How to start a general trading company in Dubai

December 31, 2020

Dubai has positioned itself as the global hub for international trade, connecting markets across Asia, Europe, Africa, and beyond. With its world class infrastructure, tax advantages, and strategic location, starting a general trading company in Dubai offers exceptional opportunities for entrepreneurs looking to tap into global commerce.

Whether you want to trade in electronics, textiles, food products, construction materials, or any other commodities, Dubai provides the perfect platform to launch and grow your trading business. Here’s your complete guide to establishing a general trading company in Dubai in 2025.

What is a General Trading License?

A general trading license is one of the most flexible commercial licenses available in the UAE. It allows you to import, export, and distribute a wide range of products across multiple categories without being restricted to a single product line. This versatility makes it ideal for entrepreneurs who want to explore diverse trading opportunities and adapt to market demands.

With a general trading license, you can trade in various product categories including:

• Consumer electronics and home appliances
• Textiles, garments, and fashion accessories
• Building materials and hardware
• Food and beverage products (non-perishable)
• Furniture and home furnishings
• Automotive parts and accessories
• Office supplies and equipment
• General merchandise and consumer goods

Note that certain specialized products like pharmaceuticals, alcohol, tobacco, and precious metals require separate licenses and additional approvals.

Step by Step Guide to Start Your General Trading Company

1. Develop Your Business Plan

Before diving into the licensing process, create a comprehensive business plan that outlines your trading strategy. Your plan should include:

Market Research: Identify your target markets, customer segments, and competitive landscape in the UAE and internationally.

Product Selection: Define which product categories you’ll focus on initially and potential expansion areas.

Supplier Network: Plan how you’ll source products, whether from manufacturers in China, India, Europe, or other regions.

Distribution Strategy: Determine how you’ll sell and deliver products, whether through retail partnerships, B2B sales, e-commerce, or direct distribution.

Financial Projections: Estimate your startup costs, working capital needs, revenue projections, and break-even timeline.

SWOT Analysis: Assess your strengths, weaknesses, opportunities, and threats in the Dubai trading market.

A solid business plan not only guides your operations but is also required when opening corporate bank accounts and applying for business financing.

2. Choose Your Jurisdiction

Dubai offers three main jurisdictions for company formation, each with distinct advantages:

Mainland (DED License)

Registering your general trading company on the mainland gives you unlimited access to the UAE market and allows you to trade directly with local businesses and consumers. You can also participate in government tenders and contracts. As of 2025, you can own 100% of your mainland company without requiring a local sponsor.

Mainland Benefits:

• Trade anywhere in the UAE without restrictions
• Conduct business directly with UAE companies and consumers
• No limitations on office location within Dubai
• Access to government contracts and tenders

Free Zone

Free zones like Jebel Ali (JAFZA), Dubai Multi Commodities Centre (DMCC), and Dubai Airport Free Zone (DAFZA) offer 100% foreign ownership, full repatriation of profits, and corporate tax exemptions. However, to trade on the mainland, you’ll need to appoint a local distributor or agent.

Free Zone Benefits:

• Zero corporate and personal income taxes
• 100% profit repatriation
• No currency restrictions
• Streamlined setup process
• Modern office facilities and warehousing options

Offshore

Offshore companies are suitable for holding assets and international transactions but cannot conduct business directly within the UAE.

For most general trading operations targeting the UAE market, a mainland license offers the best flexibility and market access.

3. Select Your Trade Name

Choose a unique company name that complies with UAE naming regulations:

• Must not conflict with existing registered companies
• Cannot contain offensive or religious references
• Should reflect your business activity
• Can include your personal name
• Must end with the legal form (LLC, FZE, FZCO, etc.)

The Department of Economy and Tourism (DET, formerly DED) will verify name availability during the application process.

4. Determine Your Legal Structure

The most common legal structure for a general trading company in Dubai is a Limited Liability Company (LLC) for mainland or Free Zone Establishment (FZE) / Free Zone Company (FZCO) for free zones.

LLC Requirements:

• Minimum one shareholder (maximum 50)
• 100% foreign ownership allowed
• Requires a registered office address in Dubai
• Minimum capital requirement (typically AED 300,000, though not always required to be deposited)

5. Secure Your Office Space

You need a physical office location to obtain your trading license. Options include:

• Commercial office space: Lease office space in a business center or commercial building
• Flexi-desk or co-working space: More affordable option for startups
• Free zone office: Ready-to-use office solutions in free zone authorities
• Warehouse facilities: If you plan to stock inventory

Once you secure your office, obtain a tenancy contract and register it with Ejari (for mainland) or the relevant free zone authority. This attested tenancy contract is mandatory for license issuance.

