How to Start a General Trading Company in Dubai: Requirements & Licenses
Dubai is a place where businesses are growing fast. This is why many people who want to start their businesses come to Dubai from all over the world. One thing that many people like to do in Dubai is trading. General trading is good because it means you can buy and sell different kinds of things. You do not have to stick to one type of product.
Starting a trading company in Dubai can be very good for making money.. You have to know what you need to do to start this kind of company. You need to get the licenses and follow the rules. If you do not do this you might get in trouble with the law. Dubai general trading companies need to do things the way so they can operate smoothly. General trading in Dubai is an idea but you have to understand the rules and requirements for general trading companies, in Dubai.
In this guide we will cover everything you need to know about licenses. This includes the types of licenses the steps you need to follow for registration and what you have to do for visa procedures. We will also talk about what you need for your office and how much everything will cost for your licenses.
- What is a General Trading Company in Dubai?
A general trading company is a type of business that can buy and sell different things. This is different, from companies that only deal with products like electronics or clothes. A general trading company has a license that lets it do business with lots of different products so it can import and export many things and sell them to other businesses. This makes it very flexible and able to work in different areas.
Benefits of a General Trading Company in Dubai:
Trade multiple products under one license
Access to local and international markets
Operate in Freezones or Mainland areas
Eligible to sponsor employees and apply for visas
Opportunities to expand across UAE and GCC
Types of General Trading Licenses
So you want to start a business. Where you do this will affect what kind of trading license you can get. There are an options for a general trading license it really depends on the location of your business. The general trading license options are different, in places.
a) Mainland General Trading License
Issued by Department of Economic Development (DED), Dubai
You can do business anywhere in Dubai. You can trade directly with the local market in Dubai. This means you can operate freely in Dubai and trade with the people of Dubai directly. Dubai is a place to do business and now you can trade with the local market, in Dubai without any problems.
Requires a local sponsor (UAE national) with 51% ownership or a professional service agreement
Can apply for employment visas for yourself and staff
b) Freezone General Trading License
Freezones such as Jebel Ali and DMCC and Dubai Airport Freezone are really great because they allow Freezones like these to have 100 percent ownership. This means that foreign owners can own the business in Freezones, like Jebel Ali and DMCC and Dubai Airport Freezone.
Limited to operating inside the Freezone or for export/import purposes
Offers flexible business activities under one license
This is perfect for entrepreneurs who do not need to be on the mainland. International entrepreneurs like this because they can still do business without being, on the mainland. The international entrepreneurs can work fine without mainland access.
Requirements to Start a General Trading Company in Dubai
So you want to start your company. To do this your company needs to meet legal requirements and also some procedural things. Your company has to do these things to be legal.
a) Shareholders & Partners
Minimum of 1 shareholder for Freezone or Mainland (corporate or individual)
If you want to start a business in the Mainland and you do not want to own it the Mainland requires that you have a local sponsor. This is a rule for the Mainland. The Mainland needs a sponsor for businesses in the Mainland that are not fully owned by one person. So for the Mainland a local sponsor is necessary for non-100% ownership of a business, in the Mainland.
b) Capital Requirements
The amount of money you need to start a business can be different depending on the Freezone or Mainland jurisdiction you are in. The minimum capital required is not the same. It really depends on where you want to set up your business whether it is in a Freezone or Mainland.
* The minimum capital for a business in a Freezone can be different from the capital for a business, in Mainland.
* Freezone and Mainland have their rules when it comes to the minimum capital you need to start a business.
In the mainland the usual cost is, around AED 300,000. However mainland professional agreements can be flexible. The cost of mainland professional agreements can vary. This means that mainland professional agreements can be adjusted to suit needs.
Freezone: Usually AED 50,000–100,000
c) Office Space
Mainland needs an office. This office can be. It can be a shared desk space for small businesses, like the Mainland. The Mainland can use this space to work and do business.
