How to Start a General Trading Company in Dubai?

Dubai stands tall as one of the world’s most powerful trading hubs. Its unmatched geographic location, world-class infrastructure, and investor-friendly regulations make it a top destination for international entrepreneurs and companies. If you’re planning to enter the UAE market, starting a general trading company in Dubai gives you access to global business, tax benefits, and full ownership flexibility.

In this guide, we’ll walk you through everything—from understanding what a general trading company is, to legal requirements, cost breakdowns, and smart growth strategies.

Why Dubai is Ideal for General Trading Businesses

Dubai connects Asia, Europe, and Africa, making it the perfect middle ground for imports and exports. Its ports—like Jebel Ali, one of the busiest in the world—and global air routes allow you to manage logistics efficiently.

Key reasons to start a trading business in Dubai:

• 100% foreign ownership (especially in Free Zones)

• No personal income tax

• Access to international markets

• Strong demand for consumer and industrial goods

• Easy customs procedures with minimal import duties

Whether you’re interested in B2B trade or eCommerce, Dubai provides the right environment for smooth operations and sustainable profit.

What is a General Trading Company?

A general trading company in Dubai allows you to import, export, and trade a wide range of goods under one license. Unlike specialized trading licenses, this one covers multiple unrelated products, such as:

• Food & beverages

• Electronics & appliances

• Garments & accessories

• Building materials

• Beauty products

This model is highly flexible, making it ideal for wholesalers, distributors, and retailers looking to diversify their business under one umbrella.

Types of Products You Can Trade in Dubai

While general trading licenses cover a broad category, some items may require additional approvals or restricted licenses:

• Unrestricted products: Clothing, electronics, stationery, packaged food

• Regulated items: Pharmaceuticals, health supplements, medical devices

• Prohibited items: Narcotics, hazardous chemicals, certain military goods

Before you apply, make sure to align your product list with the approved business activity codes.

Benefits of Starting a General Trading Company in Dubai

There are many commercial advantages when you get a general trading license in Dubai:

• Trade multiple goods under one license

• No currency restrictions or repatriation limits

• Operate online and offline

• Eligible for investor visas and employee sponsorships

• Access to Dubai’s global logistics network

In short, you get maximum flexibility with minimal red tape.

Step-by-Step Guide to Setting Up a General Trading Company

Setting up a general trading company in Dubai is easier when you know the right steps. From choosing your location to getting your license, each stage matters. This guide walks you through the full process in a clear and simple way, so you can start your business with confidence and clarity.

Step 1: Choose Between Mainland or Free Zone

• Mainland: Full access to UAE market, ability to work with government contracts, and office flexibility.

• Free Zone: 100% foreign ownership, tax-free benefits, but limited direct access to UAE local market unless using a distributor.

Step 2: Decide on Business Activities

Choose the trade categories your company will cover. Use the DED (Department of Economic Development) or Free Zone activity lists to match your offerings.

Step 3: Reserve a Trade Name

Register a unique business name. It should reflect your business activity, avoid religious or political terms, and follow UAE naming rules.

Step 4: Apply for Initial Approval

Submit your application to the relevant authority (DED for Mainland or your chosen Free Zone). This includes:

• Passport copies of shareholders

• Business activity details

• Initial approvals from regulatory bodies (if needed)

Step 5: Lease a Business Premise

You must lease a physical office or warehouse space. Free Zones offer co-working spaces, while mainland requires Ejari (tenancy registration).

Step 6: Get External Approvals (If Required)

Some goods need special approvals from:

• Dubai Municipality

• Ministry of Health

• Food Control Department

• Customs Department

Make sure to comply before importing or selling those goods.

Step 7: Apply for the General Trading License

Submit your final documents and receive your license. This includes:

• Lease agreement

• Shareholder agreement (MOA & AOA)

• License fee payment

• Trade name certificate

Documents Required for a General Trading Company Setup

Here’s what you’ll typically need:

• Passport copies of shareholders/directors

• Visa copies (if available)

• Emirates ID (for UAE residents)

• No Objection Certificate (for residents under employment visa)

• Proof of address

• Lease agreement (Ejari or Free Zone lease)

• MOA (Memorandum of Association)

• Trade name reservation certificate

How Much Does it Cost to Start a General Trading Business in Dubai?

Your total cost depends on location, visa packages, office type, and business size.

Estimated Costs:

• Mainland License: AED 15,000 to AED 25,000

• Free Zone License: AED 10,000 to AED 20,000

• Office rent: AED 12,000 to AED 50,000 per year

• Visa cost per person: AED 3,500 to AED 6,000

• Customs registration (if applicable): AED 2,000+

Mainland vs Free Zone for General Trading: Which is Better?

Common Challenges and How to Overcome Them

• Regulatory delays: Always work with a PRO or consultant for faster processing.

• Product restrictions: Check import regulations and required permits before committing.

• Customs duties: While low, they’re not zero. Calculate logistics costs in advance.

• Bank account opening: Choose the right local or international bank, as compliance is strict post-2022.

Compliance and Legal Obligations for Trading Businesses

To maintain your business, you must:

• Renew your license annually

• Maintain proper bookkeeping and financial records

• File VAT returns if your turnover exceeds AED 375,000

• Keep warehouse inspections ready (if applicable)

• Comply with product labeling and packaging standards

How to Scale Your Trading Company in Dubai

• Expand SKUs (product categories): Add more high-demand items

• Go digital: Launch an eCommerce store and register with UAE-based platforms

• Open branches: Set up satellite offices in other Emirates or the mainland

• Use third-party logistics (3PL): Partner with fulfillment centers to reduce delivery costs

• Apply for export/import licenses: Enter new regional and global markets

Conclusion

Dubai offers a strong foundation for global trading. With its robust infrastructure, modern business laws, and strategic location, starting a general trading company in Dubai can be one of the most rewarding business decisions you’ll make. From food to fashion, electronics to tools, the market is open—if you’re ready to comply and compete.

For a smooth and successful journey, secure your general trading license in Dubai through experienced consultants who understand the landscape, legalities, and logistics.

FAQs

What does a general trading license in Dubai cover?

It covers a broad range of products including electronics, clothing, furniture, and packaged food items—allowing you to trade multiple goods under one license.

Can I sell in the UAE market with a free zone trading license?

Yes, but only through a local distributor or by opening a mainland branch.

Is a physical office mandatory for a general trading company?

Yes, either a physical space or virtual office depending on whether you’re in mainland or free zone.

Can I own 100% of the company as a foreigner?

Yes, you can fully own your business in both free zones and most mainland activities.

How long does it take to get a trading license in Dubai?

With proper documentation, it takes 5 to 10 business days.