Quick AnswerA Dubai general trading license costs AED 22,000–55,000 in 2026. Covers unrestricted product categories. Full guide with mainland vs free zone.
General trading license Dubai 2026 — cost, scope, real numbers
A general trading license in Dubai costs AED 22,000–55,000 in 2026 depending on jurisdiction. The license permits trading of unrelated product categories under one license — electronics, food, cosmetics, textiles, building materials, equipment — without amending the license each time you expand product range. Real first-year cost including license, visa, customs code, bank account and broker engagement is AED 60,000–150,000. Working capital for actual trading operations runs AED 500,000 to AED 50,000,000+ depending on product mix, trade flow and volume.
This guide is built from real general trading setups under the Department of Economy and Tourism (DED), Dubai Customs, DMCC, JAFZA, IFZA, the Federal Tax Authority (FTA) and the General Directorate of Residency and Foreign Affairs (GDRFA). It covers jurisdiction selection, activity scope, customs code issuance, banking, and the practical operational model for a Dubai general trading company.
General trading vs specific trading — when to choose general
The single most important question: do you actually need general trading scope?
A specific trading license (e.g., 4774.01 Electronics Trading + 4781.01 Textile Trading) costs AED 8,000–18,000 less than general trading and gives the same access for the named categories. If you plan to trade 3–5 closely related categories for the foreseeable future, specific is cheaper and just as functional.
General trading makes sense when:
- You plan to trade 5+ unrelated categories
- Your product mix will evolve over 12–24 months in ways you can't fully predict
- You want maximum operational flexibility without licensing amendments
- You're building a holding company structure for multiple product lines
Specific trading is better when:
- You have a focused product strategy (e.g., consumer electronics only)
- You want lower annual license costs
- You don't anticipate expanding into unrelated categories within 3 years
Many founders default to general trading thinking it's "safer" — but the AED 8K–18K extra annual cost across 5 years is real money for an SME. Make the decision based on actual product strategy.
Jurisdiction comparison for general trading in 2026
| Factor | Dubai Mainland DED | DMCC | JAFZA | IFZA | Meydan |
|---|---|---|---|---|---|
| License cost (year 1) | AED 25,000–35,000 | AED 50,000–55,000 | AED 35,000–55,000 | AED 22,000–28,000 | AED 22,000–35,000 |
| UAE walk-in retail | Yes | No (free zone) | No (free zone) | No (free zone) | No (free zone) |
| B2B sales to UAE customers | Yes direct | Via mainland distributor | Via mainland distributor | Via mainland distributor | Via mainland distributor |
| Foreign-customer export | Yes | Yes (0% qualifying income) | Yes (0% qualifying income) | Yes (0% qualifying income) | Yes (0% qualifying income) |
| Warehousing on-site | No (third party mainland) | Yes inside DMCC | Yes inside JAFZA (bonded) | No (third party) | Limited |
| Port access | Via mainland customs | DMCC to mainland customs | Direct Jebel Ali Port | Via mainland customs | Via mainland customs |
| Corporate tax | 9% standard | 0% qualifying / 9% non-qualifying | 0% qualifying / 9% non-qualifying | 0% qualifying / 9% non-qualifying | 0% qualifying / 9% non-qualifying |
| Setup time | 2–4 weeks | 2–4 weeks | 3–6 weeks | 1–2 weeks | 2–3 weeks |
| Best for | UAE-domestic distribution and retail | Premium positioning, commodities | Container-volume physical goods | Cost-conscious paper trading | Mid-tier with Dubai address |
For UAE-domestic B2B and B2C distribution choose mainland. For international re-export and free-zone-to-free-zone trade choose DMCC, JAFZA or IFZA depending on physical handling needs. Many established trading houses run both — mainland branch for UAE sales, free zone parent for international flow.
For DMCC fees see https://www.dmcc.ae/, JAFZA at https://www.jafza.ae/, IFZA at https://ifza.com/, and DED mainland at https://www.det.gov.ae/. Customs at https://www.dubaicustoms.gov.ae/ and Federal Customs Authority at https://www.fca.gov.ae/.
