Starting a General Trading Business in Dubai, UAE in 2024

A general trading license in Dubai is one of the most in-demand and, hence, widely issued trade licenses in Dubai and across the UAE. This is because Dubai is steadily cementing itself as one of the best business hubs in the Middle East and the rest of the world. Its desirable geographic location has earned massive popularity among global entrepreneurs, especially commodity traders.

Dive into our guide to learn what a general trading license is and find out how to get one for your business in Dubai.

Table of Contents
What is general trading?
What Is a General Trading License in UAE?
Why Do You Need a Dubai General Trading License?
Why Consider Starting a Dubai General Trading License?
Advantages of Setting up a General Trading Company in Dubai
What Kinds of Business Licenses Are Available in Dubai, UAE?

How To Get a General Trading License in Dubai?1. Choose Your Jurisdiction
2. Choose A Company Name
3. Secure Office Space
4. Getting Customs Clearance

Documents Needed for a General Trading License in Dubai
UAE General Trading License Activities
Dubai Mainland General Trading License
Dubai Free Zones General Trading License
General Trade License Dubai Cost
Difference between general trading license and regular trade license
What is the Duration for Getting a Trade License in Dubai?
What is the Instant Trade License in Dubai?
Get Your General Trading License with Altharaa

What is general trading?
General trading signifies buying and selling lots of different things from different industries. In Dubai, the government’s Department of Economic Development gives licenses for this kind of trading. Here’s how they explain it:

General trading includes businesses that bring in goods from other places, sell them, and sometimes send them out again. This is all allowed by the UAE government. Some trading doesn’t need special permission, but some do. For those that need special authorisation, they can apply for a general trading license. But first, they need a certificate saying the relevant departments don’t object.

A general trading company can do lots of different types of business activities. It can sell machines, chemicals, houses, and food with just one license.

What Is a General Trading License in UAE?
A general trading license in Dubai allows you to import, export, and trade a wide range of goods and products. This license stands out for its versatility, allowing you to engage in trading diverse items, with only a few exceptions like tobacco and products not meeting health standards. Explore the flexibility of a general trading license for your business in Dubai.

A ‘general trading license’ is different from a ‘trading license.’ A trading license lets you only trade in one type of product from one industry. However, a general trading license lets you trade multiple products from different sectors.

Why Do You Need a Dubai General Trading License?
If you’re from another country and want to start a business in Dubai selling different things, you’ll need to get a “general trading license.” This license is essential, especially if you plan to sell many different things. Even if the items you want to sell are from different areas, this license will cover them all. Getting a Dubai General Trading License is crucial to start a company in Dubai without trouble.

Once you have a Dubai General Trading License, your business can buy and sell under this license. Once you’ve sorted out this important part of starting your company, you’re set to become an effective player in the buying and selling world, providing needed goods to businesses in Dubai, the UAE and other countries.

Why Consider Starting a Dubai General Trading License?
Benefits of a general trading license in Dubai encompass diverse trade opportunities, low tax rates, flexibility in product trading, streamlined licensing, easy visa sponsorship, strategic global positioning, exceptional infrastructure, extensive support services, and a thriving business-friendly environment, ensuring sustained success and market presence.

Opportunities for Local and International Trade: Obtain a Dubai General Trading License to import or produce a wide range of goods for sale in the local market or export to lucrative international markets.
Advantageous Low Tax Rate: Benefit from one of the world’s lowest tax rates in the UAE, making it an attractive location to start a business and produce goods cost-effectively with a General Trading License in Dubai.
Diverse Range of Products to Trade: Trade a variety of products with minimal restrictions, allowing for flexibility in your business operations. While initial license fees may be higher, the long-term benefits justify the investment.
Straightforward Licensing Process: Experience a profitable and transparent licensing process. Obtain your general trading license from the Department of Economic Development (DET) within one week by submitting the necessary documents, avoiding lengthy registration procedures elsewhere.
Suitable Visa Sponsorship for Dependents: Enjoy the convenience of facilitating visa applications for employees and dependents through the general trading license, making it easier to acquire UAE visas.
Strategic Position in Global Trade: Leverage Dubai’s strategic location at the heart of the global trade map, providing abundant opportunities for the success of your trading business.
Outstanding Infrastructure Support: Benefit from Dubai’s top-notch infrastructure, including warehouses, logistics companies, excellent seaports and airports, and a simplified customs process, enhancing the efficiency of your business operations.
Extensive Business Networks and Support Services: Access a wide range of support services for your trading company in the UAE, including logistics, warehousing, legal, marketing, finance, and more.
Business-Friendly Environment and High Demand: The Dubai government is business-friendly and has created an environment that facilitates smooth and transparent general trading. Additionally, the country’s affluent population and booming economy ensure that the products you import will find a ready market.
Operate in a business-friendly environment created by the Dubai government, ensuring smooth and transparent general trading. Take advantage of the country’s affluent population and booming economy, guaranteeing a ready market for the products you import.

