General Trading License in Free Zone: Which Zones Allow It?
A general trading license in a free zone allows you to import, export, buy, and sell virtually any goods (with some restrictions on hazardous or controlled items). Unlike specialized licenses that limit business activities, a general trading license offers maximum flexibility. But not all free zones offer general trading licenses—this guide shows you which ones do and what it costs.
What is a General Trading License?
A general trading license permits a company to trade in a broad range of products and goods. This differs from specialized licenses (e.g., healthcare, logistics, technology) which restrict activities to specific sectors. General trading is the most versatile option for import-export businesses, wholesale, and distribution companies.
Key Advantages of General Trading License
- No product restrictions (except controlled items)
- Can conduct import-export activities
- Flexibility to diversify business focus
- No minimum revenue requirements
- Can add new product lines without license modification
- Shorter setup time than specialized licenses
Which Free Zones Offer General Trading Licenses?
| Free Zone | Offers General Trading | Setup Cost (AED) | Annual Renewal (AED) | Best For |
|---|---|---|---|---|
| Ajman Free Zone | Yes | 2,000 – 3,000 | 1,200 – 1,800 | Budget-conscious traders |
| RAK ICC | Yes | 2,500 – 3,500 | 1,500 – 2,000 | Flexible traders |
| Fujairah Free Zone | Yes | 2,500 – 3,500 | 1,500 – 2,000 | Maritime trade |
| Sharjah Airport Free Zone | Yes | 3,500 – 4,500 | 2,000 – 2,500 | Logistics-focused |
| Jafza Dubai | Yes | 4,000 – 5,500 | 2,500 – 3,500 | Large-scale traders |
| DMCC | Limited* | 5,000 – 6,500 | 3,000 – 4,000 | Precious metals, diamonds |
*DMCC is specialized for commodities, precious metals, diamonds. General trading is limited to these categories.
General Trading License Cost Breakdown
Setup Costs in Detail
Ajman Free Zone (Most Affordable):
- License registration: 1,500 AED
- Administrative fees: 300-500 AED
- Trade name registration: 200 AED
- Office space (if required): 0-2,000 AED
- Visa sponsorship (if needed): 800-1,200 AED per person
- Total: 2,800-5,000 AED
RAK ICC (Balanced Option):
- License registration: 2,000 AED
- Administrative fees: 400-600 AED
- Trade name registration: 300 AED
- Office space: 0-3,000 AED
- Visa sponsorship: 900-1,400 AED per person
- Total: 3,600-7,300 AED
Jafza Dubai (Premium):
- License registration: 3,000 AED
- Administrative fees: 800-1,000 AED
- Trade name registration: 500 AED
- Office space: 2,000-5,000 AED
- Visa sponsorship: 1,200-1,500 AED per person
- Total: 7,500-13,000 AED
Annual Renewal Costs
Annual license renewals cost significantly less than setup. Expect 1,200-3,500 AED annually depending on the zone, plus visa renewal fees (800-1,500 AED per employee) and any office space costs.
Products Allowed Under General Trading License
Commonly Permitted Products
- Electronics and electrical equipment
- Textiles and clothing
- Food and beverages (non-alcohol, non-pork)
- Machinery and tools
- Chemicals and raw materials
- Construction materials
- Automotive parts and accessories
- Furniture and home goods
- Cosmetics and personal care (non-pharmaceutical)
- Packaging materials
Restricted or Prohibited Products
- Weapons, ammunition, explosives
- Hazardous chemicals (require special permits)
- Pharmaceuticals (require healthcare license)
- Narcotics and controlled substances
- Counterfeit or pirated goods
- Alcohol and pork products (Islamic restrictions)
- Radioactive materials
- Items embargoed by UAE authorities
General Trading License Requirements Checklist
- ✓ Passport copy of company director/owner
- ✓ Emirates ID (if applicable)
- ✓ Business plan or details of intended activity
- ✓ Initial capital investment (varies by zone: 50,000-200,000 AED)
- ✓ Office space address (or virtual office)
- ✓ Bank reference letter (if applicable)
- ✓ No legal or regulatory violations
- ✓ Compliance with UAE trade laws
General Trading License vs. Specialized Licenses
When to Choose General Trading
Choose general trading if you plan to:
- Trade in multiple product categories
- Keep business options open for future expansion
- Engage in traditional import-export
- Avoid lengthy specialized license application processes
- Minimize setup and compliance costs
When to Choose Specialized License
Consider specialized licenses if you plan to:
- Focus exclusively on one industry (tech, healthcare, media)
- Access industry-specific incentives or benefits
- Gain regulatory recognition and credibility in your sector
- Access specialized infrastructure (tech hubs, media zones)
- Require specific compliance frameworks
Application Process for General Trading License
Step 1: Choose Your Free Zone (1-2 days)
Select a zone that offers general trading and has competitive pricing. Northern emirates zones offer lower costs, Dubai zones offer better logistics infrastructure.
