Dubai is one of the most business-friendly cities in the world. With easy access to international markets, world-class infrastructure, and a tax-efficient environment, the city has become a preferred hub for entrepreneurs and investors. One of the most flexible and powerful tools available to business owners is the Dubai General Trading License. This license allows entrepreneurs to legally trade a wide range of goods, both locally and internationally, through a single setup.
What Is a Dubai General Trading License?
A general trading license in Dubai is a type of business license that permits the import, export, distribution, and storage of a wide variety of goods. Unlike specific trading licenses that are limited to a particular category, a general trading license permits the sale of multiple unrelated products under a single legal umbrella.
This license is commonly issued by the Department of Economic Development (DED) for mainland companies. It is also available in several free zones across the UAE. The key advantage of this license is its versatility. It suits businesses that plan to trade in bulk, sell across borders, or operate through e-commerce platforms.
Entrepreneurs engaged in import/export, wholesale, retail, or online product sales will find the general trading license especially useful. It streamlines operations by eliminating the need for multiple licenses for different goods.
Why Choose a General Trading License in Dubai?
The Dubai General Trading License stands out for its flexibility. You can trade in various goods, including food, electronics, clothing, cosmetics, and machinery, all under one business license. This makes it highly cost-effective, especially for companies dealing with a diverse product line.
Another reason is that this license supports both import/export activities and local sales, making it ideal for businesses looking to operate across multiple channels. Whether you’re shipping goods overseas, selling in Dubai malls, or selling online, the license covers you.
From a financial perspective, Dubai offers zero personal income tax and a business-friendly VAT and corporate tax regime. When you combine this with efficient customs clearance and easy access to global markets, it becomes clear why thousands of businesses choose Dubai for general trading.
Top Activities Allowed Under a General Trading License
A general trading license gives you the freedom to engage in multiple commercial activities. Let’s break down some of the top ones:
1. Import and Export of Goods
Businesses can import a wide range of products, including raw materials, electronics, industrial equipment, and textiles, and export them to regional or international markets. The import/export process also requires customs code registration, which Lukadah can assist you in obtaining.
2. Wholesale and Distribution
The general trading license allows bulk trading and distribution of goods like food, beverages, clothing, personal care items, and more. Companies often establish distribution centers in Dubai to serve the GCC region efficiently.
3. Retail Trade in Physical Stores
If you plan to open a retail shop in Dubai, especially on the mainland, this license gives you the legal right to sell your products directly to local consumers. You can open outlets or kiosks or partner with supermarkets and department stores.
4. E-commerce and Online Product Sales
With e-commerce booming in the UAE, a general trading license lets you sell products online through platforms like Amazon, Noon, or your own Shopify or WooCommerce store. It’s a popular choice for entrepreneurs starting their online businesses.
5. Warehousing and Repackaging
You can use licensed warehouse facilities to store goods, sort inventory, and repackage items before distribution. Certain goods may require storage approvals depending on category and location.
6. Light Assembly and Product Bundling
The license also allows light manufacturing processes such as assembling gift sets, bundling electronic items, or packaging promotional kits. However, you must follow Dubai Municipality’s compliance rules for health and safety.
7. Trading of Regulated Products
Businesses can trade regulated items like cosmetics, health supplements, food products, and medical devices, provided they secure approvals from authorities such as MOHAP, ESMA, or the Dubai Municipality.
External Resource: Dubai Municipality Health & Safety Guidelines
Benefits of Holding a Professional License in Dubai
While a general trading license is suitable for commercial trading, a professional license is ideal for individuals offering services based on their expertise. This includes consultants, IT specialists, designers, and trainers. Holding a professional license allows 100% foreign ownership in most cases, especially in mainland setups. It also gives you credibility and legal protection as a certified professional.
In addition, it enables business owners to sponsor dependents and employees, access government tenders, and open corporate bank accounts in the UAE.
How to Get a Professional License in Dubai?
To obtain a professional license, you need to decide on your business activity and legal structure. Then, apply through the DED or relevant free zone with supporting documents such as your passport copy, educational certificates, and a no-objection certificate if you’re already employed.
After document submission, the license is usually issued within a few business days. You will also need to secure an office address, register for tax (if applicable), and apply for any necessary visas.
If you’re unsure whether a professional or trading license is best for you, Lukadah can guide you with a free consultation.
Activities Not Allowed Under a General Trading License
It’s important to know the boundaries of what the general trading license covers. Certain activities are not allowed, such as legal services, financial consulting, medical services, and accounting. These are categorized under professional services and require a professional license instead.
If you’re unsure whether your business idea qualifies under the general trading category or needs a separate license, Lukadah can guide you through the process.
Steps to Add or Modify Trade License Activities
You can update your trade license to add or remove business activities. The process typically starts by checking your existing trade license to confirm the current activities listed. After that, you’ll need to apply for an amendment through the DED or the relevant free zone authority.
You’ll be required to submit a license amendment form, updated MOA (if applicable), and pay the necessary government fees. The approval time can range from 3 to 7 business days, depending on the complexity.
How Lukadah Can Help You Start Trading in Dubai
Setting up a trading business in Dubai doesn’t have to be complicated. At Lukadah, we simplify the process by offering end-to-end support tailored to your needs. Our team handles everything from activity selection, business setup, and licensing to customs registration, visa processing, and tax registration.
We also assist in setting up corporate bank accounts, sourcing office or warehouse space, and keeping you compliant with the UAE’s VAT and corporate tax laws. Whether you are a first-time investor or expanding an existing business, Lukadah makes the journey easy and stress-free.
FAQ
1. Can I sell online with a general trading license in Dubai?
Yes, a general trading license allows online product sales through your website or platforms like Amazon and Noon.
2. Can I trade regulated products like cosmetics or food?
Yes, but you need to get additional approvals from relevant authorities such as Dubai Municipality or MOHAP.
3. How long does it take to get the license?
It typically takes 3 to 7 working days to obtain a general trading license in Dubai, depending on your chosen jurisdiction.
4. Can I use a warehouse with this license?
Yes, you can rent warehouse space and use it for storage, sorting, and repackaging.