If you want to buy and sell more than one type of product in Dubai under a single permit, you need a Dubai General Trading License. This guide from Bolo Asan explains what the license actually covers, who issues it, what it costs, and how the mainland and free zone routes compare, so you can plan your setup with realistic expectations.
This type of license lets one company trade in a wide mix of goods — electronics, textiles, food items, furniture, cosmetics, and more — instead of being limited to one product category. It is issued either by Dubai’s Department of Economy and Tourism (DET) for mainland companies, or by a free zone authority such as DMCC, IFZA, or Meydan Free Zone if you set up in a free zone.
What Is a Dubai General Trading License?
A general trading license is a type of commercial license. It allows a business to import, export, distribute, and resell several unrelated categories of goods under one permit, rather than applying for a separate license for each product line.
This is what separates it from a standard, single-activity trade license. A regular trade license usually locks the company into one specific commodity group. The general trading category removes that restriction, within limits set by the licensing authority.
Business owners can generally trade goods that are not subject to a government ban or a special regulatory restriction. Items like pharmaceuticals, alcohol, and certain chemicals typically need additional approvals from the relevant health, safety, or security authority, on top of the license itself.
Bolo Asan puts together guides like this one because so many first-time applicants confuse “general trading” with “any product, any quantity, no restrictions” — which isn’t quite accurate, as the sections below explain.
Mainland vs Free Zone: Where Should You Set Up?
The first real decision in getting a Dubai General Trading License is jurisdiction: mainland or free zone. Each comes with a different set of trade-offs, and this is the point where many new applicants get stuck.
Dubai mainland (DET)
- Regulated directly by the Department of Economy and Tourism, the authority formed from the merger of the former Department of Economic Development and the Department of Tourism.
- Since the 2021 amendment to the UAE’s Commercial Companies Law, most mainland business activities allow 100% foreign ownership, though a small list of “strategic impact” activities can still require additional approval.
- Lets a business trade directly with UAE mainland customers, retail outlets, and government tenders, without going through a distributor.
- Typically requires a physical, Ejari-registered office once the company renews beyond its first year.
Free zones (DMCC, IFZA, Meydan, and others)
- Each free zone has its own rules on activities, office packages, and share capital.
- Free zone companies generally sell internationally with ease, but selling directly into the UAE mainland market usually requires a mainland distributor, branch, or separate mainland license, since free zone entities sit outside mainland jurisdiction for market access purposes.
- Some free zones set a specific minimum share capital for this license category. DMCC, for example, sets a general minimum share capital of AED 50,000 per company, but requires at least AED 1 million in share capital specifically for a General Trading License. Rules like this vary widely by free zone, so always confirm the current figure with the free zone authority you’re considering.
There is no single “better” option — it depends on whether your customers are mostly in the UAE or abroad, how much office space you actually need, and how much capital you’re able to commit upfront.
Documents You’ll Need to Apply
Document requirements can vary slightly depending on whether the shareholder is an individual or a corporate entity, and whether you’re applying on the mainland or in a free zone. In most cases, applicants should expect to prepare the following.
For individual shareholders
- Valid passport copies of all shareholders and the appointed manager (most authorities ask for at least six months’ validity)
- Residence visa copy or valid entry permit, where applicable
- Emirates ID copy, for UAE residents
- Passport-size photographs
- No Objection Certificate (NOC) from a current sponsor, for some UAE residents on an employment visa
For corporate shareholders
- Certificate of Incorporation of the parent company
- Memorandum of Association (MOA)
- Board resolution appointing a manager or authorized signatory
- Certificate of Good Standing or an equivalent document, in some cases
Common to most applications
- Trade name reservation certificate
- Initial approval certificate from DET or the relevant free zone
- Completed license application form
- Proof of a registered office address, such as an Ejari tenancy contract (mainland) or a flexi-desk agreement (most free zones)
This checklist, compiled by Bolo Asan from current guidance, is a starting point rather than a final list. Requirements can shift based on nationality, business activity, and legal structure, so it’s worth confirming the current document set directly with DET or your chosen free zone before you submit anything.
Step-by-Step Process to Get a Dubai General Trading License
The overall process is broadly similar whether you choose mainland or free zone, though the specific portals differ.
- Choose your legal structure and define your activities. Decide whether you’ll operate as a sole establishment, an LLC, or a branch, and select your trading activities from DET’s activity list or your free zone’s approved activity list.
- Reserve a trade name. Submit a few name options, since your first choice may already be taken or may not meet naming guidelines.
- Apply for initial approval. This confirms the government has no objection to you starting the business, though it’s not the final license.
- Draft your Memorandum of Association, if your structure requires one.
- Secure your office space. Mainland companies typically need an Ejari-registered tenancy contract; free zones usually offer flexi-desk or shared-office packages.
- Submit your documents and pay the license fees through DET’s channels or your free zone’s online portal.
- Collect your trade license, along with your Certificate of Incorporation or equivalent registration document.
