| Timeline | Est. Cost (Year 1) | Best Jurisdictions | Licence Type |
|---|---|---|---|
| 2–4 weeks | AED 15,000 – 60,000 | DMCC, JAFZA, RAKEZ, Ajman, SAIF | Commercial |
General trading is the single most popular licence activity in the UAE. It allows you to buy, sell, import, export, and distribute virtually any non-restricted product category, giving your business maximum flexibility from day one. Whether you are an Indian exporter looking to establish a UAE trading arm, a European brand entering the GCC market, or a first-time entrepreneur ready to tap into the region’s massive re-export economy, this guide walks you through everything.
What Is a General Trading Licence?
A general trading licence is a commercial licence that permits a company to trade in a wide range of product categories. Unlike a single-activity trading licence (for example, “building materials trading” or “foodstuff trading”), a general trading licence does not restrict you to one product line. You can trade in electronics, textiles, machinery, consumer goods, and more — all under one licence. This flexibility is why the general trading licence accounts for a significant share of all new commercial licences issued in the UAE each year. It is particularly attractive for companies involved in international trade, re-export, and distribution.
Why the UAE for Trading?
The UAE sits at the crossroads of Asia, Europe, and Africa, with world-class port infrastructure including Jebel Ali — the largest port in the Middle East. The country offers zero import duties within free zones, a competitive 5% VAT rate, and access to over 400 weekly shipping routes connecting to 200+ global destinations.
The corporate tax environment is equally compelling. Mainland companies pay 9% on taxable income above AED 375,000, while qualifying free zone entities may access a 0% rate on eligible income. There is no withholding tax on profits repatriated to foreign shareholders.
Where to Set Up: Mainland vs Free Zone
A mainland general trading licence, issued by the Department of Economic Development (DED) in your chosen emirate, gives you unrestricted access to the UAE domestic market. You can sell directly to retailers, wholesalers, government entities, and end consumers across all seven emirates. This is the right choice if your customers are primarily within the UAE.
A free zone general trading licence is ideal if your business is primarily export-oriented or if you are using the UAE as a re-export hub. Free zones like DMCC, JAFZA, RAKEZ, Ajman Free Zone, and Sharjah’s SAIF Zone are purpose-built for trading companies. They offer warehouse facilities, customs bonded areas, and visa packages bundled with the licence.
Key Requirements
Shareholders’ and directors’ passport copies and proof of address are essential. If the shareholder is a corporate entity, attested incorporation documents from the home country are required. You will need to select a trade name that complies with UAE naming conventions.
Premises are a critical consideration. Most general trading licences require at least a flexi-desk or shared office space. If you plan to import and store physical goods, you will need a warehouse. DMCC, JAFZA, and RAKEZ all offer integrated warehouse-office packages designed specifically for trading companies.
Initial capital requirements vary by jurisdiction. Some free zones have no minimum capital requirement, while mainland setups may require share capital to be stated in the Memorandum of Association.
The Setup Process
In the first week, you finalise your jurisdiction, reserve your trade name, and submit the licence application with all supporting documents. Most free zones process standard trading licence applications within three to five business days.
In weeks two and three, your licence is issued, and you proceed with the establishment card, Emirates ID, and visa processing. Banking takes two to eight weeks. By the end of week four to eight, you should have a fully operational general trading entity with a licence, bank account, and customs code.
What It Costs
A general trading licence in a cost-effective free zone like RAKEZ or Ajman starts from approximately AED 15,000 to AED 25,000 for the first year, including a basic office or flexi-desk. DMCC and JAFZA command higher fees — typically AED 30,000 to AED 50,000 — but offer stronger brand positioning and deeper logistics infrastructure. Mainland general trading licences in Dubai range from AED 30,000 to AED 60,000 all-in for the first year.
Common Mistakes to Avoid
The most frequent mistake is choosing a single-activity trading licence when a general trading licence would have been more appropriate. Changing or upgrading your activity later involves fees, paperwork, and potential banking complications. Start broad if your product mix is likely to evolve.
The second mistake is underestimating banking timelines. Trading companies face rigorous KYC checks. Start the banking process the day your licence is issued, not weeks later.
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