Advantages of Setting up a General Trading Company in Dubai
Curious about the benefits of establishing a general trading company in Dubai? A general trading license company offers numerous advantages to investors and entrepreneurs.

Superior Infrastructure: Dubai boasts high-quality office spaces with flexible rent or lease plans and top-notch infrastructural luxuries. This helping environment provides an excellent location for companies to conduct their operations efficiently.
Streamlined Business Setup: forming a corporation in the UAE is clear. With all paperwork in order, the operation can be completed within 3-4 working days.
Minimal Capital Requirements: Unlike many other jurisdictions, there’s no need to furnish a bank guarantee or deposit share capital with the bank in Dubai. Additionally, UAE enterprises enjoy the benefit of 100% capital repatriation.
Favorable Taxation Policy: The UAE offers businesses a low corporate tax environment. Investors with a license in the UAE are only required to pay taxes on earnings or revenue transcending the threshold of AED 375,000, which is extremely low compared to global standards.
Absence of Trade Barriers: Setting up a business in Dubai incurs the tiniest expenditures and time. Additionally, holders of mainland trading licenses are reduced from paid-up share capital conditions and routine audits, thus boosting the company’s profitability and affordability. Therefore, there are no trade barriers restricting business operations in the UAE.

What Kinds of Business Licenses Are Available in Dubai, UAE?
Dubai primarily offers four types of business licenses, although additional specialised licenses may exist in various economic zones within the city. These four licenses are the most sought-after in Dubai Mainland. Here are the four main types of business licenses available in Dubai, UAE:

Commercial Trade License
Professional Trade License
Industrial Trade License
Tourism Trade License
The commercial trade license in Dubai is for businesses buying and selling goods. Activities include trading, importing, exporting, renting, brokering, and more.
The professional business license in Dubai is for businesses offering services to individuals or other businesses.
The industrial trade license in Dubai is for businesses manufacturing products within the country. Ownership of physical office space in the country is a requirement for obtaining this license.
The tourism license in Dubai is for tour-organizing businesses. It’s a newer trade license in the UAE.
Even if your business is in Dubai but you trade internationally, you still need a commercial trade license.
You can access lucrative government contracts with a professional license in Dubai Mainland.
The industrial trade license permits activities such as importing raw materials, processing, packaging, selling, and exporting finished products.
The government introduced this license to regulate the UAE’s tourism industry. Travel agencies, hospitality businesses, tour operators, etc., must obtain it.
How To Get a General Trading License in Dubai?
To get a general trading license in Dubai, follow these steps: Choose your jurisdiction, choose a company name, secure office space, and get customs clearance.

Below are the steps to get a General Trading license in Dubai:

1. Choose Your Jurisdiction
When considering whether to start your business in the mainland or opt for a Free Zone in the UAE, it’s crucial to weigh several key factors. In the Mainland, a UAE national partner is mandatory, confirming local involvement in your venture. Conversely, Free Zones grant the invaluable advantage of 100% foreign ownership. Location plays a pivotal role, as Mainland areas offer proximity to established markets and urban centers, whereas Free Zones often boast specialized infrastructure custom-made to specific industries.

Moreover, the availability of licenses differs between the two options, with Free Zones typically offering efficient courses for procurement permits personalized to the needs of international businesses. Whether prioritizing local engagement, exploring global opportunities, or seeking handmade regulatory frameworks, your decision between Mainland and Free Zones should hinge on careful consideration of these factors.

2. Choose A Company Name
When selecting a name for your business in Dubai, adherence to the city’s naming guidelines is imperative. Ensure compliance with regulations regarding transliteration, offensive content prohibition, and accurate category classification. A carefully selected name not only reflects your brand identity but also avoids any potential legal issues.

Additionally, consider registering trademarks and franchises if necessary, safeguarding your intellectual property and securing exclusive rights to your business identity. By meticulously following Dubai’s naming guidelines and protecting your brand assets, you establish a solid foundation for your venture’s success within the dynamic business landscape of the city.

Naming rules in Dubai include:

Transliteration into Arabic or English without special characters.
Prohibition of offensive, religious, or geographic terms.
Restrictions on starting with specific words like “Universal” or “International.”
Checking for duplicate names in both languages.
Categorization into premium categories A and B for trade names.
Avoidance of obscene language or public decency offense.
Requiring embassy approval for country or government-related names.
Six-month validity with mandatory renewal.
Trademark registration through the Ministry of Economy.
Franchises can use trade names with submission of contracts to the Department of Economic Development.
3. Secure Office Space 
Consider renting office space that is specifically designed and prepared to lodge the storage of physical goods. When selecting a location, prioritize areas with ample square footage and customizable layouts to ensure efficient organization and easy access to your inventory. Look for features such as high ceilings, durable deferring units, and temperature control systems to maintain the integrity of your goods.

