Dubai is one of the best places in the world to start a general trading company. Thanks to its location at the crossroads of Europe, Asia, and Africa, Dubai has become a global hub for trade and commerce. The city is home to over 200 nationalities and handles nearly 11 million tons of cargo annually, making it a prime destination for businesses that want to grow internationally.
A general trading license in Dubai gives you the freedom to trade in various products like electronics, clothes, food, and much more. It’s a popular choice for entrepreneurs who want flexibility and the ability to explore multiple industries under one business.
What makes Dubai so attractive? Apart from its limited corporate tax and 0% personal tax policies, the city offers world-class infrastructure, easy access to global markets, and over 40+ free zones that provide special benefits for businesses. Plus, Dubai’s population of over 3.5 million ensures there’s always a market for your products.
Starting a general trading company in Dubai opens doors to amazing opportunities. Even if you’re targeting local customers or international clients, Dubai is the perfect platform to grow your business.
What is a General Trading Company?
A General Trading Company is a business entity that engages in the import, export, and distribution of a wide range of products. These companies act as intermediaries between manufacturers and consumers, facilitating the flow of goods across borders.
A general trading license is a legal permit issued by authorities in Dubai, such as the Department of Economic Development (DED) for mainland businesses or specific free zone authorities. This license allows businesses to trade multiple types of goods under one license, provided they are not restricted or prohibited by UAE law.
The general trading license is one of the most sought-after licenses in Dubai due to its wide scope and flexibility. It’s perfect for companies looking to engage in various general trading activities without requiring multiple licenses.
Some examples of products you can trade under a general trading license activities include:- Fast-Moving Consumer Goods (FMCG): This includes everyday items like food, beverages, and personal care products.
- Electronics: Electrical appliances, computers, and mobile phones.
- Building Materials: Construction supplies like cement, steel, and wood.
- Machinery and Equipment: Industrial equipment for various sectors.
- Textiles and Garments: Fabrics, clothing, and fashion accessories.
Differences Between a General Trading License and Other Types of Trade Licenses
Here are the key differences between a General Trading License in Dubai and other specific trade licenses:| Aspect | General Trading License | Other Trade Licenses |
| Scope of Activities | Covers multiple product categories | Limited to specific products or services |
| Business Flexibility | Allows trading in various unrelated products | Focused on specific industries or sectors |
| Target Market | Local, regional, and international trade | May focus more on specific markets |
| Additional Approvals | Minimal (unless restricted items are traded) | May require extensive approvals for niche industries |
| Industries Covered | Multiple (e.g., electronics, textiles, etc.) | Industry-specific, like construction, healthcare, etc. |
Documents Required to Start a General Trading Company in Dubai
To start a general trading company in Dubai, you'll need to compile a specific set of documents. This may include:- Business plan
- Passport copies (For all shareholders and partners)
- Visa copies (Copies of residence visas for shareholders and partners)
- Passport-Size Photographs
- License application form
- Memorandum of Association (MOA) (if applicable)
- Bank reference letter
- Trade name reservation certificate
How to Start a General Trading Company in Dubai, UAE?
Starting a general trading company in Dubai involves several steps, from deciding your business activities to obtaining the necessary licenses. Here’s a step-by-step process:
1. Choose a Business Activity
Decide on the specific trading activities your company will engage in. This could include importing, exporting, wholesale trading, or retail trading.
2. Choose the Right Jurisdiction
- Mainland: Suitable for businesses targeting local and international markets, with no restrictions on trade within the UAE.
- Free Zone: Ideal for international trading and offers tax exemptions, but may have restrictions on trading within the UAE market without a distributor.
- Offshore: Best for businesses focused on international operations without a physical presence in Dubai.
3. Select a Trade Name
Select a unique and memorable name for your trading company. Ensure that the name complies with Dubai's naming conventions and does not violate any trademarks. Reserve your chosen trade name with the Department of Economic Development (DED) or the relevant free zone authority.
4. Prepare Legal Documents
Gather all the required documents. Outline your company’s structure and activities. Obtain a tenancy contract if you're renting an office on the mainland. Have these documents notarized by a UAE-based notary public.
