should be of the parent company) |
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Mainland |
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Free Zones |
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How to Get General Trading License in Dubai?
While the process for applying a general trading license is relatively straightforward, you will need to arrange the right documents and navigate the regulatory framework. With the help of professionals such as Commitbiz, this process can be quick and hassle-free.
If you are wondering how to get a general trading license, here’s a simplified step-by-step process:
Step 1: Choose Jurisdiction
Dubai offers two main jurisdictions for setting up a business. You must decide whether to set up in the mainland or free zone after considering the target audience, budget, and business goals.
Step 2: Define Activities
The next step is to list down all the business activities that you intend to venture into. Make sure the Dubai general trading license activities fall within the scope of the general trading licence and do not require special approvals.
Step 3: Select Business Name
Select a trade name that is compliant with UAE’s naming conventions. The name should reflect the nature of the business and should not contain offensive language, religious references or trademarks.
Step 4: Acquire Initial Approval
Apply for initial approval with the Dubai Department of Economic Development (DED) for mainland businesses, and the respective free zone authority for free zone businesses.
Step 5: Arrange Required Documents
To secure the general trading license, you must arrange all the essential documents for a quick registration. Taking help of experts such as Commitbiz ensures you do not miss out on any paperwork, thereby speeding up the licensing process.
Step 6: Secure License
Submit the license application along with the documents to the authorities and make the fee payment. Once the application is approved, the general trading license is offered for you to commence business activities.
Why Choose Commitbiz?
Whether you choose a Dubai mainland general trading license or prefer a free zone one, Dubai provides the ideal ecosystem for success. Securing a general trading license in Dubai is one of the most effective ways to tap into the Emirate’s trade opportunities. With a wide scope of activities and access to both local and international markets, this license is a sought after one for global entrepreneurs.
Commitbiz can help in obtaining the general trading license with ease, guiding you through every step of the process. From documentation to approvals and setup, our team of experts ensures the business journey in Dubai starts seamlessly. Contact us to get started.
Is office space required for obtaining a general trading license in Dubai?
Yes, both mainland and free zone setups require office space, though some free zones offer flexi-desk or virtual office options.
Can I trade internationally with a general trading license in UAE?
Yes, the license allows import and export activities, making it ideal for international trade.
What is the renewal process of a general trading license?
The license is valid for one year and can be renewed annually by submitting renewal documents and paying the applicable fees.
Can I sponsor employees with a general trading license?
Yes, the license allows you to sponsor visas for employees depending on the number of visas allotted for the license type.
How do I handle Value Added Tax (VAT) registration as a trading company?
If your business supplies and imports exceed AED 375,000 annually, you will need to register for VAT in the UAE. You must charge VAT on taxable goods and services, submit VAT returns, and pay the collected VAT to the UAE Federal Tax Authority.