Quick answer:
To set up a general trading company in Dubai, you choose a jurisdiction (mainland or free zone), reserve a trade name, define your trading activities, get initial approval, secure an office or flexi-desk, and apply for a general trading license. Then open a corporate bank account, register for a customs code, and, if required, VAT. Expect about 3 to 4 working days and a first-year budget of roughly AED 22,000 to AED 55,000, depending on whether you choose a free zone or the mainland and how many visas you need.
Dubai is one of the easiest places in the world to run an import, export, and distribution business. It has major ports, a busy airport, and a licensing system built for traders. This guide explains how the setup works, what it really costs, and which route suits your business. It also covers the mistakes that most often delay approvals and bank accounts.
Step-by-step 2026 guide to setting up a general trading company in Dubai: mainland vs free zone, license cost in AED, documents, VAT, customs code and bank account tips.
Key takeaways
A general trading license lets one company trade many unrelated product categories (for example, electronics, furniture and clothing) under a single license.
Mainland is best if you sell to customers inside the UAE. Free zones are best for import and re-export, or when you want lower entry costs.
Following the 2021 reform of UAE company law, foreigners can generally own 100% of a mainland trading company, so a local partner is no longer the default requirement for most trading activities.
On the mainland, the AED 15,000 annual general trading activity fee is the cost most newcomers miss.
Banks scrutinise general trading companies more closely than single-activity ones. Prepare your trade documents early.
Always check current fees with the relevant authority before you commit, because UAE fees and rules are updated periodically.
What is a general trading company in Dubai?
A general trading company is a business licensed to import, export, re-export, distribute, and sell a wide range of products that are not related to each other. The license is issued by the Dubai Department of Economy and Tourism (DET) for mainland companies, or by a free zone authority for free zone companies.
A specific trading license, by contrast, limits you to one product group such as auto spare parts or textiles. If you plan to sell several unrelated product lines, or you are not yet sure which will perform best, the general trading license gives you room to adjust without applying for new licenses each time.
Mainland vs free zone: which is right for a general trading company?
This is the most important decision in the whole process. Choose based on where your customers are and where your goods will physically go, not on the headline license fee.
Factor | Dubai mainland (DET) | Dubai free zone |
Sell directly to UAE customers | Yes | No, needs a distributor, customs clearance with duty paid, or a dual license |
Government and tender supply | Yes | Generally no |
Foreign ownership | Generally up to 100% for most trading activities | 100% |
Office requirement | Physical office with registered tenancy (Ejari) | Flexi-desk or shared options common |
Customs position | Inside UAE customs territory, duty due on landing | Goods held in the zone sit outside customs territory, duty suspended until imported to the mainland |
Typical first-year budget (1 visa) | About AED 38,000 to 55,000 | About AED 22,000 to 38,000 with a flexi-desk |
Best for | Retail, contracting, local distribution, government buyers | Import and re-export, regional distribution, stock holding |
A common hybrid: many established traders run a free zone company for import and storage and a mainland company for local sales. If you are weighing options across emirates, our consultants can map this out for you on our business setup consultant in Dubai page.
How to set up a general trading company in Dubai: step by step
Step 1: Define your products and target market
List the product categories you plan to trade and where you will sell them. Check whether any are regulated. Food, cosmetics, medical products, pharmaceuticals, tobacco, alcohol, gold and precious metals, and weapons need extra approvals from specific authorities, and some are not available under a general trading license at all. Doing this first avoids rejected applications later.
Step 2: Choose your jurisdiction
Use the comparison table above. If most of your sales are inside the UAE, go mainland. If your goods are mostly re-exported or stored for regional customers, a free zone is usually cheaper and simpler.
Step 3: Choose a legal structure
Common options are a Limited Liability Company (LLC), a sole establishment, a civil company, a branch of a foreign company, or a free zone company (FZE or FZ-LLC). An LLC is the most common choice for mainland trading companies with more than one shareholder or when you want to separate personal and business liability.
Step 4: Reserve your trade name
Submit three or four name options. Names must follow UAE naming rules and avoid religious or offensive terms. A reserved name is typically valid for a limited period (reported as 180 days), so do not reserve it long before you are ready to proceed.
Step 5: Select your business activities
Your license lists approved activity codes. Trading outside those activities can lead to penalties, so select carefully and include the product groups you realistically expect to add in the next year. Adding activities later requires a license amendment and fees.
Step 6: Obtain initial approval
The licensing authority confirms it has no objection to your proposed activities. You typically provide shareholder passport copies, visa or Emirates ID copies if applicable, a business plan or activity list, and your trade name certificate.
Step 7: Secure your business address
Mainland: a physical office with an Ejari-registered tenancy contract is required. The office size generally determines your visa quota. If you hold stock, add warehouse space.
Free zone: flexi-desk, shared office or warehouse units, depending on the zone.
Step 8: Draft and sign the Memorandum of Association (MOA)
For an LLC, the MOA sets out ownership, capital, management, and profit sharing. It is notarised and submitted with your application.
