Dubai has become one of the world’s top destinations for global trade. With its modern infrastructure, strategic location, and investor-friendly policies, entrepreneurs from around the world are choosing Dubai to set up businesses. One of the most sought-after options is the General Trading License.
What is a General Trading License?
A General Trading License enables companies to sell, import, and export various products under a single license. Instead of applying for separate approvals for each product, entrepreneurs can manage diverse activities easily.
This license differs from other business licenses in Dubai because it offers more flexibility. While a specialized license only covers one sector (like food trading or IT services), a General Trading License lets you deal in many categories, from electronics to clothing.
Its popularity comes from the freedom it gives investors to expand into different markets and industries without facing restrictions.
Benefits of Getting a General Trading License in Dubai
Setting up a General Trading License in Dubai offers more than just permission to trade goods. It opens doors to flexibility, international opportunities, and investor-friendly policies that few other licenses provide. Let’s explore the main benefits in detail.
1. Flexibility of Activities
A major benefit of a General Trading License is that it allows businesses to deal in a wide range of products without limitations. Instead of applying for separate licenses, you can manage multiple goods under a single license. This flexibility saves time and reduces paperwork.
For example, with one license, you can:
- Import and sell electronics and gadgets
- Trade clothing, footwear, and accessories
- Distribute food and beverages locally and internationally
- Handle furniture, household items, and lifestyle products
Because the license covers such a wide range of goods, you can diversify your business easily. If market demand shifts, you can add new products without going through lengthy approval processes. This adaptability makes it a perfect choice for investors looking for long-term growth.
2. Wide Market Reach
Dubai is known as a global trade hub that connects Asia, Europe, and Africa. With a General Trading License, you are not limited to one market; you can access both local and international buyers.
- You can trade directly within the UAE market, partnering with local distributors and retailers.
- You can also export goods globally, reaching clients in emerging and established markets.
- If you choose a free zone setup, you’ll enjoy customs duty exemptions and simplified logistics that make cross-border trade much smoother.
This broad reach gives your business the advantage of scaling faster and tapping into multiple revenue streams.
3. Investor-Friendly Policies
Another reason why the General Trading License is popular is Dubai’s welcoming business environment. The UAE government has introduced policies that make the process simple, profitable, and secure for foreign investors.
With this license, you benefit from:
- Free zones and many mainland activities now allow investors to have 100% foreign ownership in most cases.
- Tax-free environment, with no corporate or personal income tax
- Streamlined customs and approvals, which make import and export processes easier and faster
These policies reduce the cost of doing business while giving investors more control and confidence.
4. Top 5 Benefits at a Glance
To sum it up, here are the five major advantages of getting a General Trading License in Dubai:
- Trade in multiple goods under one license
- Access both the UAE and international markets
- Enjoy 100% ownership as a foreign investor
- Keep full profits thanks to tax exemptions
- Get fast approvals with a simplified setup process
General Trading License Requirements in Dubai
Anyone can apply, including UAE residents, expats, or foreign companies. The process requires approvals from the Department of Economic Development (DED) or the chosen free zone authority.
Documents you need:
- Passport copies of shareholders
- Trade name reservation certificate
- Initial approval form from DED
- Memorandum of Association (if applicable)
- Lease agreement for office or warehouse
Step-by-Step Process to Get a General Trading License in Dubai
Getting a General Trading License in Dubai is straightforward if you follow the correct steps. Here’s a detailed look at each stage of the process:
1. Step 1 – Choose Business Activities
The first step is to decide what products you want to trade. A General Trading License allows you to deal in multiple goods, but you must still list your planned activities when applying. This helps the authorities determine whether any special approvals are required (for example, for food, medical, or chemical items).
Step 2 – Reserve a Trade Name
Next, you need to reserve a company name. The trade name must follow UAE naming rules, meaning it should not include offensive words, religious references, or names of countries. The name should also reflect your business identity and be available for registration.
Step 3 – Apply for Initial Approval
Once you have your business activities and trade name, you must get initial approval from the Department of Economic Development (DED) if you are setting up on the mainland, or from the relevant free zone authority. This approval confirms that the UAE government has no objection to you starting the business.
Without this step, you cannot proceed to the licensing stage.
Step 4 – Draft and Sign MOA/LSA (if required)
If you’re setting up on the mainland, you will need to draft a Memorandum of Association (MOA) with your partners. In some cases, you may also need to sign a Local Service Agent (LSA) agreement if your activities require it. This document outlines ownership, responsibilities, and profit-sharing arrangements.
In free zones, this step is usually simpler because you can own 100% of your company without needing an LSA.
