Dubai has grown into one of the region’s strongest business hubs. Traders from around the world choose this city for its location, favorable regulations, and access to global markets. One of the most popular business options here is a general trading license. This license suits entrepreneurs who want to handle multiple product categories under one company. This guide explains what a general trading license is, why it matters, and how to get one in Dubai.
What is a General Trading License in Dubai?
A general trading license allows a company to buy, sell, import, and export different kinds of goods. These goods can belong to multiple industries. Electronics, food items, textiles, building materials, and consumer products can all fall under one license, as long as they meet local rules.
This license is different from a normal trading license. A regular trading license limits the business to one product category or one industry. A general trading license gives more freedom and flexibility. It is issued by the Department of Economy and Tourism for mainland companies or by the authority of a chosen free zone.
Why a General Trading License is Important
Anyone planning to sell multiple products in Dubai needs this license. Foreign entrepreneurs especially benefit from it because it avoids the need to apply for separate licenses for each product line. Once the license is issued, the business can trade within Dubai, across the UAE, and with international markets. This makes the company ready to work with suppliers, distributors, and buyers without legal hurdles.
Main Benefits of a General Trading License!
- Dubai is a strong base for business operations.
- Office and warehouse options are also modern and flexible. Rental choices suit both startups and established firms.
- Company formation is fast. With correct paperwork, setup can be completed within a few working days.
- Capital requirements are very minimal. No share capital deposit or bank guarantee is needed in many cases. Profits can be sent back to the home country without restrictions.
- Trade barriers are also limited. Mainland companies enjoy fewer compliance burdens compared to many other countries.
Types of Business Licenses in Dubai
Dubai mainly offers four common business licenses.
- A commercial license is for buying and selling goods, including import and export activities.
- A professional license is for service-based businesses such as consultants, designers, and agencies.
- An industrial license is for manufacturing and production activities within the UAE.
- A tourism license is required for travel, hospitality, and tour-related businesses.
- Even companies trading internationally still need a suitable commercial or general trading license to operate legally from Dubai.
Step by Step Process to Get a General Trading License
Step 1 Choose the Right Jurisdiction
The very first decision is between mainland and free zone. Mainland companies can trade directly within the UAE market. Certain activities may involve local requirements.
Free zones allow full foreign ownership and are popular with international traders. These zones also offer industry-focused facilities. The choice depends on target customers, business model, and future expansion plans.
Step 2 Select a Company Name
Business names in Dubai must follow specific rules. The name should be written in English or Arabic without special symbols. Offensive, religious, or sensitive words are not allowed.
Certain words need approval from authorities. Duplicate names are not accepted.
Once approved, the name will be reserved for a limited period and must be renewed if not used. A trademark registration is also helpful to protect brand identity. Between, franchises can use existing names after submitting valid agreements.
Step 3 Arrange Office or Warehouse Space
You will need a physical address for a general trading company. An Office or warehouse space should suit storage and daily operations. The Locations close to ports, roads, and logistics hubs help reduce transport time and costs. The Facilities need to have good ventilation, storage systems, and security help protect goods.
Step 4 Obtain Customs Clearance
- Import and export activities require registration with customs.
- An import code must be issued by the customs authority.
- Relevant fees need to be paid.
- Business details must be registered to allow smooth movement of goods through ports and borders.
Documents Required for a General Trading License
- For individual shareholders, the following documents are needed:
- Passport copy
- Passport-size photograph
- Residence visa copy if available
- Emirates ID copy if applicable
- For corporate shareholders, these documents are required:
- Certificate of incorporation
- Certificate of incumbency or similar document
- Memorandum of association
- Board resolution approving the business
- These papers confirm the identity and legal status of the owners.
Activities Allowed Under a General Trading License
Common activities include:
- Import and export of goods
- Retail and wholesale trading
- Online selling
- Trading of multiple product categories
- Medical product trading with additional approvals
Mainland vs Free Zone General Trading License
A general trading license can be issued in both mainland and free zones.
Mainland licenses allow direct access to the UAE market.
Free zones suit businesses focused on international trade. Some free zones may ask for higher share capital, depending on the activity and authority.
Costs and requirements differ, so selection should match business goals.
Cost of a General Trading License in Dubai
The cost usually ranges between AED 15,000 and AED 50,000 or more. However, the final pricing depends on location, office size, approvals, visas, and business activity. Companies like Damaar help investors to understand the exact cost and choose suitable options based on budget and plans.
General Trading License vs Regular Trading License
- A general trading license allows many products and industries under one company.
- A regular trading license allows only one product group.
- General trading costs more at the start but offers wider growth opportunities.
- Regular trading suits businesses with a narrow focus.
Time Required to Get the License
Approval can take anywhere between a few days to four weeks. The processing time also mainly depends on document accuracy and activity type. And Complete paperwork helps avoid delays.
Get Your General Trading License in Dubai with Damaar
Getting a general trading license in Dubai becomes simple and stress free with Damaar by your side. As a leading business setup consultants in dubai, Damaar guides you through every step, from choosing the right jurisdiction to final license approval. Our team handles documentation, approvals, and coordination with authorities, helping you avoid delays and confusion. With deep local expertise and clear advice, Damaar makes sure that your general trading license is issued smoothly, allowing you to focus on building and growing your business with confidence in the UAE market.
