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Have you ever felt overwhelmed trying to figure out how to set up a general trading company in Dubai? It can feel like reading a confusing newspaper, with headlines that hardly match. One consultancy advertises that it costs AED 15,000 to get started, while another says it’s AED 50,000. You hear about tax benefits in Free Zones, but then there’s market access in the mainland.
Meanwhile, you might be stuck doing endless research while your competitors are already closing deals and sending out products. Here’s some good news: Dubai’s rules are actually getting easier in 2025. New laws are reducing barriers, speeding up processes, and making costs clearer. Despite this, many people are still in the dark.
So, what’s the truth? What access does a Dubai General Trading License give you; and how much will it cost to acquire one? Whether you’ve decided to choose Mainland or Free Zone, the process might be simpler and cheaper than you think. Here are the complete details of the general trade license in Dubai, UAE.
The general trading license in Dubai, UAE is a type of trade license that authorizes businesses to import, export, and re-export goods across various industries. It allows companies to distribute multiple unrelated product categories under a single commercial registration. Unlike specialized trade licenses restricting operations to one product category.
For example, a company can trade kitchen appliances, automotive parts, electronics, and textiles under the same license without requiring additional approvals for each category.
Understanding the difference between a general trading license and a trade license is crucial for business growth. It helps maintain compliance, avoid penalties, and enable effective scaling:
| General trading license | Regular trade license |
|---|---|
| Allows trading across diverse, unrelated categories. | Restricts trading to one specific product category. |
| Businesses can sell toys, electronics, office supplies, and building materials simultaneously without license modifications. | A trade license for clothing cannot be used to trade electronics without obtaining a separate license and paying additional fees. |
Although the initial cost of a general trading license in the UAE seems higher, businesses save on ongoing expenses and the administrative hassle of managing multiple specialized licenses.
Dubai is a significant trading centre because it has invested in infrastructure and created policies over time. Several factors make the emirate particularly suitable for trading operations:
Business taxes & cost
In the UK, corporate tax rates are climbing, squeezing profit margins. Many face additional levies on dividends, property, and capital gains, just as the cost of doing business, from utilities to insurance, keeps rising. Compare that to Dubai, where profits under AED 375,000 are tax-free for trading companies, and the corporate tax for larger businesses remains far below UK standards. That means more cash is left for growth instead of going to the taxman.
Trade growth of 2025
The UK market has remained sluggish in 2025, with little relief in sight. In sharp contrast, Dubai recorded 7.2% trade growth in Q1 2025, with the wholesale and retail sector contributing 23% to its GDP. Non-oil trade hit record highs. Simply put, demand is robust and still growing.
Geographical location of Dubai
Post-Brexit, UK businesses face stricter market-entry barriers and more complex export/import processes. Dubai, on the other hand, is perfectly positioned between Europe, Asia, and Africa. You get instant access to over 2 billion consumers, with world-class logistics, whether you’re shipping to Mumbai, Nairobi, or Istanbul. It’s a natural springboard for global trading.
Infrastructure
Britain’s congested roads, ageing ports, and slow railways often delay shipments and raise costs. Dubai’s Jebel Ali Port is among the world’s largest container ports by volume. Dubai International Airport handles substantial daily cargo operations. Customs clearance processes that require weeks in other jurisdictions are completed within hours in Dubai. These operational realities directly impact delivery timelines and logistics costs for trading companies.
Low tax rate
In the UK, corporate and personal tax rates continue to climb, eating into hard-earned profits. In Dubai, by contrast, profits under AED 375,000 are completely tax-free, and even above that, the corporate rate is still much lower than the UK’s. That means your company keeps more of what it earns and reinvests for growth. This structure benefits new trading companies by allowing profit reinvestment during early growth stages.
Foreign ownership
According to the UAE Government’s official portal, Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law to permit foreign investors 100% business ownership. The previous restriction limiting foreign investors to 49% ownership has been eliminated.
Dubai Economy now allows full foreign ownership for more than 1,000 commercial and industrial activities. The requirement for mandatory local partners with majority ownership no longer applies to most trading activities.
Business environment and support in Dubai
While the UK’s uncertainty makes it harder to attract and retain top talent, Dubai has a friendly business climate with clear rules that make trading easy. The country’s wealthy population and strong economy ensure there is demand for imported products. Many local businesses offer support services like shipping, storage, legal help, marketing, and finance to assist your trading company.
Red tape and setup speed
Getting a business running in the UK often means slogging through weeks or even months of bureaucracy. In Dubai, you can set up in a few days. Customs clearance, which can drag on in the UK, is often completed within hours in Dubai’s highly efficient system. Over 1,000 business activities allow full foreign ownership, with no need for a local sponsor. This is true business freedom.
Not anymore. In the past, foreign business owners needed a local sponsor to own a business in Dubai or the UAE. Now, laws have changed. In some areas, like Free Zones, foreigners can own 100% of their business without a partner or resident status.
If you set up in a Free Zone, you don’t have to live in the UAE. You can run the business remotely or hire someone to manage it. These zones encourage foreign investment with simple setup rules.
Outside Free Zones, some sectors still require a local sponsor to own 51%, leaving you with 49%. But in many sectors like tech, health, education, and renewable energy, foreigners can own 100% without a local partner. Ownership rules depend on the location and sector. Choosing a Free Zone allows full foreign ownership and control of your business.
