A general trading license is the most flexible business license in the UAE. It lets you import, export, and trade in virtually any product category — from electronics to textiles to food products — without being locked into a single commodity. For entrepreneurs who want maximum flexibility, this is the go-to license. Here is how to get one in 2026, with real costs and zone-by-zone comparisons.
What Is a General Trading License?
A general trading license (GTL) permits you to buy and sell any goods that are legally tradeable in the UAE. Unlike a specific trading license (which limits you to one product category, such as "computer hardware" or "building materials"), a GTL gives you broad trading rights across multiple categories.
What You Can Trade
- Electronics and consumer goods
- Textiles, garments, and fashion accessories
- Building materials and hardware
- Food products (non-perishable, no special approvals needed)
- Auto parts and accessories
- Furniture and home decor
- Cosmetics and personal care
- Office supplies and stationery
- Toys and sporting goods
- Machinery and industrial equipment
What You Cannot Trade (Without Additional Approvals)
| Restricted Category | Approval Authority |
|---|---|
| Pharmaceuticals | Ministry of Health and Prevention |
| Weapons and explosives | Ministry of Interior |
| Alcohol | Special license from municipality |
| Oil and gas products | Ministry of Energy |
| Precious metals and stones | Dubai Multi Commodities Centre (DMCC) |
| Chemicals | Ministry of Climate Change and Environment |
| Telecommunications equipment | Telecommunications Regulatory Authority |
These restricted items require separate approvals but can still be traded with a GTL once you have the relevant permits.
Free Zone vs Mainland General Trading License
The key distinction remains the same as with any UAE license:
| Factor | Free Zone GTL | Mainland GTL |
|---|---|---|
| Cost | AED 5,750–15,000 (license only) | AED 18,000–35,000 (including approvals) |
| Sell to UAE consumers | No (need distributor) | Yes |
| Import/export | Yes | Yes |
| 100% foreign ownership | Yes | Yes (most activities) |
| Warehouse options | Zone-specific | Anywhere in UAE |
| Custom duty exemption | Within free zone | No |
| Tax on qualifying income | 0% (free zone) | 9% above AED 375,000 |
When to Choose Free Zone
- You primarily import goods and re-export them
- Your customers are outside the UAE
- You want to minimize costs and tax
- You do not need a physical retail presence in the UAE
When to Choose Mainland
- You want to sell directly to UAE consumers or retailers
- You need a physical store or warehouse outside free zones
- You want to supply to UAE government entities
- You plan to do e-commerce targeting UAE residents
Best Free Zones for General Trading in 2026
Not all free zones are created equal for traders. Here are the best options:
Tier 1: Premium Trading Zones
DMCC (Dubai Multi Commodities Centre)
- License: AED 15,000
- Office: AED 6,500/year
- Visa per person: AED 3,500
- Setup time: 5 days
- Banking ease: HIGH
- Why DMCC: Purpose-built for commodity trading. Over 23,000 registered companies. Gold, diamond, and precious metals trading hub. DMCC-registered companies carry strong credibility with international banks and suppliers.
- Renewal: AED 14,200/year
- License: AED 10,500
- Office: AED 0 (included)
- Visa per person: AED 2,250
- Setup time: 9 days
- Banking ease: HIGH
- Why JAFZA: Connected to Jebel Ali Port — the largest port in the Middle East. Ideal for physical goods traders who need warehouse space and direct port access. Over 9,000 companies.
- Renewal: AED 9,800/year
Tier 2: Best Value for Traders
- License: AED 11,500
- Office: AED 0 (included)
- Visa per person: AED 3,150
- Setup time: 3 days
- Banking ease: HIGH
- Why Meydan: Fast processing, high banking ease, Dubai address. Good for traders who operate digitally and do not need warehouse space.
- Renewal: AED 10,200/year
RAKEZ (Ras Al Khaimah Economic Zone)
- License: AED 7,500
- Office: AED 0 (included)
- Visa per person: AED 2,400
- Setup time: 5 days
- Banking ease: MEDIUM
- Why RAKEZ: Low cost, warehouse options available, close to Sharjah and Dubai ports. Best for cost-conscious traders.
- Renewal: AED 6,800/year
Tier 3: Budget Options
- License: AED 5,750
- Office: AED 0 (included)
- Visa per person: AED 2,018
- Setup time: 4 days
- Banking ease: HIGH
- Why Shams: The cheapest option. Suitable for small traders who primarily work online.
- Renewal: AED 4,800/year
Full Cost Comparison
| Free Zone | License (AED) | Visa (AED) | Office (AED) | Year 1 Total* (AED) | Renewal (AED) |
|---|---|---|---|---|---|
| Shams | 5,750 | 2,018 | 0 | 8,658 | 4,800 |
| RAKEZ | 7,500 | 2,400 | 0 | 10,790 | 6,800 |
| SRTIP | 8,110 | 2,233 | 0 | 11,233 | 7,200 |
| DWTC | 10,020 | 2,100 | 0 | 13,010 | 9,500 |
| JAFZA | 10,500 | 2,250 | 0 | 13,640 | 9,800 |
| Meydan | 11,500 | 3,150 | 0 | 15,540 | 10,200 |
| DMCC | 15,000 | 3,500 | 6,500 | 25,890 | 14,200 |
Includes 1 visa + hidden costs (medical AED 320, Emirates ID AED 370, establishment card AED 200).
