The cost of a general trading license in Dubai is one of the most important aspects investors consider when planning to establish their business. The cost includes registration fees, license issuance, trade name reservation, and articles of association, in addition to business location and annual renewal fees. The cost varies depending on the location of incorporation, whether in mainland Dubai or free zones, as well as the nature of the business and the number of partners. Therefore, it is advisable to plan ahead and consult experts to find the best options that suit the investor’s budget and business goals.
General Trading License Cost in Dubai
The general trading license in Dubai is one of the most sought-after licenses among investors and entrepreneurs, given the flexibility it offers to conduct multiple business activities under one umbrella. With Dubai’s global status as an economic and commercial hub, interest in understanding the cost of a general trading license and the factors affecting it is growing, from basic fees to additional costs related to location, activities, and government approvals. In this article, we take you through a comprehensive overview of the license’s cost details and the most important benefits investors receive when obtaining it.
What is a general trading license in Dubai?
A general trading license in Dubai is an official permit issued by the competent authorities in Dubai, allowing investors to practice a wide range of diverse commercial activities under a single license, without the need to obtain separate licenses for each activity.
Permitted activities
The license covers many commercial activities such as:
- Import, export and re-export.
- Trade in consumer products such as clothing, food, and electronics.
- Distribution of goods inside and outside the UAE.
- Multiple activities do not require a special license for each activity individually.
The difference between it and other types of licenses
- Regular commercial license : Usually limited to one activity or specific sector.
- Professional License : For services such as consulting, education, or the liberal professions.
- Industrial license : Granted for activities related to manufacturing, production, and processing of raw materials. The general trade license
offers the unique advantage of allowing multiple business activities under a single license, making it an ideal choice for investors seeking diversity and flexibility.
General Trading License Costs in Dubai
The cost of issuing a general trade license in Dubai starts at AED 6,875 for the basic license only, and includes a set of additional fees depending on the nature of the company and the services required, which can be explained as follows:
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Trade name reservation fee : approximately AED 620 to ensure a distinctive name that complies with legal requirements.
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Initial approvals and incorporation contract fees : range between 120 and 350 UAE dirhams, depending on the number of partners and the nature of the contract.
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Dubai Chamber of Commerce membership fees : approximately AED 300 to enjoy all legal and commercial benefits.
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Potential additional costs : such as company location, office rent, visas, and any other government or administrative services.
General Trading License Fees in Dubai
General trading license fees in Dubai include basic issuance fees, trade name reservation, articles of association, Chamber of Commerce membership, and additional costs such as office space, visas, and special approvals.
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Commercial registration fees
include the cost of registering the company and entering its official data with the relevant authorities to ensure legal recognition of the company. -
The license issuance fee
represents the basic cost of obtaining a license from the Department of Economic Development or the competent authority, and allows the commencement of commercial activity. -
Trade name fees
relate to reserving the company name and ensuring it complies with the legal requirements and standards approved in Dubai. -
The incorporation and documentation fees
include notarizing the incorporation contract with a notary public or official body, especially when there is more than one partner. -
Business location or office fees
relate to registering a company’s physical or virtual headquarters, which is a prerequisite for obtaining a license. -
Annual license renewal fees
are recurring fees to maintain the validity of the license and ensure the continuation of legal business activity.
Additional fees for a general trading license in Dubai
Additional fees for a general trading license in Dubai include special approvals, commercial plates, visas and employee sponsorship, license amendments, government services, and commercial site costs, depending on the nature of the business and the company’s location.
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Activity Approval Fees:
Some commercial activities, such as food, education, or healthcare, require additional approvals from the relevant authorities, which adds fees to the license cost. -
Commercial sign and advertising fees
relate to the installation of official billboards for the business premises, and are a legal requirement for starting the business. -
Visa and employee sponsorship fees
include fees related to obtaining or renewing residence visas for employees or partners associated with the company. -
License Amendment or Addition of New Activities Fees:
When an investor wishes to expand their business or change company data, additional fees are charged to officially complete these amendments. -
Fees for government or electronic services,
such as fees for electronic transactions, support services, or issuing official documents through government platforms. -
Business location fees
may vary depending on the choice of a physical or virtual office, as well as the company’s location in the mainland or free zones.
Factors affecting the cost of a general trading license in Dubai
The cost of a general trade license varies depending on several factors that determine the final fees for the investor, and can be explained as follows:
- The location of incorporation,
whether in mainland Dubai or one of the free zones, as fees and benefits differ between the two locations. - The type of business activities (
general activities versus activities requiring additional approvals) directly affects the fees. - Number of partners or shareholders:
The higher the number of partners, the higher the documentation and articles of association fees. - Office or Commercial Space
The size and location of the physical or virtual office affects the overall cost. - Additional services
such as visas, employee sponsorship, and activity approvals. - The competent government authorities
differ in fees between the economic department, free zones, or other regulatory authorities.
Advantages of a general trading license in Dubai
A general trading license in Dubai offers benefits including multiple activities, business expansion, legal legitimacy, signing contracts, opening bank accounts, recruiting employees, and facilitating government procedures.
- Multiple business activities:
The license allows for the practice of various activities under one license, saving time and effort compared to obtaining several separate licenses. - Flexibility in business expansion:
The ability to easily add new activities or open other branches within the same legal license. - Legality and Protection:
The license provides the legal framework for conducting business and protects the company from violations and penalties. - The ability to sign formal contracts
allows the company to sign contracts with suppliers, customers, and banks in a legal and approved manner. - Opening business bank accounts
is a prerequisite for opening a corporate bank account and managing financial transactions efficiently and transparently. - The possibility of recruiting employees
through the license. Residency visas can be obtained and employee sponsorship can be legally obtained. - Facilitating government procedures.