Step 9: Pay fees and receive your license
Once documents are verified and fees paid, you receive your general trading license. Licenses are typically valid for one year and must be renewed annually.
Step 10: Open a corporate bank account
Banks treat multi-product trading as higher risk, so expect more detailed due diligence. Prepare:
Your license, MOA and tenancy contract
A company profile describing products, suppliers, customers and target markets
Expected monthly transaction volumes and trade routes
Supplier and buyer contact details, and sample invoices or purchase orders if you have them
Applications with a clear, documented trade story are approved faster than those with vague descriptions.
Step 11: Register for customs and tax
Customs code: if you import or export, register with Dubai Customs to get an importer or exporter code. Competitor sources report a registration cost of about AED 100, renewed annually, and standard customs duty of 5% on most imported goods. Confirm current rates with Dubai Customs.
VAT: registration with the Federal Tax Authority (FTA) is mandatory once taxable turnover exceeds AED 375,000 in 12 months, and voluntary registration is available from AED 187,500.
Corporate Tax: UAE Corporate Tax applies at 0% on taxable income up to AED 375,000 and 9% above that threshold. Free zone companies may qualify for 0% on certain qualifying income, but income from mainland customers is generally excluded from that relief.
How much does a general trading license cost in Dubai?
Costs vary by jurisdiction, office type, and visa needs. The table below shows indicative ranges reported by UAE business setup advisors in 2026. Treat them as planning figures, not quotes.
Cost item | Mainland (AED) | Free zone (AED) |
Base license fee | 12,500 to 15,000 | 12,000 to 22,000 (varies by zone) |
General trading activity fee (annual) | 15,000 | Usually not applicable |
Name reservation and initial approvals | About 1,100 to 1,500 | Often included |
Immigration (establishment) card | 750 to 2,000 | 800 to 2,000 |
Chamber of Commerce membership | 1,200 to 3,000 | Not required |
Office or flexi-desk (per year) | 20,000 to 80,000+ | 6,300 to 15,000 |
Investor or employee visa (per person) | 3,500 to 7,000 | 3,500 to 7,000 |
Typical first-year total, 1 visa | 38,000 to 55,000 | 22,000 to 38,000 |
Lower headline prices exist. Some northern emirate free zones advertise trading licenses from about AED 6,000 to 7,000, but general trading is not always available at the entry price, and those licenses do not let you sell directly into the Dubai mainland.
Hidden costs to budget for
External product approvals for regulated goods, which can add roughly AED 1,000 to 20,000 or more.
Bank minimum balance requirements, commonly AED 10,000 to 50,000 or more for corporate accounts.
Warehouse rent, which can exceed the cost of the license itself.
Municipality fees linked to office rent on the mainland.
Late renewal fines and activity amendment fees if you add products after licensing.
Money-saving tip: if you only plan to trade two or three stable product lines, a specific commercial license can avoid the AED 15,000 annual general trading activity fee. Do the math on your product range before choosing.
What documents do you need?
Prepare these in advance to avoid delays:
Passport copies of all shareholders and managers (valid for at least six months)
Recent passport-size photographs
UAE visa or Emirates ID copies for residents
No-objection certificate (NOC) if you are currently employed by a UAE sponsor
Three or more trade name options
Business plan or activity list
Notarised MOA
Ejari-registered tenancy contract (mainland)
External approvals for regulated goods, if relevant
How long does it take?
Straightforward free zone applications often complete in about 3 to 4 working days. Mainland applications commonly take 7 working days. Regulated goods, missing documents, and bank onboarding can extend the timeline.
Common mistakes to avoid
Choosing a free zone, then trying to sell to local shops. Free zone companies cannot trade directly with the mainland without extra arrangements.
Ignoring the annual activity fee. The AED 15,000 mainland charge repeats every year.
Picking vague or incomplete activities. This causes amendments and sometimes rejected customs or bank applications.
Underestimating the bank process. Start gathering supplier and buyer documents before the license is issued.
Forgetting regulated-product approvals. Food, cosmetics, and medical items need clearance before you can sell.
Skipping tax registration. Missing VAT or Corporate Tax registration deadlines can lead to penalties.
Can I set up outside Dubai?
Yes. Some traders choose other emirates for lower costs, different free zones, or proximity to ports and industrial areas. If you want to compare, see our local consultancy pages for a business setup consultant in Sharjah, a business setup consultant in Ajman, or a business setup consultant in Abu Dhabi. Each emirate has its own licensing authority, fees, and free zone options, and the right choice depends on where your customers and stock will be.
Frequently Asked Questions
Final checklist before you apply
Decide mainland, free zone or a combination
List all products and check for regulated categories
Prepare passports, photos and NOC if needed
Shortlist three trade names
Choose an office or flexi-desk
Prepare a bank-ready company profile
Plan for customs code, VAT and Corporate Tax registration
Budget for renewals, not just the first year
Information in this guide is general and based on publicly available 2026 sources. Fees, quotas, and regulations change, so verify current requirements with DET, the relevant free zone, the Federal Tax Authority, and Dubai Customs before you act.
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