The real cost of a Dubai mainland general trading license in 2026
Here is the year-1 line-item budget for a Dubai mainland DED general trading license with one investor visa.
| Line item | AED (2026) | Who collects it |
|---|---|---|
| Trade name reservation | 620 | DED |
| Initial approval | 235 | DED |
| Commercial license fee, general trading | 25,000–32,000 | DED |
| Establishment card | 600 | GDRFA |
| Tasheel labour file | 2,000 | MOHRE |
| Ejari tenancy registration | 220 | RERA |
| Investor visa (3 years) | 3,750–4,500 | GDRFA |
| Medical and Emirates ID | 750 | DHA + ICP |
| Customs code (Dubai Customs) | 1,500–4,500 | Dubai Customs |
| Customs broker engagement (annual) | 1,500–4,500 | Broker |
| Bank account opening (broker assist if needed) | 1,500–5,000 | Bank or broker |
| Total year-1 setup | AED 37,675–55,825 |
DMCC general trading swaps the DED fee for AED 50,000–55,000 base plus DMCC office rent AED 25,000–250,000/month. JAFZA general trading AED 35,000–55,000 plus warehouse if needed AED 25,000–250,000/month. IFZA general trading AED 22,000–28,000 with virtual office included.
Working capital — the real budget
The license is the cheap part. Working capital determines whether the business actually trades. By product category and volume:
- Paper/digital trading (broker-style) — AED 200K–800K initial
- Light consumer goods (electronics, accessories, cosmetics) — AED 1.5M–8M
- Building materials and industrial equipment — AED 5M–25M
- Foodstuff and beverages — AED 2M–15M
- Commodities trading (metals, agricultural) — AED 20M–500M+
- Heavy industrial / project cargo — AED 25M–250M
Most first-time trading operations require AED 800K–3M working capital to actually transact meaningfully. License cost is 1–3% of that. Plan the budget around the working capital number, not the license.
Activity codes for general trading
The core activity is 4649.01 (General Trading), which covers most consumer and B2B product categories. To this you typically add:
| Code | Activity | Why add |
|---|---|---|
| 4649.01 | General Trading | Core unrestricted scope |
| 4690.01 | Re-Export Trading | Free zone re-export operations |
| 4791.02 | Selling Via Internet | E-commerce sales channel |
| 4791.01 | Portal | Marketplace operations |
| 4622.01 | Wholesale Agricultural Raw Materials | Agricultural focus |
| 4661.01 | Industrial Equipment Trading | Industrial B2B focus |
| 4663.01 | Building Materials Trading | Construction focus |
| 4669.01 | Other Wholesale | Catch-all for unusual categories |
Note: some categories require sectoral approvals beyond DED — pharmaceuticals (MOHAP), food (DM food permit), tobacco (Customs special permit), electronics with radio frequencies (TDRA), arms (MoI), petroleum products (federal energy regulator). General trading license alone does not unlock those — separate sectoral approvals are needed.
The full setup process — step by step
Step 1: Jurisdiction and activity decision (Week 1)
Pick jurisdiction based on physical goods flow and target customers. Pick activity mix based on actual product strategy. Reserve trade name.
Step 2: License application and document submission (Week 1–2)
Submit shareholder details, passport copies, business plan summary, activity selection. For multi-shareholder structures, MOA covers profit share, operations management, exit terms.
For mainland DED, you also need a tenancy contract registered through the Real Estate Regulatory Agency (RERA) Ejari system before the final license is issued.
Step 3: License issuance, establishment card, MOHRE labour file (Week 2–3)
Most free zones issue the license in 3–10 working days. Mainland DED takes 3–5 days. Establishment card and MOHRE labour file follow within a week.
Step 4: Investor visa and Emirates ID (Week 3–5)
Foreign founders: entry permit (2–5 days), enter UAE, medical exam, Emirates ID biometrics, investor visa stamping. Total 3–4 weeks.
Step 5: Corporate bank account (Week 4–10)
Trading businesses face heavier bank scrutiny than service businesses due to higher transaction volumes and trade finance needs. Banks ask for:
- Detailed business plan with trade flow diagram
- Sample supplier and customer contracts or letters of intent
- Expected monthly turnover and average transaction size
- Trade finance needs (LCs, bank guarantees)
- Personal financial history and source of capital
Mashreq, Emirates NBD, RAK Bank, ADCB and HSBC handle trading businesses regularly. Wio is faster for smaller paper-trading operations. Apply to 2 banks in parallel.
Step 6: Customs code (Week 8–10)
Apply to Dubai Customs through Mirsal 2 system after bank account is active. Requirements: license, MOA, bank account, signed customs broker arrangement, premises. Code issuance 5–10 working days.
Step 7: Customs broker and first shipment (Week 9–14)
Engage a licensed customs broker. Place first order with supplier with LC or advance payment. First shipment in transit 14–60 days depending on origin. First clearance and warehousing once goods arrive.