General trading license in Dubai, UAE encompasses broad business activities and product range. Knowledge of such parameters facilitates planning of stock and supplier relationships by the business.
Approved trading activities
The license allows these primary operations:
Product categories covered
A general trading license in Dubai encompasses these product lines:
| Electronics & Technology | 1. Mobile devices & accessories 2. Computers & laptops 3. Electronic components & parts 4. Consumer electronics |
| Fashion & Lifestyle | 1. Apparel & clothing 2. Footwear & bags 3. Jewellery & watches (requires specific approvals) 4. Cosmetics & beauty products |
| Home & Living | 1. Furniture & home décor 2. Kitchen & household appliances 3. Home improvement tools & materials 4. Interior furnishings |
| Business & Industrial | 1. Office supplies & stationery 2. Industrial machinery & equipment 3. Automotive parts & components 4. Construction & building materials 5. Packaging & shipping supplies |
| Consumer Goods | 1. Toys & games 2. Sports & fitness equipment 3. Books & publications Pet products & supplies 4. Musical instruments 5. Arts & crafts materialsi |
| Food & Wellness | 1. Food products (requires Dubai Municipality health approval) 2. Nutritional supplements (requires regulatory clearance) 3. Personal care & hygiene products |
Restricted products requiring additional approvals
Certain product categories mandate extra licenses or government clearances:
For restricted categories, businesses must obtain No Objection Certificates (NOC) from relevant UAE regulatory authorities before commencing trade operations.
As you’ve understood the requirements for the general trading license, below are the steps to set up your business in the UAE:
Step 1: Jurisdiction selection
This foundational decision impacts all subsequent costs, market access, and tax obligations:
Mainland jurisdictions are regulated by DED, and this suits:
Free Zone jurisdiction is best for:
Step 2: Legal structure selection
Common structure options for trading companies in the Dubai are:
Step 3: Trade name reservation
After selecting the business structure, select a name for your general trading business, and it must comply with UAE regulatory requirements:
Step 4: Office space arrangement
Office space requirements are different for mainland and the Free Zone:
| Mainland | Free Zone |
|---|---|
| Physical office space mandatory | Virtual office arrangements permitted |
| Ejari registration (tenancy contract attestation) required | Flexi-desk or co-working spaces acceptable |
| Minimum space specifications vary by business activities | Warehouse facilities for inventory-intensive operations |
*Note: Some Free Zones waive physical office requirements.
Step 5: Document preparation
Furthermore, after selecting the office space, prepare the documents which include:
Individual shareholder requirements:
Corporate shareholder requirements:
Universal requirements:
Step 6: Initial approval application
Applications are submitted to the Dubai Department of Economy and Tourism (mainland) or the relevant Free Zone authority. Initial approval confirms the business concept meets regulatory standards.
Step 7: Obtain the general trading license
Once approved, the official general trading license in Dubai is issued, letting businesses start their operations legally.
Step 8: Corporate banking setup
Business bank accounts are mandatory for trading operations. Major banks serving general trading companies are Emirates NBD, Dubai Islamic Bank, Abu Dhabi Commercial Bank, Mashreq Bank, Commercial Bank of Dubai etc.
The required documentation:
Average timeline: 2-4 weeks for account activation
Step 9: VAT and customs registration
If your business in the UAE earns more than AED 375,000 a year, you must register for VAT. Companies with annual revenue between AED 187,500 and AED 375,000 can choose to register voluntarily. The process is simple and done online through the Federal Tax Authority portal. Once approved, you’ll receive a Tax Registration Number (TRN) and a VAT certificate.
Businesses importing or exporting goods require Dubai Customs registration, providing a unique customs code for clearing shipments through UAE ports and borders. Registration completes through Dubai Customs portal or authorized clearing agents.
The cost of setting up a general trading company in Dubai depends on three primary variables: mainland versus free zone jurisdiction, office space requirements, and visa allocations needed.
Mainland companies operate with unrestricted access to local UAE markets. Cost structure includes:
Core registration fees:
Mainland total range: AED 15,000 – 50,000
Cost variation depends on number of activities listed, office size requirements, and whether additional approvals are needed for restricted product categories.
Free Zone jurisdictions offer simplified processes with typically lower initial costs:
Lower Free Zone costs reflect simplified regulatory frameworks designed specifically for international trade operations.
Additional estimated essential costs
License fees represent only the initial registration. Additional mandatory expenses include:
Visa processing:
Office space requirements:
Banking and regulatory compliance:
Mainland jurisdictions suit businesses where primary revenue derives from UAE domestic customers. Free zone jurisdiction suits businesses focused on international import-export with tax efficiency priorities.
Many established trading operations eventually maintain both structures, free zone entity for international operations and mainland presence for local distribution.
The Dubai general trading license remains valid for one year from issuance. Renewal requirements include:
Many entrepreneurs struggle with setting up a business in Dubai. Although it’s simpler than it appears, confusion and noise can make it seem complicated. As explained in the blog, what you truly need is straightforward guidance on the necessary steps, costs, and how to avoid hidden fees.
That’s Stratrich role: We simplify the process by helping you choose the right license, find the best location to maximize profits, and understand the true costs upfront. We’ve helped many entrepreneurs trade smarter, register faster, and grow without stress.
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