How to Get a General Trading License in Dubai

If you're a foreigner looking to set up a business in Dubai, you're stepping into one of the fastest-growing business hubs in the world. Dubai offers numerous opportunities, and one popular option is obtaining a general trading license, which allows you to engage in multiple commercial activities, such as trading electronics, food, clothing, and more.

To get started, you'll need to go through a straightforward process that includes securing the necessary permits and meeting the legal requirements for business setup. The general trading license is essential for those wanting to operate in multiple industries under one company name. It gives you the flexibility to diversify your business offerings. Dubai's supportive business environment, favorable tax policies, and ease of setting up a company make it an attractive destination for entrepreneurs.

The process usually involves registering your company with the Department of Economic Development (DED) or a free zone, depending on your business needs. The costs of setting up a business can vary widely, starting from around AED 11,999 for mainland companies

What is a General Trading License in Dubai?

A general trading license in Dubai permits businesses to engage in the import, export, and trade of a wide variety of goods across various industries. This license stands out from other types due to its flexibility, allowing traders to handle multiple categories of products under one umbrella. However, certain items, such as tobacco and goods that fail to meet UAE's health and safety standards, are prohibited from being traded under this license.

This type of license is ideal for companies looking to diversify their operations by trading in different goods, such as electronics, clothing, furniture, and more, without needing separate permits for each product category. It’s an attractive option for entrepreneurs seeking to capitalize on Dubai’s strategic location as a global trading hub.

By obtaining a general trading license, businesses can seamlessly operate in both the UAE and international markets, with access to Dubai's modern infrastructure and business-friendly environment.

Why You Need a General Trading License in Dubai?

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A general trading license is essential for starting a trading business in Dubai, especially if you plan to deal in multiple, unrelated goods. This license allows your business to engage in the wholesale and retail of various products across industries, whether in Dubai or internationally. The license simplifies your business setup, covering a broad range of trading activities under one umbrella.

With a general trading license, you can import, export, and distribute goods both locally and abroad, which is particularly valuable given Dubai’s status as a global trading hub. The application process involves registering with the Department of Economic Development (DED), selecting a business name and legal structure, and obtaining any necessary external approvals based on your business activities.

The benefits of having a general trading license include access to multiple visas, fewer trade barriers, no paid-up capital requirements, and the ability to conduct e-commerce legally. This setup helps streamline your business operations and opens up opportunities for growth across different markets​

What Is A General Trading Company in Dubai?

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A general trading company in Dubai allows businesses to engage in a wide variety of trading activities across different industries under a single license. This setup is ideal for businesses looking to trade, import, and export a diverse range of products such as textiles, electronics, machinery, and food items.

Key benefits of starting a general trading company in Dubai include the ability to trade unrelated products under one license, access to the UAE’s advanced logistics and infrastructure, and tax advantages in free zones. Specific regulated items like pharmaceuticals, gold, and frozen foods may require additional approvals to meet health and safety standards, but most other products can be traded with relative ease.

Additionally, general trading companies benefit from Dubai's strategic location, making it a prime hub for international trade. This flexibility allows businesses to cater to both local and global markets efficiently. Many trading companies in Dubai operate from free zones, which offer 100% foreign ownership and profit repatriation.

Setting up such a company involves obtaining a general trading license from Dubai's Department of Economic Development (DED), which covers most trading activities, making it a versatile option for businesses looking to scale quickly across different industries

To obtain a general trading license in Dubai, you need to submit several key documents to the relevant authorities. These documents are essential for starting a general trading company, and the process varies depending on whether you set up in the mainland or a free zone.

Benefits of Starting a General Trading Company in Dubai

Starting a general trading company in Dubai offers several attractive benefits for entrepreneurs and investors:

1. Strategic Location: Dubai's location at the crossroads of major global trade routes makes it an ideal hub for businesses looking to access markets in Europe, Asia, and Africa. This strategic advantage facilitates international trade and distribution.
2. World-Class Infrastructure: Dubai offers top-notch infrastructure, including modern office spaces, logistics hubs, advanced seaports, and airports, all of which contribute to efficient and competitive business operations.
3. Low Taxation: Companies in Dubai benefit from low corporate taxes, with no customs duties on most goods and only a 5% VAT on sales. This makes it easier for businesses to remain profitable and globally competitive.
4. Easy Business Setup: The process of obtaining a general trading license in Dubai is straightforward. The Department of Economic Development (DED) simplifies the application process, and with the right documentation, the setup can be completed quickly.
5. Wide Range of Trading Opportunities: A general trading license allows you to deal in a variety of goods across different industries, increasing profitability by expanding into multiple product categories.
6. 100% Ownership and Capital Repatriation: Foreign investors can enjoy full ownership of their business, especially in free zones, and have the freedom to repatriate capital and profits without restrictions.
7. Minimal Trade Barriers: Setting up a trading business in Dubai comes with fewer restrictions, particularly for mainland companies, which do not require paid-up capital or regular audits.