- Apply for visas, if you plan to sponsor yourself, partners, or staff under the new company.
The Bashr platform, introduced by the UAE government, allows some mainland business categories to complete registration and receive an instant commercial license online, though eligibility depends on the specific activity and legal form chosen. Once your license is issued, you can also verify it through the official government portal if you ever need to confirm registration details for a bank, landlord, or partner.
Dubai General Trading License Cost: What to Budget For
Cost is one of the most-searched parts of this topic, and it’s also one of the hardest to pin down exactly, because it depends on jurisdiction, office type, number of visas, and the specific package selected. Bolo Asan built the table below as a planning reference, not a fixed government price list — treat every figure as an estimate to confirm before you commit funds.
| Cost component | Mainland (DET) | Free zone |
|---|---|---|
| Trade name reservation | Paid separately through DET’s portal | Often bundled into the setup package |
| Initial approval and license issuance | Government fees plus DET service charges | Free zone package fee |
| Office/workspace | Ejari-registered office, generally required after year one | Flexi-desk or shared space accepted by most free zones |
| Approval timeline | Can range from same-day to about a week, depending on activity | Same-day to about a week, depending on the free zone |
| Visa quota | Generally tied to office size | Usually tied to the package tier purchased |
| Annual renewal | Due every 12 months | Due every 12 months |
As a rough planning range, entrepreneurs commonly budget somewhere in the tens of thousands of dirhams for this type of license, once government fees, office costs, and any required approvals are added together. The exact figure for your case can only be confirmed once DET or your chosen free zone assesses your specific activity list, office choice, and visa needs, so treat any number you see online — including in this guide — as an estimate rather than a quote.
A few line items worth budgeting for separately, since they’re easy to forget at the planning stage:
- Activity fees. Some activities carry their own government fee on top of the base license fee.
- External approvals. Restricted categories (food, health products, telecom-related goods) often need a separate authority sign-off, which can add both time and cost.
- Visa costs. Each visa typically involves its own medical test, Emirates ID, and stamping fees, separate from the license fee itself.
- Renewal costs. Annual renewal fees are sometimes lower than first-year setup costs, but not always — check this with your provider rather than assuming.
What You Can (and Generally Cannot) Trade
This license is valued precisely because it covers so many goods under one permit. Categories commonly permitted include:
- Consumer electronics and electrical equipment
- Textiles, clothing, and footwear
- Packaged food and non-alcoholic beverages
- Furniture and household goods
- Building materials and hardware
- Cosmetics and personal care items
- Toys, stationery, and general merchandise
Certain goods typically require an additional permit or approval from a specialized authority, on top of the trading license itself. This commonly includes pharmaceuticals and medical devices (health authority approval), alcohol (a separate liquor license and, in most cases, a specific licensed outlet), certain chemicals, and some food categories that need municipal food-safety approval before import or sale. If your trading plans touch any of these categories, it’s worth checking with the relevant authority before finalizing your activity list, since restrictions can change and vary by product.
VAT, Corporate Tax and Customs: What General Traders Should Know
Setting up the license is only the first step. Once your trading company is operational, a few federal tax and customs rules apply, and general traders tend to hit these thresholds faster than single-activity businesses because of transaction volume.
VAT registration. Under the UAE’s VAT system, businesses must register for VAT with the Federal Tax Authority once their taxable supplies and imports go over AED 375,000 in the past 12 months, or are expected to cross that figure in the next 30 days. Businesses below that threshold can still register voluntarily once turnover or expenses pass AED 187,500, which can help with reclaiming input VAT. Trading companies that import and resell goods should track this threshold closely, since general trading naturally involves high transaction volumes.
Corporate tax. UAE corporate tax applies a 0% rate on taxable income up to AED 375,000, and 9% on taxable income above that threshold, under the Federal Decree-Law on the Taxation of Corporations and Businesses. Small Business Relief may also apply for eligible resident businesses under a certain revenue threshold, though eligibility conditions apply and this relief is time-limited, so it should not be assumed automatically.
Customs duty. Goods brought into the UAE are generally subject to a customs duty of around 5% of the CIF (cost, insurance, and freight) value under the GCC’s unified customs tariff, though the rate varies for specific goods, and some product categories, like certain IT equipment, carry different treatment. Free zone companies often benefit from duty deferral or exemption while goods stay within the free zone, but duty can still apply once goods move into UAE mainland circulation. Confirm current rates and any product-specific exemptions with Dubai Customs before finalizing your landed cost estimates.
None of these figures are fixed forever — tax and customs rules are reviewed periodically, so it’s worth checking current guidance before you finalize pricing or accounting for your trading business.
Documents Banks and Lenders Commonly Ask For (Bolo Asan Overview)
Many general trading companies eventually look at business financing, whether to fund inventory, working capital, or expansion. If that’s part of your plan, it helps to know what paperwork tends to come up early in that conversation, so this guide from Bolo Asan covers it briefly here rather than leaving you to find out mid-application.
