If you’re wanting to start a business that trades a variety of goods, a general trading license in Dubai is your go-to option. It’s one of the most adaptable trade licenses available in the UAE, letting companies buy, sell, import, export, and distribute a wide mix of products – even if they’re unrelated – all under one commercial license.
This kind of setup works especially well for startups, small and mid-sized businesses, and international entrepreneurs who want to tap into the UAE’s local and global trade networks. In fact, Dubai trade grew by a whopping 7.2% year-on-year in the first quarter of 2025 alone – proof that the city remains a powerhouse for international commerce.
In this 2025 guide, we’ll walk you through the full process of setting up a general trading company in Dubai — covering everything from paperwork and pricing to VAT and customs registration.
What is a general trading license in Dubai?
A general trading license is a type of business license that allows a general trading company in Dubai to import, export, and trade a wide range of goods. All companies in Dubai must hold a license; a general trade license is a type of commercial license Dubai businesses can apply for. This license covers multiple unrelated goods (for example, kitchen appliances, electronics, and textiles) all under one umbrella. Who authorizes and issues these? The Dubai Department of Economic Development (DED) handles mainland business setups and free zones for free zone-based companies.
It is worth noting that the general trading license UAE differs from a specific activity license, such as a license for food trading, gold trading, or consulting. For activities such as those, you’ll need to apply for specific trade licenses.
With this license, you can buy, sell, and trade in multiple goods across sectors. For example, think of it as a Carrefour warehouse: electronics, food products, beauty and wellness items, tools and appliances for home DIY, and more.
What makes a Dubai general trading license so popular? It allows scalability. When your business’s profits grow and you wish to add more product lines to your business, it allows you to do so without having to apply for multiple single trade licenses.
Another one of the benefits of general trading license? Foreign investors and expats can start a general trading company in UAE without needing a local sponsor (especially in free zones).
In the next section, we’ll jump into the steps to setting up and starting your own general trading business in Dubai.
Get a general trading license in Dubai: Step-by-step
The steps to get a general trading license in Dubai are: partnering with Trade License Zone, selecting your business activities, choosing your business jurisdiction, deciding on its legal structure, reserving a trade name, securing a business location, applying for initial approval, applying for your license, opening a corporate bank account, and applying for a Dubai customs registration and import-export license.
Step 1: Partner with Trade License Zone
Your first port of call is with Trade License Zone. In how to get a trading business in Dubai set up, it all starts with expert guidance. With decades of hands-on experience and tens of thousands of successful setups under our belt, we have a deep understanding of the process.
When you choose Trade License Zone to get your general trade license, you’re choosing speed, efficiency, and peace of mind. Leave the paperwork to us – you focus on building your business empire.
Step 2: Select your business activities
When applying for your license, you need to clearly define what your general trading business will actually do. This license type covers a wide variety of business activities – from importing and exporting to wholesale, retail trading, distribution and storage, re-exporting, e-commerce, trade in multiple product lines, and even specialized categories like medical devices or chemicals.
That’s why it’s important to select the right activities from the start. Operating outside what’s listed on your license can result in penalties or worse. Each approved activity is tied to a specific code, assigned by the Dubai Department of Economic Development (DED) for mainland companies or by the relevant free zone authority.
Picking the right business activities isn’t just about compliance – it’s about setting your company up for future growth. At Trade License Zone, we help you align your license with your actual goals, so you can expand with confidence and avoid red tape down the line.
Step 3: Choose your jurisdiction
A general trading business in Dubai can be set up in one of three jurisdictions: the mainland, free zones, or offshore.
- A mainland setup allows a general trading business unlimited direct local market access across Dubai, the UAE, and internationally, and offers 100% foreign ownership in most cases – but requires a local partner or sponsor. This is best suited for general trading businesses targeting the mainland market and direct trade within the UAE.
- A free zone offers a simplified company formation process, 100% foreign ownership, tax incentives, and international trade – but trade within the UAE is restricted to within specific free zones. For mainland market access, a free zone company requires a local distributor or agent. This business setup in Dubai is perfect for importers, exporters, and companies wanting tax benefits without the need for a physical presence in the mainland market.
- An offshore setup is primarily for holding companies, asset and brand protection, tax advantages, and international trade. Importantly, offshore-registered companies aren’t permitted to conduct business within the UAE mainland or free zones. It is a business setup best suited for holding companies and managing international business affairs without involvement in the UAE market.
Step 4: Decide on a legal structure
In Dubai, you can choose from various legal structures for your business, such as a Limited Liability Company (LLC), a civil company, a sole proprietorship, a free zone company, or an offshore company.
