The short answer
A general trading activity lets one company import, trade and re-export a wide range of allowed goods under a single licence, instead of listing each product line. It is offered by Free Zones such as IFZA and RAKEZ, and on the mainland. Restricted goods (for example food, medicines, cosmetics or chemicals) still need approval from the competent authority. A Free Zone suits trade with companies and exports; a mainland company is needed to sell directly to UAE consumers or run a showroom.
What a general trading licence covers
IFZA describes its general trading activity as covering firms "engaged in importing, trading and re-exporting of any of the allowed goods", and notes that goods needing special approval can also be traded under it once the competent department gives its approval. In practice it suits:
- Traders who buy and sell many product types.
- Import and export businesses moving goods through the UAE.
- Sourcing agents and distributors working for several brands.
- New trading companies that don't yet know exactly which products will sell.
General trading or specific trading activities?
| General trading | Specific trading activities | |
|---|---|---|
| Products | A wide range of allowed goods | Only the product groups listed |
| Flexibility | Add new products without a licence change | New product groups need an amendment |
| Cost | Some zones charge extra for it | Usually within the included activities |
| Banking | More questions about what you trade | Simpler to explain |
| Best for | Many products, changing ranges | One or two product categories |
If you sell one product category, a specific activity is often simpler and easier to bank. Search the IFZA activity list for "trading" to see the specific options.
Restricted goods
General trading does not mean any goods. These usually need approval from the competent authority first:
- Food and beverages
- Medicines, medical devices and supplements
- Cosmetics and personal care
- Chemicals, pesticides and fertilisers
- Telecom and electronic equipment that needs type approval
- Anything related to weapons, security or defence
Some regulated goods can then be traded under general trading; others need their own activity. We check your product list before you apply.
Free Zone or mainland for general trading?
| Free Zone | Mainland | |
|---|---|---|
| Customers | Companies in the UAE and abroad, re-exports | Anyone in the UAE, including consumers |
| Showroom or shop | No | Yes |
| Storage | Third-party logistics or a Free Zone warehouse | Your own premises or a warehouse |
| Office | Flexi-desk is often enough | Registered premises |
Free Zones that suit trading
Customs, storage and VAT
- Customs: if your company imports or exports goods itself, it usually needs a customs registration.
- Storage: many traders start with a logistics partner; you can move to your own warehouse later.
- VAT: 5% on sales in the UAE; registration is mandatory above AED 375,000 of taxable sales in 12 months. Exports can be zero-rated with proof of export. See VAT registration.
- Records: keep invoices, shipping and customs documents for every sale. See bookkeeping.
Banking for a general trading company
Banks look closely at general trading, because it can cover many goods and countries. Meydan Free Zone itself notes that activities such as general trading can make account opening harder. What helps: a clear list of what you actually trade, named suppliers and buyers, the countries involved and your expected turnover. See bank account opening.
Documents for a trading company
To set up
- Passports, photos and proof of address of the owners
- Company documents if a company is a shareholder
- A list of the goods you will trade
For the bank
- Main suppliers and buyers
- Countries involved
- Expected monthly turnover
- Draft contracts or purchase orders
For every shipment
- Commercial invoice and packing list
- Bill of lading or airway bill
- Customs declaration
- Proof of export for zero-rated sales
Common mistakes traders make
- Assuming "general" means anything. Regulated goods still need approval.
- A vague business profile. "General trading" with no named products or countries worries banks.
- Selling to UAE consumers from a Free Zone without the right channel.
- Missing export proof. Without it, an export can't be zero-rated for VAT.
- Mixing shipments in the books. Each shipment needs its own documents and entries.
How we set up your trading company
- Free 30-minute call. We look at your products, suppliers and customers, and choose general or specific trading, Free Zone or mainland.
- Company setup. Activities, name, licence and visas.
- Approvals for any regulated goods.
- Bank account, with a file built around your real trade.
- Customs, VAT and books, so every shipment is recorded correctly.