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Dubai Business Setup

How to Start a General Trading Company in Dubai: License Guide 2026

March 19, 2026

What Is a General Trading License in Dubai?

Most trade licenses in Dubai are activity-specific — a company licensed to trade in electronics cannot also trade in food products, at least not without adding a separate activity. A general trading license removes that constraint entirely.

Under a single general trading license, you can import, export, distribute, and sell goods across a wide range of product categories simultaneously. It’s the broadest commercial license the UAE issues, and for entrepreneurs planning to run diversified trading operations or expand into new product lines without constant license amendments, it’s the obvious choice.

Dubai’s position as a global trade hub makes this particularly powerful. The emirate sits at the intersection of Asia, Europe, and Africa, handles roughly 80% of the UAE’s non-oil trade, and operates through world-class logistics infrastructure at Jebel Ali Port, Dubai International Airport, and Al Maktoum International. A general trading license gives you full access to this infrastructure and the ability to pivot your product mix as market opportunities evolve.

The license falls under the commercial license category — distinct from professional licenses (services) and industrial licenses (manufacturing). Understanding this distinction matters when selecting your business structure.

What Can You Trade Under This License?

A general trading license covers the buying and selling of most physical goods, including:

  • Food and beverage products (packaged, non-perishable, and some fresh goods)
  • Electronics and electrical appliances
  • Clothing, textiles, and apparel
  • Building materials and hardware
  • Furniture and home furnishings
  • Cosmetics, personal care, and hygiene products
  • Stationery and office supplies
  • Toys and sporting goods
  • Automotive parts and accessories
  • Chemical products (standard, non-hazardous)
  • Medical and health equipment (subject to additional DHA/MOH approvals)

What it doesn’t cover:
Certain regulated categories require separate approvals regardless of your license type. Pharmaceuticals, alcohol, controlled substances, weapons, and precious metals all carry additional regulatory requirements beyond the general trading license itself. If your business includes any of these, factor in supplementary licensing costs and timelines from the outset.

The flexibility to trade across product categories without amending your license each time is what makes the general trading license worth its slightly higher cost compared to a single-activity commercial license.

Mainland vs. Free Zone: Where Should You Set Up?

This is the first strategic decision every trading company founder needs to make — and the right answer depends entirely on where your customers are.

Dubai Mainland

A mainland general trading license lets you sell directly to customers and businesses anywhere in the UAE without restriction. You can supply retailers in Dubai Mall, bid for government procurement contracts, deliver to clients in Abu Dhabi, and operate retail showrooms — all under one license.

Since the 2021 reforms to the UAE Commercial Companies Law, foreign investors can own 100% of a mainland trading company in most product categories. The old requirement for a 51% Emirati partner has been removed for general trading in the majority of cases, though a local sponsorship arrangement is still relevant for certain restricted activities.

A Dubai mainland company is the stronger choice if your primary market is UAE-based customers, you want to open physical retail or showroom locations, or you intend to supply hospitality, construction, or government sectors.

Free Zone

Free zones offer benefits that remain attractive for certain trading models: streamlined setup processes, warehousing proximity (particularly at JAFZA near Jebel Ali Port), and in some cases lower initial costs. Key free zones for trading include DMCC, JAFZA, Dubai South, and DAFZA.

The critical limitation: free zone companies cannot sell directly to customers in the UAE mainland without appointing a mainland distributor or establishing a separate mainland entity. If your model is purely import-export — buying goods internationally and re-exporting without touching the local retail market — a free zone setup can work well. But if you’re selling to UAE businesses or consumers, the mainland gives you direct market access that a free zone can’t replicate.

For a detailed breakdown of how these two structures compare, the difference between mainland and free zone companies covers the key commercial and operational implications.

Requirements for a General Trading License

Documents Required

For a mainland general trading license application, you’ll need:

  • Passport copies of all shareholders and managers
  • UAE residence visa copies (if already residing in the UAE)
  • No Objection Certificate (NOC) from current employer if on a UAE residence visa sponsored by another company
  • Proposed trade name (3 options recommended)
  • Memorandum of Association (prepared during registration)
  • Ejari-registered tenancy contract for your business premises

Non-UAE residents can complete most of the process remotely with a power of attorney, visiting Dubai only for visa stamping once the license is issued.

Office / Premises

A physical office space is required for a mainland general trading license — the DET requires a valid Ejari-registered tenancy contract as part of the application. The minimum size requirement is modest, and options range from shared office spaces and serviced offices to dedicated units. If you plan to hold stock locally, you’ll also need a warehouse or storage facility with appropriate approvals.

Flexi desk and virtual office arrangements do not qualify for mainland general trading licenses — a dedicated tenancy agreement is mandatory.

Share Capital

There is no minimum paid-up capital requirement for most general trading LLCs registered in Dubai. Some banks, however, will ask for a capital declaration when opening a corporate account, so having a clear figure in your MOA (typically AED 50,000–300,000) helps with banking.

Step-by-Step Setup Process

Step 1: Choose Your Business Structure

Most general trading companies register as a Limited Liability Company (LLC). This limits personal liability to your share of capital and is the standard structure for mainland commercial activity. LLC formation in Dubai is a well-established process with defined documentation requirements.

Sole proprietorship (individual establishment) is an option if there is only one owner, but it carries unlimited personal liability and is less suitable for larger trading operations.

