A UAE general trading license is a single business permit that lets one company import, export, and resell most physical goods across many categories without applying for a separate license for each one. First-year costs run from roughly AED 12,000 in a budget free zone to AED 65,000 or more in a premium hub, and a straightforward application takes anywhere from 24 hours to about a week once your documents are in order. The biggest variable is not the paperwork. It’s whether you set up on the mainland or inside a free zone.
Mainland or Free Zone
Every application begins with this choice, and it drives cost, office requirements, and who you can sell to. Both routes now allow 100% foreign ownership. The UAE’s Commercial Companies Law was amended in 2020 to remove the longstanding requirement for a local Emirati partner on the mainland, so foreign investors of any nationality can fully own a mainland company.1Ministry of Economy & Tourism. 100% Company Ownership Before that change, full foreign ownership was only possible in free zones.
What differs now is geographic reach. A mainland license lets you sell directly to customers and businesses anywhere in the UAE and abroad. A free zone license restricts you to trading inside the zone and internationally; to sell onto the mainland, a free zone company needs a local distributor or a dual license.2DMCC. The Differences Between Mainland and Free Zone Companies If your customers are UAE businesses or consumers, mainland is usually simpler. If your model is import-export with no local retail, a free zone is typically cheaper and faster, with lighter office requirements and 0% corporate tax on qualifying income.
What You Can Trade Under One License
The “general” in general trading is the point: a single license covers most tangible consumer and commercial goods. One company can import electronics, wholesale furniture, and distribute textiles without three separate permits.
The carve-outs matter. Alcohol, tobacco, and weapons each need separate government approvals even if you hold a general trading license.3UAQ Free Trade Zone. General Trading License Medical products and pharmaceuticals sit under Federal Law No. 13 of 2020 on Public Health, which places import, sale, and distribution under the health authorities. Vehicles, oil and gas products, and foodstuffs that need cold-chain handling also usually fall outside the general trading umbrella. Anything with a safety, health, or security dimension gets its own regulatory track.
First-Year Costs
All figures are in UAE dirhams and vary widely by jurisdiction. A budget free zone like Ajman runs about AED 12,000 to 15,000 all-in for the first year with one investor visa. A mid-range zone like IFZA sits around AED 21,000 to 27,000.
The premium end looks different. DMCC charges a one-time new company registration fee of AED 29,000 and an annual license of AED 50,265 for general trading. Add a flexi-desk at AED 16,000 to 19,000 and you’re above AED 65,000 before any visa costs.4DMCC. Schedule of Charges RAKEZ, in contrast, advertises packages starting at AED 6,000.5RAKEZ. UAE Trade License The spread reflects prestige, infrastructure, and bundled services.
Line items to budget for beyond the license fee itself:
- Trade name reservation: AED 300 to 620, depending on the authority
- Investor visa per person: AED 3,000 to 6,000, including medical and Emirates ID
- Establishment card: AED 1,200 to 1,825
- Customs registration: AED 100 plus AED 20 in knowledge and innovation fees6Dubai Customs. Registration and Licensing Client Registration
- Health insurance: AED 1,500 to 4,500 per person
Mainland setups are generally more expensive because they require a physical office rather than a flexi-desk and come with higher municipal fees. Expect AED 30,000 to 65,000 or more for a first-year mainland general trading license with one visa.
How to Apply
The UAE government lists eight steps for mainland setup, and free zones follow the same logic with lighter paperwork.7The Official Platform of the UAE Government. Steps to Start a Business on the Mainland
Pick the Activity and Legal Form
You select the activity codes that correspond to general trading from the authority’s database. For the legal form, most foreign investors go with a limited liability company, which keeps personal assets separate from company debts. Sole establishments exist for single-owner setups but give less protection.
Reserve a Trade Name
Your proposed name must be unique, free of restricted terms (government bodies, global brands), and free of religious or offensive language. Each authority publishes its own list of reserved words and conditions, so check before you commit.
Get Initial Approval
Initial approval is the government’s formal no-objection to your business being formed. It comes before you sign a lease or finalize a memorandum of association, and it does not authorize you to start operating. It clears the path for the remaining steps.
Secure an Address and File the Documents
Every UAE business needs a physical address. On the mainland, the lease must comply with the emirate’s economic department and planning rules; in Dubai, lease agreements must be registered through Ejari. Free zones are more flexible, and many accept a flexi-desk arrangement that satisfies the office requirement at a fraction of the cost. Once the lease is in place, you submit the full documentation package, pay the fees, and receive the license. Some free zones can issue the license within 24 hours for simple cases; most take three to seven business days.
Documents You’ll Need
The standard package: passport copies for all shareholders and managers, a signed memorandum of association for multi-partner setups, the trade name reservation certificate, the initial approval, and the registered lease. Current UAE residency visas or entry stamps may be requested to confirm immigration status.
