general trading licence in dubai

General Trading Licence in Dubai: Costs & Setup

If you're planning to import, export, or resell a mix of unrelated products under one company, a general trading licence in Dubai is the permit you want. It lets you trade multiple product categories without applying for a separate licence for each. Here's what it costs, where to get it, and what actually slows people down.

Quick answer

A general trading licence in Dubai is issued by the Department of Economy and Tourism (DET) for mainland companies, or by a free zone authority (like DMCC, JAFZA, or IFZA) for free zone setups. Expect total setup costs from around AED 15,000 in a low-cost free zone up to AED 40,000+ on the mainland, depending on office, visas, and activities. Timeline: 5-15 working days once documents are in order. You'll need a trade name, initial approval, MOA, and a physical or flexi-desk address.

What a general trading licence actually covers

The licence permits trading in multiple non-related goods — electronics, textiles, cosmetics, furniture, food items (with extra approvals), and so on — under a single commercial registration. Think of it as the widest commercial licence you can hold short of regulated sectors.

It does not cover:

• Pharmaceuticals, alcohol, tobacco (need separate specialised permits)
• Precious metals and stones (DMCC or specific DED sub-licences)
• Services (that's a professional licence, different animal)
• Manufacturing (industrial licence)

The legal basis for commercial licensing sits under Federal Decree-Law No. 32 of 2021 on Commercial Companies and the Dubai economic activity classifications maintained by DET. ^[1]

Frankly, most people apply for "general trading" when they only need two or three specific activities. If your product list is short, a regular commercial licence with named activities is cheaper.

Mainland vs free zone: where to set up

Mainland (DET licence). You can trade freely inside the UAE market, sell directly to UAE customers, and bid for government contracts. 100% foreign ownership is now allowed for most commercial activities under Cabinet Decision No. 55 of 2021. ^[2] Office space is mandatory — Ejari-registered (Ejari is Dubai's tenancy registration system) — though small-office and business-centre setups qualify.

Free zone. Cheaper, faster, and you keep 100% ownership. But to sell into the UAE mainland market, you'll need a local distributor or a dual licence arrangement. Popular free zones for general trading:

• JAFZA — heavy logistics, port access, larger operations
• DMCC — commodities-friendly, strong reputation, higher fees
• IFZA / Meydan / SPC — lower cost, flexi-desk options, quick issuance
• DAFZA — airport-side, good for air-freight-heavy trade

If your customers are mostly outside the UAE or you're re-exporting, free zone wins. If you need to invoice UAE companies directly and stock warehouses locally, mainland makes more sense.

What it costs in 2024-2025

Ballpark numbers — these move, so confirm with the authority before you commit.

Costs snapshot - Mainland general trading licence (DET): AED 15,000–25,000 licence fees + Ejari-registered office (from AED 15,000/year for a small unit) - Free zone general trading: AED 12,000–50,000 all-in depending on zone and visa quota - Trade name reservation: AED 620–720 - Initial approval: AED 120–235 - Establishment card (immigration): AED 500–2,000 - Investor/partner visa: AED 3,500–5,500 per visa (2-year)

DMCC's published general trading package starts around AED 34,340 for licence + flexi-desk in year one. ^[3] IFZA sits noticeably lower for a single-shareholder setup with one visa. Cheapest zones can come in under AED 15,000 but usually cap visa quotas at 1-2.

Renewal is roughly the same as issuance every year, minus one-time setup fees. Budget for it.

The setup process, step by step

1. Pick your jurisdiction — mainland or a specific free zone. This is the decision everything else follows from.
2. Reserve the trade name with DET (mainland) or your free zone portal. Avoid religious references, country names, and anything the authority flags as sensitive.
3. Get initial approval — DET or the free zone confirms your activity mix is acceptable.
4. Draft the MOA (Memorandum of Association). Notarised for mainland LLCs; standard template for free zones.
5. Secure office space — Ejari for mainland, or a flexi-desk/office contract in the free zone.
6. Submit final documents — passports, visa pages, NOC if applicable, tenancy contract, MOA.
7. Pay fees and receive the licence — usually 3-10 working days after final submission.
8. Open a corporate bank account — this is where many people get stuck. Banks in the UAE run heavy compliance checks; expect 3-8 weeks for approval, longer if shareholders are from higher-risk jurisdictions.

Watch out Bank account opening is the real bottleneck. Don't sign a long office lease until you've spoken to at least two banks about acceptance. A licensed general trading company with no operating account is expensive dead weight.

Ongoing compliance you can't ignore

Holding a general trading licence in Dubai comes with obligations that catch new founders off guard:

• Corporate tax registration — 9% federal corporate tax applies on taxable profits above AED 375,000 under Federal Decree-Law No. 47 of 2022. Registration with the Federal Tax Authority is mandatory regardless of turnover. ^[4]
• VAT — register if taxable supplies exceed AED 375,000/year; voluntary registration from AED 187,500.
• Economic Substance and UBO filings where applicable.
• Annual audit — required in most free zones (DMCC, JAFZA) and for many mainland structures.
• Licence renewal before expiry — late renewal penalties start at AED 250/month and escalate.

Miss corporate tax registration deadlines and you're looking at AED 10,000 in administrative penalties under Cabinet Decision No. 75 of 2023. Not the fine you want in year one.

For more on setting up a Dubai company generally, see our business licensing answers.

When general trading is overkill

Honestly? If you're selling one product line, a specific commercial licence with 3-5 named activities does the same job for less money. The general trading licence justifies its premium when you genuinely trade unrelated categories or plan to pivot product lines without re-licensing every time.

Ask yourself: am I paying for flexibility I'll actually use, or for the word "general" on the certificate?

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Sources

^[1] UAE Federal Decree-Law No. 32 of 2021 on Commercial Companies — https://uaelegislation.gov.ae

^[2] Cabinet Decision No. 55 of 2021 on the Determination of the List of Strategic Impact Activities — https://uaelegislation.gov.ae

^[3] DMCC Company Setup Packages — https://www.dmcc.ae/setup-a-company

^[4] UAE Federal Decree-Law No. 47 of 2022 on the Taxation of Corpor