Step 2: Prepare Documentation (2-3 days)
Gather all required documents. Get certified copies of passport and ID if applicable. Prepare a brief business description (50-100 words).
Step 3: Submit Application (Same day)
Submit your application to the free zone authority. Processing typically takes 2-5 days for general trading licenses.
Step 4: Approval and Payment (3-5 days)
Once approved, pay the license registration fee. The zone will issue your trade license immediately (sometimes same day).
Step 5: Bank Account Opening (5-7 days)
Open your company bank account with your trade license. Deposit your minimum capital requirement.
Step 6: Office Setup (Optional, 5-10 days)
If required, arrange office space or confirm virtual office arrangements with the zone.
Step 7: Visa Processing (If needed, 10-14 days)
Process employee visas if you need staff. Visas take 7-10 days after initial processing.
Total Timeline: 2-4 weeks from application to fully operational business
Top 3 Most Affordable General Trading Zones
1. Ajman Free Zone
Total Year 1 cost: 2,800-5,000 AED. Best for startups with limited budget. Offers virtual offices and minimal bureaucracy. No office requirement if using virtual option.
2. Ras Al Khaimah ICC
Total Year 1 cost: 3,600-7,300 AED. Slightly higher than Ajman but offers better brand recognition and easier banking. Good middle-ground option for established traders.
3. Fujairah Free Zone
Total Year 1 cost: 3,500-6,500 AED. Excellent for maritime and port-related trading. Lower than Dubai zones, well-positioned for shipping.
FAQ
Q: What’s the cheapest way to get a general trading license?
A: Ajman Free Zone is the most affordable at 2,800-3,000 AED total setup cost including license, admin fees, and trade name registration. Avoid Dubai zones if cost is your primary concern.
Q: Can I trade any product with a general trading license?
A: No, hazardous materials, pharmaceuticals, weapons, and alcohol are prohibited. Always verify your specific products are allowed before setting up. Contact the free zone authority for a product approval letter.
Q: How long does it take to get a general trading license?
A: Application to license issuance typically takes 2-5 days. Full business setup including bank account takes 2-4 weeks. Express processing available for additional fees (500-1,000 AED) reduces timeline to 3-5 days.
Q: Can I start trading immediately after getting the license?
A: Technically yes, but you should have a bank account open and minimum capital deposited first. This prevents legal issues and ensures proper financial record-keeping. Allow 1-2 weeks for bank account setup.
Q: Do I need office space for general trading license?
A: Most northern emirates zones offer virtual office options requiring no physical space. Dubai zones like Jafza typically require office space (physical or virtual). Verify with your chosen zone before applying.
Ready to launch your general trading business? ecompanysetup.com can process your license in the fastest, most cost-effective way.
Related Articles
More guides you might find helpful
RAKEZ Free Zone: Ras Al Khaimah Business Setup Guide
RAKEZ Free Zone: Ras Al Khaimah Business Setup Guide RAKEZ (Ras Al Khaimah Economic Zone) is one of...
Mar 22, 2026Free Zone Company Bank Account: Best Banks & How to Open
Free Zone Company Bank Account: Best Banks & How to Open Opening a bank account is one of...
Mar 22, 2026Offshore Company in UAE: RAK ICC & JAFZA Offshore Guide
Offshore Company in UAE: RAK ICC & JAFZA Offshore Guide Establishing an offshore company in the United Arab...
Mar 22, 2026Need Help With Your Business?
Get expert guidance on company formation, licensing, and visa processing in Dubai