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Dubai has earned its place as one of the world’s most active trading hubs. Its location, infrastructure, and pro-business regulations make it a natural choice for entrepreneurs who want to move goods across borders with ease.
If you’re planning to launch a trading company here, you’ll need to understand the license types, setup process, and expected costs. Let’s break it down.
Understanding Trading Activities in Dubai
Trading businesses in Dubai typically fall into two main categories:
General Trading
This license allows you to deal in multiple products, whether related or unrelated. It covers import, export, wholesale, and retail activities. If you want flexibility across product categories, this is often the preferred route.
Commercial Trading
A commercial license is product-specific. You’re approved to trade within a defined category such as electronics, food products, textiles, spare parts, or safety equipment. This license also covers certain digital trading activities, depending on regulatory approvals.
For manufacturing-related activities, an Industrial License is required. This applies to businesses involved in production, such as garments, machinery, dairy products, furniture, carpets, and similar sectors.
Why Dubai Attracts Trading Businesses?
Here’s what makes Dubai stand out:
- Strategic position connecting Asia, Europe, and Africa
- Efficient ports and airports with strong logistics networks
- 0% personal income tax
- Competitive corporate tax structure
- Free zones offering 100% foreign ownership
- Access to both regional and international markets
The regulatory system is structured, clear, and designed to support business growth rather than slow it down.
Step-by-Step Process to Start a Trading Company
1. Choose Your Jurisdiction
You can set up in:
- Mainland – Regulated by the Dubai Department of Economy and Tourism (formerly DED). Offers wider market access within the UAE
- Free Zone – Provides full foreign ownership and customs advantages
- Offshore – Suitable for international operations without physical UAE trading
Your decision depends on target market, visa needs, and operational structure. Our experts at Arnifi help you choose the right fit for you.
2. Decide on a Business Structure
Common options include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Branch of a foreign company
Your structure affects liability, ownership, and compliance requirements.
3. Reserve a Trade Name
The name must comply with UAE naming regulations. Availability is checked with the relevant authority, either the mainland regulator or the selected free zone.
4. Apply for the Trade License
You’ll submit:
- Passport copies of shareholders
- Business activity details
- Trade name approval
- Initial approval documents
Processing usually takes one to two weeks, depending on the jurisdiction.
5. Obtain Final Approvals and License Issuance
For mainland setups, required documents include:
- Memorandum of Association (MOA)
- Office lease agreement
- Government approvals
License costs typically start from around AED 12,000 and vary based on activity and structure.
6. Open a Corporate Bank Account
Banks require:
- Trade license
- Shareholder documents
- Company incorporation papers
Proper documentation helps avoid delays.
7. Secure Office Space
Options include:
- Flexi-desk
- Virtual office
- Dedicated office
Requirements depend on license type and visa allocation.
Cost Overview
| Cost Component | Estimated Cost (AED) | Notes |
| Mainland General Trading License | 25,000 – 35,000 | Includes registration and administrative fees |
| Free Zone General Trading License | 15,000 – 25,000 | Varies by free zone authority |
| Office Space | 1,000 – 3,000 per sqm/month | Depends on location, size, and office type |
| Visa Costs | 4,000 – 7,000 per visa | Includes sponsorship fees |
| Government Fees | 20,000+ | Covers approvals, registrations, and regulatory charges |
| PRO Services | Starting from 6,000 | Depends on scope of services and documentation requirements |
Key Benefits
- 100% foreign ownership in free zones
- Zero import/export duties within free zones
- Access to global trade corridors
- Advanced logistics infrastructure
- Stable regulatory environment
Dubai’s ports and airports consistently rank among the busiest globally, supporting smooth trade flows.
Common Challenges
Choosing the right license
Selecting the wrong activity can lead to delays and additional costs
Regulatory compliance
VAT and corporate tax obligations must be handled correctly
Bank account approvals
Strict compliance checks require organized documentation
Market competition
Dubai is competitive. Strong positioning and pricing strategy matter. Working with experienced advisors can help reduce friction during setup.
What the Future Looks Like?
Trading in Dubai is evolving fast –
- Rapid growth in e-commerce
- Greater use of AI and blockchain in supply chains
- Increased focus on sustainable and green trade initiatives
Government support for innovation and sustainability is shaping the next phase of growth.
Conclusion
Dubai remains one of the strongest global locations to start a trading business. The mix of strategic geography, tax efficiency, infrastructure, and investor-friendly policies creates a serious opportunity. With the right planning, proper licensing, and solid compliance, a trading company in Dubai can scale locally and internationally with confidence.