Introduction
Starting a business in the UAE has become increasingly attractive for entrepreneurs worldwide. Among the various business structures, a general trading license stands out as one of the most versatile and cost-effective options. It allows businesses to trade a wide range of products under a single license, offering maximum flexibility for startups and growing enterprises.
However, understanding the cost, setup process, and legal requirements is crucial to avoid unnecessary expenses. In this guide, Business Hub DCS will walk you through everything you need to know about obtaining the cheapest general trading license in UAE in 2026.
What is a General Trading License?
A general trading license is a business license that enables companies to trade multiple categories of goods without the need to apply for separate licenses for each product type. Unlike specific commercial licenses, which restrict businesses to a particular trade, a general trading license provides broader operational flexibility.
Key Benefits of a General Trading License
- Trade multiple products: Sell a variety of goods under one license.
- Simplified operations: Avoid multiple permits and approvals.
- Scalability: Expand your business as needed without additional licenses.
- Cost-effective: Save money compared to applying for multiple specialized licenses.
A general trading license is ideal for startups, SMEs, and entrepreneurs looking to maximize product offerings with minimal administrative complexity.
Cheapest General Trading License in UAE
One of the most critical considerations for entrepreneurs is how much it will cost to start a trading business in the UAE. Here’s a detailed breakdown:
1. Base License Fee
The general trading license itself typically ranges between AED 12,500 – 35,000+ per year, depending on the number of business activities and other factors.
2. Trade Name Reservation
Before applying, you must reserve your trade name with the UAE authorities. This usually costs AED 600 – 1,000.
3. Initial Approvals
Certain business activities require preliminary approvals. These administrative fees typically range from AED 150 – 400.
4. Legal Documentation (MOA / NOC)
Drafting your Memorandum of Association (MOA) and obtaining any necessary No Objection Certificates (NOCs) usually cost AED 1,000 – 1,500.
5. License Issuance Fee
The final step of license issuance comes with fees of approximately AED 1,000 – 3,000, depending on the complexity of your setup.
Estimated Total Startup Costs
| Component | Approx. Cost (AED) |
|---|---|
| Base General Trading License | 12,500 – 35,000+ |
| Trade Name + Initial Approvals | 1,000 – 3,000 |
| Legal Documentation | 1,000 – 1,500 |
| Estimated Total | 15,000 – 40,000+ |
These costs provide a realistic budget for entrepreneurs looking to establish a trading business without overspending.
Step-by-Step Guide to Obtaining a General Trading License in UAE
Starting a general trading company may seem complex, but by following the steps below, you can simplify the process:
Step 1: Trade Name Reservation
Choose a unique trade name for your company and reserve it with the authorities. This ensures no other business uses your desired name.
Step 2: Define Business Activities
Select the products or categories you intend to trade. The number of activities influences your license fee, so it’s important to balance flexibility with cost-effectiveness.
Step 3: Prepare Required Documents
- Passport copies of the owners
- Proposed trade name reservation certificate
- No Objection Certificate (if applicable)
- Drafted Memorandum of Association (MOA)
Step 4: Submit Application
Submit your application along with all documents and pay the required fees.
Step 5: Approval & License Issuance
Once your application is approved, the authorities will issue your general trading license, allowing you to start trading officially.
The entire process typically takes a few days to a couple of weeks, depending on the efficiency of document submission and approvals.
Factors That Influence the Cheapest License Cost
Several variables affect the overall cost of obtaining a general trading license:
1. Number of Activities
Including more products or trade activities increases the license fee. Plan your list carefully to avoid unnecessary costs.
2. Package Options
Some license providers offer basic and premium packages. Basic packages cover essential trading activities, while premium options may include office support, visas, or other benefits.
3. Administrative Fees
Legal drafting, approvals, and documentation can add up if not planned. Choosing streamlined services can help keep the costs low.
By carefully considering these factors, you can secure a cost-effective license without compromising operational flexibility.
Benefits of a General Trading License
A general trading license offers several advantages for entrepreneurs:
1. Flexibility in Trading
Trade multiple products without needing multiple licenses.
2. Cost-Effectiveness
Avoid paying separate fees for each product or business activity.
3. Business Scalability
Easily expand your product offerings as your business grows.
4. Credibility
A general trading license demonstrates legitimacy to partners, suppliers, and customers.
5. Simplified Compliance
Managing one license is easier than handling multiple specific licenses.
Common Mistakes to Avoid
When applying for a general trading license, avoid these pitfalls:
- Underestimating administrative fees – plan for all documentation and government charges.
- Not including enough activities – ensure your license covers all intended products.
- Ignoring license renewal costs – always budget for annual renewal.
- Delaying document preparation – delays in approvals can slow down your business launch.
People Also Ask FAQs
1. What is the cheapest business to start in the UAE?
A general trading business is among the most cost-effective ways to start trading multiple products. Startup costs typically range from AED 15,000 – 40,000+, depending on selected activities and administrative fees.
2. How to start a general trading company in the UAE?
Reserve your trade name.
Define your business activities.
Prepare required documents (passport, MOA, approvals).
Submit application and pay fees.
Receive your general trading license and begin operations.
3. What are the types of trade licences in UAE?
General Trading Licence – trade multiple goods.
Commercial Licence – specific product trading.
Professional License – service-based businesses.
Industrial Licence – manufacturing or production activities.
4. Which license is best in the UAE?
For businesses planning to trade multiple product categories, a general trading license is often the most practical and versatile choice.
Tips for Saving on General Trading License Costs
- Plan activities carefully – include only what’s necessary.
- Use professional consultants – avoid mistakes that lead to extra fees.
- Choose cost-efficient packages – balance services vs. needs.
- Prepare documents in advance – reduces delays and extra charges.
Conclusion
Obtaining the cheapest general trading license in UAE in 2026 is a strategic move for entrepreneurs looking to trade multiple products efficiently and cost-effectively. With proper planning, understanding the fees, and careful selection of activities, you can secure a license starting from approximately AED 15,000+.
Business Hub DCS provides expert guidance to help you navigate this process, ensuring a smooth setup and long-term success for your trading business.