General Trading License in Dubai
A General Trading License in Dubai is a flexible permit that allows businesses to trade a wide variety of goods, such as electronics, clothing, and food products, under a single license. Issued by the Department of Economic Development (DED) for mainland businesses or by Free Zone authorities, it is an excellent option for entrepreneurs looking to tap into Dubai’s global trade hub status.
What is a General Trading License?
A General Trading License enables businesses to import, export, distribute, and sell a broad range of products without needing separate licenses for each product category. Unlike specific trading licenses that restrict you to one type of good, this license covers multiple industries, making it ideal for businesses with diverse product offerings.
Key Activities Allowed
- Importing and exporting goods like electronics, textiles, furniture, and consumer products.
- Distributing goods within the UAE or to international markets.
- Selling products through retail stores or e-commerce platforms.
- Storing goods in warehouses for efficient supply chain management.
Important: Trading restricted items, such as alcohol, pharmaceuticals, tobacco, or hazardous materials, requires additional permits from authorities like the Dubai Health Authority or Dubai Municipality.
Benefits of a General Trading License
- Versatility: Trade multiple product types under one license, saving time and costs.
- Global Market Access: Dubai’s location connects you to markets in Asia, Europe, and Africa, supported by top-tier ports and airports.
- Tax Advantages: No personal income tax, low corporate taxes, and VAT exemptions in Free Zones.
- No Minimum Capital: Start your business without a large upfront investment (some Free Zones may have specific requirements).
- Visa Sponsorship: Obtain residence visas for shareholders, employees, and dependents.
- Flexibility: Adapt to market trends by adding new product lines without changing your license.
Mainland vs. Free Zone: Which Option Suits You?
You can obtain a General Trading License in either Mainland Dubai or a Free Zone. Each has unique features, and we can help you choose the best fit for your business goals.
Mainland Dubai
- Overview: Allows trading within the UAE and internationally, with the freedom to operate anywhere in Dubai.
- Advantages:
- Direct access to the UAE market without intermediaries.
- Option to open retail stores or branches in key locations.
- 100% foreign ownership is now available for many activities due to 2025 reforms.
- Requirements:
- A physical office or warehouse with an Ejari-registered tenancy agreement.
- Compliance with VAT and local regulations.
- A local sponsor (UAE national) may be required for certain setups, though this is less common in 2025.
Free Zone
- Overview: Offers a streamlined setup process with benefits for international traders.
- Advantages:
- 100% foreign ownership.
- VAT exemptions and full profit repatriation.
- Flexible office options, including virtual or shared spaces.
- Requirements:
- Operate within the Free Zone or use a local distributor for UAE market access.
- Adhere to Free Zone-specific regulations.
Recommendation: Choose Mainland for direct UAE market access or retail expansion. Opt for a Free Zone for international trade, lower costs, or full ownership.
Step-by-Step Process to Obtain a General Trading License
Step 1: Define Your Business Activities
Identify the trading activities you plan to undertake, such as importing electronics, exporting clothing, or selling consumer goods. A General Trading License allows up to 10 activities across different industries.
Step 2: Choose a Trade Name
Select a business name that follows UAE regulations:
- Use Arabic or English characters (no special symbols).
- Avoid offensive, religious, or political terms.
- Do not start with words like “International” or “Global.”
- Check availability through the DED or Free Zone database.
Step 3: Select a Legal Structure
Choose a legal structure based on your needs:
- Sole Proprietorship: For single owners, with limited visa allocations.
- Limited Liability Company (LLC): Ideal for Mainland businesses with multiple shareholders.
- Free Zone Establishment (FZE): For Free Zone setups with one shareholder.
- Free Zone Company (FZC): For Free Zone setups with multiple shareholders.
Step 4: Apply for Initial Approval
Submit an application for initial approval to the DED (Mainland) or your chosen Free Zone authority. Required documents include:
- Completed application form.
- Passport copies of shareholders and managers.
- List of business activities.
- Proof of trade name reservation.
Processing takes 2–5 days. We ensures all documents are correctly prepared to avoid delays.
Step 5: Secure Office Space
- Mainland: Lease a physical office or warehouse and register the tenancy agreement through Ejari. The DED’s Instant License allows operation without office space for the first year, but renewal requires a physical location.
- Free Zone: Choose from virtual offices, shared desks, or dedicated spaces, often included in Free Zone packages.
Step 6: Submit Required Documents
Prepare and submit the following:
- Signed General Trading License application.
- Memorandum of Association (MOA) for LLCs or FZCs.
- Attested trade name approval letter.
- Tenancy agreement or virtual office contract.
- Additional permits for restricted goods, if needed.
