How to Obtain a General Trading License in Dubai and the UAE?

In most cases, applying for a general trading license is more straightforward than establishing a company in a free zone. Practically, this means a business can import, export, and trade a wide array of products—such as cosmetics, construction materials, and toys—all under a single license. And the best part? The application process for a general trading license in Dubai and the UAE is remarkably simple.

How to Get a General Trading License in Dubai?

1 . Easier Setup Than You Might Think: 

A key factor behind the popularity of the general trading license in Dubai and the UAE is its straightforward setup process. In fact, in many instances, applying for a general trading license is simpler than setting up in a free zone. New initiatives have streamlined the entire process so much that, provided you meet the eligibility criteria, you can register with the Dubai Department of Economic Development (DED) in as little as 90 minutes without needing a lease agreement.

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2. Affordable Setup Costs: 

There is a common perception that starting a business with a general trading license in the UAE and Dubai is a costly endeavor. However, the reality is that the costs are comparable to other options, like setting up a free zone company. The cost for a trade license application starts from just AED 17,000, and depending on your business's exact requirements, the total expense is unlikely to exceed AED 100,000—similar to popular free zones like the Dubai Multi Commodities Centre.

3. Set Up Anywhere: 

Unlike some other company formation methods, establishing a business with a general trading license allows entrepreneurs to acquire both office and warehouse space anywhere in the UAE.

4. Easy to Apply for Multiple Visas:

General trading licenses are particularly popular among businesses with a large workforce, as they permit an unlimited number of visas when established on the mainland. However, it's important to be aware that as the number of visas increases, there is a corresponding requirement to increase the amount of office space you acquire. 

5. Establish with Multiple Shareholders: 

Another reason general trading licenses are popular with larger organizations is that they allow entrepreneurs to set up a business with multiple shareholders. While there is no official upper limit on the number of shareholders you can have, the generally accepted maximum is 50—which can be either individuals or corporate entities.

6. Low Barriers to Entry: 

Alongside a quick and easy application process, general trading licenses offer entrepreneurs a low barrier to business ownership in several other ways. Firstly, upfront costs are minimal as there is no paid-up capital requirement when setting up a mainland general trading business. Furthermore, general trading businesses are not required to undergo an annual audit.

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Beyond a quick and straightforward application process, general trading licenses offer entrepreneurs a low barrier to ownership through a variety of other advantages.

7. Easy to Sponsor Dependents: 

Obtaining a general trading license in Dubai and the UAE not only makes it easy to apply for visas for yourself and your employees, but you can also sponsor your dependents for their visas. Whether you need a visa for a spouse, child, maid, or driver, the process is straightforward: entry permit, status adjustment, medical fitness test, followed by Emirates ID registration and visa stamping. As this is a crucial process, it is a good idea to seek advice from an expert in setting up UAE free zone businesses before beginning an application to ensure that both you and those you hope to sponsor meet the entry criteria.

8. Obtaining Your General Trading License in Dubai and the UAE:

So, if this sounds like the right path for your business, the next question is how to apply for a general trading license in Dubai or a Dubai company trade license in the UAE? When establishing a business on the UAE mainland, the first step is to approach a local sponsor. Any foreign investor who wishes to set up a general trading business on the UAE mainland will require a local sponsor.