The cheapest general trading license in the UAE is typically obtained through cost-effective northern emirate free zones, which offer specialised start-up packages for importing and exporting multiple product categories under a single license. These jurisdictions offer the most competitive entry points for entrepreneurs seeking the flexibility of a broad trade scope without the high overhead of mainland setups. General trading is a premier choice for international business owners due to the UAE’s strategic location as a global logistics hub, allowing for the seamless movement of goods between East and West.
What is a general trading license in the UAE?
A general trading license is a permit that allows your business to trade a wide range of unrelated products under a single commercial umbrella. In contrast, a specific trading license would allow a company to operate in only one category – for example, “Garments Trading” or “Electronics Trading”. However, a general trading license allows the holder to trade in a wide range of goods, from furniture to machinery. This flexibility will save you the hassle of applying for multiple licenses as your business grows and your product lines diversify.
Why entrepreneurs look for the cheapest general trading license
Entrepreneurs who want to set up a business in the UAE look for the most inexpensive general trading licenses that will allow them to keep their initial capital investment low and, at the same time, have maximum operational freedom in the tax-efficient environment of the UAE. A low-priced license helps new companies use money that they would otherwise spend on administrative fees for stock purchases and marketing activities. The general trading licenses are the perfect means to expand your business in the UAE without encountering lots of red tape. This is because the UAE has business-friendly regulations, including 100% foreign ownership in free zones.
Where to get the cheapest general trading license in the UAE
The cheapest general trading licenses are often from UAE free zones in emirates such as Sharjah, Umm Al Quwain, or Ajman, which offer “flexi-desk” packages that do not require a physical office space. These jurisdictions compete on price and sometimes offer package services that include the license, establishment card, and a virtual office address for a single annual payment. Prices depend on the particular free zone’s proximity to the main ports, the number of visas required, and whether the business activity requires special environmental approvals.
How to get the cheapest general trading license in the UAE
Businesses can obtain a low-cost general trading license by selecting an inexpensive free zone and choosing a package with the lowest visa allocation and the fewest documentation requirements. To secure the lowest price, applicants should compare zero-visa packages with those that include residency permits, as visa-related deposits and health insurance can significantly increase the total setup cost. Moreover, it is necessary to review the renewal fees and banking support in advance, as some low-cost zones may have higher long-term maintenance costs or may not be widely recognised by major UAE banks.
Step-by-step general trading license application process
Securing a general trading license follows a standardised administrative sequence that begins with selecting a jurisdiction and culminates in the issuance of legal permits and corporate banking services.
Choose your business activity (general trading)
First, it is advisable to officially select “General Trading” as your main activity so the license can cover a wide range of goods. This selection determines your legal boundaries and will be overseen by various government agencies.
Select a free zone or mainland jurisdiction
One of the most important factors influencing your total setup costs and the scale of your operations is the choice of jurisdiction. Usually, Free Zones offer more affordable options for startups, whereas mainland setups are preferred by those targeting the local UAE retail market for direct trading.
Reserve a trade name
Your company name has to be registered and must follow the guidelines for naming conventions in the UAE without including any offensive language or making any reference to religions or political groups. After the name has been approved, it will be set aside for your business for a specific duration while you finish the application.
Submit required documents
Applicants must submit clear copies of their passports, high-quality photos of themselves, and, at times, a brief business plan to the selected licensing authority. In the case of free zones, the licensing process is simplified and, in most cases, can be finished without being physically present.
Obtain initial approval
Subsequently, the government will give you an initial approval, which means that the UAE authorities do not object to the setting up of your business. This approval allows you to proceed with other steps, such as signing a lease or obtaining specialised approvals.
Pay license issuance fees
After receiving the first approval, you are required to settle the entire license payment, which covers the registration and the first-year general trading permit. This payment must be made before the final legal documents are generated.
Receive your general trading license
The commercial license, memorandum of association, and share certificates will be issued to you by the authority after the payment is verified. You are now allowed by law to carry on business in the name and activities specified.
Apply for visas and open a corporate bank account
After obtaining your license, you can apply for your establishment card to begin the residency visa application for you and your employees. At the same time, you should begin the process of opening a corporate bank account, which will require the original license and proof of residence.
Mainland vs free zone: which offers the cheapest general trading license?