Step-by-Step: Getting a General Trading License
Step 1: Choose Your Zone and Structure
Decide between free zone and mainland based on your target market. If free zone, select based on budget, banking ease, and whether you need warehouse access.
Step 2: Select Your Activities
Even with a general trading license, you need to list your primary activities during registration. Common activity codes include:
- General trading
- Import and export
- Wholesale trading
- E-commerce
- Distribution
Most zones allow 3–5 activities per license at no extra cost. Additional activities may cost AED 500–2,000 each.
Step 3: Reserve Your Trade Name
Your trade name must:
- Be unique (not registered by another company)
- Not contain offensive or religious terms
- Reflect your business nature (some zones require this)
- Not use abbreviations unless part of an established brand
Cost: AED 620–2,000 (often included in free zone packages).
Step 4: Submit Documents
Required documents for a general trading license:
| Document | Details |
|---|---|
| Passport copies | All shareholders, valid 6+ months |
| Passport photos | White background, recent |
| Proof of address | Utility bill or bank statement from home country |
| Business plan | Brief description of trading activities |
| Bank reference letter | From your existing bank |
| NOC | If on existing UAE visa |
Step 5: Pay and Receive License
Payment is usually online via the free zone portal. License processing times:
- IFZA, Meydan: 3 days
- Shams, SRTIP: 4 days
- RAKEZ, DMCC: 5 days
- DWTC, JAFZA: 9 days
Step 6: Apply for Visas
Once licensed, apply for residence visas through the free zone. Per person costs (beyond the visa fee):
- Medical test: AED 320
- Emirates ID: AED 370
- Establishment card: AED 200
Step 7: Open Bank Account and Start Trading
With your license, visa, and Emirates ID, apply for a corporate bank account. Expect 2–6 weeks processing time. Zones with HIGH banking ease (DMCC, JAFZA, Meydan, Shams) have faster approvals.
Customs and Import Duties
UAE customs duty is 5% on most imported goods. However, free zone companies benefit from specific exemptions:
| Scenario | Duty |
|---|---|
| Import to free zone (storage/re-export) | 0% |
| Import to free zone then sell to mainland | 5% |
| Zone-to-zone transfer | 0% |
| Re-export from free zone | 0% |
| Import to mainland | 5% |
JAFZA advantage: JAFZA offers customs duty deferment and has a bonded warehouse facility, allowing you to store goods duty-free until they are released to the mainland market.
VAT Considerations for Traders
VAT at 5% applies to most domestic sales. Key rules for traders:
- Exports outside UAE: 0% rated (you charge 0% VAT but can reclaim input VAT)
- Sales within free zone (designated zone): 0% rated if the zone is a designated zone (JAFZA, DAFZA, and some others)
- Sales to mainland: 5% VAT applies
- Registration threshold: Mandatory at AED 375,000 annual revenue; voluntary at AED 187,500
Filing frequency: Quarterly for most businesses; monthly if revenue exceeds AED 150 million.
For a complete VAT guide, read UAE VAT Registration.
Mainland General Trading License: The Process
If you choose mainland, here is the process:
- Apply through DET (Department of Economy and Tourism) or your local emirate's economic department
- Get initial approval — AED 120 application fee
- Reserve trade name — AED 620
- Notarize MOA — AED 2,000–5,000
- Secure office space with Ejari — AED 6,000–25,000/year
- Obtain license — AED 10,000–15,000
- Register for VAT if applicable
Total mainland GTL cost (Year 1): AED 18,740–47,120 (varies widely based on activity and location).
Common Mistakes
1. Getting a specific license when you need general. If you start with a "computer parts trading" license and later want to sell furniture, you will need to amend your license (AED 500–2,000 and 1–2 weeks processing). A general trading license avoids this.
2. Ignoring customs duty planning. If you import goods for re-export, choose a free zone like JAFZA to avoid the 5% import duty entirely.
3. Underestimating warehouse costs. Free zone warehouse space in JAFZA starts at AED 40/sqft annually. Factor this into your total cost if you handle physical inventory.
4. Choosing the wrong zone for your supply chain. If your goods arrive by sea, JAFZA (next to Jebel Ali Port) saves transit time and cost. If goods arrive by air, zones near Dubai International or Al Maktoum International are better.
5. Not registering for VAT before hitting the threshold. Once your revenue exceeds AED 375,000, you have 30 days to register. Late registration penalty: AED 10,000.
How to Choose the Right Zone for Trading
| Your Situation | Best Choice |
|---|---|
| Budget under AED 10,000 | Shams — AED 5,750 license |
| Need port access | JAFZA — next to Jebel Ali Port |
| Need fast banking | DMCC or Meydan — HIGH banking ease |
| Commodity trading (gold, oil) | DMCC — specialized commodity hub |
| E-commerce re-seller | IFZA or Meydan — fast setup, digital-friendly |
| Sell to UAE consumers | Mainland DET — direct market access |
Next Steps
- Compare zones with our free zone comparison tool
- Check detailed costs for your preferred zone at our cost breakdown pages
- Understand your tax obligations with our corporate tax guide
- Apply online — most free zones accept fully digital applications
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