6. Apply for Your General Trading License

Submit your license application to the Department of Economy and Tourism (for mainland) or your chosen free zone authority. Required documents typically include:

• Completed application form
• Passport copies of shareholders and managers
• Entry stamps or Emirates ID
• No Objection Certificate (NOC) from sponsor if on employment visa
• Attested tenancy contract (Ejari)
• Business plan (for certain free zones)
• Memorandum of Association (MOA)
• Initial approval certificate

7. Complete Registration and Pay Fees

The total cost to establish a general trading company in Dubai varies based on your chosen jurisdiction and business activities. As of 2025, typical costs include:

Mainland Company Costs:

• Trade license fee: AED 15,000 to AED 25,000 annually
• Registration fees: AED 2,000 to AED 5,000
• Office tenancy: AED 20,000 to AED 100,000+ annually (depending on location and size)
• Ejari registration: AED 220
• Business consultancy fees: AED 10,000 to AED 20,000 (optional but recommended)

Total estimated cost: AED 50,000 to AED 150,000 for the first year

Free Zone Company Costs:

• License fees: AED 15,000 to AED 50,000 annually (varies by free zone)
• Office/flexi-desk: AED 15,000 to AED 80,000 annually
• Registration fees: AED 2,000 to AED 10,000

Your general trading license is valid for one year and must be renewed annually.

8. Open a Corporate Bank Account

With your trade license in hand, you can open a corporate bank account with UAE banks. You’ll need:

• Trade license copy
• Memorandum of Association
• Emirates ID and passport copies of shareholders
• Business plan
• Proof of address
• Bank reference letters

The account opening process typically takes 2 to 4 weeks depending on the bank’s due diligence requirements.

9. Apply for Visas

Your general trading license allows you to sponsor employment visas for yourself, your family, and employees. The number of visas depends on your office space size and license type.

Visa process includes:

• Entry permit application
• Medical fitness test
• Emirates ID registration
• Visa stamping

Why Dubai is Perfect for General Trading Companies

Strategic Geographic Location: Dubai sits at the crossroads of East and West, providing easy access to markets across the Middle East, Africa, Asia, and Europe.

World Class Infrastructure: State of the art ports, airports, warehouses, and logistics facilities make importing and exporting seamless.

Tax Advantages: No corporate income tax for most business activities, no personal income tax, and minimal customs duties in free zones.

Business Friendly Environment: Streamlined processes, transparent regulations, and strong legal protection for businesses.

Diverse Market: Access to a multicultural population and growing consumer market across the GCC region.

Banking and Finance: Robust banking sector with easy access to trade finance, letters of credit, and business loans.

Common Challenges and How to Overcome Them

High Initial Costs: While setup costs can be significant, working with business consultants helps you choose the most cost effective jurisdiction and avoid unnecessary expenses.

Banking Requirements: UAE banks have strict due diligence processes. Prepare comprehensive documentation and maintain transparency to smooth the account opening process.

Supplier Relationships: Building trust with international suppliers takes time. Start with smaller orders and established trading platforms before committing to large inventory purchases.

Market Competition: Dubai’s trading sector is competitive. Differentiate yourself through specialized product knowledge, excellent customer service, and competitive pricing.

How EBS Can Help You Start Your Trading Company

Navigating the company formation process, understanding regulations, and ensuring compliance can be overwhelming, especially if you’re new to Dubai’s business environment. EBS has helped hundreds of entrepreneurs successfully launch their general trading companies in Dubai.

Our comprehensive services include:

• Jurisdiction consultation and cost comparison
• Trade name reservation and approval
• License application and processing
• Office solutions and Ejari registration
• Corporate bank account assistance
• Visa processing for owners and employees
• PRO services and government liaison
• Ongoing compliance and license renewal support

We handle the complexities while you focus on building your supplier network and planning your market entry strategy.

Ready to Launch Your General Trading Company?

Dubai’s thriving trade ecosystem offers unlimited potential for ambitious entrepreneurs. With the right guidance and proper setup, your general trading company can quickly establish itself in this dynamic market.

Contact EBS today for a free consultation:

• Call: +971 4303 8333
• Email: info@ebsuae.com