How do you set up a general trading company in Dubai, UAE?
- Pick mainland or free zone for your business.
- Reserve a trade name with Dubai’s Department of Economy & Tourism (DET).
- Write a simple business plan listing products, costs, and target markets.
- Apply online for initial approval and a general trading license (code 4690).
- Sign your Memorandum of Association (MoA) and lease an Ejari-attested office or warehouse.
- Register with Dubai Customs and get an import-export code.
- Open a UAE corporate bank account for payments and VAT refunds.
- Complete medicals and visa stamping for owners, staff, and dependents.
Follow these eight steps and you can legally import, export, and sell most goods across the UAE and worldwide.
How to Start a General Trading Company in Dubai, UAE
What Is a Trading Company?
A trading company is a business that buys products from one party and sells them to another. Think of it as the middle link in the supply chain:
- It sources goods from manufacturers or big wholesalers.
- It stores, repackages, or labels items if needed.
- It then sells those goods to retailers, other businesses, or directly to shoppers—locally or across borders.
Trading companies make money on the price difference between what they pay for the goods and what they charge their customers.
What Is a Trading Company License in Dubai?
A Trading Company License (sometimes called a Commercial License) is the official permit issued by Dubai’s Department of Economy & Tourism (DET) or by a free-zone authority that allows your company to:
- Buy, sell, import, or export goods listed on the license.
- Operate legally in Dubai and across the UAE.
- Open a UAE corporate bank account, sponsor visas, and clear shipments through customs.
Without this license, a business cannot trade goods in or out of Dubai.
What Is General Trading in Dubai?
General trading means a company is licensed to deal in many different, and even unrelated, product categories under one umbrella license. For example, a single Dubai general trading firm can import and sell phones, clothing, kitchenware, and toys—all with the same permit (activity code 4690).
Restricted items—such as alcohol, tobacco, medicines, or firearms—still need extra approvals. Still, everything else can be grouped into that one broad license, making it easier and faster to expand your product mix.
Why Choose Dubai for General Trading?
- Gateway location. Dubai sits between Europe, Asia, and Africa. A seven-hour flight reaches two-thirds of the world’s people.
- Open-trade rules. The UAE has no quotas on most goods and keeps import duties low (usually 5 %). A 0 % corporate tax applies to many free-zone firms that meet “qualifying income” rules.
- World-class logistics. Jebel Ali Port is the largest in the Middle East. Al Maktoum International Airport (DWC) is built for cargo. Modern highways link every emirate and the GCC.
- Stable economy. UNCTAD says the UAE is the second-largest FDI magnet in West Asia. The World Bank ranks it 33rd for ease of doing business.
- Supportive laws. Foreigners can now own 100 % of most mainland firms. E-government portals speed up paperwork. A 10-year Golden Visa rewards big investors and skilled founders.
Pro Tip: Business Setup in UAE is smoother here than in many rival hubs.
General Trading vs. Regular Trading License
| Feature | General Trading License | Regular Trading License |
| Scope | Multiple, unrelated goods (toys + phones + clothes) | One product group only |
| Customs code | One code covers all items on your product list | Different codes per group |
| Best for | General trading companies in Dubai that pivot quickly | Niche brands with single focus |
| Renewal | Yearly | Yearly |
If you plan to sell more than one type of product, a general license saves time and paperwork.
Before You Begin: Key Decisions
Mainland or Free Zone?
| Point | Mainland | Free Zone |
|---|---|---|
| Market access | UAE + global | Mainly export; mainland sales need distributor |
| Ownership | 100 % foreign OK for general trading | 100 % foreign |
| Visa quota | Linked to office size, unlimited | Package-based (1–6 visas), upgradeable |
| Cost | Higher rent, higher license fee | Cheaper flexi-desk packages |
| Examples | Dubai mainland LLC | Dubai CommerCity, IFZA, DMCC |
Choose Your Products Wisely
A general license lets you trade most things except controlled items like alcohol, tobacco, arms, and medicines. These need extra permits. List your goods clearly in the application; you can add more later for a small fee.
Timeline Snapshot
- Name & initial approval: 1–2 days
- License issue: 5–7 days
- Visas & bank account: 1–3 weeks
Total: about one month from idea to first shipment.
Deep-Dive Cost Breakdown (2025)
Below is a clear, side-by-side look at every major expense you’ll meet when opening a general trading company in Dubai. Figures are in UAE dirhams (AED). 1 AED ≈ 0.27 USD.
| Cost Item | Free-Zone “Starter”(flexi-desk, 1 visa) | Free-Zone “Growth”(small warehouse, 3 visas) | Mainland LLC(street-front office, 5 visas) |
| Trade-name & initial approval | 0 – 1 000 | 0 – 1 000 | 740 |
| General trading license | 9 000 – 12 000 | 14 000 – 18 000 | 18 000 – 25 000 |
| Government innovation & knowledge fees | 0 | 0 | 700 |
| MoA drafting & notarisation | Included | Included | 2 500 |
| Office / warehouse lease– Flexi-desk (free zone)- 100 m² warehouse (free zone)- 25 m² street office (mainland) | 12 000 | 35 000 – 50 000 | 22 000 – 35 000 |
| Ejari / facility registration | 0 | 1 700 | 1 700 |
| Customs import-export code | 100 | 100 | 100 |
| E-channel / establishment card | 720 | 720 | 720 |
| Visa package(entry permit, medical, Emirates ID, stamping)- per person | 3 500 | 3 500 × 3 = 10 500 | 3 500 × 5 = 17 500 |
| Bank account opening (average min. balance) | 10 000 | 25 000 | 50 000 |
| Insurance starter bundle(cargo + public liability) | 3 000 | 4 500 | 4 500 |
| Grand Setup Total | ≈ 38 000 | ≈ 86 000 | ≈ 103 000 |
Hidden/Optional Extras to Budget For
| Expense | Why It Pops Up | Typical Range |
| Chamber of Commerce registration | Needed for export certificates | 1 200 – 2 000 |
| Data-logger seals (per reefer) | If trading perishables | 120 each |
| HS-Code pre-classification | Speeds customs clearance | 300 – 500 |
| External activity approvals | For alcohol, pharma, gold, etc. | 2 000 – 10 000 |
| Annual audit (some zones) | DMCC, JAFZA, IFZA* | 4 000 – 8 000 |
| License renewal fees | 80 %-90 % of first-year price | see table above |
*Not all free zones demand audited books, but many do after year 1.
