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Understanding the Requirements for a General Trading Company in Dubai

Understanding the Requirements for a General Trading Company in Dubai

Dubai is the Middle East’s business hub, and many entrepreneurs are considering extending or starting their business in Dubai. Entrepreneurs are required to obtain a trading license for their general trading company in Dubai. A general trading license allows business startups to conduct all of their trading activities under one license. A trading license is suitable for those who want to be a key player in the supplies industry.  

Trade License: General Trading Company in Dubai

As its name suggests, a general trading license enables entrepreneurs to trade a wide range of goods, such as clothing, accessories, and electronics. As a general trading license, there is no need for goods to be related to one another, and they can be as diverse as possible. However, regulated goods require to comply with health and safety standards, such as pharmaceutical products, frozen foods, and weapons. The general trading license is issued by the Department of Economic Development (DED) Dubai. It allows a general trading company in dubai with a general trading license to export, import, or trade all other goods.

How to Obtain a General Trading License

1. Choosing the location and jurisdiction: It is always recommended to go with a Mainland License for general trading. This is considering that the other options such as free zones will have limitations in moving around the goods.

2. Choosing the business activities: Up to ten activities can be conducted under one general trading license. These activities include regulated trading goods that comply with the health and safety standards and not the goods that require external approvals such as guns and pharmaceuticals.

3. Selecting a trading name: The regulations for choosing a trading name in Dubai can be unfamiliar to foreigners; thus, it is recommended to read the regulations before choosing the name carefully. An initial approval should be requested from DED after selecting a name. After this step, a general trading license can be requested.  

4. Securing office space and warehouse: It is mandatory to rent out an office space and a warehouse to request a general trading license. Because general trading is all about physical goods trading, a warehouse must store the goods. A mainland license allows one to get a warehouse without any limitations. It should be considered that with a Free Zone License, certain restrictions in the area of operation and storage exist. Some free zones like Dubai Free Zone and Sharjah Free Zone, however, allow operating on a virtual office. Hence, it should be studied well which jurisdiction serves the needs of the business well. 

5. Customs clearance: Customs clearance is a primary obligation for any business that imports goods to the country. An import code from the customs authority should be obtained for importing goods into the UAE by paying the appropriate amount. Any customs authority suitable for the business can be registered within the emirates. 


Costs of the General Trading License in Dubai

Depending on the location selected for conducting trading, the costs of the general trading license start from AED 6,500.

Main Advantages of Setting up a General Trading Company in Dubai 

There are plenty of advantages to setting up a general trading company in Dubai, and here are the main advantages that apply to many businesses:

  • Dubai offers plenty of trading opportunities due to its vibrant business environment.
  • A business license in Dubai mainland will allow easy trade within the region, including mainland and free zones and internationally.
  • Applying and obtaining visas for multiple employees as a trading startup in Dubai gains revenue. There is an excellent possibility for business expansion.

Unlock new horizons by combining General Trading and Ecommerce under a single license. Our innovative solution allows you to diversify your business activities and tap into broader market potentials. Seamlessly operate both retail and wholesale operations, maximizing your business reach. Embrace the power of a unified license for versatile growth and enhanced market presence.

How Can Choose UAE Help

At Choose UAE, our company formation specialists can provide up-to-date industry knowledge and valuable input for your business setup. We make sure that you be provided with the utmost dedication that you need to put up your general trading company in Dubai with our dedicated account manager to assist you every step of the way.

Beyond license processing, we also provide a wide range of business support services like corporate bank account opening, online payment gateway, and many more. Contact Us to schedule a free consultation.

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