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 Licence in Dubai is one of the most flexible and commercially rewarding routes available today.

What Is a General Trading Licence?

A General Trading Licence (Activity Code: 4690.97) falls under the Trading category and is classified as a Trading Licence. 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 licence 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 licence, 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)

• Licence Type: Trading Licence

• 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 Licence Covers

Under Activity Code 4690.97, the General Trading Licence 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 licence

Who Is This Licence Best Suited For?

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

• Entrepreneurs seeking to trade multiple product lines without multiple licences

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

5. Receive your licence: Upon approval and payment, your trading licence 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 Licence must adhere to the following compliance obligations:

• Annual licence 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.

Frequently Asked Questions

How much does it cost to obtain a General Trading Licence in Dubai?

Costs vary depending on the free zone and the type of facility selected. At Dubai South Business Hub Free Zone, licence and registration fees typically range from AED 10,000 to AED 25,000 per year. Additional costs include visa fees, facility rental, and any professional service charges.

Can a foreign national own 100% of a General Trading business in Dubai?

Yes. Free zone companies in the UAE, including those at Dubai South Business Hub Free Zone, allow 100% foreign ownership. There is no requirement for a local Emirati partner or sponsor within the free zone structure.

Are there any special approvals required for general trading?

In most cases, a standard General Trading Licence under Activity Code 4690.97 does not require additional external approvals. However, if you plan to trade regulated goods such as food products, pharmaceuticals, or electronics, you may need to obtain relevant product-specific certifications or approvals from UAE regulatory bodies.

How long does it take to set up a General Trading business?

The setup process at Dubai South Business Hub Free Zone is typically completed within 3 to 7 working days, provided all required documents are submitted correctly and fees are paid promptly.

What profit margins can general traders expect in Dubai?

Profit margins vary widely depending on the product category, sourcing strategy, and target markets. Dubai's low-cost business environment, zero import duties within free zones, and access to large regional markets can support healthy margins, particularly for businesses focused on re-export corridors to Africa and South Asia.

Can a General Trading Licence be used for re-export activities?

Yes. One of the primary advantages of a General Trading Licence is its suitability for re-export. Dubai's free zones are specifically designed to facilitate the import, temporary storage, and re-export of goods to third countries, making Activity Code 4690.97 highly suitable for re-export-focused business models.

What facility options are available at Dubai South Business Hub Free Zone?

The free zone offers a range of facility options including flexi-desks, serviced offices, and warehousing units. The choice of facility will depend on your operational requirements, the volume of goods you intend to handle, and your budget. Warehousing is particularly relevant for businesses engaged in physical goods storage and distribution.

Is a physical office or warehouse mandatory for a General Trading Licence?

Yes. Free zone regulations generally require businesses to maintain a registered address within the zone. Depending on the nature of your trading activities, this may be a flexi-desk arrangement or a dedicated office or warehouse space. The free zone authority will advise on the minimum facility requirement based on your licence type and visa allocation needs.

Conclusion

Starting a General Trading business in Dubai under Activity Code 4690.97 at Dubai South Business Hub Free Zone offers an exceptional combination of commercial flexibility, strategic location, and a supportive regulatory environment. With 100% foreign ownership, a streamlined setup process, and access to one of the world's most active trade corridors, this licence is a compelling choice for entrepreneurs and businesses ready to tap into global markets. If you are ready to take the next step, speak with a business setup specialist to explore the options available to you at Dubai South Business Hub Free Zone.

References and Citations

• UAE Government Portal: Doing Business in the UAE

• UAE Ministry of Economy: Trade Statistics

• Dubai South Official Website

• Federal Tax Authority: Corporate Tax in the UAE

• Dubai Customs: Import and Export Regulations