Start a General Trading Business in Dubai

Dubai has long been recognised as one of the world's most dynamic commercial crossroads, connecting markets across Asia, Africa, Europe, and the Americas. For entrepreneurs and established businesses alike, launching a general trading operation here offers access to a vast consumer base, a tax-efficient environment, and world-class logistics infrastructure. Whether you are looking to import, export, or re-export a diverse range of goods, obtaining a General Trading License in Dubai is one of the most flexible and commercially rewarding routes available today.

What Is a General Trading License?

A General Trading License (Activity Code: 4690.97) falls under the Trading category and is classified as a Trading License. It permits the holder to buy and sell a broad spectrum of goods without being restricted to a single product category. This means a single license can cover everything from consumer electronics and foodstuffs to textiles, machinery, and household goods.

The activity aligns with wholesale trade on a fee or contract basis, enabling businesses to act as intermediaries, distributors, or direct traders. Unlike a specialised trading license, the general trading activity code offers unmatched commercial scope, making it the preferred choice for businesses with diversified product portfolios.

Dubai and the UAE Market: Why Now?

The UAE remains one of the world's most open economies. Dubai alone handles over 14,000 tonnes of air cargo daily through its airports, and the emirate's ports manage millions of twenty-foot equivalent units (TEUs) each year. The country's non-oil foreign trade exceeded AED 2.2 trillion in recent years, underscoring its role as a global re-export hub.

The introduction of 100% foreign ownership across most business activities, combined with zero personal income tax and a competitive 9% corporate tax rate applicable only above AED 375,000 in net profit, makes the UAE exceptionally attractive for international traders. Free zone structures, in particular, offer additional incentives including full profit repatriation and customs duty exemptions on goods in transit.

Key Stats at a Glance

• UAE non-oil foreign trade: over AED 2.2 trillion annually

• Dubai South Free Zone: strategically located adjacent to Al Maktoum International Airport

• Activity Code: 4690.97 (General Trading)

• License Type: Trading License

• Foreign ownership: 100% permitted

• Corporate tax: 0% on net profit up to AED 375,000

• Setup timeline: typically 3 to 7 working days in a free zone

• Minimum share capital: varies by authority; often AED 10,000 to AED 50,000

Dubai South Business Hub Free Zone

Dubai South Business Hub Free Zone is one of the most strategically positioned free zones in the UAE. Situated within the Dubai South economic district and directly adjacent to Al Maktoum International Airport, it is designed to support businesses engaged in trade, logistics, and aviation-related commerce. The free zone offers a business-friendly regulatory environment, streamlined licensing procedures, and access to one of the world's largest planned airports.

For general traders, the location is particularly advantageous. Goods can be received, stored, repackaged, and re-exported with minimal friction, reducing lead times and logistics costs. The free zone also provides flexible office solutions, warehousing options, and a supportive community of international businesses.

What the License Covers

Under Activity Code 4690.97, the General Trading License permits businesses to engage in the wholesale and retail trade of a wide variety of goods. Covered activities typically include:

• Import and export of general merchandise

• Re-export of goods to regional and international markets

• Distribution and wholesale supply to retailers and other businesses

• Trading on a fee or contract basis as an agent or intermediary

• Buying and selling of diverse product categories under a single license

Who Is This License Best Suited For?

The General Trading License is ideal for a wide range of business profiles, including:

• Entrepreneurs seeking to trade multiple product lines without multiple licenses

• International companies establishing a regional distribution hub in the Middle East

• SMEs looking to capitalise on Dubai's re-export corridors to Africa, South Asia, and beyond

• Investors diversifying into commodity trading or consumer goods

• E-commerce operators sourcing and shipping goods across borders

Setup Steps and Costs

Setting up a General Trading business at Dubai South Business Hub Free Zone involves a straightforward process:

1. Choose your business structure: Free zone companies are typically established as a Free Zone Company (FZC) or Free Zone Establishment (FZE), depending on the number of shareholders.

2. Submit your application: Provide passport copies, a business plan, and completed application forms to the free zone authority.

3. Select a facility: Choose from flexi-desk, serviced office, or warehouse options depending on your operational needs.

4. Pay license and registration fees: Fees vary but typically range from AED 10,000 to AED 25,000 for the first year, inclusive of registration and license costs.

5. Receive your license: Upon approval and payment, your trading license is issued, often within 3 to 7 working days.

Additional costs to factor in include visa fees (typically AED 3,000 to AED 5,000 per visa), office or warehouse lease costs, and any third-party service fees for document attestation or PRO services.

Licensing and Compliance Requirements

Businesses holding a General Trading License must adhere to the following compliance obligations:

• Annual license renewal with the free zone authority

• Maintenance of accurate financial records and, where applicable, submission of corporate tax returns under the UAE Corporate Tax Law

• Compliance with UAE customs regulations for import, export, and re-export activities

• Adherence to product-specific regulations where applicable (for example, food safety standards or electronics certification)

• Maintaining a valid tenancy agreement or facility contract within the free zone

Why Dubai Is Well-Positioned for General Trade

Dubai's geographical position at the intersection of East and West makes it a natural trading gateway. The emirate offers direct access to a consumer market of over 2 billion people within a four-hour flight radius. Its world-class port and airport infrastructure, combined with a robust network of free trade agreements and bilateral investment treaties, further enhances its appeal.

The UAE government's ongoing investment in digital trade infrastructure, customs modernisation, and economic diversification through initiatives such as the UAE Centennial 2071 plan ensures that Dubai will remain a top-tier destination for global traders for decades to come.