These benefits make Dubai an appealing destination for setting up a general trading company​

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How to Get General Trading License in Dubai?

To obtain a General Trading License in Dubai, follow these simplified steps:

Step 1: Choose Your Jurisdiction: 

You can either set up your business in the mainland, regulated by the Dubai Department of Economic Development (DED), or in one of Dubai’s Free Zones. Mainland businesses require a local sponsor, while Free Zones allow 100% foreign ownership and provide benefits like tax exemptions, easy setup, and profit repatriation. Free Zones are particularly attractive for international trade due to their advanced infrastructure.

Step 2: Select a Business Name: 

Choose a name for your business that complies with UAE naming conventions. Avoid offensive or religious terms, abbreviations, and trademarks. Once approved by the relevant authority, you can proceed with the application.

Step 3: Submit Required Documents:

Gather documents such as your business plan, passport copies of shareholders, a Memorandum of Association (MOA), and the initial license application. You may need additional documents depending on your jurisdiction.

Step 4: Secure Office Space: 

If operating on the mainland, you'll need office space to conduct business. In Free Zones, co-working spaces are often provided as part of the package.

Step 5: Obtain Customs Clearance:

 If you plan on importing goods, securing customs clearance is essential. You'll need to register with the customs authority and obtain an import code.

By following these steps, you can secure your General Trading License in Dubai and benefit from the emirate’s thriving business environment.

Documents Required To Get a General Trading License in Dubai

Required To Get a General Trading License in Dubai:

1. Business Plan: A detailed plan outlining your business objectives, operations, and market strategy.
2. License Application: A form provided by the Department of Economic Development (DED) or the free zone authority, signed by the company's managers or authorized representatives.
3. Fee Payment Receipt: Proof of payment for the necessary licensing fees.
4. Name Approval Letter from DED: A letter confirming the approval of your business name, in compliance with the DED’s naming conventions.
5. Memorandum of Association (MOA): An agreement detailing the company’s structure and shareholder details.
6. Passport Copies of the Shareholders: A copy of the passport for the company owner or any shareholders involved in the business.

General Trading License Cost in Dubai, UAE

The cost of obtaining a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000 or more. The variation in cost depends on several factors:

1. Business Jurisdiction: Whether you choose to set up in the mainland or a free zone significantly impacts the license fee.
2. Office Space and Warehouse Size: The size and location of your business premises can influence the total cost.
3. Additional Approvals: Depending on the nature of your trade, you might need special permissions from regulatory bodies, which could add to the cost.
4. Visa Applications: If your business requires multiple visas for employees or shareholders, this will increase the overall expenses.

Engaging with business setup consultants, like RadiantBiz, can help ensure that all transactions are transparent and that you get the best pricing without incurring unnecessary costs during the incorporation process.

By opting for a general trading license, businesses can deal in various products under a single license, making it a cost-effective solution compared to a single-activity license​

General Trading License Mainland vs Freezone

Each step, from securing name approval to gathering these documents, is crucial to ensure a smooth application process. After submitting the required paperwork and paying the associated fees, you can expect to receive the license within a few days

To set up a General Trading License in Dubai, businesses have the option to operate either in the Mainland or within a Free Zone, each offering distinct advantages depending on the business objectives.

Dubai Mainland General Trading License:

A mainland license allows companies to operate across Dubai and the UAE, with access to local markets and government contracts. However, it generally requires a local sponsor who will hold 51% ownership unless the business is fully owned by an Emirati. Mainland businesses are ideal for companies that want direct access to the UAE’s expansive consumer market.

Free Zone General Trading License:

Free Zones are highly popular for foreign investors, offering 100% foreign ownership and tax benefits. Free zones are strategically positioned for international trading, as they often have streamlined administrative processes and allow easy import/export activities. Some zones require a minimum share capital (such as AED 1 million) for a general trading license, although costs vary depending on the specific Free Zone. For instance, a general trading license in a Free Zone could cost between AED 15,700 to AED 50,000 depending on factors like visa quotas and the specific Free Zone chosen.

