Dubai, the global trading hub, attracts businesses worldwide due to its strategic location, low tax rates, and business-friendly policies. To engage in trading activities in Dubai, obtaining a General Trading License is essential. This license allows businesses to import, export, distribute, and trade various goods locally and internationally.
In this blog, we will provide a comprehensive guide to General Trading Licenses in Dubai and the UAE, including their types, costs, application process, and benefits.
Table of Contents
- What is a General Trading License?
- Types of General Trading Licenses in the UAE
- General Trading License Costs in UAE
- How to Apply for a General
- Trading License in the UAE
- Can You Buy or Sell a General
- Trading License in the UAE?
- Benefits of Having a General
- Trading License in the UAE
- General Trading License
- Comparison in Popular UAE Free Zones
- FAQs About General Trading Licenses
What is a General Trading License?
A General Trading License in the UAE is a legal permit that authorizes businesses to trade in multiple goods and commodities, excluding restricted items such as alcohol, medicine, and firearms, which require special approvals.
This license provides the flexibility to trade locally within the UAE and internationally, making it a valuable asset for companies aiming to expand operations and boost revenue.
Types of General Trading Licenses in the UAE
- Mainland General Trading License
- Issued by the Department of Economic Development (DED) in Dubai or other Emirates.
- Enables businesses to trade in the local UAE market and internationally.
- Requires a physical office space in the UAE mainland.
- Free Zone General Trading License
- Issued by specific free zone authorities like DMCC, JAFZA, or Sharjah Airport Free Zone.
- Allows businesses to operate within the free zone or trade internationally.
- Offers tax exemptions and 100% foreign ownership.
General Trading License Costs in UAE
The cost of a General Trading License in the UAE varies depending on factors such as location, business size, and visa requirements. Here’s an approximate breakdown:
- Mainland License: AED 15,000 to AED 50,000 or more.
- Free Zone License: AED 10,000 to AED 30,000, depending on the free zone.
Additional costs may include:
- Office space rental
- Visa applications
- Regulatory approvals
How to Apply for a General Trading License in the UAE
Select Your Business Activity
Choose the goods or services you wish to trade. Ensure your activity aligns with UAE regulations.
Choose a Trade Name
Pick a unique, non-offensive trade name that reflects your business activity.
Decide on a Business Location
Select between mainland or free zone jurisdictions based on your trading goals.
Submit Your Application
Complete the application process with the required documents, such as shareholder passports and business plans.
Pay the Fees
Pay the applicable fees for your chosen license type.
Receive Your License
Once approved, you will receive your trading license, enabling you to start operations.
Can You Buy or Sell a General Trading License in the UAE?
No, you cannot buy or sell a general trading license in the UAE. Licenses are issued exclusively by authorized government bodies, such as the Department of Economic Development (DED) or relevant free zone authorities. Any transfer or sale of a license outside the official channels is strictly prohibited and considered illegal.
Benefits of Having a General Trading License in the UAE
Global Trade Opportunities: Import, export, and distribute goods across the globe.
Tax Advantages: Enjoy low tax rates and tax exemptions in free zones.
Wide Product Range: Trade in multiple goods and commodities.
Dependents Sponsorship: Easily sponsor employees and dependents.
Strategic Location: Operate from a global trading hub with world-class infrastructure.
Ease of Setup: Streamlined application process with minimal bureaucracy.
General Trading License Comparison in Popular UAE Free Zones
Free Zone | License Cost (Approx.) | Key Benefits | Location |
DMCC (Dubai) | AED 20,000 – AED 30,000 | Trade globally; tax-free benefits | Near Jumeirah Lakes |
JAFZA (Dubai) | AED 25,000 – AED 40,000 | Logistics hub; easy export/import | Near Jebel Ali Port |
SAIF Zone (Sharjah) | AED 15,000 – AED 25,000 | Cost-effective; close to ports | Sharjah Airport Area |
RAKEZ (Ras Al Khaimah) | AED 10,000 – AED 20,000 | Low cost; investor-friendly | Northern Emirates |
FAQs About General Trading Licenses
- What are the restricted goods under a General Trading License?
Restricted goods include alcohol, firearms, and medical products, which require special approvals. - Can I open a grocery store with a General Trading License?
Yes, a General Trading License allows businesses to open grocery stores and sell various consumables. - How long does it take to get a General Trading License in Dubai?
The process typically takes 7 to 10 business days, provided all documents are in order. - Do I need office space for a General Trading License?
Yes, businesses operating under a mainland license must have physical office space. Free zones may offer flexible options like virtual offices. - Can I trade internationally with a General Trading License?
Yes, this license allows you to trade both locally and internationally.
Why Choose Raes Associates?
Obtaining a general trading license in Dubai opens the door to immense opportunities in one of the world’s most dynamic business environments. With its favorable policies, global connectivity, and business-friendly infrastructure, Dubai remains a top choice for entrepreneurs and traders. However, navigating the licensing process requires careful planning and attention to detail to ensure compliance with local regulations.
At Raes Associates, we specialize in simplifying the process for our clients. From handling the documentation to guiding you through every step of the setup process, our experts are here to ensure a smooth experience. Get in touch with us today to start your trading journey in Dubai.
