adminWhat Is a General Trading License and Why Is It Different?
Most commercial licenses in Dubai allow you to trade in one specific product category. If your license says ‘Electronics Trading,’ you can only sell electronics. If you want to add furniture, you need to amend your license and pay extra fees. This is how a standard trading license works.
A General Trading License is different. It covers a wide range of product categories under a single permit. You can import electronics, export textiles, distribute consumer goods, and trade in furniture or building materials, all under the same license. You do not need a separate license each time you add a new product line. This flexibility is what makes the General Trading License the top choice for entrepreneurs who want to
register a business in Dubai with room to grow. Dubai saw a 7.2% year-on-year increase in trade in Q1 2025 alone. The infrastructures, such as Jebel Ali Port, Dubai International Airport, and Al Maktoum Airport, makes it one of the most connected trade hubs in the world.
What Products Can You Trade Under a General Trading License?
The General Trading License covers most consumer and commercial goods. Here are the main categories you can trade freely:
- Electronics and electrical equipment
- Textiles, garments, and fashion accessories
- Food products (non-regulated, standard FMCG goods)
- Furniture, home décor, and household goods
- Building materials and hardware
- Machinery and industrial equipment
- Cosmetics and personal care products
- Stationery and office supplies
- Auto parts and vehicle accessories
However, one common misconception is that a General Trading License covers all goods without any restrictions. That is not true. Certain product categories require extra approvals from specific government bodies, even with a General Trading License in hand:
| Restricted Category | Extra Approval Needed From | Notes |
| Pharmaceuticals & medicines | Ministry of Health and Prevention | Product registration required |
| Medical devices & supplements | Ministry of Health (DHA) | Registration per product |
| Alcohol and tobacco | Liquor permits and excise compliance | Special distribution rules apply |
| Chemicals and hazardous goods | Municipality + Environmental Authority | Safety certification required |
| Security / surveillance items | Ministry of Interior (SIRA) | Strict permit requirements |
| Pork products | Designated licensed distributors only | Sold only in specific locations |
| Weapons and narcotics | Completely prohibited under UAE law | Cannot be imported or traded |
The key point is that restrictions do not mean you cannot trade these goods, it means there is an extra approval process. Many businesses successfully trade in pharmaceuticals and medical equipment. They simply go through the correct regulatory channels first.
Mainland vs Free Zone: Which Is Better for General Trading?
Before you register a business in Dubai as a general trading company, you must decide where to set up. This is one of the most important decisions you will make, because it directly affects who you can sell to and how your goods move in and out of the UAE.
| Feature | Mainland (DET License) |
| Sell directly to UAE customers? | Yes; unrestricted access to local market |
| Foreign ownership? | 100% allowed for most trading activities |
| Office requirement? | Physical office (min. 200 sq. ft.) + Ejari |
| Customs duties on imports? | 5% standard UAE customs duty applies |
| Best for? | UAE local market sales, retail, wholesale |
| Annual license cost? | AED 20,000 – AED 50,000 (incl. office rent) |
| Setup timeline? | 10 – 14 working days (full process) |
| Feature | Free Zone (IFZA, DMCC, JAFZA, etc.) |
| Sell directly to UAE customers? | No; need a mainland distributor or branch |
| Foreign ownership? | 100% always available |
| Office requirement? | Flexi-desk or virtual office accepted |
| Customs duties on imports? | Zero duty within the free zone |
| Best for? | Import-export, international trade, re-export |
| Annual license cost? | AED 12,500 – AED 30,000 (base packages) |
| Setup timeline? | 3 – 7 working days |
If your primary customers are inside the UAE, such as supermarkets, retailers, wholesalers, or direct consumers, a mainland General Trading License is the right choice. If you are mainly importing and re-exporting to international markets, or trading within a free zone ecosystem, a free zone license saves money and offers faster setup. Good company setup consultants Dubai will help you map your customer base first and then recommend the right jurisdiction.