Free zones primarily come with the least expensive startup cost packages because they supply bundled “all-in-one” startup pricing that doesn’t include the lease of costly physical offices. Licenses for a mainland, which are under the control of the Department of Economy and Tourism (DET), typically incur higher administrative fees and require physical premises; however, they permit unrestricted trading anywhere in the UAE. The opportunity to re-export internationally or conduct business online can be the primary motivation for choosing free zones as an economic option.
Cost of the cheapest general trading license in the UAE
The cheapest general trading licenses in the UAE are currently priced between AED 12,000 and AED 17,000 for zero-visa packages in northern emirate free zones.
Total expenses vary based on location, the number of residence visas required, and whether you choose a virtual desk or a physical warehouse.
Key cost components:
- License issuance fees: AED 10,000 to AED 25,000
- Establish card: AED 1,500 to AED 2,500
- Office/flexi-desk rental: AED 0 to AED 5,000 (often bundled)
- Visa allocation fees: AED 3,000 to AED 5,000 per person
- Annual renewal fees: Usually 80 to 90% of the initial setup cost
Documents required to apply for a general trading license
Documentation for obtaining a General Trading license is straightforward, with the main emphasis on identifying the company’s shareholders and directors.
- Passport copies of all shareholders.
- Recent passport, sized photographs (white background).
- Copy of the UAE entry stamp or visa (if applicable).
- Proof of residential address (for some free zones).
- Fully signed application forms from the licensing authority.
What activities are allowed under a general trading license
A general trading license provides a broad legal framework for the import, export, and sale of a wide range of goods across sectors.
Importing and exporting goods
License holders are authorised to legally import goods into the UAE from foreign markets and export products manufactured in the UAE to worldwide markets. This is the essential element of the general trading business.
Wholesale distribution
Companies can resell large quantities of products to small retailers or other businesses, locally or internationally.
Trading multiple product categories
This permit, unlike the specialised ones, gives you the freedom to trade different commodities, such as electronics, textiles, and household goods, simultaneously through one corporate entity.
E-commerce trading
Additionally, a general trading license permits the sale of goods via e-commerce. However, logistics and storage must comply with local regulations.
Re-export activities
Companies can import goods into a UAE free zone and subsequently export them to a third country without incurring local customs duties, which is highly beneficial for profit maximisation.
Storage and logistics support
Most general trading packages include permission to store goods in a free zone warehouse, which is instrumental in ensuring a smooth supply chain.
Tips to reduce the cost of getting a general trading license
Choosing the right package and preparing your documents in an orderly manner can help reduce setup costs and avoid unexpected expenses.
- Opt for a zero, visa package: If you are not planning to live in the UAE, do not get a visa issued. This way, you will save the cost of insurance and a deposit as well.
- Choose a free zone that also offers bundled services. Find jurisdictions such as SHAMS or SPC Free Zone that offer all-in-one packages for startups.
- Do not overuse add-ons: Avoid premium business addresses or mail-handling services unless your business needs them specifically.
- Paying the full amount at once: Certain free zones promote bundled licenses of 2 or 3 years at a deep discount compared to renewals every year.
- Eliminating the use of high-end office spaces: To meet the legal requirements, a flexi-desk or a virtual office can be used, and this way, you will only have to pay a fraction of what a physical office would cost you.
Frequently asked questions
What is the cheapest general trading license in the UAE?
In most cases, the most economical licensing packages are offered by the free zones in the Northern Emirates, such as Umm Al Quwain (UAQ FTZ) or Ajman Media City. Packages start at around AED 12, 000.
Can I trade multiple products under one license?
Yes. A general trading license, in particular, allows you to trade goods that are not related to each other, such as clothes, food, and furniture, under one permit.
Do I need a visa to get a general trading license?
No, many free zones offer license-only packages that do not require a UAE residency visa.
Can foreigners own 100% of a general trading company?
Yes, foreigners are allowed to hold 100% ownership of companies in the UAE free zones and, with recent changes to the law, in many mainland categories as well.
How long does it take to get the license?
In numerous free zones, the license may be granted within 2 to 4 working days after the submission of documents.
About Set Hub
Set Hub is a premier consulting firm that specialises in business setup in Dubai and throughout the UAE. We cut through the red tape of licensing by pinpointing the most economical areas for your particular industry requirements. Whether you are a solo entrepreneur or a business on the rise, we can handle the legal aspects, paperwork, and government approvals so you can focus on scaling your business.
Why pay more than you have to for the business of your dreams? Start your company with the UAE’s lowest-priced general trading license today. Get in touch with Set Hub for a consultation and allow our specialists to expedite your setup.