Choosing the right one depends on your business goals, ownership preferences, and market access needs. Confused and overwhelmed? Our team is on hand to guide you through every step to ensure there are no delays, rejections, or missteps for your business formation.
Step 5: Reserve a trade name
Choose a unique name for your business that reflects its activities. The name must tick the boxes of the UAE’s strict naming regulations – including avoiding religious or blasphemous language. We’ll reserve your trade name with Dubai’s Department of Economic Development (DED) or your relevant free zone authority. Once approved, you’ll be granted a trade name reservation certificate to use for your business setup in Dubai and license application.
Step 6: Secure a business location
You’ll also need to sort out a business address. The type of setup you choose will determine what’s required. If you’re registering a mainland company, a physical office space in Dubai is mandatory. Free zone setups offer more flexibility – you can often operate from shared spaces, co-working hubs, or even virtual offices, depending on the free zone’s rules. And if you’re going the offshore route, there’s no office requirement at all.
Step 7: Apply for initial approval
Initial approval is the Dubai government’s green light for you to carry on with setting up your general trading business. How to secure initial approval? You’ll need to prepare and submit paperwork to the DED or your free zone authority:
- Passport copies of the shareholders
- Visa copies of the shareholders
- No Objection Certificate (NOC) if you’re already living and employed in the UAE
- Business plan
- Trade name reservation certificate
- List of chosen business activities
Once the authorities have approved your application, you’ll be issued with an initial approval certificate.
Step 8: Apply for the general trading license
Next, you can apply for your general trade license Dubai from the DED or free zone authority. Along with your completed application, you must include your approved business activities.
Step 9: Open a corporate bank account
With your general trading licence in hand, you can finalize your business setup. All businesses in the UAE must have corporate bank accounts for handling transactions. We’ll introduce you to banking partners best suited to general trading businesses in Dubai. Once your corporate bank account is registered, you can officially begin trading.
Step 10: Apply for Dubai customs registration and import-export license (if needed)
If your business in Dubai imports goods into the UAE or exports products internationally, you’ll need to register with Dubai Customs for a customs code. This Dubai customs code allows your company to clear goods through the UAE’s ports and borders.
After Dubai customs registration, you’ll also need to ensure you’re compliant with VAT for trading companies in UAE if applicable.
Who should apply for a general trading license?
Who should apply for a general trading license in Dubai? This business license is best suited for startups, import/export companies, and e-commerce businesses with physical products. It is a highly flexible trade license: the scalability of this business license is perfect for companies looking to grow their market and the goods they trade in, as profits roll in.
Zooming in closer, it is created for businesses that want to trade in various goods across different product categories, such as home goods (from décor to appliances, and everything in between), electronics, food products, automotive parts, and many others.
It is also perfect for international companies that wish to use Dubai as a regional trading or distribution base. Remember, Dubai’s strategic location makes it ideal for companies to tap into nearby markets in the GCC, Europe, Asia, and Africa.
Documents needed for a general trading license
The documents required for Dubai trade license typically include:
- Passport copies of all shareholders
- Visa copies and Emirates ID (if applicable)
- Trade name reservation certificate
- Initial approval certificate
- Office lease agreement or Ejari (for mainland setups)
- Memorandum of Association (MoA)
Additional paperwork may be needed, depending on your business activities and selected jurisdiction.
General trading license costs and fees in Dubai
The cost of a general trading license in Dubai is between AED 15,000 and AED 50,000-plus. This is because the Dubai trade license cost can vary depending on the jurisdiction (mainland vs. free zone), the type of office space required (physical space, warehousing, or virtual office), the number of visas needed, and the types of goods and customs registration needed for licensing approvals.
When budgeting for this license, you should also consider costs such as customs code, corporate bank account setup, visa processing, municipal approvals, translations and notarizations, insurance premiums, utility connections and deposits, accounting and audit compliance fees, and marketing costs.
Mainland vs free zone: Which is best for general trading?
Determining the best jurisdiction for a general trading business in Dubai depends on your business goals: your target customers and market access, ownership structure, and tax planning.
Is a mainland or free zone jurisdiction best for your general trading business? Let’s break it down for you.