- Passport copies and Emirates ID (for UAE residents).
Step 7: Pay Fees and Receive License
Pay the required fees (see below). Upon approval, you’ll receive a digital license via email, with the original available for collection.
Step 8: Apply for Visas and Bank Account
- Visas: Use your license to apply for residence visas for shareholders, employees, and dependents. Visa quotas depend on office size or Free Zone package.
- Bank Account: Open a corporate account with a UAE bank (e.g., Emirates NBD, Mashreq). Submit your license, MOA, and passport copies.
Step 9: Register for VAT
If your annual turnover exceeds AED 375,000, register for VAT with the Federal Tax Authority (FTA). Mainland businesses are subject to 5% VAT, while Free Zone businesses may be exempt for non-UAE transactions.
Costs of a General Trading License
Costs depend on the jurisdiction, office requirements, and additional services. Below is an updated breakdown for 2025:
Mainland Costs
- License Fee: AED 12,500–15,000.
- Trade Name Reservation: AED 620.
- DED Activity Fee: AED 15,000 (for General Trading).
- Market Fee: 5% of annual office rent.
- Ejari Registration: AED 1,000–2,000.
- Office Space: AED 10,000–50,000+ annually, based on location and size.
- Visa Fees: AED 5,000 (initial setup), plus AED 3,000–6,000 per employee.
- Local Sponsor Fee (if required): AED 5,000–15,000 annually or a profit share.
- Total Estimated Cost: AED 30,000–60,000.
Free Zone Costs
- License Fee: AED 12,500–15,000.
- Package Deals: Start at AED 10,000 for basic setups with virtual offices.
- Office Space: AED 5,000 (virtual office) to AED 30,000+ (dedicated office).
- Visa Fees: AED 3,000–6,000 per visa, with packages offering 1–6 visas.
- Total Estimated Cost: AED 15,000–50,000.
Additional Costs
- Permits for Restricted Goods: AED 1,000–10,000.
- Annual Renewal: Similar to initial fees, plus office and visa renewals.
Key Requirements and Compliance
Documentation
- Passport copies for shareholders and managers.
- Emirates ID (for UAE residents).
- Business activity list.
- Tenancy agreement or virtual office contract.
- MOA for LLCs or FZCs.
- Additional permits for restricted goods.
Compliance
- VAT Registration: Mandatory for businesses with turnover above AED 375,000.
- Annual Audits: Required for Mainland businesses; Free Zones may have lighter requirements.
- License Renewal: Renew annually with updated tenancy agreements and fees.
- Customs Compliance: Provide Certificates of Origin and customs codes for import/export.
Restricted Goods
Trading items like alcohol, pharmaceuticals, or tobacco requires approvals from:
- Dubai Health Authority: For medical products.
- Dubai Municipality: For food or environmental goods.
- Ministry of Interior: For controlled substances.
Tips for a Successful Setup
- Plan Your Activities: Clearly define your trading activities to avoid issues with customs or permits.
- Budget Carefully: Include renewal and office costs in your financial plan.
- Stay Informed: UAE regulations, like foreign ownership rules, evolve.
- Leverage Expertise: You can rely on us for paperwork, approvals, and compliance.
- Network: Attend trade events like Gulfood or GITEX to connect with suppliers and distributors.
Why Choose Dubai for General Trading?
Dubai is a top destination for traders due to:
- Strategic Location: Access 2 billion consumers within a 4-hour flight.
- World-Class Infrastructure: Jebel Ali Port and Dubai International Airport enable efficient logistics.
- Tax Benefits: No personal income tax, low corporate taxes, and VAT exemptions in Free Zones.
- Economic Growth: Supported by Dubai Vision 2030, promoting trade and innovation.
- Transparent Regulations: Strong legal framework and intellectual property protections.
Why Choose Khidmath Corporate Services?
Khidmath Corporate Services is your trusted partner for setting up a General Trading License in Dubai. We offer:
- Expert Guidance: Navigate the process with ease, from trade name selection to visa applications.
- Tailored Solutions: Choose the best jurisdiction and legal structure for your business.
- Transparent Pricing: No hidden fees, with cost-effective options for all budgets.
- End-to-End Support: Handle documentation, compliance, and renewals seamlessly.
Conclusion
A General Trading License in Dubai is a powerful tool for entrepreneurs aiming to trade diverse products in a global hub. With its flexibility, tax advantages, and access to international markets, it’s a smart choice for 2025. By following the steps outlined, you can set up your business efficiently and compliantly.
Contact Khidmath Corporate Services today to start your trading journey in Dubai’s thriving economy. Visit our website or reach out to our team for personalized assistance.