Freezone: A lot of these places offer offices where you can work or they have shared desks that you can use when you need to. The Freezone is a place to find these kinds of things. You can get an office in the Freezone or you can get a shared desk in the Freezone. This is really helpful for people who do not need an office. The Freezone is very useful, for people who want to work in a shared space.
d) Trade Name Approval
When you are starting a business in Dubai you need to pick a trade name for it. This trade name has to follow the rules that Dubai has made for naming businesses. Dubai has some rules for trade names so you have to choose a name that complies with these rules. Your trade name should be unique. It should not be already in use by another business, in Dubai.
No religious or political references
Should reflect your business activity
Must be approved by DED or Freezone authority
e) Initial Approval Certificate
Obtain DED initial approval or Freezone equivalent
Confirms government clearance for your business activity
f) Memorandum of Association (MOA)
Legal document specifying:
Shareholding structure
Profit sharing
Business activities
Required for Mainland companies
g) Bank Account
Open a corporate bank account in Dubai
Freezone companies need to show that they have rented an office space and they need to have a license to operate. This is because Freezone companies have to follow rules and having a lease and a license is part of that. The people in charge of Freezone companies will ask to see these documents to make sure everything is, in order. Freezone companies must have these things to do business.
The mainland needs approvals before anything can happen. This is because the mainland has its set of rules that people have to follow. So when you are dealing with the mainland you have to get approvals. The mainland requires these approvals to make sure everything is done correctly.
Steps to Start a General Trading Company in Dubai
Starting a general trading company involves several key steps.
Step 1: Determine Your Business Activity
You need to figure out what kind of things you want to buy and sell. Do you want to deal with clothes and other fabrics. Maybe things like phones and computers or perhaps furniture, for peoples homes or the kind of everyday things that people use like food and toiletries.
This will have an impact, on the kind of license you have the visas you need and the approvals that you require. The license category is very important. So are the visas and approvals that you need to get.
Step 2: Choose Jurisdiction
Mainland in the United Arab Emirates gives you access to the market in the UAE. To do business on the Mainland you will need a sponsor for your company. The Mainland is a place to set up your business because it allows you to reach the entire UAE market. Having a local sponsor is necessary for the Mainland because it helps you to follow all the rules and regulations of the UAE. This local sponsor will be very important for your business, on the Mainland.
Freezone: 100% foreign ownership, limited to Freezone/export market
Step 3: Reserve Trade Name
You need to send the names you want to use for your business to the Department of Economic Development which is also known as DED if you’re on the mainland. If your business is in a Freezone you need to send the names to the authority that’s in charge of the Freezone. This is an important step when you are starting a new business. You have to make sure that the name you want to use is available and that it is allowed by the Department of Economic Development or the Freezone authority.
* Send the proposed trade names to the DED if you are on the mainland
* Send the proposed trade names to the Freezone authority if you are in a Freezone
You have to do this so that you can get the okay to use the name for your business. The Department of Economic Development and the Freezone authority will check the proposed trade names to make sure they are okay to use. This is a step, for the DED and the Freezone authority to make sure that the name you want to use does not violate any rules.
We need to make sure that this thing follows all the rules and laws that’re in place. The regulations are very important. We have to comply with regulations so that everything is done correctly and safely. We must comply with regulations to avoid any problems. Comply with regulations is our priority.
Now it is time, for Step 4. This is where you Apply for Initial Approval. You have to do this to get the Initial Approval for your thing. So you need to Apply for Initial Approval.
The government needs to give you clearance to make sure your business is doing something that is allowed. This means they have to confirm that what your business is doing is okay. You can keep doing it. You need this clearance so that your business activity is legal. You do not get in trouble. The government clearance is very important, for your business.
Required to proceed with MOA, lease, and visa applications
Step 5: Lease Office Space
I am looking for something on the mainland. The thing is, I need an office or maybe a flexi-desk. I think it would be really great to have an office on the mainland or, at least a flexi-desk. This is what I am looking for on the mainland, an office or a flexi-desk.
Freezone: Flexi-desk, virtual office, or warehouse options available
Now we are at step 6. This is the part where we get ready with the documents, for the process. We need to prepare all the documents. The legal documents are very important so we have to make sure they are correct. We will use these documents to move forward with the process. Preparing the documents is a crucial step.