A mainland business setup:
- Mainland trade license costs range between AED 15,000 and AED 50,000
- Can trade directly in the UAE local market without restrictions
- Traditionally, it needed a local sponsor with 51% ownership, but now many sectors allow 100% foreign ownership
- Subject to corporate tax and customs duties
- Requires a physical Dubai office (known as Ejari)
- Allows for multiple employment visas for businesses planning significant local hiring and future team expansion
- Higher setup costs
- Needs Dubai Department of Economic Development (DED) approval
A free zone setup:
- Free zone trade license starts from AED 15,000 to AED 30,000
- Best for businesses that focus on import/export and international business
- Direct mainland trade needs a local distributor or agent
- Allows for 100% foreign ownership
- Allows foreign owners full repatriation of profits
- Offers 0% corporate tax and sometimes even duty-free trading within free zones
- Flexible facilities from flexi-desks and virtual offices to warehouses and simplified paperwork
- Lower visa quota numbers than mainland setups offer
- Offers streamlined customs for imports/exports
- A free zone trading license has faster registration and lower setup fees
Here’s the bottom line:
- Do you want full UAE market presence and a local footprint? Choose mainland.
- Do you want global reach, maximum tax benefits, and 100% ownership? Choose free zone.
Activities allowed under a general trading license
The activities and goods allowed under a general trading license are broad and varied.
A general trading license in Dubai is one of the few licenses that allows for the trading of diverse and unrelated product categories under a single license. Business activities allowed under this trade license include the import and export of goods, wholesale trading, retail trading, distribution and storage, re-export, online selling (with an e-commerce license), multiple product trading, and even trading in special categories, subject to specific additional approvals and permits.
General trading companies in Dubai can trade in:
- Electronics (from mobile phones, laptops, and accessories, to electronic parts)
- Furniture (including home and office)
- Clothing (including footwear and accessories)
- Toys and games
- Industrial equipment (various machinery and industrial goods)
- Food products (although this is subject to additional health and safety approvals from Dubai Municipality)
- Cosmetics and health supplements (regulated items need special approvals from third-party authorities)
- Packaging materials
- Automotive parts
- Household products (from everyday consumer goods to office supplies)
Restricted goods you can trade in with this license include cars, alcohol, pharmaceutical and medical products, weapons, precious metals and stones, jewelry, and fresh produce. These typically need separate and special licenses and government clearance.
VAT and customs registration for trading companies
VAT and customs registration for general trading companies in Dubai is a straightforward – yet crucial compliance requirement to understand.
Which companies need to register for VAT in Dubai?
- It is mandatory for businesses exceeding AED 375,000 in turnover within 12 months to register for VAT
- Companies with a turnover of between AED 187,500 and AED 375,000 can register for voluntary VAT registration if they want to reclaim VAT on expenses or trade with VAT-registered businesses
- Registration is via the Federal Tax Authority (FTA)
- To comply with FTA regulations, registered companies must issue VAT invoices, file quarterly returns, and keep detailed financial records
How to register your general trading company for VAT with the FTA?
- Businesses must register via the FTA’s e-Services portal
- Paperwork needed includes your trade license copy, passport and Emirates ID copies of the owners, Articles of Association or Memorandum of Association, corporate bank account details, proof of business address, and details of the business’s import and export operations.
- Once approved, you will be issued a Tax Registration Number (TRN) and a VAT certificate
What is Dubai customs registration?
- This is necessary for any business that imports and/or exports goods to clear through UAE ports and borders
- Registration is through Dubai Customs
- This gives companies a unique customs code for customs clearance purposes
Frequently asked questions
What is a general trading license in Dubai?
It allows a business to import, export, and sell multiple, unrelated types of goods under a single commercial license.
How much is a general trade license in Dubai?
Costs vary between AED 15,000 and AED 50,000-plus, depending on business setup and location.
What are the different types of trade licenses in Dubai?
The main types of trade licenses in Dubai are commercial license (for trading), professional license (for services), industrial license (for manufacturing), tourism license, and freelancer license.
Which is the cheapest trade license in UAE?
Free zone trading licenses (especially for small companies with no office) are often the cheapest options.
How long is a trade license valid in Dubai?
Trade licenses in Dubai are usually valid for 1 year and are renewable annually.
Why work with Trade License Zone
Business setup in Dubai is faster and smoother with expert help. Getting a trade license and registering a company can be a time-consuming and overwhelming process for a business owner when tackled alone.
We make setting up a business easy. We offer tailored solutions, including government paperwork and PRO services, trade name reservation and document handling, DED and free zone approvals for a general trading license in Dubai, as well as VAT and customs registration support. Our team is also on hand to assist with renewals, compliance, and just about anything else your business may have.
So, where do you begin? Contact Trade License Zone for a custom quote, and let’s get your business up and running.