Money-Saving Micro-Tips
- Bundle visas. Apply for 2–3 at once—lab fees drop by 10 %.
- Quarterly rent. Ask landlords for 4-cheque terms to ease cash flow.
- Groupage shipping. If first order is under a pallet, book LCL to avoid full-container charges.
- Zero-balance SME bank accounts. A few UAE banks have scrapped the 50 k deposit—shop around.
- Free-zone promotions. Seasons like “Dubai Summer Surprises” often cut license fees by 30 %.
With these numbers you can build a tight, realistic budget—no unpleasant surprises on your company formation in Dubai journey.
Documents Checklist — What to Gather Before You Apply
Below is a complete, easy-scan list of every paper (or PDF) you’ll need when you apply for a general trading license in Dubai—whether you choose mainland or a free zone.
| # | Document | Who Needs It? | Why It Matters |
| 1 | Passport copy (clear, colour, full page) | All shareholders/managers | Proves identity and nationality |
| 2 | UAE entry stamp or valid residence visa copy | Any partner already inside the UAE | Confirms legal status while the license is processed |
| 3 | Passport-size photo (digital, white background) | All shareholders & GM | Used on license, visa file, Emirates ID |
| 4 | Proof of address (utility bill ≤ 3 months old) | All foreign shareholders | KYC requirement for banks and free zones |
| 5 | No-Objection Certificate (NOC) | Partner/GM who is on a UAE employment visa | Shows current sponsor agrees to new business |
| 6 | Trade-name reservation certificate | Company file | Locks your chosen name for 6 months |
| 7 | Initial approval letter from DET or free-zone authority | Company file | Confirms activity code 4690 (general trading) is pre-cleared |
| 8 | Memorandum of Association (MoA) / Articles of Association (AoA) | All shareholders sign | Sets out share split, capital, and management powers |
| 9 | Ejari-attested tenancy contract (office or warehouse) | Mainland firms; many free zones too | Proves you have a legal, physical address in Dubai |
| 10 | Specimen signature form | Authorized signatories | Needed to open the corporate bank account |
| 11 | Board Resolution (if a corporate shareholder) | Parent company | Approves setting up the Dubai subsidiary |
| 12 | Certificate of Incorporation & Good Standing (if a corporate shareholder) | Parent company | Shows the parent exists and is in good order |
| 13 | Bank reference letter | Main shareholder(s) | Helps UAE banks speed up due diligence |
| 14 | Customs code application form | Company file | Activates your import-export privileges |
| 15 | VAT registration acknowledgement (optional at start) | Firms expecting ≥ AED 375 k turnover | Lets you reclaim import VAT from day one |
| 16 | Ultimate Beneficial Owner (UBO) declaration | All firms | Anti-Money-Laundering (AML) rule—names who really owns the company |
Pro Tips & Common Mistakes
| Do | Don’t |
| Keep product HS codes handy for customs | Ship goods before the license is active |
| Use business setup in Dubai experts for document attestation | List controlled goods without extra permits |
| Lease a warehouse near Jebel Ali to cut trucking costs | Forget to renew your license—fines start at AED 2,000 |
| Bundle family visas with your own to save typing fees | Assume “0 % tax” covers penalties—late VAT filings incur 300 % fines |
Pro Tips: Company formation in Dubai is smoother when you start KYC with your chosen bank early—some banks now open accounts in five days.
FAQs:
Q1. Can I upgrade from the free zone to the mainland later?
Yes. Set up a mainland branch or new LLC, then transfer inventory. Pay new license and customs code fees.
Q2. How do I get an e-trader license?
Apply on the Dubai DED Trader portal. Cost: AED 1,050 per year. It covers online sales under your name to UAE consumers.
Q3. Do I need paid-up share capital?
Most zones dropped minimum capital. Some ask you to declare AED 10,000 but not deposit it.
Q4. What’s the “list of general trading companies in Dubai”?
Search DET’s open directory or the Dubai Chamber database. Filter by activity code 4690.
Q5. What about insurance?
Cargo insurance (1 % of goods value) and public liability (starting at AED 1,200) protect against loss and claims.
Q6. How can I cut shipping costs?
Use groupage (LCL) for small volumes or negotiate annual rates with major forwarders.
Conclusion
Dubai offers everything a trader needs: friendly rules, modern ports, zero tax on many activities, and access to three continents. Secure your general trading license, set up your office, and start shipping.
Need help? A trusted business setup consultant in the Dubai team can handle the paperwork while you focus on finding the next hot product. Open the door—Dubai’s global market is waiting.