If shareholders are outside the UAE, their corporate documents must be attested. The document is first authenticated by the foreign affairs ministry of the issuing country, then attested by the UAE embassy or consulate there, and finally verified inside the UAE by the Ministry of Foreign Affairs and International Cooperation. Only originals are accepted; photocopies and laminated documents are rejected. The MoFAIC fee for commercial document attestation is AED 150 per document, and foreign ministries and embassies charge their own fees on top.8Ministry of Foreign Affairs and International Cooperation. Commercial Invoice Attestation (Via eDAS 2.0)
What You Still Need After the License
A Customs Code
The license by itself doesn’t let you clear goods. You need a customs code, issued in Dubai through the Dubai Customs portal. Registration requires your trade license, a passport copy of the authorized person, and an Emirates ID copy. Processing takes about one working day and costs AED 100 plus AED 20 in knowledge and innovation fees.6Dubai Customs. Registration and Licensing Client Registration To file customs declarations, your business code must be linked to your trade license and VAT registration number.
A Corporate Bank Account
This is where many new license holders stall. UAE banks have tightened know-your-customer rules, and account opening can take weeks. Expect to provide the trade license, memorandum of association, passport and Emirates ID copies for all partners, a board resolution naming signatories, and credible evidence of your source of funds. Most banks require at least one signatory to appear in person, and six months of personal or company bank statements are commonly requested.
Establishment Card and Visas
Before you can sponsor employees, you need an establishment card from the Ministry of Human Resources and Emiratisation, which confirms you’re registered as an employer. Each license carries a visa allocation tied to your office size and the free zone’s rules. Processing each visa involves a medical fitness test, Emirates ID enrollment, and health insurance. Budget AED 3,000 to 6,000 per visa.
Corporate Tax and VAT
The UAE’s federal corporate tax applies to financial years starting on or after June 1, 2023. The rate is 0% on taxable income up to AED 375,000 and 9% on income above that threshold.9Ministry of Finance. Federal Decree-Law No. 47 of 2022 Free zone companies that meet qualifying conditions pay 0% on qualifying income, which generally means income from transactions with other free zone entities or from international trade that doesn’t touch mainland customers; non-qualifying income is taxed at 9%. Every general trading license holder must register with the Federal Tax Authority and file annual returns, even if taxable income falls below the threshold.
VAT is charged at 5% on most goods and services. Registration is mandatory once your taxable supplies and imports exceed AED 375,000 over any 12-month period, or if you expect to cross that figure in the next 30 days. Voluntary registration is available from AED 187,500.10Federal Tax Authority. Registration For VAT For a trading company moving real volume, the mandatory threshold is reached quickly. Returns are typically filed quarterly, and late-filing penalties stack fast.
Keeping the License Active
Annual Renewal
The license is valid for one year and must be renewed before it expires. Renewal typically costs 70% to 85% of the first-year total: one-time registration fees drop out, but the license fee, lease, and visa renewals remain. You’ll generally need a valid tenancy contract, a copy of the previous license, updated shareholder details, and current chamber of commerce membership where it applies.
Late penalties vary by authority. In DMCC, the first 30 days after expiry carry no fine, days 31 to 60 trigger a AED 2,500 penalty, days 61 to 90 cost AED 5,000, and anything past 90 days results in automatic license termination.11DMCC. Revised Late Renewal Penalty Fee FAQs Other authorities use different schedules. An expired license can block transactions, result in shareholder blacklisting, and force the business to close.
Beneficial Ownership Register
Every UAE company must keep an accurate register of its beneficial owners, meaning anyone who owns or controls at least 25% of the company. The information is reported to the relevant registrar and updated whenever ownership or control changes. If no individual meets the 25% threshold, the company reports whoever effectively controls it, such as the managing director.12Central Bank of the UAE. Identification of Beneficial Owners Fines for non-compliance range from AED 20,000 to AED 200,000 depending on severity and whether the violation is a first or repeat offense.
Economic Substance
Economic substance regulations apply to companies performing certain “relevant activities,” which include distribution and service centre business, a category that can capture general trading. Covered companies must show adequate substance in the UAE through employees, expenditure, and decision-making presence, and must file annual notifications and reports.13Ministry of Economy & Tourism. Economic Substance Regulations Sanctions escalate with repeated non-compliance.
Extra Reporting If You’re a U.S. Person
American citizens and green card holders who own or control a UAE company face U.S. tax reporting obligations that catch many first-time international entrepreneurs by surprise. These obligations apply whether or not you owe any U.S. tax on the company’s income. The penalties are the trap.
Any U.S. person who owns 10% or more of a foreign corporation, or who controls more than 50% of its voting power or value, must file IRS Form 5471 with their annual return. It requires detailed financial statements and information about shareholders, income, and transactions. The penalty for failing to file is $10,000 per foreign corporation per annual accounting period. If the IRS sends a notice and you still don’t file within 90 days, an additional $10,000 accrues for every 30-day period of continued non-compliance, up to $50,000 per failure.14Internal Revenue Service. Instructions for Form 5471 (12/2025)
Separately, if your UAE corporate account, combined with any other foreign accounts you have a financial interest in or signature authority over, exceeds $10,000 in aggregate at any point during the calendar year, you must file a Report of Foreign Bank and Financial Accounts (FBAR) with FinCEN by April 15, with an automatic extension to October 15.15FinCEN.gov. Report Foreign Bank and Financial Accounts The threshold is the highest combined balance at any single moment during the year, not an average or year-end figure. For any trading company with meaningful revenue, it will almost always be crossed.