Step-by-Step: How to Register a General Trading Company in Dubai
Here is the complete process to register a business in Dubai as a general trading company. These steps apply to a mainland LLC setup under the Dubai Department of Economy and Tourism (DET).
| Step | Action Required |
| Step 1 | Choose your legal structure; LLC (Limited Liability Company) is the most common for mainland trading companies |
| Step 2 | Reserve your trade name; check DET guidelines and submit 2–3 backup names in case your first choice is taken |
| Step 3 | Apply for initial approval; submit your business activity (General Trading) and shareholder details to DET (1–3 business days) |
| Step 4 | Draft and notarize your MOA; prepare the Memorandum of Association with correct shareholder details, share split, and company objects. Notarize at Dubai Courts (AED 1,500 – AED 3,000) |
| Step 5 | Sign your office lease and register via Ejari; lease a commercial space (minimum 200 sq. ft.) and register on the Ejari portal (~AED 160 registration fee) |
| Step 6 | Pay government fees and receive your trade license; DET issues the license within 5 to 14 working days from full document submission |
| Step 7 | Register for customs clearance; apply for your import code through the Dubai Trade Portal (dubaitrade.ae). Cost: AED 120 – AED 500. Timeline: 1–3 business days |
| Step 8 | Register for VAT if applicable; mandatory if your annual taxable turnover exceeds AED 375,000 |
| Step 9 | Apply for investor or employee visas; each visa takes 7–14 business days and costs AED 3,000 – AED 7,000 per person |
| Step 10 | Open your corporate bank account; submit your trade license, MOA, Ejari, and shareholder documents to your chosen bank (2-4 weeks processing) |
Many of these steps happen in parallel, especially for experienced company setup consultants Dubai who manage the process on your behalf. When done correctly, a general trading company can be fully operational in as little as 2 to 3 weeks from the first submission.
Documents You Need to Register a General Trading Company
Whether you register a business in Dubai on the mainland or in a free zone, you will need these core documents from all shareholders:
- Valid passport copy (minimum 6 months validity remaining)
- Passport-size photograph with white background
- UAE visit/tourist entry stamp or existing residence visa copy (if currently in UAE)
- Proof of residential address, a utility bill or recent bank statement from your home country
For corporate shareholders (if a company is a shareholder), additional documents are required:
- Certificate of Incorporation of the parent company
- Memorandum and Articles of Association of the parent company
- Board Resolution authorizing the investment in the Dubai entity
- All documents must be notarized in the country of origin and attested by the UAE Embassy there
Document preparation takes the most time for international investors. Having everything ready before you start the application process can cut your overall setup timeline by 5 to 7 days.
General Trading License Cost in Dubai: 2026 Breakdown
The total cost of setting up a general trading company in Dubai ranges from AED 15,000 to AED 50,000 for the first year, depending on your jurisdiction and office arrangement. Here is a detailed breakdown for a mainland LLC:
| Cost Component | Mainland (AED) | Free Zone (AED) |
| Trade name reservation | 620 – 2,000 | 500 – 1,500 |
| Initial approval fee | 100 – 300 | Included in package |
| MOA drafting and notarization | 1,500 – 3,000 | Not required (FZ MoA) |
| Trade license (annual) | 15,000 – 25,000 | 10,000 – 20,000 |
| Ejari / office registration | 160 + lease (AED 40k–80k) | 5,000 – 15,000 (flexi-desk) |
| Customs import code registration | 120 – 500 | 120 – 500 |
| Investor visa (per person) | 3,000 – 7,000 | 2,500 – 6,000 |
| VAT registration | Free (if applicable) | Free (if applicable) |
| First Year Total (est.) | AED 25,000 – AED 55,000 | AED 15,000 – AED 35,000 |
Office rent is the biggest variable for mainland companies. A basic commercial space in areas like Al Quoz, Deira, or Sharjah border areas can start from AED 25,000 per year. Premium locations like Downtown Dubai, Business Bay, or Jumeirah Lake Towers will cost significantly more.
