How to Setup a General Trading Company in Dubai
Dubai’s position as a global trading hub has made the general trading license one of the most sought-after business licenses.
With this license, a single company can import, export, and trade in a wide variety of goods – from electronics and fashion to furniture and more – all under one business umbrella.
It’s an attractive option for investors and SMEs looking to capitalize on Dubai’s logistics prowess and business-friendly environment.
In this guide, we at Corporate Business Services (CBS) explain how to start a general trading company in Dubai, covering what the license entails, the steps to obtain it, the costs involved, and the benefits you can expect.
Whether you’re a foreign investor or a budding entrepreneur, this comprehensive overview will help you navigate the company formation process with confidence.
Key Takeaways
- Starting a general trading company in Dubai allows you to trade a variety of goods under one license, giving you the flexibility to expand into multiple product lines.
- Dubai’s pro-business environment – including low taxes, modern infrastructure, and 100% foreign ownership – makes it an ideal location to launch a trading business.
- Securing a general trading license in the UAE involves choosing the right jurisdiction (mainland or free zone), registering your company, and meeting legal requirements.
With expert help, the process can be completed in a few weeks.
- The cost of setting up a general trading company in Dubai typically ranges from AED 30,000 up to AED 50,000.
- Corporate Business Services (CBS) provides end-to-end support for business setup in Dubai, handling everything from paperwork and approvals to visas and bank account opening for your company.
What is a General Trading Company (and License) in Dubai?
A general trading company in Dubai is a business that deals in the import, export, and trading of diverse products under one roof.
Unlike a specialized business focusing on a single product category, a general trading company can handle multiple unrelated goods – for example, selling electronics, garments, and furniture all through the same entity.
To operate such a business, you need a General Trading License in the UAE. This license permits your company to trade in a broad range of products. It’s essentially a comprehensive commercial license (more expansive than a standard single-category trade license).
Keep in mind, though, even with a general trading license, certain sensitive goods like pharmaceuticals or alcohol will require additional approvals from authorities.
Overall, the general trading license is your gateway to legally run a versatile trading business across various sectors in Dubai.
Why Start a General Trading Company in Dubai?
Dubai is renowned as a global trade hub. Here are key benefits that draw entrepreneurs to set up general trading companies in the UAE:
- Strategic Location & Infrastructure: Dubai bridges East and West, giving your business access to markets across Africa, Asia, Europe, and beyond.
The city’s world-class ports, airports, and logistics facilities make importing and exporting efficient.
- Business-Friendly Policies: The UAE’s pro-business environment features no personal income tax and competitive corporate taxes.
Company setup is relatively fast and straightforward, especially in free zones that offer perks like customs duty exemptions.
- 100% Foreign Ownership: Foreign investors can own 100% of a mainland general trading company (no local sponsor required) and, of course, any free zone company. You retain full control of your business.
- Wide Scope of Trade: With a general trading license, you’re not limited to one product line. You can deal in diverse products under one license, giving you flexibility to adapt as market demand changes.
Steps to Start a General Trading Company in Dubai
Starting a general trading company in Dubai involves several key steps.
With the right guidance, it’s quite manageable. Here’s how to start a trading company in Dubai:
1.Plan Your Business Activities –
Decide which goods you will trade and identify your target markets (local or international).
Check if any products need special permits (for example, medical supplies or alcohol). Having a clear plan will guide you in the next steps.
2.Choose Mainland or Free Zone –
Determine the jurisdiction for your company. A mainland company (licensed by Dubai Economy) lets you trade across the UAE without restrictions.
A free zone company (in zones like DMCC or JAFZA) offers tax benefits and quick setup but limits direct trade in the UAE market (you’ll need a local agent to sell in UAE).
Choose based on where your customers are.
3.Reserve a Company Name & Initial Approval –
Choose a unique name for your company that meets UAE naming rules (no offensive words or certain abbreviations).
Reserve the name and file for initial approval of your business activity. This involves submitting basic documents (passport copies, proposed activities, etc.) to the relevant authority (DET for mainland or the free zone’s registrar).
4.Submit Documents and Get Your License –
Prepare the full license application. For mainland setups, this includes drafting a Memorandum of Association (MOA) and securing a rental contract for your office or warehouse (a physical address is mandatory).
Free zone setups have their own forms and may include an office space in their package. Submit all documents and pay the license fees.
After final review, the authority will issue your general trading license. This stage typically takes only a couple of weeks.
5.Complete Visa and Bank Account Setup –
With your company established, you can sponsor UAE residence visas for yourself and your employees.
This process covers entry permits, medical exams, and Emirates ID paperwork. At the same time, open a corporate bank account to handle your business transactions. Our PRO team assists with visa applications, and we can guide you to suitable banking options.
Once visas and banking are sorted, your trading company is fully operational.
You don’t have to tackle these steps alone – we at CBS will walk you through every requirement, ensuring your company setup is smooth and compliant.
Cost of Setting Up a General Trading Company in Dubai
The cost of setting up a general trading company can vary depending on your setup choices.
Key cost factors include:
- License & Registration: Government fees for the trade license and company registration typically range from around AED 10,000 up to AED 40,000+.
Free zone packages tend toward the lower end of this range, while a mainland setup can be on the higher side.
- Office Space: Renting an office or warehouse is required. A small office may cost about AED 15,000–20,000 per year (sometimes included in free zone packages as a flexi-desk), whereas larger offices or warehouses will cost more.
- Visas & Admin: Budget a few thousand dirhams for each visa (owner and employees) to cover visa fees, medical tests, and Emirates ID.
Also account for any document attestation or translation charges. If you use a business setup service, those fees are usually quoted upfront in a package.
On average, many entrepreneurs spend roughly AED 30,000 to AED 50,000 in total to fully establish a general trading company in Dubai. It’s an investment towards tapping into Dubai’s lucrative market.
How CBS Supports Your Business Setup
At Corporate Business Services (CBS), we aim to make establishing your trading company in Dubai easy.
When you partner with us, you get:
- Expert Guidance: Consultation to determine the optimal setup for your business (best license type, jurisdiction, and structure) based on your goals.
- Complete Paperwork Service: We handle all documentation – from preparing and submitting applications to obtaining approvals. You won’t have to deal with government forms or queues.
- PRO & Visa Assistance: Our PRO team manages residence visa processing for owners and employees, including all the needed paperwork and appointments.
- Banking Support: Help with opening your corporate bank account, guiding you through compliance requirements and connecting you with reliable banks.
In short, we handle the heavy lifting of the company formation process so you can focus on your business.
With our experience and on-ground expertise, we ensure your journey to starting a general trading company in Dubai is smooth and stress-free.
If you’re ready to take the next step, contact our team today for personalized assistance – let’s get your general trading company up and running in Dubai.