Additionally, consider proximity to transportation hubs for convenient logistics and distribution. By securing office space made-to-order to your storage needs, you can update operations and optimize your business’s productivity and growth potential.

4. Getting Customs Clearance
To begin importing goods into the Emirates, it’s essential first to get an import code from the customs authority. This code is a crucial identifier for your import activities and facilitates smooth clearance processes. Upon finding the code, ensure to promptly pay any applicable fees associated with importing goods. Additionally, it is authoritative to register your business with the customs authority in the Emirates, providing necessary documentation and information to start an agreement with regulatory requirements. By completing these steps meticulously, you pave the way for efficient and legally compliant import operations in the region.

Documents Needed for a General Trading License in Dubai
Below are the documents needed for a general trading license in Dubai:

For Individual Shareholders
Copy of passport
Passport-size photo
Copy of residence visa
Copy of Emirates ID
For Corporate Shareholders
Certificate of incorporation
Certificate of incumbency or equivalent
Memorandum of association
Board resolution
These documents verify the identity, residency, and legal existence of the company, and authorise trading activities.

UAE General Trading License Activities
While general trading covers a broad spectrum of activities, some of the most common business activities under general trading license in Dubai include the following:

Import & Export
Retail store
Online selling
Trading multiple products
Medical products (Dubai Health Advertiserity approval required)
Dubai Mainland General Trading License
You can receive a general trading license either in Dubai’s Mainland or within one of its Free Zones. Both options offer competitively priced packages to your company formation needs in Dubai.

Dubai Free Zones General Trading License
Foreign investors are eligible to establish a company within any of Dubai’s free zone jurisdictions. Certain Dubai Free Zone authorities stipulate a minimum share capital of AED 1 million to obtain a general trading license in Dubai’s free zones. However, the expenses may fluctuate based on business type and jurisdiction.

General Trade License Dubai Cost
The cost of a general trading license in Dubai is also slightly higher. This is because it allows you to trade in several products under one license and provides greater scope for business growth and diversification. This, in turn, makes it a more cost-effective solution when compared to a single-activity license.

The cost of a general trading license in Dubai will be anywhere between AED 15,000* to AED 50,000* (approx.) or even more. The total cost of a license is defined by factors such as where you choose to set up a business, warehouse size, office space, additional approvals, business jurisdiction, and visa applications.

When you engage with the experts at the Altharaa, however, you won’t have to worry about the authenticity of these payments. We oversee all transactions to ensure you secure the cheapest general trading license in the UAE. We do not incur additional costs due to incorporating your general business in the UAE.

Difference between general trading license and regular trade license
GENERAL TRADING LICENSE
REGULAR TRADING LICENSE
Allows trading a wide range of products
Allows trading only one group of products
Allows trade across multiple industries
Limits trade to only one industry
Cost of license is comparatively higher
Cost of license is comparatively lower
Wide scope of business diversification
No scope of business diversification
What is the Duration for Getting a Trade License in Dubai?
Once your trade license application is successfully submitted, the waiting game begins. The hopeful news is that the wait time for a Dubai trade license is relatively brief.

Typically, it takes anywhere from three days to four weeks to receive approval for your trade license in Dubai. This timeframe hinges on various factors, such as the requisite documentation and the specific business activities you plan to engage in.

Ensuring that all your documentation is complete and correct is crucial to expediting the process and guaranteeing swift approval. Take the time to review your application materials meticulously before submission, providing nothing is missing or incorrect. Doing so increases the likelihood of promptly issuing your trade license.

What is the Instant Trade License in Dubai?
The Instant License in Dubai is a form of trade license that can be acquired within minutes by individuals or entities engaged in commercial or professional business ventures. Obtaining an Instant license is a straightforward process, particularly with expert assistance. This license type is perfect for those seeking to commence their business activities promptly and smoothly.

Get Your General Trading License with Altharaa
General trading is one of the most popular business licenses in the country, and for good reason. Finding a deal offering the best cost for a general trading license in Dubai is difficult. Therefore, it is essential that you reach out to the right people to get the right advice and support for your company’s formation in a new country.

For over 10 years, Altharaa Business Setup has been helping foreign investors and entrepreneurs set up and maintain their business ventures in Dubai and across the UAE. We have helped 30,000 entrepreneurs, local and international, with their UAE company registration requirements.

Our team of experienced corporate advisors will offer you end-to-end business setup services. Whether you have queries regarding a general trading license in Dubai or want to know how to open a business bank account in Dubai, you can rest assured of receiving the most transparent and reliable assistance.

Book your free consultation with our business setup consultants today! Get in touch by calling +971564007951 or WhatsApp us at +971564007951. You can also drop us an email at info@altharaadubai.com.