Step 2: Reserve Your Trade Name

Submit your proposed trade name through the DET portal. Names must comply with UAE naming conventions — no offensive terms, no references to external political entities, and no use of “international” or “group” without meeting specific criteria. Approval typically comes within 1–2 business days.

Step 3: Apply for Initial Approval

Initial approval confirms DET has no objection to your proposed business activity. This step allows you to proceed with leasing premises and opening a bank account before the final license is issued.

Step 4: Secure Your Business Premises

Sign a tenancy contract and register it through Ejari (Dubai’s rental registration system). Your office address becomes part of your company’s official registration records. Many business centers offer packages that include Ejari registration as part of the lease.

Step 5: Draft and Notarize the MOA

Your Memorandum of Association defines shareholder structure, capital allocation, and management authority. For foreign-owned LLCs, the MOA must be notarized at a Dubai Notary Public. Experienced PRO services teams handle MOA preparation and notarization efficiently, avoiding common errors that delay the process.

Step 6: Submit Final License Application and Pay Fees

Submit all documents — including the initial approval certificate, Ejari contract, and notarized MOA — to the DET for final license issuance. Pay the license and registration fees. Your commercial license will typically be issued within 3–5 working days of complete submission.

Step 7: Open a Corporate Bank Account

With your trade license in hand, open a UAE corporate bank account. General trading companies have straightforward banking requirements, though due diligence varies by bank. Having a clear business plan, proper documentation, and a physical office address significantly improves approval rates. For practical guidance, opening a business bank account in Dubai requires preparation but is manageable with the right approach.

Step 8: Apply for Investor/Employee Visas

Your trade license comes with a visa quota based on your office space. Apply for your own investor visa first, then add employee visas as your team grows. Visa processing typically takes 2–3 weeks per application.

Cost Breakdown

Expense Estimated Cost (AED)
DET General Trading License 15,000 – 25,000
Trade name registration 600 – 900
Initial approval fee 100 – 300
MOA notarization 1,500 – 2,500
Office space (annual, business center) 8,000 – 20,000
Ejari registration 200 – 400
PRO / government services fees 2,000 – 5,000
Investor visa (per person) 3,500 – 5,000

Total first-year cost: approximately AED 30,000 – 55,000, inclusive of one investor visa and a modest shared office space. Free zone alternatives can start lower but have higher per-year renewal costs in many cases.

For a complete picture of business setup costs in Dubai, costs scale with office size, visa count, and whether you require warehouse space alongside your office premises.

The cost of a trade license in Dubai specifically depends on the license category, number of activities, and current DET fee schedules — which are reviewed periodically.

Timeline: How Long Does It Take?

A mainland general trading company can be fully operational — license issued, bank account open, investor visa stamped — in approximately 3–5 weeks when documentation is prepared correctly and there are no delays at individual steps.

The typical breakdown:

Stage Duration
Trade name approval 1–2 business days
Initial approval 2–3 business days
Office lease + Ejari 3–7 days
MOA notarization 1–2 days
Final license issuance 3–5 business days
Bank account approval 10–20 business days
Investor visa stamping 10–15 business days

The bank account and visa processes run in parallel, so the total setup timeline is more like 3–5 weeks rather than the sum of individual steps. Working with an experienced business setup consultant compresses this timeline further by ensuring documents are complete before each submission.

FAQ

What’s the difference between a general trading license and a specific trading license?
A specific trading license covers a single product category — for example, “electronics trading” or “food products trading.” A general trading license covers a broad range of product categories under one license. General trading costs slightly more but eliminates the need to amend your license each time you add new product lines.

Can I get a general trading license in Dubai as a foreigner?
Yes. Under the updated UAE Company Law, foreign nationals can own 100% of a mainland general trading company for most product categories. This means no Emirati partner requirement for standard trading activities. Starting a business in Dubai as a foreigner is now significantly more accessible than it was before 2021.

Can I run a general trading company from a free zone and sell in the UAE?
Free zone general trading companies can sell to other free zone entities and conduct international import/export. To sell to UAE mainland customers or businesses, you either need a separate mainland entity or a mainland distributor. If UAE market access is important, a mainland license is the more practical structure.

How do I renew a general trading license?
Licenses are renewed annually through the DET portal. You’ll need to submit your updated Ejari contract, pay renewal fees, and ensure all shareholder and manager documents are current. Renewing a trade license in Dubai is a straightforward process when done on time — late renewals incur penalties.

Do I need a physical warehouse for a general trading license?
Not necessarily. The license itself requires an office space with a valid tenancy contract, but physical stock holding requires separate warehouse approvals. Some trading companies operate purely as intermediaries — buying and selling without holding inventory in the UAE — in which case the office space alone is sufficient.

Can I add other business activities to a general trading license?
You can add specific activities to your license, though a well-structured general trading license already covers a broad scope. Adding highly specialized or regulated activities (medical devices, food production) typically requires separate approvals from relevant regulatory authorities alongside the DET license amendment.

Start Your General Trading Company in Dubai

The general trading license is the foundation of Dubai’s commercial economy. With the right structure and proper setup, it opens doors to local distribution, international re-export, and the UAE’s vast wholesale and retail markets — all under a single, renewable license.

EBS specializes in company formation in Dubai for trading businesses, handling everything from license applications and MOA drafting to bank account facilitation and ongoing license renewals. Our team knows the DET process and can flag issues before they become delays.

Contact EBS today to get your general trading license issued efficiently — and start trading sooner.

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