A general trading license in Dubai empowers businesses to import, export, and trade a diverse range of products under a single license. Whether you’re a local entrepreneur or an international investor, this license offers the flexibility to operate across various sectors, making it a popular choice for those aiming to tap into Dubai’s dynamic market.
Table of Contents
Table of Contents
Key Takeaways
- Trade multiple, unrelated products without separate permits.
- Choose between Mainland, Free Zone, or Offshore setups.
- The process includes selecting business activities, registering a trade name, and obtaining approvals.
- Setup costs typically range from AED 12,000 to AED 50,000.
- Dubai offers access to global markets, favorable tax regimes, and 100% ownership in many cases.
What is a General Trading License?
A general trading license allows businesses to engage in the import, export, and trading of a wide array of goods, including unrelated products like electronics, clothing, and furniture. However, certain regulated items such as alcohol, tobacco, and pharmaceuticals require additional permits.
It is one of the most flexible and sought-after commercial licenses in Dubai, offering the ability to operate across multiple sectors. This makes it particularly appealing to investors interested in diversified product portfolios or global e-commerce expansion.
Activities Covered
- Import and export of goods
- Wholesale and retail trading
- Online and offline sales
- Storage and warehousing
- Trading of manufactured, finished, or processed goods
Activities Requiring Special Approvals
- Alcohol and tobacco products
- Pharmaceuticals and medical equipment
- Hazardous materials
- Food and beverage (requires municipality approval)
- Cosmetics and personal care products
Types of General Trading Licenses in Dubai
| License Type | Ownership | Trade Scope | Taxation | Office Requirement |
|---|---|---|---|---|
| Mainland | Up to 100% foreign ownership (subject to activities) | Across UAE | 9% corporate tax | Mandatory |
| Free Zone | 100% foreign ownership | Within Free Zone and international markets | 0% corporate tax Qualifying Income. Other non Qualifying Income has to pay 9 % | Flexible options |
| Offshore | 100% foreign ownership | International markets only | 0% corporate tax if they meet specific qualifying conditions | Not required |
Mainland licenses allow trade throughout the UAE but often involve additional compliance such as tenancy contracts and local approvals. Free Zone licenses are easier to obtain and typically bundled with office space, while Offshore licenses are suitable for businesses that do not need a physical presence in the UAE.
Benefits of a General Trading License
- Diverse Trade Possibilities: You can trade electronics, fashion, furniture, and more under a single license.
- Business Scalability: Suitable for startups and large enterprises aiming to scale globally.
- Tax Efficiency: Many jurisdictions offer 0% corporate and personal income tax.
- Reputation and Market Access: Operating from Dubai enhances global credibility.
- E-commerce Readiness: Ideal for online traders who need a reliable legal framework.
- Operational Flexibility: Easily add or remove business activities without major restructuring.
- Ease of Expansion: Open branches or expand to other emirates with streamlined approvals.
Step-by-Step Process to Obtain a General Trading License
- Choose the Jurisdiction: Decide between Mainland, Free Zone, or Offshore based on your business goals and trading model.
- Select Business Activities: Identify all intended commercial activities. Accurate selection ensures full compliance.
- Register Trade Name: Choose a trade name that complies with DED or Free Zone naming rules.
- Prepare Documentation: Required documents include shareholder passport copies, business plan (if requested), tenancy contract, MOA, and NOC if applicable.
- Submit Application: Apply via the DED, a Free Zone authority (e.g. IFZA, Meydan FZ), or an offshore registrar.
- Obtain Initial Approvals: Includes external approvals depending on the nature of your activities.
- Pay Fees and Collect License: Once approvals are secured, pay the relevant license and establishment fees.
- Complete Visa and Immigration Steps: Register for e-channel services, apply for entry permits, Emirates ID, and medical fitness test.
- Open Corporate Bank Account: Once your license is issued, open a bank account in the UAE to start operations.
- Consider Tax Registration: Depending on your revenue and jurisdiction, register for VAT and understand corporate tax implications.
Cost Breakdown
| Expense Category | Estimated Cost (AED) |
| License Fee | 15,000 – 50,000 |
| Office Space | 10,000 – 30,000 |
| Visa Processing (per visa) | 3,000 – 7,000 |
| Trade Name Registration | 1,000 – 3,000 |
| Additional Approvals | Varies |
| Medical Tests/Emirates ID | 500 – 1,200 |
| Bank Account Opening | 1,000 – 2,000 |
Additional costs may include notarization, legal contracts, insurance, and third-party service fees. Some Free Zones provide cost-effective bundled packages for startups.
Legal and Compliance Requirements
- Office Space: Physical office space is mandatory in most jurisdictions (Flexi-desk accepted in Free Zones).
- Visa Quota: Based on office size; affects how many employees can be sponsored.
- Annual Renewal: All licenses must be renewed each year to remain active.
- Share Capital: Some jurisdictions require a minimum declared share capital (e.g., AED 50,000).
- VAT & Corporate Tax: Businesses with taxable revenue must register for VAT. Corporate tax applies to net profits above AED 375,000.
- E-Channel Registration: Compulsory for immigration and visa processing.
- Record-Keeping: Maintain proper accounting and business records to comply with UAE regulations.
Common Challenges and Solutions
- Choosing Jurisdiction: Misalignment with business goals can limit operational capability. Engage a professional advisor.
- Bank Account Opening: Some Free Zones are more favorable to UAE banks. Provide clear documentation and business plans.
- Regulatory Delays: Missing documents or incorrect activity codes can delay approval. Use expert consultants.
- Visa Allocations: Plan office space based on future staffing needs.
- Document Attestation: For foreign documents, notarization and embassy attestation may be required.
Frequently Asked Questions
Q: Can I trade internationally with a general trading license?
Yes, both Mainland and Free Zone licenses allow international trade.
Q: What is the difference between a trade license and a general trading license?
A trade license may be limited to specific activities, while a general trading license allows you to trade unrelated products.
Q: Can I sell online with this license?
Yes, provided your license activities include e-commerce or retail trade.
Q: How long does the process take?
Anywhere from 5 to 15 working days, depending on jurisdiction and documentation.
Q: Do I need a physical office?
Yes, but some Free Zones offer Flexi-desks as a low-cost alternative.
Q: Can I apply for multiple visas under one license?
Yes, depending on your office space and Free Zone or DED guidelines.
Q: Will I get assistance opening a business bank account?
Setup agencies like Prolink TFS assist clients in navigating banking requirements and documentation.
Why Choose Prolink TFS for Your Business Setup?
At Prolink Transaction Follow Up Services (Prolink TFS), we specialize in business license registration, company formation, PRO services, and corporate compliance in Dubai and across the UAE.
Our Services Include:
- Mainland and Free Zone company formation
- Visa and residence permit processing
- Assistance with Emirates ID, status change, and entry permits
- End-to-end PRO services and ongoing compliance support
- Dedicated support for commercial license and general trading activities
- Help with opening UAE bank accounts, document attestation, and translation
Contact us today to explore tailored solutions for your business license and take advantage of Dubai’s growing global trade ecosystem.