What Happens After You Get Your License?
Getting your General Trading License is the starting point, not the finish line. Several important steps follow before your company is fully operational. New business owners who register a business in Dubai often overlook these post-license requirements:
Get Your Customs Import Code
This is essential for any business that imports goods. Without a customs code, your shipments will be held at the port or airport and you cannot clear them legally. The Dubai Trade Portal at dubaitrade.ae handles the registration. It takes 1 to 3 business days and costs between AED 120 and AED 500.
Register for VAT
If your annual taxable turnover crosses AED 375,000, VAT registration with the Federal Tax Authority (FTA) is mandatory. A General Trading License covers most standard goods under the standard 5% VAT rate. Certain goods like basic food items are zero-rated. Your accountant or tax advisor should set up your VAT account and invoicing system from day one.
Set Up Your Supply Chain
A general trading company lives or dies by its supply chain. You need to identify reliable suppliers in your product categories, negotiate payment terms, and arrange import logistics. If you are in a free zone, you also need to appoint a mainland distributor for any UAE-market sales. JAFZA and DAFZA free zones offer direct port and airport access, which is a major advantage for high-volume importers.
Get Warehouse or Storage Space
Physical trading requires somewhere to store your goods. In free zones, warehouse units are available from the free zone authority itself, typically from AED 15,000 to AED 60,000 per year depending on size. For mainland companies, external warehouses in industrial areas like Al Quoz and JAFZA surroundings are widely available.
Ready to Register? Let Socialite Consultancy Services Set It Up for You
A General Trading Company in Dubai is one of the most scalable and flexible businesses you can build. But getting the setup right; the right jurisdiction, the right license structure, the correct customs codes, and a clean MOA; requires real expertise. At Socialite Consultancy Services, we specialize in helping entrepreneurs register a business in Dubai the right way, from start to finish.
Our experienced company setup consultants Dubai have helped hundreds of trading companies get their licenses, customs codes, visas, and bank accounts set up, without delays, errors, or unexpected costs. We handle every step on your behalf so you can focus on finding your first supplier and making your first trade.
Contact Socialite Consultancy Services today for a free consultation. Tell us what you want to trade, and we will build the roadmap to get you licensed and ready in the shortest time possible.
Frequently Asked Questions (FAQs)
Q1. What is the difference between a General Trading License and a standard Trading License in Dubai?
A standard trading license restricts you to one product category. A General Trading License lets you import, export, and sell multiple unrelated product categories under one permit. You can add new products without amending your license, making it far more flexible for growing businesses.
Q2. Can a foreigner register a general trading company in Dubai without a local partner?
Yes. Since 2021, most general trading activities on the Dubai mainland allow 100% foreign ownership. A local sponsor is no longer required for most commercial categories. Free zone general trading companies have always allowed full foreign ownership, with no partner needed at all.
Q3. How long does it take to get a General Trading License in Dubai?
For mainland companies, the full process including Ejari registration takes 10 to 14 working days. DET’s Instant License portal can issue a basic license in 3 to 5 days for simpler setups. Free zone licenses are typically issued in 3 to 7 working days with complete documentation ready.
Q4. Do I need a customs import code separately from my trading license?
Yes. Your trade license permits you to trade, but a separate customs code is needed to physically import goods into the UAE. You register for it through the Dubai Trade Portal at dubaitrade.ae. It costs AED 120 to AED 500 and is issued within 1 to 3 business days.
Q5. Can a Dubai free zone General Trading License sell directly to UAE customers?
Not directly. Free zone companies cannot sell to UAE mainland customers without appointing a mainland-licensed distributor or opening a mainland branch. Goods moved from a free zone into the UAE mainland are also subject to a 5% customs duty. Mainland setup is needed for direct UAE market access.