How to Get a General Trading License in Dubai: Requirements and Cost

Dubai has consistently maintained a strong position as one of the leading destinations for starting or expanding a business. The country’s stable economy, tax benefits, location advantages, and government incentives for investors and entrepreneurs are among the primary reasons for this reputation. 

If you are considering establishing in Dubai but do not want to risk putting all your eggs in one basket in the event of sudden market changes, a general trading license offers a versatile option. It broadens the scope of goods you can trade in the city, not limiting you to a specific field or industry. 

This blog explains the requirements for obtaining a trading license in Dubai, how it works, and provides a clear cost breakdown. 

What Is a General Trading Licence?

It is a type of license in Dubai that allows businesses to engage in a wide range of trading activities, including importing, exporting, distributing, and selling goods. It is designed for businesses looking to participate in diverse trading sectors. 

In simple terms, it allows a company to conduct multiple types of activities, except those prohibited by law, simultaneously under a single license. The features of this license differ from those of a trading license that is tied or restricted to a specific commodity. 

Benefits of obtaining a general trading license

• Diverse business scope: Enables companies to trade across multiple industries, products, and activities, offering flexibility in changing market conditions.

• Expansion potential: Facilitates business growth through the addition of shareholders, workforce expansion, and visa eligibility.

• No duties or currency restrictions: Supports international trade with flexible currency transactions and full repatriation of capital and profits.

• Logistical flexibility: Provides access to world-class ports, airports, transport networks, and warehousing facilities to support both local and global operations.

Activities permitted under a general trading license 

• Import and export

• Wholesale trading

• Retail sales

• Food and beverages trading

• Electronics and appliances trading

• Building materials trading

• Industrial machinery and equipment trading

• Automotive trading

• Health and beauty products trading

• Pharmaceutical and medical equipment trading

• Textiles and apparel trading

• Toys and games trading

• Office supplies and stationery trading

• General commodities trading

How to get a trade license in Dubai? Step-by-step process and key requirements 

Here are some crucial points to consider before applying for a general trading license: 

1. Business Eligibility

A general trading license is available to both UAE nationals and foreign investors. However, if you are a foreign investor, you may need a local partner, either a UAE national or a UAE-based company, to hold the majority of the shares (51%) in the business. 

2. Company Structure

Choose a proper legal structure from Limited Liability Company (LLC) or sole proprietorship, to suit specific requirements and the involvement of partners or shareholders. 

3. Licensing Authority

To obtain a general trading license in Dubai mainland, investors must apply through the Department of Economic Development (DED) or the relevant authority in the emirate where they plan to operate. If you’re setting up your company in a free zone, apply to the relevant free zone authority. 

4. Minimum Capital Requirement

There are no minimum capital requirements for a general trading license. However, the DED will assess your business activity and tell you to demonstrate that you have sufficient capital to run and operate the company. 

5. Office Space Requirement

To obtain a general trading license, you should have a physical office or a commercial space suitable for the specified activities and comply with DED regulations. The number of staff also depends on the size of the office. Some free zones offer turnkey office packages eligible for a certain number of employees. 

6. Renewal and Compliance.

Once you have obtained the license, you should comply with the DED regulations continuously and renew it annually. 

Here are the steps involved in applying for the general trading license visa: 

• First, you need to specify your company’s name in accordance with the DED’s naming regulations and apply for its registration.

• Then, clearly define the legal structure of your business and assess whether you need a local sponsor or partner to meet the ownership requirements.

• List the types of trading activities you wish to conduct under the license and ensure that your chosen activities align with the license type.

• You will need a commercial space or physical office that meets the DED’s requirements and obtain the lease agreement. 

• Prepare and submit the required documentation, which typically includes the Memorandum of Association (MOA), lease agreement, passport copies of partners or shareholders, and other relevant paperwork. The required documentation may vary based on residential status, the company’s legal entity, size, and business activities.

• Apply for your General Trading License with the relevant authorities.

• Pay the necessary fees and wait for your application to be approved.

• Once you receive approval from the authorities, obtain your license and begin operations. 

How Much Does a General Trading Licence Cost?

The cost of a general trading license in Dubai and the UAE is determined by several factors. Some of them include: 

• The emirate in which you wish to establish your business

• Specific business activities you intend to engage in

• The type of business structure you choose

• whether you use a free zone or the mainland as your company’s grounds.

The estimated cost of a general trading license in Dubai can range anywhere from  AED 12,500 to AED 35,000. If you want to establish in the mainland, the lowest cost range is AED 25,000-35,000. Free zones in the northern emirates, such as the SHAMS (Sharjah Media City), offer more affordable options at approximately AED 6,500.

The cost also includes additional expenses that may increase the overall setup costs when combined. They include:  

• There is a nonrefundable application fee payable to the relevant government authority, which may vary by emirate and licensing authority.

• Business or trade name registration fee, which is essential for legalising the business activities. 

• Rent for the minimum requirement for a physical office or commercial space, which depends on the location, size, and facilities.

• Additional government and regulatory fees are involved in the licensing process and are influenced by factors such as the type of business, the number of partners or shareholders, and the intended business activities.

• If you are a foreign investor and do not have 100% ownership of the business, you will need to find a local sponsor or partner. This involves a local sponsorship cost, which is often negotiated between the two parties. 

• If you plan to obtain residency visas for yourself and your employees or partners, you will incur costs for visa processing, medical examinations, Emirates ID cards, and other immigration-related expenses.

• General Trading Licenses typically need to be renewed annually, and renewal fees apply.

• Depending on your business activities and revenue, you may need to register for VAT, which could involve administrative costs.

Note: Please note that regulations and fees may change, so it's essential to stay up to date with the latest information from relevant government authorities.

Key Takeaways

A general trading licence in Dubai allows businesses to trade across multiple sectors under one licence. Both UAE nationals and foreign investors can apply, though mainland foreign investors may need a local partner. Costs vary by emirate, business activity, and structure, typically ranging from AED 6,500–35,000. Companies must meet office and licensing requirements, comply with regulations, and renew annually. The licence offers flexibility, growth potential, and access to international trade.