Each option comes with its own setup costs and operational freedom, with Mainland businesses offering more local market flexibility but higher regulatory requirements, while Free Zones provide international trading advantages and fewer restrictions on ownership and taxation

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Why Choose RadiantBiz to Set Up Your General Trading License in Dubai, UAE?

Why Opt RadiantBiz in Dubai, UAE, for  Your General Trading License in Dubai

RadiantBiz prides itself on the knowledge and experience of its expert professionals in facilitating business setups in Dubai. Being industry experts for many years, we are well versed in local guidelines and processes, along with the best practices, making the setup process hassle-free for your general trading business.

Holistic Services: We provide you with the most complete set of services to suit your unique business requirements. RadiantBiz offers complete solutions, from company registration and license documentation to visa processing and office setups, thus helping you save time, energy, and resources.

Customized Solution: We know that each business has a different problem. This is why we are working on an individualized basis based on your specific needs and wants. We are committed to serving you and working with your team on a personal level, so we know what the goals of your organization are in order to provide solutions that matter and get results.

Transparency and Integrity: Simplicity believes in transparency and working with integrity. We trust in building a valid relationship along with our beliefs; furthermore, we see ourselves as one of the associations with which you could liaise for the long term. You can communicate freely, guidance is easy and honest to follow, and there is no unlawful practice throughout the solution delivery at RadiantBiz.

Efficient and Dependable: All services focus on efficiency and reliability. We pride ourselves on our business processes and pro-active mindset, which is why we always guarantee on-time delivery. Rest assured, your general trading business setup with RadiantBiz

Long-Term: We don’t leave you there after setup support. Our continual support and guidance could help you understand the nuances of owning a general trading business setup in Dubai. RadiantBiz stands behind you for your business aspects, be they compliance issues or growth prospects.

To sum up, opting for RadiantBiz to establish your general trading business setup in Dubai, UAE, helps you with the right mix of knowledge, a customer-centric approach, transparency, effectiveness, and an easy follow-up process, which makes us a better partner for your organization.

Start a business in Dubai with RadiantBiz. Get in touch with us for setting up business at +971 50 797 4832 or WhatsApp: +971 50 7775554. If you need help, please also contact us by email at info@radiantbiz.com.

FAQ – General Trading License in Dubai

What is a general trading license in Dubai?

A General Trading License in Dubai allows investors to conduct international trading across various sectors with ease. It provides access to advanced logistics, warehouse facilities, and permits 100% foreign ownership, total business control, fixed fees, and full repatriation of profits, especially within Dubai's free zones.

What are the activities for a general trading license in Dubai?

A General Trading License enables a business to engage in multiple trading activities, such as importing, exporting, re-exporting, distributing, and storing a wide range of goods. This license offers flexibility, allowing companies to explore diverse business opportunities across various industries.

What are general trading items in Dubai?

Products traded under a general trading license in Dubai include mechanical goods like ceiling fans and sewing machines, consumer products such as bicycles and gym equipment, as well as kitchen appliances, food processors, brewing equipment, and garment care appliances.

What is the cheapest trade license in Dubai?

The most economical trade license in Dubai is offered by the IFZA Free Zone, starting at AED 12,900 without visas, or AED 11,900 for visa-free company setups. This makes it a cost-effective solution for entrepreneurs looking to enter the market.

How much is a general trading license in UAE?

The cost of a general trading license in Dubai typically ranges from AED 15,000 to AED 50,000. The total cost depends on several factors including business location, warehouse size, office space, additional approvals, jurisdiction, and visa applications.

How do I start a general trading business?

Starting a general trading business in Dubai requires creating a comprehensive business plan that addresses market conditions, competition, the products you wish to trade, initial investment, office space, marketing strategies, and potential investors or financing options.

What is the difference between a general trading license and a trading license in the UAE?

While a standard trading license allows a company to engage in specific commercial activities within the UAE, a General Trading License offers broader flexibility, enabling businesses to import, export, and distribute a wide range of products across multiple sectors.

How much does it cost to renew a general trading license in Dubai?

Renewing a general trading license in Dubai mainland costs between AED 8,000 to AED 15,000, depending on the type of business. For general trading, the renewal fees are typically around AED 15,000.

How can I cancel my general trading license in Dubai?

To cancel a general trading license, follow these steps:

1. Review cancellation requirements and settle any outstanding financial obligations.
2. Gather the necessary documents.
3. Visit the Department of Economic Development (DED).
4. Submit the license cancellation application and pay the required fees.

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