Starting a trading company in Dubai is one of the smartest business moves you can make. With its world-class infrastructure, strategic location, and investor-friendly policies, Dubai serves as a global gateway for import, export, and re-export businesses.
Whether you plan to trade locally, export products globally, or establish a wholesale business, this comprehensive guide will help you understand every aspect—from business licenses and documents to costs, approvals, and regulations.
Types of Trading Licenses
A trading company is a business that buys and sells products or goods. To operate legally in Dubai, you must obtain a trading license, which allows you to trade various products and conduct business activities in compliance with UAE regulations. In Dubai, there are a few different types of trading licenses you can choose from, depending on your business activities.
| License Type | Purpose | Ideal For |
|---|---|---|
| General Trading License | Allows trading of multiple, unrelated products under one license (e.g.clothing, food, furniture) | Entrepreneurs dealing in various goods or import-export businesses |
| Specific (Commercial) Trading License | Permits trading of specific or related product categories only | Businesses focused on particular items like auto parts, medical supplies, or electronics. You can select multiple related activities under one commercial trading license, but they must belong to the same category |
| Professional Trading License | For service-oriented activities such as consultancy, logistics, or brokerage | Professionals or firms offering trading-related services instead of physical goods |
| Industrial License | Allows manufacturing, processing, and trading of goods within the UAE and abroad. | Companies involved in production and distribution of manufactured items. |
While the General Trading License (GTL) offers maximum flexibility, it is not a universal pass for all products. Authorities reserve the right to exclude items that require specialized regulation, high security, or specific storage. Relying on the GTL for these items can lead to delays or outright license rejection.
Based on our experience, here are categories you cannot trade under a standard GTL and will require a Specific Trading License and/or mandatory external approvals:
- Health: Medicines, medical devices (Ministry of Health approval).
- Security: Firearms, explosives, surveillance equipment (Police/Security approvals).
- Chemicals: Dangerous or toxic industrial chemicals (Civil Defense approval).
- Excise: Alcohol & Tobacco (Special permits).
- Finance: High-volume Precious Metals (AML/KYC checks, specialized classification).
A Guide to Start a Trading Company in Dubai
Starting a trading company in Dubai requires understanding the business operations. Here’s a detailed roadmap:
1. Decide Your Business Activity
Identify the products or goods you want to trade. This will determine the type of trading license and any approvals needed from authorities. Before you start trading, picking the right business activity in Dubai is key—it determines how your business will operate and grow across the country.
2. Choose a Trade Name
Your trade name must:
- Be unique and not registered by another company
- Avoid offensive or religious words
- Include the correct legal suffix (LLC for mainland, FZE for free zones)
3. Apply for Initial Approval
Submit an application to the Department of Economic Development (DED) for the mainland or the relevant Free Zone Authority. This step confirms that your proposed business activity is permissible.
We recently onboarded a client whose General Trading License application was stalled for over three weeks at the initial approval stage. Their proposed name, “Gulf Global Trade Hub,” was rejected—not because the name was taken—but because the authorities flagged the terms “Global” and “Hub” as highly generic and potentially misleading.
Leveraging his 15+ Years UAE Business Setup Experience, our General Manager, Vipin Kumar, guided the client to choose a simplified, personalized name: “AL SHABAK GENERAL TRADING LLC.” This subtle but critical pivot secured the initial approval in just two days. Choosing a unique, non-aspirational name initially can save you weeks in processing time.
4. Secure Office Space
- Mainland: Lease a commercial office and obtain an Ejari certificate.
- Free Zone: Options include flexi-desks, serviced offices, or warehouses provided by the free zone authority.
5. Obtain External Approvals
Certain business activities require approvals from other government bodies—for example, trading in food, pharmaceuticals, or electronics. Obtain them from relevant authorities before proceeding.
6. Submit Final Documents and Make Payments
Submit all verified documents and pay the required fees to obtain your trading license.
7. Receive Your Trading License
Once approved, you will receive your official trading company license in Dubai, legally allowing you to start operations.
Documents Required to Open a Trading Company
To obtain a trading license in Dubai, you must submit the required documents to the relevant authority. Below is the list of essential documents:
- Memorandum of Association (MOA)
- Passport copies of shareholders and directors
- Trade name approval certificate
- Lease agreement for office space
Shareholder agreements (if applicable)
Cost of Starting a Trading Company in Dubai
The cost of a trading license in Dubai typically starts from AED 10,000 and can go up to AED 25,000 or more, depending on the license type (mainland or free zone) and the business activities you choose. Costs vary depending on jurisdiction, office space, and business activity. Typical expenses include:
Why Dubai is Ideal for a Trading Business
- 100% Foreign Ownership in Free Zones: You can fully own your business without a local partner.
- Tax Benefits: Many free zones offer zero corporate and personal taxes, while mainland companies pay only 9% corporate tax on profits exceeding AED 375,000.
- Access to Local and Global Market: Dubai acts as a gateway to the Middle East, Africa, and Asia,providing excellent opportunities for marketing and business growth
- Modern Infrastructure: Ports, airports, and logistics networks are world-class, simplifying import and export operations.
- Political and Economic Stability: Dubai’s laws protect investors and provide a secure business environment.
Opening a trading company in the United Arab Emirates allows you to operate both domestically and internationally, making it an ideal choice for investors.
Challenges & Risk Management
- Regulatory Compliance: Align with DED, Dubai Customs, and the Federal Tax Authority
- Payment Defaults: Use trade credit insurance and conduct client credit checks
- Logistics Delays: Plan for port congestion, supplier issues, and customs inspections
- Currency Fluctuations: Hedge using multi-currency accounts or forward contracts
How Best Solution Can Help
Setting up a trading company in Dubai is a valuable business opportunity that doesn’t have to be complicated. Best Solution is here to guide you every step of the way.Our expert team handles every part of the business process—from choosing the right license to approvals, office setup, and compliance—making your trading business launch smooth and effortless. Contact us for any questions or assistance you need!
Frequently Asked Questions
How much does it cost to open a trading company in Dubai?
The cost to open a trading company in Dubai typically starts from AED 10,000 and can go up depending on the license type (mainland or free zone) and your chosen business activities. Additional fees like office rent, visas, and approvals may apply.
What is a General Trading License in a Dubai Free Zone?
A General Trading License in a Dubai Free Zone allows you to trade a wide range of products under a single license. It’s ideal for businesses that want flexibility to import, export, and sell multiple goods without needing separate licenses for each product category.
How to start trading in UAE?
To start trading in the UAE, choose your business activity, select the right trading license (mainland or free zone), register your company, and obtain necessary approvals. With the right guidance, you can quickly set up and begin trading legally in Dubai or other Emirates.
Can I trade internationally with a free zone license?
Yes! A Free Zone trading license allows you to trade internationally, making it ideal for import-export businesses. However, you may need a local distributor or partner if you want to sell directly in the UAE mainland.
Disclaimer : This guide provides a general information . Regulations and costs may change time to time based on government rules, so consult the best solution’s professional Business Setup consultants for the latest updates. Refer to the glossary for definitions of key terms which is mentioned in this article. Refer to the glossary for definitions of key terms.