Common mistakes that cost general trading founders money
- Mistake 1: Buying general trading scope you don't need. AED 8K–18K annual extra cost over 5 years is AED 40K–90K — real money on an SME budget. If your product strategy is focused on 3–5 specific categories, specific trading license is cheaper.
- Mistake 2: Setting up free zone then trying to sell to UAE mainland customers. Free zone general trading cannot legally invoice mainland B2C customers from the free zone entity. Founders who do this face VAT and tax issues. Either set up mainland from start or plan a mainland branch from day one.
- Mistake 3: Underestimating working capital. AED 30K license + AED 200K starting cash trying to trade containers is not viable. Plan working capital at AED 1M+ for any meaningful physical trading.
- Mistake 4: Skipping HS code research. Different goods have different duty rates and sectoral requirements. Get HS codes confirmed for your top 20 SKUs before placing supplier orders.
- Mistake 5: Ignoring qualifying income split for tax. Free zone trading companies serving mixed customer base (free zone + UAE mainland + foreign) need to track revenue by category cleanly. Ministry of Finance qualifying-income rules require this for the 0% rate to apply on the qualifying portion.
Operational economics — what makes a general trader profitable
General trading margins vary widely by product category:
- Commodity trading (metals, agricultural) — 0.5–3% gross margin on volume
- Consumer electronics distribution — 5–15% gross margin
- Building materials wholesale — 8–18% gross margin
- Cosmetics and beauty distribution — 15–30% gross margin
- Specialty foodstuff — 12–25% gross margin
- Industrial equipment B2B — 10–25% gross margin
- Project cargo and contract trading — 8–20% gross margin
Lower-margin categories require higher volume; higher-margin categories require category specialisation and relationships. Most successful general trading companies in Dubai 2026 hold either category-deep relationships (specialist trader in one or two categories) or scale advantages (mass-distribution at low margin).
A representative monthly P&L for a mid-volume Dubai general trader handling 25 containers per year:
- Annual revenue: AED 18,000,000
- Monthly revenue: AED 1,500,000
- Cost of goods sold: 78–88% = AED 1,200,000
- Operating expenses (office, staff, finance costs): AED 80,000
- Monthly contribution: AED 220,000
- Annual contribution: AED 2,640,000
- ROI on working capital deployed: 18–35% (varies by category and turn rate)
Letters of credit and trade finance
Most meaningful general trading operations need bank-issued letters of credit (LCs) for supplier payments. UAE banks offer sight LC, usance LC (30/60/90 days), standby LC and bank guarantees.
LC issuance requires bank credit facility, collateral and detailed underwriting. New trading companies typically start with cash-margin-backed LCs (100% cash collateral against LC value) before earning credit-based LC limits. Cash-margin LCs limit operations to working capital you have available; credit-based LCs leverage that capital 3–5x.
LC fees: 0.125–0.375% per quarter on LC value plus per-document fees. For AED 1M LC over 90 days: AED 1,250–3,750 in fees.
VAT and corporate tax position
UAE VAT (5%) applies to UAE-domestic sales. Exports outside GCC are zero-rated. Intra-GCC sales follow specific GCC VAT rules — track destination of goods to apply correct rate.
UAE corporate tax (9%) applies to taxable profit above AED 375,000. Free zone trading companies may qualify for 0% on qualifying income (typically foreign-customer revenue or free-zone-to-free-zone trade). UAE-mainland customer sales taxed at 9%.
A common structure: free zone parent (DMCC or JAFZA) handles international and free zone trade at 0%. Mainland branch handles UAE-domestic sales at 9%. Tax structuring requires CPA advisor; cost AED 15K–60K but saves AED 100K–500K+ in taxes annually depending on revenue mix.
Register for VAT at the Federal Tax Authority https://www.tax.gov.ae/ once 12-month turnover crosses AED 375,000. Voluntary registration from AED 187,500.
Banking timeline for general trading
General trading bank accounts take 4–10 weeks. Compared to service businesses, trading is slower due to higher AML scrutiny and trade finance requirements.