5. Obtain a General Trading License
Submit all required documents to the relevant authority. Pay the applicable license fees, which vary based on the jurisdiction. Once approved, you’ll receive your general trading license, allowing you to officially start operations.
Note: Depending on your chosen business activities, you might require additional permits or approvals from specific authorities.
6. Register for Customs and Import/Export Code
Register your company with Dubai Customs to obtain an import/export code. This is essential for conducting international trade and clearing goods through customs.
7. Open a Corporate Bank Account
Open a corporate bank account in Dubai to conduct your business transactions. Choose a bank that offers suitable services and meets your business requirements.
8. Apply for Visas
Obtain residency visas for you, your employees, and their dependents if required. Complete the visa application process, including medical tests and Emirates ID registration.
Remember to renew your trade license and any other permits regularly to stay compliant with Dubai regulations. Consider seeking professional help from business setup consultants in Dubai such as Shuraa. Our business setup experts can guide you through the process, ensure you meet all requirements, and save you time and effort.
How Much Does a General Trading License Cost in Dubai?
A general trading license in Dubai typically costs between AED 28,000 to AED 32,000. However, the overall cost of starting a general trading company in Dubai can be higher or lower depending on many factors.
- License Type: There are two main options i.e. Mainland License or Free Zone License. Mainland Licenses tend to be slightly more expensive.
- Business Activities: The specific activities you plan to trade under your license can influence the fee. Some activities may have higher license fees.
- Company Legal Structure: The chosen legal structure (sole proprietorship, partnership, limited liability company) might have slight cost variations.
- Location (for Mainland License): Office space rental prices can vary depending on the area in Dubai.
To get a more accurate idea of the cost for your specific situation, it's advisable to consult with a business setup consultant in Dubai. They can consider your chosen business structure, location, and activities to provide a more precise estimate.
Benefits of Starting a General Trading Company in Dubai
Dubai offers a range of benefits that make it a hub for global trade and business expansion. Here are some of the key benefits of starting a general trading company in Dubai:
1. Diverse Market Opportunities
With a population of over 3.5 million and a mix of over 200 nationalities, Dubai provides a ready market for a wide range of products. The city's economy supports businesses targeting both local and international customers.
2. Flexible Trading Options
A general trading license allows trading in multiple products across different industries under one license. There are no restrictions on the types of goods you can trade (except prohibited or restricted items).
3. Tax Benefits
Dubai offers limited corporate tax and 0% personal income tax which allows businesses to retain more profits. Additionally, free zones may provide customs duty exemptions and VAT benefits for international trading.
4. World-Class Infrastructure
Dubai has modern ports, such as Jebel Ali Port, the largest port in the Middle East, and advanced logistics facilities. The city’s efficient road networks, airports, and free zones simplify the movement of goods.
5. Free Zone Benefits
Setting up in a free zone offers 100% foreign ownership and complete repatriation of profits. Free zones also provide fast-track company formation and access to specialized facilities like warehouses.
6. Ease of Doing Business
The business setup process in Dubai is streamlined, and services like Shuraa Business Setup simplify the paperwork and legal requirements. General trading licenses are quick to obtain and offer wide-ranging flexibility.
Streamline Your Trading Company Setup with Shuraa
Dubai is a land of endless opportunities, especially in the trading sector. With its prime location, strong economy, and business-friendly environment, it’s the perfect place to start your general trading company.
Starting a company in Dubai may seem like a complex process, but it doesn’t have to be. That’s where Shuraa Business Setup can help. With over 23+ years of experience and a history of helping 50,000+ businesses, we make setting up your company smooth and stress-free. From getting your trade license to handling PRO services, visas, and paperwork, we take care of it all.
Our experts also help you choose the right location—whether mainland, free zone, or offshore—so you can save money and comply with UAE laws. Let us handle the details so you can focus on growing your business.
Ready to start your trading journey in Dubai? Get in touch with Shuraa Business Setup today, and we’ll make it easy for you.