MOA for Mainland companies
Passport copies of shareholders
NOC from current sponsor if needed
Step 7: Submit License Application
Submit documents to DED (Mainland) or Freezone authority
Pay the license and registration fees
Step 8: Visa Processing
When the license is issued the next step is to apply for employment visas for the owners and the staff of the business. The owners and the staff will need these employment visas to work legally. Apply for employment visas, for the owners and the staff soon as the license is issued.
The process includes a fitness test getting an Emirates ID and a labor card. We have to do all these things as part of the process. The process has a fitness test then we need to get an Emirates ID and after that we get a labor card.
Step 9: Bank Account & Operations
Open corporate account to receive payments
Begin trading activities legally in Dubai and UAE
- Employment Visa and Licensing for Your Staff
A general trading company is really helpful because it lets you pay for your employees UAE visas. This makes it a lot easier for you to find and hire staff from the United Arab Emirates and
other countries. You can get people to work for you from, over the world because the general trading company helps with the UAE visas for your employees.
Key Steps:
Apply for work permits via MOHRE
You need to get medical checkups done and also register for Emirates ID. The medical checkups and Emirates ID registration are necessary.
Renewal every 2–3 years along with license renewal
- Costs Involved in General Trading Setup
Approximate Costs (AED)
| Item | Mainland | Freezone |
|---|---|---|
| License Fees | 10,000–25,000 | 15,000–50,000 |
| Office Rent | 15,000–50,000 | 15,000–30,000 |
| Visa Fees (per employee | 5,000–7,000 | 4,000–6,000 |
| MOA / Legal Fees | 2,000–5,000 | 2,000–5,000 |
| Bank Account Setup | 0–2,000 | 0–2,000 |
The costs of something are different depending on the Freezone, the size of the business and the activities of the business. The costs can be high or low it really depends on the Freezone and the business. The size of the business and the activities of the business also affect the costs.
- Tips for Choosing the Right Jurisdiction
Freezone: Best for export-oriented companies or 100% foreign ownership
Mainland: Best for selling directly in Dubai/UAE markets
Consider office cost, visa quota, licensing fees, and target market
Seek expert guidance from licensed business consultants for smoother setup
- Common Mistakes to Avoid
Choosing wrong business activity → license rejection
Ignoring Freezone vs Mainland differences
Not reserving a unique trade name
Failing to budget for visa and office costs
Trying to operate before license issuance
- Why Hire a Business Setup Consultant in Dubai
Setting up a trading company in Dubai is a big task. It has a lot of steps. You need to get many approvals. You also have to follow rules. A business setup consultant can help with a trading company in Dubai. They know what to do.
* They can tell you what you need to do to set up a trading company in Dubai
* They can help you get all the approvals you need for a trading company in Dubai
* They can make sure you follow all the rules for a trading company in Dubai
A business setup consultant is very useful when you want to set up a general trading company, in Dubai.
Advise on Mainland vs Freezone options
Assist with trade license, MOA, and visa applications
Ensure legal compliance and cost transparency
Reduce delays and avoid unnecessary expenses
Ideas Business Setup Experts in Qusais Dubai are people who help you set up a business. They do things like help you form a trading company and get employment visas. They also give you advice on how to do things. The goal of Ideas Business Setup Experts is to help clients start doing business in the United Arab Emirates without any problems. Ideas Business Setup Experts make sure everything goes smoothly for their clients, in the UAE.
Starting a trading company in Dubai is really exciting for people who want to start a business and make it grow in the United Arab Emirates market. You need to know what is required to start this kind of company like licenses and costs and how to get a visa. If you do this you can avoid getting into trouble with the law save money and make sure your general trading company
in Dubai runs smoothly. General trading companies in Dubai have a lot to offer so understanding the basics of trading companies, in Dubai is very important.
Whether you choose Mainland or Freezone, having a trusted business setup consultant ensures your company registration, trade license, and employment visas are handled professionally, giving you more time to focus on growing your business in Dubai.