Recommended bank options for 2026:
- Emirates NBD Business Banking — strong trade finance, 4–6 weeks
- Mashreq Trade Finance — established trade desk, 5–8 weeks
- HSBC Business Banking — global LC capability, 6–10 weeks
- RAK Bank Trade Services — SME-friendly, 4–6 weeks
- ADCB Trade Finance — comprehensive, 6–8 weeks
- Wio Bank — smaller paper-trading, 2–4 weeks
For meaningful trade finance capability, apply to 2–3 banks in parallel. Trade-finance-focused banks (Emirates NBD, Mashreq, HSBC) take longer initially but unlock LC and bank guarantee facilities that smaller banks don't offer.
Warehousing and logistics setup
Physical general trading needs warehousing. Options:
- JAFZA bonded warehouse — AED 35–95/sqm/month, direct port access, re-export friendly
- DMCC managed warehouse — limited options inside DMCC, AED 50–120/sqm/month
- DAFZA airport warehouse — AED 80–180/sqm/month, air freight focus
- Dubai Industrial City — AED 25–55/sqm/month, mainland-cleared goods
- Al Quoz industrial — AED 30–70/sqm/month, central Dubai
- 3PL services (DHL, Aramex, RSA Logistics) — pay-per-pallet or per-month, no minimum, good for SME volumes
Most new general traders start with 3PL services to avoid warehouse lease commitment, then graduate to direct warehouse once volume justifies it (typically AED 500K+ monthly inventory turnover).
Building supplier and customer relationships
General trading is fundamentally a relationship business. Founders who succeed in Dubai general trading typically have:
- Pre-existing supplier relationships from prior employment or family business
- Strong category expertise in one or two product categories
- Buyer relationships in specific markets (e.g., East African importers, Saudi distributors)
- Cash position to honour LC requirements without waiting for customer payment
Without existing relationships, building a trading book from cold takes 12–24 months. Many new entrants start as agents or commission-only intermediaries with established traders before launching their own operation.
When to add a mainland branch from a free zone parent
A common growth pattern: free zone license for international trade flow plus tax-efficient structure, then add a mainland branch (or separate mainland LLC) once UAE-domestic sales volume justifies it. The mainland branch handles UAE-customer invoicing, mainland warehouse distribution and direct B2B sales.
Setting up the mainland branch costs AED 15K–25K additional. Cross-border invoicing between free zone parent and mainland branch needs careful tax structuring to comply with transfer pricing rules.
What your first 90 days actually look like
Real timeline for an IFZA-licensed general trading company launching with first import shipments:
- Days 1–14: Trade name, IFZA application, license issued. Visa application. Supplier identification.
- Days 15–35: Visa stamped. Bank account application submitted to 2 banks. Customs broker engaged. First supplier MOU signed.
- Days 36–55: Bank account approved (typically Mashreq or RAK). Customs code applied for. LC facility application underway. First shipment ordered.
- Days 56–75: Customs code issued. First shipment in transit. LC facility approved with cash collateral.
- Days 76–90: First container clears Dubai Customs. Goods in 3PL warehouse. First customer invoice raised. Pipeline development for next shipments.
This is realistic for paper-and-light trading. Heavy industrial trading or commodities operations typically take 6–9 months to reach first meaningful revenue.
What changes if you are foreign-owned vs UAE-resident
License process identical. 100% foreign ownership applies to general trading activities under the 2021 amendment to Federal Law on Commercial Companies. Foreign founders need entry permit + medical + Emirates ID + visa cycle adding 2–3 weeks at the start.
When DMCC justifies its higher cost
DMCC's AED 50K–55K general trading license is materially more expensive than IFZA's AED 22K. The premium pays for:
- Central Dubai location with prestige addressing
- DMCC's strong brand for commodities and trading globally
- Active trader community and networking
- Strong banking relationships for DMCC-licensed companies
- DMCC tower offices vs IFZA virtual office
For founders prioritising prestige and network effects, DMCC justifies the premium. For founders prioritising lowest cost, IFZA matches functional capability at less than half the price.
Multi-brand and category specialisation strategy
Many established Dubai general trading companies operate multiple specialised brands or divisions under one license. Common structures:
- Holding company → Category 1 brand (e.g., electronics) + Category 2 brand (e.g., cosmetics) + Category 3 brand (e.g., foodstuff)
- Each brand has its own go-to-market, sales team, customer base, branding
- Shared back-office: accounting, banking, customs broker, warehousing, finance
This structure allows entrepreneurs to leverage one general trading license across multiple growing categories without each requiring separate licensing. Brand-level P&L tracking is essential for category profitability decisions.
