Mainland vs Free Zone: Which Dubai Trading License Is Right for You?

Why Dubai?

Dubai isn’t just a city with skyscrapers and luxury cars—it’s one of the world’s fastest-growing business hubs. With zero income tax, a strong infrastructure, and a government that actively supports entrepreneurship, it’s no wonder investors are flocking here.

What is a General Trading License?

In simple terms, a General Trading License is your ticket to buying, selling, importing, and exporting a wide range of goods—clothing, electronics, food, furniture, and much more. It gives you the freedom to diversify your product portfolio without needing separate licenses for each product type.

Activities Permitted Under a General Trading License

Wide Scope of Goods

From fashion and electronics to health products and home décor—this license lets you deal with it all. It’s ideal for businesses with a variety of product categories.

Wholesale, Retail, Import, and Export

Whether you want to import goods and sell them wholesale, or run a boutique e-commerce store for local consumers, this license covers you.

Who Needs a General Trading License?

Startups and SMEs

Planning to test the waters with multiple products? This license gives you the flexibility you need as a budding entrepreneur.

Established Enterprises

Even large, multinational companies use this license to streamline trading activities across various industries.

Benefits of a General Trading License in Dubai

Flexibility Across Industries

This is one of the few licenses that lets you dabble in unrelated product categories—without legal complications.

Strategic Location Advantage

Situated between Europe, Asia, and Africa, Dubai offers direct access to over 2 billion consumers.

Tax Incentives

No personal income tax. No corporate tax in many zones. Yes, really.

Global Reach with Local Presence

Operate your business locally while expanding globally via Dubai’s world-class logistics network.

100% Foreign Ownership in Free Zones

Want to own your business completely? Free zones in Dubai allow you to retain 100% ownership—no need for a local partner.

Easy Access to Local and International Markets

With top-tier ports, airports, and road networks, Dubai offers unmatched connectivity to global trade routes.

Step-by-Step Process to Obtain a General Trading License

Step 1 – Make a Business Plan

Outline your:

Product categories
Market strategy
Budget and capital
Team size
Office needs

It’s like a GPS for your business journey—don’t skip it.

Step 2 – Select a Jurisdiction

Mainland

Trade freely within UAE
Requires a local sponsor (51% local ownership)
Unlimited visas

Free Zones

100% foreign ownership
Tax benefits
Limited to free zone or exports

Offshore

For international dealings
Cannot trade directly within the UAE

Step 3 – Locate a Local Sponsor (Mainland Only)

Sponsors can be:

Individuals (local Emiratis)
Corporate entities

Corporate sponsorships often offer more legal protection.

Step 4 – Choose a Trade Name

Follow these simple rules:

Make it relevant
No offensive terms
Must be unique

Step 5 – Define Your Business Activities

You can choose multiple products but each must be registered and approved by the DED.

Step 6 – Get Initial Approval from DED

This tells you the government is okay with you starting your business.

Step 7 – Draft and Sign the MOA

Memorandum of Association is the legal doc outlining your company’s structure and partnership.

Step 8 – Secure Business Location and Ejari

Pick an office. Sign a lease. Register it through Ejari (Dubai’s rental system).

Step 9 – Submit Final Application

Attach all documents and submit to DED (or the Free Zone authority).

Step 10 – Pay the License Fees

Once everything’s approved, pay the fees and get your license. You’re now officially a business owner in Dubai!

Documents Required for a General Trading License

Passport copies of all shareholders
Emirates ID and visa (if applicable)
Trade name reservation certificate
Initial approval letter
MOA (signed and notarized)
Lease agreement + Ejari registration
NOC (if you’re already under another visa)
External approvals (if dealing with regulated goods)

Cost of Getting a General Trading License in Dubai

Prices vary based on:

Jurisdiction
Office size
Number of visas
Activity type

General Range: AED 15,000 – AED 50,000
Some Free Zone packages go as low as AED 12,000 for virtual setups.

Timeline: How Long Does the Process Take?

Average Time: 7–14 working days
Provided all your paperwork is spot-on.

Common Mistakes to Avoid

Choosing the wrong jurisdiction
Poorly defined activities
Forgetting approvals for restricted products
Underestimating budget or space needs

Why Work with a Business Setup Consultant?

Faster approvals
Accurate documentation
Saves you from red tape nightmares
Helps you pick the best zone for your business type

Can a General Trading License Be Used for Online Sales?

Absolutely. Whether you’re selling through Amazon or your own website, this license has your back.
Just check if you need an additional e-commerce license depending on your selling model.

Opening a Bank Account After Licensing

You’ll need:

Trade license
MOA
Passport and visa
Business plan

Tip: Work with a consultant to find the best bank for your business needs.

Renewal of General Trading License

Valid for one year
Must renew annually
Keep your Ejari updated for smooth renewal

Mainland vs Free Zone License – Which is Better?

Feature	Mainland	Free Zone
Ownership	49% Foreign, 51% Local	100% Foreign
Market Access	UAE + Global	Free Zone + Export
Office	Required	Optional (Virtual allowed)
Visa Quota	Unlimited	Limited by office size

Future-Proofing Your Trading Business in Dubai

Go digital: Invest in an e-commerce strategy
Diversify: Expand your product range
Stay legal: Always renew on time and monitor regulation changes
Build a brand: Focus on customer experience and online presence

Conclusion

A General Trading License in Dubai is more than just a permit—it’s your passport to endless business possibilities in a thriving market. Whether you’re just starting out or scaling globally, this license equips you with flexibility, reach, and credibility. Take it one step at a time, do your research, and get expert help if needed.

Dubai is ready. Are you?

FAQs

1. Can I get a general trading license without a local sponsor?
Yes, in a free zone. Mainland setups still require a sponsor.

2. Is it legal to sell goods online with a general trading license?
Absolutely! Just ensure you have the right e-commerce approvals.

3. Can I trade in food and beverages under this license?
Yes, but you’ll need additional health and safety approvals.

4. What happens if I don’t renew my license on time?
You risk fines, blacklisting, and even business suspension.

5. Is office space mandatory?
Yes, even virtual or shared spaces count in most free zones.