Step 5 – Choose Office Space or Flexi-Desk
To register your company, you must have a physical address in Dubai. This can be:
- A traditional office space
- A warehouse (if your goods require storage)
- A flexi-desk option offered by many free zones for startups and small businesses
Your business address will be included in your license, making it an essential step.
Step 6 – Submit Documents to DED
After completing the above steps, you need to submit all required documents for verification. These usually include:
- Passport copies of shareholders
- Trade name certificate
- Initial approval document
- MOA or LSA agreement (if required)
- Office lease agreement
Once submitted, the authority will review your application and confirm compliance.
Step 7 – Pay License Fees and Collect License
After final approval, you need to pay the license issuance fee. The cost depends on your setup (mainland or free zone), chosen activities, and office space. Once payment is made, the authority will issue your General Trading License.
At this stage, your business is legally registered, and you can start trading immediately.
Cost of General Trading License in Dubai (2025)
The cost depends on your setup. On average, it ranges from AED 15,000 to AED 50,000.
Factors affecting cost:
- Mainland vs Free Zone setup
- Size and location of office or warehouse
- Number of business activities added
Comparison Table: Mainland vs Free Zone
| Feature | Mainland License | AED 15k–30k |
| Market Access | UAE + International | International + Limited local |
| Ownership | Up to 100% | 100% |
| Office Requirement | Mandatory | Flexi-desk allowed |
| Cost Range | AED 25k – 50k | AED 15k – 30k |
Free Zone vs Mainland General Trading License
When applying for a General Trading License in Dubai, one of the most important decisions is whether to set up in the mainland or a free zone. Both options come with unique advantages, and the right choice depends on your target market and long-term goals.
1. Mainland License
A mainland General Trading License gives you the freedom to trade directly within the UAE market. This means you can work with local distributors, retailers, and government entities without restrictions. It is the preferred choice for entrepreneurs who want to tap into Dubai’s fast-growing consumer base.
Another advantage is that a mainland license allows you to expand your business operations anywhere in the UAE without being limited to a specific jurisdiction. For example, you can open multiple branches, bid for government contracts, and trade freely with both local and international partners.
In short, the mainland option is best for businesses targeting domestic sales and UAE-based opportunities.
2. Free Zone License
On the other hand, a free zone General Trading License is ideal for companies focused on international trade. Free zones are designed to attract global investors and come with major benefits, such as 100% foreign ownership and full repatriation of profits.
Free zone companies also enjoy customs duty exemptions, making import and export operations more cost-effective. Many free zones offer modern office spaces, warehouses, and logistics facilities tailored to international traders.
However, businesses set up in a free zone usually face restrictions when trading directly within the UAE market. To sell inside Dubai, they often need to work with a local distributor or obtain additional permits.
This makes the free zone license more suitable for entrepreneurs who want to focus on global markets and cross-border trading rather than local retail.
Common Mistakes to Avoid When Applying
Applying for a General Trading License in Dubai is simple, but many entrepreneurs face delays due to avoidable mistakes. Choosing the wrong jurisdiction, mainland or free zone, often leads to business restrictions later. Submitting incomplete documents is another common error that slows approval. Some also overlook special approvals for certain goods like food or medicines. Ignoring visa quotas can further limit employee hiring. Avoiding these mistakes ensures a smooth and hassle-free setup.
Why Dubai is the Best Place for General Trading in 2025
Dubai remains a top choice for global traders in 2025 because it combines location advantages, modern infrastructure, and pro-investor policies. Its position between Asia, Europe, and Africa gives businesses easy access to international markets. At the same time, world-class ports, airports, and logistics systems make trade faster and more cost-efficient. On top of that, Dubai’s business-friendly environment with tax benefits and simplified procedures creates the perfect setting for companies to grow.
Key Reasons to Choose Dubai for General Trading:
- Strategic location connecting Asia, Europe, and Africa
- Advanced logistics, ports, and airports for smooth trade
- Customs efficiency and reduced shipping costs
- Investor-friendly rules with 100% foreign ownership
- Tax exemptions and minimal bureaucracy
Ripple Can Help You Get Your General Trading License
At Ripple, we specialize in helping entrepreneurs and companies set up smoothly in Dubai. From paperwork to approvals and cost-effective strategies, our team makes the process fast and stress-free.
📞 Contact us today:
- Phone: +971 4 250 0833
- Email: info@ripplellc.ae
- Website: www.ripplellc.ae
Conclusion
Getting a General Trading License in Dubai is a smart decision for entrepreneurs who want flexibility and global reach in 2025. It allows you to trade diverse products, access international markets, and benefit from investor-friendly policies. With the right guidance from Ripple, you can set up smoothly and focus on growing your business with confidence.