Staff and operations team for a trading company
A small Dubai general trading operation (AED 15M–30M annual revenue) typically employs:
- Founder/CEO (commercial direction, key supplier and customer relationships)
- Operations manager (logistics, customs, warehouse coordination)
- Finance manager (banking, LCs, VAT, accounting)
- Sales executives (2–3 for B2B outreach and customer relationships)
- Administrator (documentation, supplier communication)
- Warehouse staff (if owned warehouse, 2–4 people)
Total headcount: 6–10. Annual salary cost: AED 800K–1.8M.
Scaling to AED 60M–120M revenue typically doubles headcount and adds: head of trade finance, head of warehouse operations, dedicated category buyers, customs specialists.
What to do next
If you have decided on product categories, jurisdiction and target customer mix, the next step is bank pre-qualification and customs broker engagement. General trading licenses are straightforward; banking and customs code processes are the binding constraints. A 20-minute call clarifies which jurisdiction fits your trade pattern and the working capital realistic for your first 12 months. We will not push DMCC if a clean IFZA or mainland setup covers your needs.
Related Noble Core deep-dives
For founders going deeper on related topics, these companion guides cover specific aspects in detail:
- UAE general trading license fees & hidden charges — fees-and-hidden-charges focus
- UAE general trading license: process & best free zones — older UAE-wide guide
- Dubai trading company setup cost breakdown — trading company setup focus
- Dubai trading license types & step-by-step — older Dubai trading license overview
Talk to Our Experts
Set up your Dubai general trading company with unrestricted product scope. DED commercial license, customs code, banking and warehousing handled end-to-end. Free 20-minute consultation.
Frequently Asked Questions
How much does a general trading license cost in Dubai in 2026?
A Dubai general trading license costs AED 22,000–55,000 in 2026. Dubai mainland DED general trading: AED 25,000–35,000. DMCC general trading: AED 50,000–55,000. JAFZA general trading: AED 35,000–55,000. IFZA general trading: AED 22,000–28,000. Each path has different customs treatment and UAE-mainland market access rules.
What is the difference between a general trading license and a specific trading license?
A general trading license permits trading of multiple unrelated product categories under one license (e.g., electronics + food + cosmetics + textiles). A specific trading license is restricted to named activity categories. General trading costs AED 8,000–18,000 more per year than specific category licenses but eliminates the need to amend the license each time you expand product range.
Can a Dubai general trading license sell to UAE customers?
Dubai mainland general trading license: yes, full UAE walk-in and B2B access. DMCC, JAFZA, IFZA free zone general trading: limited — you can hold goods in the free zone and sell to other free zone businesses, but selling to UAE mainland customers requires a mainland distributor or branch. Most multi-emirate B2B operations use a free zone + mainland combination.
What activity codes are needed for general trading in Dubai?
The core activity is 4649.01 (General Trading). DED and free zones permit this single code to cover most consumer and B2B product categories. Some categories require sectoral approvals beyond DED (pharmaceuticals MOHAP, food DM, tobacco Customs special, electronics-with-frequencies TDRA, arms MoI). Add 4791.02 (Selling Via Internet) for e-commerce integration.
Which Dubai free zone is best for general trading in 2026?
DMCC at AED 50,000–55,000 is the most-used premium general trading free zone given central Dubai location and prestige. JAFZA at AED 35,000–55,000 suits container-volume operations near Jebel Ali Port. IFZA at AED 22,000–28,000 is cheapest for light trading without UAE-side warehousing. For mainland B2C direct access choose Dubai mainland DED.
Can foreign founders open a general trading company in Dubai?
Yes. 100% foreign ownership applies to general trading activities under the 2021 amendment to Federal Law on Commercial Companies. No UAE national partner required for free zone routes; mainland general trading also allows 100% foreign ownership for the activity. Many of Dubai’s largest general trading houses are foreign-owned.
How does VAT and corporate tax work for a general trading company?
VAT at 5% applies to UAE-domestic sales. Exports outside GCC are zero-rated. Corporate tax at 9% applies to taxable profit above AED 375,000. Free zone general trading may qualify for 0% on qualifying income (foreign-customer sales) but UAE-mainland customer sales are taxed at 9% even from free zones. Get tax advice on qualifying income split before structuring.
How long does it take to set up a general trading company in Dubai?
Plan for 6 to 12 weeks. License is 3–10 days. Investor visa 3–5 weeks. Bank account 4–10 weeks. Customs code 1–2 weeks after bank account. Customs broker engagement 1 week. First import shipment 2–8 weeks depending on origin. Banking is the binding constraint — start the bank application the day after license is issued.