A license when opening a company in Dubai provides additional advantages when dealing with government agencies and electronic services.
Steps to open a general trading license in Dubai
Steps to open a general trading license in Dubai : Determine the activity and legal form, reserve the trade name, prepare the articles of association, choose a location, submit the application and obtain additional approvals, and then receive the trade license.
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Determine the business activity.
Select the activities permitted under the general trade license, in line with investment objectives and future growth plans. -
Determine the legal form of the company.
Choose the appropriate legal entity, such as a sole proprietorship, limited liability company, or branch of a foreign company. -
Reserve a trade name:
Register a distinctive name for the company with the Department of Economic Development or the competent authority and ensure that it complies with the legal requirements. -
Preparing and documenting the articles of association.
Drafting the articles of association or partnership agreement and officially documenting it with a notary public or the competent official authority. -
Choosing a business location:
Determine the company’s physical headquarters or virtual office, officially registered with the relevant authorities. -
Submit a license application and pay the fees.
Upload all required documents and pay the basic fees to issue a commercial license. -
Obtaining additional approvals:
Obtain any necessary approvals from authorities such as health, municipality, or education if the activity requires them. -
Receiving the commercial license:
After completing all procedures and approvals, the investor obtains the license and becomes able to legally conduct his commercial activities.
Documents required to open a general trading license in Dubai
Documents required to open a general trading license in Dubai include passports, ID cards, personal photos, trade name reservation, articles of association, office contract, fee receipts, and additional approvals depending on the activity.
- Passports:
Clear copies of the passports of all partners or shareholders in the company. - Emirates ID Cards
A copy of the ID card for residents of the country (if applicable). - Personal photos:
Recent photos with a white background of the license holder and partners. - Trade name reservation request:
The official document proving the reservation of the company name and its approval by the competent authority. - The articles of association or partnership agreement
must be officially notarized by a notary public or the relevant authority, especially if there is more than one partner. - A lease contract for the office or commercial location
to determine the company’s headquarters, whether physical or virtual, and registered with the relevant authorities. - Fee payment receipts
proving payment of license, registration, and trade name issuance fees. - Additional approvals:
Any necessary permits from other government agencies depending on the nature of the activity (such as health, municipality, education).
Main types of general trading licenses in Dubai
The general trade license is divided into several main types, which help the investor choose the most appropriate option based on the nature of his activity and commercial needs. These are as follows:
General Trading License Dubai Mainland
- Issued by the Department of Economic Development (DED).
- Allows commercial activities to be carried out inside and outside Dubai within the UAE.
- Requires a registered physical office.
- The company is able to sign official contracts and deal directly with banks and the government.
A public Trade license in Free Zones
- Issued by free zone authorities such as Jebel Ali, Dubai Multi Commodities Centre, and others.
- It grants full ownership to foreigners and tax and customs exemptions.
- Provides freedom to import and export goods with the possibility of using a virtual office.
- Limited direct dealings with the local market except through an agent or distributor.
General Trading License for Foreign Companies (Company Branch)
- Allows international companies to open a branch in Dubai to conduct business.
- Subject to local regulations while retaining full ownership of the parent company.
- Ideal for expanding your business into the UAE market without the need to establish an entirely new entity.
Important tips for the cost of a general trading license in Dubai
Before proceeding with obtaining a general trading license in Dubai , it is important to consider several points that will help you control costs and ensure a smooth process:
- Choosing the appropriate legal form:
Determine the type of company (sole proprietorship, limited liability company, branch of a foreign company) in line with your activity and future plans. - Choose your incorporation location carefully.
Compare mainland Dubai and free zones in terms of fees, benefits, and legal flexibility. - Check permitted activities
Choose activities carefully to avoid additional fees for special approvals or future modifications. - Consider additional costs.
Consider visa fees, employee sponsorship, and additional approvals to plan an accurate budget. - Hiring specialized experts
: Hiring a specialized company such as Tasyeer saves time and effort, ensures the accuracy of procedures, and reduces costs.
Your financial planning for obtaining a general trade license requires expertise and precision to ensure the best results at the lowest cost. Don’t leave things to guesswork; contact Tasyeer’s experts now for full support throughout the process of obtaining a trade license in Dubai .
Start today and turn your Dubai business idea into a successful business in the heart of Dubai with our dedicated team.
Frequently Asked Questions about General Trading License in Dubai
1. Can foreigners obtain a full general trading license?
Yes, foreign investors can own 100% of most businesses, whether in free zones or on the mainland, according to modern laws.
2. How long does it take to obtain a general trade license?
The duration varies depending on the activity and required approvals, but it typically ranges from a few days to several weeks.
3. Can new activities be added after the license is issued?
Yes, the license can be modified and additional activities can be added for a specific fee and additional approvals depending on the type of activity.
4. What’s the difference between a general trade license and an e-commerce license?
A general trade license covers traditional activities such as buying and selling, importing, and exporting, while an e-commerce license is intended for online businesses.
5. Is a local partner required to obtain a license?
In free zones, a local partner is not required, but in the mainland, recent amendments allow full ownership in most activities.
6. Can a virtual office be used to obtain a license?
Yes, some free zones allow the use of a virtual office, while mainland jurisdictions often require a physical office.
7. What are the steps for license renewal?
These include paying the annual renewal fee, updating company information as needed, and obtaining any additional required approvals.
8. Can the license be converted from a virtual office to a physical office later?
Yes, the company’s website can be modified and the necessary license updates issued after the legal requirements are met.