Trade license for business loan applications. Most UAE banks and lenders ask to see your current trade license as proof the business is legally registered and the activity matches what you’re financing.
VAT certificate. Where a business is VAT-registered, lenders may request the VAT certificate and recent VAT return filings as part of assessing turnover and compliance.
Commercial Registration Certificate. For mainland companies, this document (sometimes referred to as the trade license or commercial license itself, depending on the emirate) confirms the company’s legal registration details.
Free Zone Certificate of Incorporation. Free zone companies are typically asked for this in place of a mainland commercial registration certificate.
Financial documentation. Bank statements, audited financials (where available), and a business plan are commonly requested, especially for newer companies without a long trading history.
Business loan eligibility, rates, and required documents vary significantly between banks, and between conventional and Islamic business financing structures. Some lenders offer SME-focused business loans or startup financing options aimed at newer companies without heavy trading history, while others expect at least one to two years of financial statements before considering an application.
Whether financing without traditional collateral is available, and on what terms, depends entirely on the lender’s own risk assessment — it isn’t something a trade license alone can guarantee. Processing fees and repayment terms also differ from bank to bank, so if financing is part of your plan, it’s worth speaking directly with a few banks early, rather than assuming any single figure or condition applies across the board.
Common Mistakes to Avoid When Applying
A few recurring issues tend to slow down applications for this license in Dubai:
- Choosing activities that don’t match the actual business plan. Selecting a broad general trading activity but later needing a restricted product category (like food or cosmetics) without the matching approval causes delays.
- Underestimating office requirements. Some applicants assume a flexi-desk works indefinitely on the mainland, when DET generally expects a proper Ejari-registered office from the renewal stage onward.
- Overlooking free zone capital rules. Free zones like DMCC set specific share capital requirements for their general trading category that differ from their standard company packages — missing this early can mean restructuring later.
- Assuming free zone status covers UAE-wide sales. Free zone companies usually need a mainland distributor or a separate mainland presence to sell directly to UAE retail customers.
- Delaying VAT registration. Waiting until turnover has already crossed AED 375,000 before registering can trigger penalties, since the registration window is time-bound.
- Treating cost estimates as fixed quotes. Figures shared by consultants, forums, or guides — including this one — are planning ranges, not confirmed invoices from the licensing authority.
Frequently Asked Questions
What is the difference between a general trading license and a regular trade license in Dubai?
A regular trade license typically limits a business to one specific product category, while the general trading category allows trading in multiple, often unrelated, categories of goods under a single license, subject to any restricted-item approvals.
Can a free zone company holding a general trading license sell directly to customers in Dubai mainland?
Generally, no. Free zone companies usually need to sell through a licensed mainland distributor, open a mainland branch, or hold a separate mainland license to access the UAE mainland market directly, since free zones sit outside mainland jurisdiction for local market access.
How long does it take to get a Dubai General Trading License?
Timelines vary by jurisdiction and activity. Some mainland applications can be approved within a day through instant licensing services, while others, particularly those needing extra government approvals, can take about a week or longer.
Is 100% foreign ownership allowed for a Dubai General Trading License?
In most cases, yes, following the 2021 amendment to the UAE’s Commercial Companies Law, though a limited list of activities may still carry additional ownership or approval conditions, so it’s worth confirming this for your specific activity.
Do I need a separate license to trade alcohol or pharmaceuticals under this license?
Yes, in most cases. Categories like alcohol and pharmaceuticals typically require an additional license or approval from the relevant regulatory authority, separate from the general trading license itself.
Does a Dubai General Trading License automatically include VAT registration?
No. VAT registration is a separate process with the Federal Tax Authority, and it becomes mandatory only once your taxable supplies and imports cross the AED 375,000 threshold, or voluntary once you cross AED 187,500.
Can I add more product categories to my license after it’s issued?
In many cases, yes, though adding activities usually means an amendment application and, sometimes, an additional fee — it isn’t automatic just because you hold a general trading license.
The Bolo Asan Takeaway
A Dubai General Trading License gives you flexibility to trade across many product categories under one permit, but the real decision that shapes your cost, market access, and paperwork is mainland versus free zone — not the license type itself. Get that jurisdiction choice right for your actual customer base, and the rest of the setup tends to fall into place more smoothly. That’s the core message this guide from Bolo Asan hopes you take away before you apply.
Last Updated: September 4, 2026
Disclaimer: Bolo Asan is an independent informational website and is not a government authority, licensing body, bank, lender, or regulator. This article is for general informational purposes only and reflects publicly available guidance at the time of writing.
Trade license requirements, fees, tax thresholds, and customs rates can change and may vary by business activity, jurisdiction, and individual circumstances. Readers should confirm current requirements directly with the Department of Economy and Tourism, the relevant free zone authority, the Federal Tax Authority, or Dubai Customs before making any business or financial decisions. This content is not a substitute for professional legal, financial, or business setup advice.
